Copper and silver mining legend and environmentalist Ross Beaty joined Cambridge House Live at the Vancouver Resource Investment Conference in Vancouver this past Sunday.
Beaty is best known for founding Pan American Silver, one of the world’s largest primary silver producers, and the Lumina Copper franchise, one of the most successful copper exploration groups ever, which returned greater than 80x to early investors (Backstory here).
Ross doesn’t expect higher metals prices in 2014, however he thinks valuations for resource equities are compelling. Regarding the earlier stage mining ventures, he commented, “My gut feeling is another sloshy year. Fairly whippy. You’ll get some great wins and lots and lots of continuing misery among the juniors.”
Ross discussed his clean energy company, Alterra Power, which was founded five years ago with a geothermal focus. Beaty says he’s learned some hard lessons about the risks of drilling geothermal wells which is why he’s been diversifying the company into Wind, Solar, and Hydro, away from Geothermal.
“Having been bruised a fair bit in building the company to the point that Alterra is a sustainable, long term business that will stand on its feet for hundreds of years… We produce enough power to almost satisfy a city the size of Vancouver… We’re a decent sized company, but it’s not a simple business.”
Alterra Power Corp trades on the Toronto Stock Exchange under the symbol AXY.
Pretium Resources CEO Bob Quartermain shows off high grade drill core from his company’s Brucejack project at a past Cambridge House conference.
Junior mining community organizers, Cambridge House International, are set to host their annual blockbuster Vancouver Resource Investment Conference at the Vancouver Convention Centre this January 19-20, 2014.
There are roughly 300 junior mining companies exhibiting (full list), ranging from explorers to developers and even some producers, each likely to be prospecting for investors at Vancouver’s largest resource sector trade show.
The speakers list for Cambridge House’s flagship event is particularly compelling this year. Veteran investors Frank Giustra, Ned Goodman, Ross Beaty, Brent Cook, Rick Rule, and Frank Holmes are just a few of the headliners.
Registration is free online or $20 at the door. Head on over to CambridgeHouse.com to register.
While many people are moaning and groaning about the sad state of the junior exploration market, the smart ones are paying attention and finding out that there are some real speculative opportunities out there.
A great example is Colorado Resources Inc (CXO: TSXV). It started 2012 at less than 30¢, drifted lower to start out 2013 at less than 20¢, and less than a month ago, was trading at 16¢.
On April 25, one news release reporting results from two drill holes right here in British Columbia changed everything. People in the know were able to react quickly to a result of 242 meters of 0.63% copper and 0.85 g/t gold. Over 6 million shares traded on the day of the announcement and the stock jumped 337% to close at 54¢.
So everyone who didn’t jump in immediately missed the boat – right? Wrong! The stock has traded over 55 million shares since then and is trading at $1.47 as this blog is being written. A 9-bagger already, for the astute people who were in early.
So what? Well, it’s safe to say that the general public doesn’t know this story yet. How will they find out? The people who love to speculate on exploration juniors will be out in droves at this weekend’s “Cambridge World Resource Investment Conference”.
Vancouverites have always been the greatest supporters of the exploration juniors, and they are about to get rewarded. They’ll have a chance to talk to at least two key members of the Colorado team, Adam Travis and Jim Oliver. Colorado has a booth at the conference, plus at 230pm on Monday, after a related commentary by Brent Cook, the Colorado team will make a special presentation to discuss the success so far, and the plans to build on it.
Make no mistake – Colorado’s discovery is a big deal. Big discoveries are rare. Not many get made – ever, and in the last few years especially, great results have been scarce. Here’s a quote from John Kaiser, one of the foremost researchers and analysts of junior exploration companies, “The North Rok discovery hole allows speculation that we may have the deeper equivalent of Red Chris starting at surface. If Colorado outlines a Red Chris equivalent, but with the grades in hole #1, the difference in after-tax NPV at 10% is $600 million vs $2.4 billion. I am recommending Colorado a Good Relative Spec Value Buy at $0.89 with a short term target of $1.50, and hopes that when the next round of drilling is done, we see a summer trading play in the $3-$10 range.”
This weekend, everyone in or coming in to Vancouver has a chance to get informed and get back to the fun side of speculating in mineral exploration. And it’s not just Colorado Resources. There will be plenty of other companies with encouraging stories to tell.
