As the dark days of COVID-19 are eroded by brighter times ahead, the minerals market is reemerging as an area worthy of exploration for sellers and buyers alike. Mineral owners, who’ve held their assets tight during recent times of low demand, are now reconsidering sales opportunities as the industry strengthens.
It’s a market that’s seen steady improvement within the past year. Although the first half of 2021 proved challenging, market insiders began observing a steady uptick during the second half of the year.
The trend has continued through the initial months of the new year as market hesitancy eases among both buyers—who weren’t keen to buy in a depressed market—and sellers, who were reluctant to offload their minerals for less than premium prices.
“We’re starting to see the price of minerals rebound,” said Garrett Phelan, the managing partner at US Mineral Exchange. “We're starting to see some optimism, and I think sellers are also beginning to understand that now may be a good time to remove some of the volatility and capture some of these prices. We’re optimistic things will continue to improve.”
Amid improving market conditions, sellers might wonder how to yield the maximum price for their assets during a time when certain nuances (including contract wording, timing and the right marketing) can make or break a deal.