Denis Laviolette: Eyes on Junior Explorers as Market Turns
Sentiment is changing and many smaller prime companies have been ‘gobbled up’ leaving room for smaller explorers to come in. Many projects that had been put aside in the downturn will be coming back online with the upturn.
Look for management teams that can conserve capital and use it efficiently, using small amounts of money and creating value with it and that have accessible deposits that are big enough to be worth it. The company’s story is very important right now too as new investors look to the sector.
Exploration is never certain but there are certain geochemical indicators and historical successes that can help with the evaluation. Some companies are basically in it to earn salaries and have a lifestyle and others are keen on developing real potential. Determining which is which is where an investment manager can prove their worth.
Denis also describes Xtra-Gold Resources in detail, telling it’s ‘story’ as an example of a promising, well managed and resourced investment opportunity. He also describes several other very promising companies, especially in the Yukon.
Talking points from this week’s interview:
• Majors need to replace ounces in the ground
• Some companies are in it for their salaries
• Things are very much heating up in the Yukon
• As promising companies are all brought out, new juniors are emerging