With special thanks to Odgers Berndston, global leaders in executive search, for supporting these interviews.
Meet Brent Cook: seasoned geologist and the mind behind Exploration Insights, one of the most credible and influential gold stock newsletters in the world today. We recently caught up with Brent in Vancouver, and asked him to share some of his experiences in the junior mining sector.
According to Cook, odds of making a discovery are 1:1000 (“those are just statistics”), but if you take a hard look at the data (“the company reports, the geology”) you can lower the odds to 1:250. Cook figures that his odds of success are 1:25 or 1:50 after his due diligence. “That’s about as low as I can get it… there’s so much of what you don’t know when buying into an early-stage project, but the key, in my mind, is to know what it is that you’re looking for, and what [the deposit] looks like — meaning, when the results come back, evaluate in terms of what you need to be seeing. If you’re not seeing it, if it’s not meeting your thesis, sell it.”
Our conversation shifted to the Vancouver financial scene, which Cook described as “quite a rude awakening.” As someone who places a lot of value on honesty, he found Vancouver to be “cut-throat.” “The flat-out lying takes a bit of getting used to. I’m certainly not saying everyone in Vancouver is a crook, but that is how the vast amount of money is made here.”
Cook continued, warning about rigged exploration deals and “seed stock.” “I suspect most of the money made in Vancouver is made through inside deals, seed capital financings, early stage financings that go out to a group of people and of companies built up around some [big] name people, and eventually this gets recommended by whatever newsletter writers or brokers or analysts and these guys are able to get off their paper at a double or a triple, going from 10 to 30 cents… Some of these are legitimate stories, but if the flat out odds are 1:1000, you can see that when you get to the stage where you’ve put money in at 10 cents and this thing is at 30 cents, you can just keep doing that and make a good living. That’s what happens a lot here, and you’ve got to be aware of that.”
If honesty is hard to find around here, who should we turn to? “A good geologist’s mind is the best tool because there is so much subjectivity to it,” Cook told us. Some lesser-known mineral explorers Cook thinks investors should follow include Steve Nano, Rob Carpenter, and Rob McLeod. “There is too much emphasis on the gurus… I think the people who are going to make the next discoveries are the people we don’t know, like the names I just mentioned.”
It’s always rewarding to connect with Brent Cook. Exploration Insights is an outstanding newsletter for the sophisticated investor, and we recommend following Brent if you’re serious about making money in this sector.
At the 2013 Vancouver Resource Investment Conference, respected gold fund manager Frank Holmes warned investors not to become paralyzed, citing research from MIT, he told the interviewer, “People anchor to negative experiences . . . People are driven out of fear. The negative experience of ’08 get(s) anchored that the future will be this way in 10 years”. He said investors should sell bonds and buy stocks.
Holmes also articulated how strong management is the key to an outperforming gold company, recounting how, among other things, management must be personally invested in the company so they can attain what Mr. Holmes’ calls an “appreciation for investor’s money”.
Commenting on the new Chinese government, Holmes said, “A very important change has happened”, the new government knows communication, and stands for both social stability and economic independence.
With the world’s economic condition seemingly improving junior resource analyst John Kaiser suggests that the 22 trillion dollar debt ceiling is the only thing standing in the way of a speedy economic recovery. He posits that a growing economy is essential if it is to absorb the demographical bulge of baby boomers entering their golden years.
As large Gold mining projects near exhaustion, John proposes that junior companies “go deep into the third dimension”, exploring deposits that may have been over looked in the past. He suggests that such deposits may be found in Nevada, where, because of it’s unusual topography may be hiding gold in gravels, which have previously been overlooked.
“I think we might see the flanks of these basins stalked wall to wall with juniors,
giving us something we haven’t seen in the past decade”, says John.
Exploration legend Dave Lowell also told us that he thought Nevada was an attractive jurisdiction for exploration during our interview published last week.
The annual Vancouver Resource Investment Conference goes Sunday and Monday at Vancouver Convention Centre West. If you’re prospecting for investment ideas and kicking tires on potential stock picks, read the Vancouver Sun article I wrote about the Cambridge show a year ago. The piece is dated but not much has changed (except for a little tech stock role reversal with Apple’s recent fall from grace and Research in Motion showing signs of life):
Junior miners: Worth the investment?
