HAVE YOU EVER LOOKED AT COMPANIES like Microsoft or Apple and thought, “I wish I could have invested in those companies when they were just getting off the ground.” Well, consider this your lucky day. The following is my completely opinionated, perfectly unscientific (but by no means invalid) explanation as to why serious investors need to buy into this region’s resource development story.
Atlantic Canada is just starting to recover from the global resource development slowdown as countless projects here and elsewhere were stalled or halted these past five years. But to paraphrase former N.L. premier Brian Tobin, our resources haven’t gone anywhere. We still have world class offshore petroleum and onshore mining resources in production. We have excess electrical power, vast land holdings, even vaster brain power, and incredible undiscovered potential. In other words, this is the ideal time to get in on the ground floor of our recovering resource development sectors.
The window of opportunity is already shrinking. This past September, speaking at the Placentia Bay Industrial Showcase, Newfoundland and Labrador Premier Dwight Ball cited a litany of lucrative international investments. He talked about the more than $16 billion the province has attracted in natural resource development commitments in the last 18 months alone. He cited Equinor and Husky Energy’s move into deepwater production with expectations of first oil in 2025—and an associated $14 billion worth of economic activity. He talked about the $75 million in R&D, education and training activity that’s to come over the next decade. And he referenced Grieg Seafood’s $250-million aquaculture project that will make Newfoundland and Labrador the largest aquaculture producer in eastern Canada. And Husky Energy’s decision to move forward with the West White Rose Extension. And Vale’s construction of an underground mine at Voisey’s Bay. And…
And that’s just in Newfoundland and Labrador. Anaconda is digging for gold in Nova Scotia, there’s talk of the Energy East Pipeline coming back into play, and Puma Exploration is trying to jumpstart a zinc mine in Bathurst, New Brunswick.
Things are heating up, my friends. My advice to investors: strike while the iron is hot.