Streetwise Reports' Article Archives — November 2015 back to current month (9)
The Upside of a Down Mining Market (11/30/2015)
When the instinct is strongest to curl up in a ball and wait out the ravages of the down market is also when smart companies snap up distressed projects and get to work while capital costs are low. In this interview with The Gold Report, veteran investors Bob Moriarty of 321gold.com and Adrian Day of Adrian Day Asset Management share their messages to mining company CEOs and investors about advancing frugally to avoid being left in the dark. To make investing in teams doing the right things even easier, they identify a dozen companies that have already taken the contrarian advice to heart.
After five trying years, RAB Capital Founder and President Philip Richards sees the light at the end of the tunnel. In this interview with The Gold Report, he argues that a continued zero-interest-rate policy from the Fed will be good for gold and silver, while continued quantitative easing will be good for base metals. Many fine mining companies now trade at deep discounts relative to their NPVs, and Richards suggests a half-dozen poised to take off once the new bull market finds its legs.
Michael Curran Goes Down-Market Shopping for Winners (11/19/2015)
Most of the low-cost gold producers are fairly valued, says Michael Curran, managing director and mining analyst with Beacon Securities, so he's heading down-market to the advanced development opportunities and early-stage explorers that he thinks could become low-cost producers. Sure there is risk, as Curran explains in this interview with The Gold Report, but the reward could come via either a takeover bid by an established producer seeking to lower its overall costs or by supporting these companies as they transition into emerging producers.
Investing in diamond equities is quite different from investing in gold equities, explains Matthew O'Keefe, vice president and senior analyst with Dundee Capital Markets, one of a handful of Canadian analysts covering the diamond space. O'Keefe says diamond deposits require "an order of magnitude" greater study than gold deposits in order to properly determine grade, and says diamond prices are almost exclusively driven by consumer demand. In this interview with The Gold Report, O'Keefe sheds some light on two undervalued diamond producers, as well as three promising developers.
Matthew O'Keefe, vice president and senior analyst with Dundee Capital Markets, says big gains—50% or greater—in mining equities can come when stocks get rerated. That typically happens when explorers make a significant discovery, developers turn into producers, and producers become even bigger producers. In this interview with The Gold Report, O'Keefe discusses two companies developing gold projects with beefy economics and five producers with healthy growth profiles.
Few know and understand Québec-based mining projects like Eric Lemieux, mining analyst with PearTree Securities Inc. He understands that the low commodity price environment is hindering widespread exploration but explains that for companies with cash, exploration dollars go further in tough times. In this interview with The Gold Report, Lemieux provides some perspective on several brownfield exploration projects he recently visited in Québec's Abitibi and Val-d'Or regions, while providing updates on other Québec gold and other mining projects with near-term catalysts.
From his perch in Johannesburg, Swiss-born Craton Capital Fund Advisor Markus Bachmann has been watching the metals price and cost cycles, and he has some good news. The days of mining company managements using shareholders to support their lifestyle may be nearing an end. He is seeing more companies run like a business, throwing off free cash flow even in a depressed price environment and providing opportunities to get in on the ground floor of turnaround stories. In this interview with The Gold Report, Bachmann shares six names from the portfolio that pass his rigorous resource and operational criteria tests.
How to Spot Buyout Clues in Today's Resource Market (11/02/2015)
What if you could tell before a press release comes out that a company is poised to be bought out, possibly at a nice premium? Sounds good, right? By watching historic patterns, that might just be possible. The Gold Report reached out to experts who have been around through enough cycles to know and asked for the clues they watch that an acquisition might be imminent. From location and early investment to derisking levels, you just have to know what to look for to position yourself for a liquidity event.
In September, former Morgan Stanley Investment Management Chief Global Strategist Joe McAlinden announced in an interview with The Gold Report that he had reversed his view on commodities. In this interview, he predicts that the gold price could double in the next two year and envisions even more upside for the mining equities.
|"I expect GBR to get taken out at multiples of this share price."|
|"Drill results highlight the upside potential at MAG's Juanicipio."|
|"We came away from a site visit to LIO's Tuvatu very impressed."|
|"PVG's Brucejack continues to deliver strong free cash flows."|