BY JAMES KWANTES, VANCOUVER SUN FEBRUARY 3, 2012
The replica bull on the floor at the Vancouver Resource Investment Conference last week symbolized the type of market that suffering resource investors hope is about to break out. The imposing animal’s lack of motion was also apt – the TSX Venture Exchange has plummeted almost 30 per cent in the last year and a staggering 50 per cent from highs reached in March 2007. WoM update: The Venture dropped another 20% in 2012.
I plan to visit the Cambridge House show on Monday morning and drop by the booths of a few companies whose stock I own and a few others that I’m watching for possible investment. I’ll write about it here at World of Mining and may do some live-tweeting as well @jameskwantes.
Due to other commitments, I’m going to miss Sunday, which is a shame as the marquee event of the conference takes place Sunday at 2 p.m. in Speaker Hall West. That’s where Pilot Gold chairman Mark O’Dea is hosting a panel discussion with Sandstorm Gold CEO Nolan Watson and Sabina Gold and Silver CEO Rob Pease, called Building Value: Tomorrow’s Trends from Today’s Trailblazers. (For those able to be in two places at once, Rick Rule is in Speaker Hall East at 2 p.m.) Continue reading →
After hours on Thursday the 27th (5pm-8pm) DJ Ryan Tapping is hosting the “Evening Sessions”, a night of music, wine and cheese pairings with industry peers. All details available at CambridgeHouse.com.
We just helped to put together the weekly resource roundup for our event partner, Cambridge House International, the world leader in the production of resource investment conferences.
Click on the Cambridge logo below to check out this week’s edition (or click here):
Cambridge House’s Toronto – Sept. 27-28 conference will be the most spirited show we’ve ever brought to the city. We strive to exceed value expectations for everyone in attendance – especially exhibitors!
As many of our fellow writers and analysts are commenting on, this is likely one of the most opportune times for investors to capture the value being offered in the mining share space.
A conversation between mining legend Ross Beaty and Casey Research chairman Doug Casey at last month’s #WRIC12.
For those of you who were not in attendance, here are two of my friends and heroes, mining legend Ross Beaty and Casey Research Chairman Doug Casey, having a conversation about how to get rich at last month’s Cambridge House World Resource Investment Conference in Vancouver. (The video was just uploaded today).
The following exchange is a value-add for anyone looking for insights to grow their personal wealth, particularly through resource investing.
If a recent 43-101 report proves accurate, the next round of drinks may be on controversial Vancouver gold mining promoter Frank Callaghan.
As the chief promoter and CEO of Barkerville Gold Mines Ltd over the past 18 odd years, Frank Callaghan has fostered a mixed reputation, and it’s not just for his penchant for loud ties and golden adornments.
Describing one of his prospective mineral properties in April 2000, Callaghan was memorably quoted as saying,”It’s like standing in the middle of a lake so big you can’t see to either side.” Barkerville’s stock ran all the way up to $2.40.
A few days later, regulators came calling, and Callaghan denied making the statements, insisting he was misquoted. “I mean, how do you stand in the middle of a lake?”
Quoting a Stockwatch reporter: “Had an investor bought 1,000 shares then and hung on until August 2005, he would then have found himself rolled back 1:10 and left with 100 shares. Had he held those until January of 2009, he would have been rolled back 1:10 again, leaving 10 shares. His original $2,400 investment would now be worth $9.70.” ($9.90 as of July 6, 2012)
But something big happened last Friday. Mr. Callaghan surprised Howe Street by announcing an indicated gold resource of some 10.6 million ounces at Cow Mountain, one of Barkerville’s properties. Callaghan’s story, if true, is a very big deal. The Barkerville stock, currently sitting around .91, could foreseeably be worth many multiples more. Continue reading →
This past Monday concluded the 2012 World Resource Investment Conference in Vancouver. The event was a big success given recent market turmoil. Turnout was strong (over 5000 investors) and high quality. As Keir Reynolds pointed out in his Mammoth Letter blog, difficult markets have only cut the wheat from the chaff, leaving the best of the best still standing – at their booths in this case – communicating advancements of commodities projects globally.
We were proud to bring back Cambridge House Live from the show floor, where producer/host Jonathan Roth interviewed many of the conference headliners, including Ross Beaty, Peter Schiff, Doug Casey, Frank Holmes, Rick Rule, David Morgan, Keith Schaefer, John Kaiser, Brent Cook and more. Those interviews are available on Youtube, and we suggest you watch all of them.