Live From the Survivor’s Ball – Millrock Resources CEO Greg Beischer

POSTED ON February 03, 2016 BY Tommy Humphreys
CATEGORY Millrock Resources,

At the Vancouver Resource Investment Conference last week, veteran junior mining analyst John Kaiser described the scene as a survivor’s ball.

“This is the cream of the crop assembling into this place," Kaiser said. He continued, "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."

Kaiser was not alone in seeing explosive potential. Rick Rule, Chairman of Sprott Global Resource Investments, also weighed in.

“What I can tell you is that four or five years from now we are gonna look back and say these were the good old days, these were the days that a newsletter writer, or an investment manager, or a conference promoter could expand his market share, just by showing up," he said. "Because the competition is folding this is the point in time where an investor could radically increase his or her wealth just by showing up.”

One such survivor that hasn't folded is Millrock Resources (TSX:MRO). Millrock CEO Greg Beischer spoke to CEO.CA’s Carter Smith and gave an upbeat outlook for an industry set to turn.

Here's a transcript:

Gregory Beischer: Millrock is a prospect generator company. We’re based in Anchorage, Alaska and we explore that state as well as British Columbia and Sonora State, Mexico.

I’ve actually never been quite as optimistic as I am now. After 8 years of diligent work and 5 really bad years, the cycle is going to change, and I know that our company is going to be the first out of the chute when the tide starts to turn.

We’re building out our property portfolio right now. We’re able to get bargains like I’ve never seen before so we’re amassing a much larger portfolio of properties at very, very low cost, getting ourselves ready for the change in the cycle.

I’ve been able to do deals that I’ve never been able to do before. Recently in British Columbia we acquired three huge projects. It took us the ability to sign 9 different deals on the same day with the individual land and royalty holders. That never would have been possible in any other market. These down cycles are great for generative companies like ours that have the staying power to get through these bad times to get ready for the good times.

Exploration is a high-risk game. Not many exploration projects successful find an orebody. So if we have 8-10 active projects at any one time, then our odds should be 8-10 times better. But it’s virtually impossible to finance 8-10 exploration projects simply by selling stock in the company so we only spend our shareholders money developing the projects to a certain point, and then we bring in a partner company to fund the first $5-7 million of drilling.

I think a prospect generator model is always the smart way to go whether down cycle or up. The reality is, it takes a consistent systematic effort effort over a period of years to be successful in discovering orebodies. Our business model gives us that ability to be consistent, to always be exploring, and not at the whim of the venture capital markets.

Millrock Resources Inc.
TSXV:MRO
52 week range: $0.15-0.49, last at $0.25
Shares outstanding: 31,804,758
Market cap: ~$7.95 million
Cash: Approx $2.5 mil at Dec 31

*All figures approximate

The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. The information contained in the reports have been compiled from sources CEO.CA believes are reliable; however, CEO.CA makes no guarantee, representation or warranty, expressed or implied, as to such information’s accuracy or completeness. The views expressed are those of the author. All opinions and estimates contained in the reports are based on assumptions the author believes to be reasonable as of the dates of the reports but are subject to change without notice. The author may from time to time hold or transact in the securities mentioned. At the time of writing, the author is long MRO. Small mineral exploration companies like Millrock are not suitable for most investors and can lose their entire value. Read Millrock’s SEDAR profile for important risk factors.

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

Disclaimer:

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Forward-Looking Statements: This article may include certain "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the potential of the Company's properties are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on a number of material factors and assumptions. Important factors that could cause actual results to differ materially from Company's expectations include actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements which speak only as of the date of this article. The Company disclaims any intention or obligation, except to the extent required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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