“Saint Lawrence River in winter”. Licensed under CC BY-SA 3.0 via Wikimedia Commons.Link By Henry Bonner (hbonner@sprottglobal.com) Listen to Interview Recording (Mp3) > André Gaumond has led the discoveries of six gold deposits in his career. His flagship discovery, Eléonore, earned his company around C$420 million when they sold it to Goldcorp Inc1. He retained… Continue Reading
A little-known gold exploration company in Turkey is attracting the interest of speculators in the junior resource sector. On February 12, 2015, Mariana Resources Ltd. (MARL-LN) released its findings from a property in Eastern Turkey, called the Hot Maden Prospect.1 The discovery is jointly-owned by Turkey-based Lidya (full name “Lidya Madencilik Sanayi ve Ticaret”). Mariana… Continue Reading
By Henry Bonner (hbonner@sprottglobal.com) Read online > You might not realize it, but we’re living through an exceptionally slow period for exploration. The ‘junior’ resource sector simply is not making new discoveries. The TSX-V, where most Canadian exploration stocks are traded, is down around 60% in four years. As a result, fewer investors are willing… Continue Reading
Diamonds are penetrating Chinese and Indian jewelry markets, but reports on mine supply say diamond production may peak in the next two years and begin to decline. The graph below from McKinsey & Company shows expected future production1: Goldman Sachs reports that if current growth continues unabated, demand for diamonds should rise at a compound… Continue Reading
By Henry Bonner (hbonner@sprottglobal.com) A few weeks ago, we heard from Pierre Lassonde of Franco-Nevada on the power of the royalty business model. Just recently, I spoke with another ‘superstar’ of the natural resource industry — Frank Giustra. Mr. Giustra started out as an assistant trader and then became a stockbroker at Merrill Lynch in… Continue Reading
By Henry Bonner (hbonner@sprottglobal.com) Pierre Lassonde is one of the ‘superstars’ of the resource sector. He co-founded Franco-Nevada, the largest royalty and streaming company in the mining sector. The company was acquired by Newmont Mining in 2002, and then split off in ’07 at a value of $1.2 billion. Its current market cap is… Continue Reading
Our friend Brent Cook recently published this fantastic primer on his process for identifying the few junior exploration companies who stand to generate real returns for investors. It appeared in his Exploration Insights on August 10th, and we believe it is worth the read if you are interested in analyzing resource stocks (edited from the… Continue Reading
By Henry Bonner (hbonner@sprottglobal.com) Read on SprottGlobal.com -> Rick Rule, Chairman of Sprott US Holdings Ltd. said in early March that the market looked overheated and was due for a pullback. Gold and silver had just delivered double-digit gains in a few months. Sure enough, from mid-March until early June, the precious metals gave up… Continue Reading
By Henry Bonner (hbonner@sprottglobal.com) Founded in 2001, Sprott Inc. went public in 2008 and grew to more than $10 billion in Assets Under Management during the precious metals bull market that peaked in 2012. Today, with the gold and resource sector down over the last three years, Sprott’s AUM stands at approximately $7.7 billion. I… Continue Reading
By Henry Bonner (hbonner@sprottglobal.com) As we recently explained, the practice of “high-grading” where a miner extracts only the high-grade ore from a deposit has been widely adopted in the mining industry over the past 10 years. The method increases short-term cash flows, but can harm the profitability of a mine over its lifetime. As an investor,… Continue Reading
