Hi. I'm Montana Yorke, your host, at Cambridge house.
And I'm joined today by the one and only Paul Harris, editor, American editor.
Sorry for the mining journal.
Paul, thank you for being here. Morning Montana.
You're more than welcome. Thank you for having me.
Anytime.
Paul, what is catching your eye on the market right now?
I guess it's a couple of things.
First, of all stuff, I tend to sort of focus on some of the precious metals
that tend to focus on gold, also silver, but mainly gold.
That's primarily because there's many more gold mining
companies, gold exploration companies and gold projects, but also copper.
That's really sort of the the are my main focus
recently in the past six to 12 months is building.
I've been increasingly looking at copper.
The copper prices moved above $4 a pound,
about 18 months ago, perhaps two years ago now.
And it's seems to have stayed and been consolidating around
the 4.50 a pound which is historically very high levels, you know record levels.
And so there's been an increasing interest
and influx of new junior explorers into the sector
Companies have been able to finance through their exploration programs.
There's been a lot of a lot of drilling and a lot of well not a lot,
but a good handful of companies advancing their projects.
And there's been some very good,
you know, spectacular drill results in some of the poor areas.
Filo Mining has had spectacular results.
Solaris resources in Ecuador has had spectacular results
just this past week aldebaran resources put out another
big porphyry intercept in San Juan in Argentina.
And someone in Argentina
is becoming, you know, arguably the best
and most attractive destination for copper exploration at the moment.
You can't get Jewels there for love nor money.
The companies there are getting very good results
and they've got a government behind them that really wants mining to happen
elsewhere in Latin America.
Chile's having companies are having a wait and see approach
given the change of government that's happening there,
similar things happening in Peru.
So Argentina is really having a moment in the sun, so to speak.
So is Ecuador for the same reason.
And so companies like Solaris Resources, I say, have been doing really,
really well.
Their market cap has grown to I don't know what is it, about
$1,000,000,000 now, filo mining also, they've been getting really good results.
Both companies are looking like they're they've got a really big phorphy
of free systems on their hands, which is what the big
diversified miners, people like
BHP Billiton, Glencore, Rio Tinto, Anglo American,
they're the kind of deposits that these companies
that are in short supply and that the big guys really want
to want to put into production on the on the gold side.
And the junior gold space
a year or so ago was able to raise a lot of money.
So there's been a lot of drilling going on there as well.
So we're now starting to see the results of that in terms of resource
estimates, resource updates and of course the economic studies coming out.
However, the
the stock price is
the share prices haven't really sort of tracked with
what's happening in the physical gold space
has a separation if you like.
And so while companies have been doing lots of work
approving the projects advice and their projects de-risking
their projects that the share prices have been sort of trending down.
There is one of the the brokerage firms put a report out at the end of last year
and pretty much across the board, I think it showed the share prices in 2021
are down anywhere between 30 to 50 and even to 70% in some instances.
So that's obviously quite painful
for the companies involved but it does mean for investors
you can buy more for less money.
That makes sense.
So it's been very interesting there.
And with the gold price now, I mean it's a great time to do this interview.
The gold price past 1900
dollars per ounce for only the third time ever in history yesterday.
So they started to be movements, upward movements again
in the share prices of gold producers go developers and gold explorers.
Amazing. Thank you so much Paul.
All that being mentioned the 1900 dollars per ounce, the stock trading down
does that mean that you're currently deploying capital Sure, it doesn't.
And that's primarily because I would say I've already deployed
you know, I've been following copper for 20 years.
And so when the conditions for copper is
behind this $4 per pound price moves started happening
I sort of made a lot of
I deployed in a lot of capital there, various different names.
And as new names have emerged over the past 12 months,
I have been sort of allocating to some of those as well.
I'm already positioned in certain sort of gold developers and juniors.
And so it has been painful to see the
the downward trend in prices over the past year.
But you know, one of the, I guess the mantras for successful investing is to
try and pick good horses and then sit tight and
wait for your thesis to, to, to realize itself
rather than sort of panicking and jumping out.
And that's sort of the difficult thing in the stressful thing to do.
But that's, that's where I am at the moment.
Amazing. Thank you so much.
I heard you mention specific companies.
Do you mind letting us take a peek inside your current portfolio?
Well, I'm so but got quite a few sort of gold
developers in there or companies that are rapidly getting to that stage.
So, you know, there's a couple of companies in Idaho, Integra
Resources and Revival Gold in Canada.
So Marathon Gold,
one sort of new company that
perhaps the most recent company I've invested in was collective mining.
That's very much an early stage
exploration play there here in Columbia where I'm based.
So, you know, I've got a very good understanding of
of the risk of this jurisdiction.
And so, you know, the early stage companies are not necessarily something
I typically look to invest in, but
knowing Colombia, knowing the team behind it,
you know, I was confident to be able to make that decision.
Amazing.
And Paul, you said you need to sit back and wait for your thesis to realize.
Besides that, any other tips are tricks for junior investors?
My audience Yes.
You always do as much research as you can.
This is in a sector with a lot of risks and the risk can come out of you from left
field even very good, seemingly very good projects
that are well managed and all the rest of it.
Something can, you know, slam them in the side and T-bone you.
So you do as much research as you're able to and then do some more,
you know, look into the management, look into what else is happening
in that particular jurisdiction, what other projects there are or companies
there are doing, what their experience is, how they're advancing.
Compare and contrast.
You have produced work your way down to your manageable
list of targets and then get to know them even better.
Call the companies.
Companies, generally speaking,
love talking to investors or being able to talk to investors, particularly
if you're the junior explorers or junior developers.
It is relatively easy and straightforward to get access to the CEO
or the COO, you know, the key people there that should know
the ins and outs of the project and have the knowledge that you want.
You know, they should have that to share.
It's a bit more difficult getting hold of the top guys at the bigger companies.
They're certainly in the junior space. It's very possible
Thank you.
And then besides the mining journal, you are a content creator where
my audience find me if they wanted to learn more.
My my Twitter handle is at CGS.
Let me just check that I should
research before you tell them.
Yeah, exactly.
So at CGS2021gold.
Amazing. Thank you so much.
We'll see you next time. Paul.
You're more than welcome, Montana. Thank you very much. Thank you.