Lawrence Roulston is a geologist and the editor of Resource Opportunities, a subscriber supported publication focused on junior miners.
In an interview at the Cambridge House diversified investment conference in Vancouver yesterday, Roulston told his interviewer that the junior mining stock market is going to be low, albeit with quality projects receiving adequate finance, until retail investors come back into the sector and Roulston doesn’t see that happening for one or two more years.
“A lot of the companies should not be raising money because they will be doing the investors a favour.”
“The companies that have good projects and good management teams that are capable of adding value, they are finding all the money they need.”
“So far this year, 12 of the companies we cover in Resource Opportunities have raised collectively $184 million dollars… if a company has a good project and a good management team they have all the money they need.”
“There are at least a few other investors out there, whether individuals or institutions, that know this business, that recognize its cyclical, and the time to come into the market is when the prices are low and that’s now.”
“My strategy for this year is focused largely on situations that are near to cash flow. There is a lot of money available to invest in situations which are either cash flowing or has near term cash flow potential. So right now that is a big part of what I am focused on.”
“The slowdown means only growing a 7.5% growth this year, and this year they used a lot of metal. So I’m not the least bit concerned about the slow down in China.”
“Its never been more important for investors to differentiate between the companies.”
“I won’t invest in a company unless I’ve been face to face with management.”
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