After a devastating five year slump in junior resource stocks, it’s great to see veteran newsletter writers like Brent Cook and John Kaiser turning positive on the sector.
In a Investing News Network interview at last week’s Vancouver Resource Investment Conference, Kaiser said it’s the best buying opportunity of his career.
“We will never, ever again see such an assembly of management talent, inside juniors with good projects, a lot of them still with money, and at an incredible valuation level where the retail investor has never, ever, in my 30 years of experience, had a chance to get access at this type of price to this type of upside potential,” he said.< Reporter Teresa Matich asked Kaiser to share some of his deal-flow criteria.
“The first criterion I used, does the company have money? Immediately 800 companies, no money… Then I went through the rest of that batch. I looked for companies where I knew the management team was real, I look for signs that management still has skin in the game. In some cases, I’m seeing groups that were extremely talented and successful in the last decade, they put money in at 20 cents and now you can buy their stock at ten cents and it is not in any way a roll-back. I look for interesting exploration stories. I look for advanced projects where there are ounces or pounds in the ground that represent some sort of optionality in the future. Basically I’m looking for stories, something that can be done in the next while that can change the value of the company in a big way.”
Kaiser went on to talk about some of the stocks he’s covering.
Here’s a list of the companies discussed (with time-stamps):
Arizona Mining (TSX:AZ), zinc focus (2:36)
“They have now discovered an enormous sulphide carbine replacement zone of silver, lead, zinc mineralization… This is a major, major new discovery… Richard Warke is the principal…”
Mawson Resources (TSX:MAW), gold focus (4:15)
“Very juicy property package in an area that had been mismapped by government geologists… They are backed by a private equity group… They’ve got solid financial backing and its a discovery exploration type story.”
Kaiser forgets to mention Mawson is exploring in a park.
Mirasol Resources (TSXV:MRZ), gold focus (5:21)
Cash-rich, good management and interesting prospects in Chile and Argentina. “It’s more expensive than your usual bottom fish, however this is the kind of stock that if they get a major sucess… it could go to $5 or $10.”
Regulus Resources (TSXV:REG), copper focus (7:50)
Drilling a gold prospect in Nevada this summer. “Substantial copper asset who’s price has been punished by the fact they cant move at the moment because they are resolving some technical details.”
Silvercrest Metals (TSXV:SIL), silver focus (9:14)
Good prospects in Mexico and enough money to do detailed mapping and develop targets and perhaps come up with a major gold system. “Trading at near cash break up, management talent and track record, these projects, and the geological potential for almost no premium at all.”
Sirios Resources (TSXV:SOI), gold focus (10:27)
“These guys have persisted… It’s liquid, experienced exploration people on it… very-high-risk but also very-high-reward potential.”
At the conclusion of the interview, Kaiser admits he owns none of these companies.
“I do not have a conflict of interest in that regard.”