I'm Priscila Barrera with the Investing News Network, and here with me today is Brent Cook
of Exploration Insights.
Brent, thank you so much for joining us again.
Always a pleasure, thank you.
Alright, so we're here at VRIC, the first conference of the year.
Let's start maybe by talking about the main trends you saw in the exploration sector in
2018.
And do you expect any of them to carry into 2019?
Yeah, I think what we've been seeing last year and somewhat the year before — and
I expect to increase this year
is we're going to see mining companies — producing companies — continue investing
in early stage exploration via either private placement financings in companies
or joint ventures with companies.
And that's coming about because they're looking down the pipeline
And they are not finding enough new metal, new deposits
to replace what they're mining.
And they're finding it is much more efficient time-wise and cost-wise
to go via a junior explorer operating in an area they're interested in rather than trying
to set up their whole team and do it on their own.
So I think that's going to continue.
And were there any surprises last year in the sector?
Anything that happened that maybe you were not expecting?
I mean, the big mega mergers — I am somewhat surprised, but I guess it makes sense in retrospect.
Not sure it's a good or bad thing, but it's happening.
It was a worse year than I thought it would be, how's that?
That was a surprise.
And when it comes down to it there were not very many discoveries.
You know, anything that looked like it was a discovery, almost every one of those ended
up being a failure.
There were very few discoveries.
Great.
And so let's talk about exploration due diligence.
From your experience, when looking at a company and evaluating a company, what would you say
is the first maybe warning signal that this might be such a good investment?
That's a good question.
I think for anyone obviously your interest is generated somehow.
You go to the website, if it's a news release, you look at the news release.
That release should contain enough information that you can evaluate the results.
And what I mean by that is you need complete assay results, you need a plan map, potentially
a section map, that kind of tells you what's going on — even if you're not technically
competent to really understand it, if the company's presenting all that information
to you it tells you they're trying to be honest and give it to you.
Oftentimes you go there and that information's not there.
That suggests to me that they're incompetent or trying to hide something.
So that's the number one — you can screen so many out that way.
And then after that I think it's important that you talk to the people in charge to see if they
have a concept of how much it's going to cost to find what they're looking for, what that's
going to look like and how they're going to know when they fail.
You need to know when you fail.
And in terms of maybe more of the macro level, what would you say are some of the factors
investors should be keeping an eye out for in 2019 that could impact the exploration
sector?
Well I think number one is the US dollar, and confidence in the US dollar I think is
rolling over.
You know, the general global markets are slowing if not rolling over.
The economics around the world are stalling if not rolling over.
And then we've got Trump in the US who is doing his best to decimate the goodwill the
US has generated over the past decades, at best.
That's going to impact the US dollar.
We're losing our allies, confidence in the US dollar is declining.
And gold should get some of the money coming off of that.
Not a lot, it won't take much.
But it'll start looking like another safe place to put your money.
So I think that's what to watch for, is what the US dollar is going to do.
Right. And this year, what would be your best piece of advice or suggestions for investors that are
maybe looking to jump into the exploration sector?
In the exploration sector you're not investing, you're speculating.
That's important to keep in mind.
And due diligence is key.
I mean we made — in Exploration Insights we've made good money on stocks that look
good, look good, the drill [results] are good and eventually fail.
Because we were able to pick that bit of information that tells us this thing is going to fail,
or it's not working, whatever — it's closing off the metallurgy.
If you can just do the due diligence and pick that ahead of the crowd you can still make
money on what turns out to be a failure.
So that's sort of what I think is really important as well.
Alright, and my final question for you today.
Could you give our audience maybe your top stock pick for this year, or what type of
companies you like right now?
We — we bought some stocks last year in the anticipation of the gold price rising.
That would be Premier Gold, which is one we've held for a long time as well.
I like what Premier Gold's doing.
I think Mirasol Resources is at a good level.
I think Evrim Resources is at a reasonable level.
So those are three that I think are reasonably safe unless everything blows up.
Alright Brent.
Thank you so much for joining us today.
You're welcome.
Once again I'm Priscila Barrera with the Investing News Network, and here with me today is Brent
Cook of Exploration Insights.
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