Lingering love for junior miners in Switzerland and Germany

POSTED ON November 12, 2014 BY Tommy Humphreys
CATEGORY Europe, Germany, Riverside Resources, Switzerland,

Munich skyline Source

In a capital intensive business such as mineral exploration and development, the ability for a company president or CEO to find new money is of paramount importance.

One such junior mining CEO, John-Mark Staude of Riverside Resources (RRI.TSXV), is an experienced, hard working geologist and deal-marker we trust. Luckily for Riverside they do not need money currently but during his trip last week in Europe he had the chance to hear and experience first hand other companies looking for funding and finding it tough.

Mr. Staude, along with tens of other Canadian junior mining companies, was in Switzerland and Germany presenting at investment conferences last week along with mining investment giant Robert Friedland and others.

Via email, John-Mark said the Zurich Precious Metals Summit (webcasts) was well attended, but the attendees were lacking a sense of urgency to purchase mining equities. According to Staude, investors there are favoring the long US dollar trade, especially amid gold’s recent drop.

Staude said some of the fund managers he spoke with in Zurich suffered redemptions in 2014 and were not looking for new investments presently.

Dr. John-Mark Staude, President, CEO and Director of Riverside Resources (RRI.TSXV)

In Munich, Staude saw strong interest among retail investors for bullion and coins. He said First Majestic Silver sold out all of the coin supply they brought to the show, as did others who brought some bullion for sale with them.

The companies presenting caught up with some existing shareholders but found few new ones in Munich, Staude relayed. He added that the newsletter writer presentations were well attended by the 1400 plus general public attending the conference each of two days.

In Geneva, Staude heard investors feeling the pinch of new government regulations for international investors. This newfound bureaucracy and paperwork is hurting fund managers there. Staude said they were looking “beyond” gold and mining shares presently.

The Swiss and German investors want cash flow. "They like money flowing out as dividends and growing operational cash flow and positive financial metrics currently."

Staude also said the European investors were not interested in uranium, despite the recent 25% uptick in that commodity price.

In conclusion, it doesn’t look like Swiss and German investors are very interested in junior mining equities right now.

Down in Carlsbad, California, Rick Rule tells Tekoa Da Silva he has the cash that junior miners need, he just wants to give it to them at cheap prices.

We thank John-mark for sending in this dispatch. Follow him by signing up for Riverside's email list and adding RRI.v to your watch list.

Tommy Humphreys

Tommy Humphreys, 30, is an entrepreneur, investor and writer from Vancouver, Canada. He founded CEO.CA, a popular junior mining and Canadian finance blog, in 2012. He has been the president of Pacific Website Company Inc., a private marketing and web development company, since 2007. Tommy has authored articles for Globe and Mail, Financial Post and others. He speaks at select conferences. Reach him by email: tommy@ceo.ca. Follow him on Twitter: @TommyHump More →

Twitter: @tommyhump

tommyhump@gmail.com

Tommy Humphreys

Twitter: @tommyhump

tommyhump@gmail.com

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One thought on “Lingering love for junior miners in Switzerland and Germany”

Peter Bell says:

November 12, 2014 at 8:04 am

One number that stuck out for me in webcast of presentation was 7 vs. 3.5. Dr Staude said they planned for partners to spend $3.5M in 2014, but they actually spent $7M. Wow. Seems like a big win to me. Go team!

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Lingering love for junior miners in Switzerland and Germany

One thought on “Lingering love for junior miners in Switzerland and Germany”

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