By Tom Winnifrith | Sunday 5 March 2017
2017 will be a lucrative year, as we have seen the bottoming of the bear market. Uranium appears to have reached it’s bottom in early December. We are in the beginning of a new uranium bull market which should last for three to four years. The agriculture minerals are under-invested and phosphates may be a straight forward play. And gold shares will also have a run.
That is the thesis of Matt Geiger of MJG Capital which is a limited partnership specialising in long-term natural resource investments. matt explains why he thinks 2017 will be do good for investors in mining stocks in the latest podcast with Palisade Capital.
Matt thinks that the juniors are going to continue to do well through 2019. If you have an opportunity to take part in private placements, this is a good way to improve your performance. There is no reason to buy common shares in a market like this and he is surprised more investors are not interested in these opportunities.
Evaluating management is key to investing regardless of the stage a company is at. You need people that have already been successful, as mineral exploration is a very risky endeavour. There seems to be a dis-proportionate amount of discoveries done by certain groups of people.
Mr. Geiger likes the prospect generator model which is his preferred method to evaluate exploration companies. He tells us about the three different metrics that he relies on. Matt also discusses various benchmarks for development plays and what he likes to see.
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