NexGen’s Potential Discovery Opens Up The Western Athabasca Basin, CEO Leigh Curyer Explains

Leigh, Curyer, Mining, CEO, Uranium

NexGen CEO Leigh Curyer

NexGen Energy (TSXV:NXE) announced a potential uranium discovery in the SW Athabasca Basin region of Northern Saskatchewan yesterday. Visible uranium was seen in the first hole drilled into the Arrow target at the Western side of NexGen’s Rook 1 project, which caused shares in the junior explorer to rise over 90% Wednesday.

“There’s an element of luck,” CEO Leigh Curyer said by phone from Toronto at 10AM PST this morning. “This hole was really to get a sense as to what was happening with the geology in the area, and we nailed it.”

The sheer zone, or potentially mineralized area, appears to be large, Curyer says. The first hole began hitting radioactive anomalies at 49 meters depth, and yesterday’s announcement reported visible uranium in the core at 321 meters.  That hole continues drilling, and is now past 500 meters.

“We would stop the hole if the area of interest had stopped. We’re still in the right type of rock setting and the drilling continues.”

Following completion of the hole and assays to confirm the presence and grade of uranium mineralization, the company will drill two holes 50 meters out on either side of the discovery hole. These are quite wide stepouts, Curyer says.

“We’re sticking to our disciplined approach to get a sense of what the geology is in this particular target area and then we will vector in.”

The discovery is in its very early days, Curyer warned, saying it’s too early to answer most questions yet.

Andrew, Browne, NexGen, Energy

NexGen VP of Exploration Andy Browne

“There’s more holes to drill and there will be some that don’t come up, but from this one hole and applying [VP Exploration] Andy Browne’s 40 years of experience and the experience of the two guys that were on the Roughrider discovery, the grade is going to be there, and they have yet to define the area of interest.”

Curyer made a point of saying the discovery was independent from PLS, Fission Uranium’s 100% owned shallow, high grade uranium deposit on the adjacent South East property to Rook 1.

“It’s got nothing to do with PLS. It’s on the trend, but the rocks are slightly different, and it’s in a different type of zone.”

According to Curyer, this suggests that the Western Side of the Athabasca Basin could be a prolific uranium district, and is quick to remind me that NexGen has the most dominant land position in that section of the Basin. Others in the area include Skyharbour Resources and Aldrin Resource Corp.

“We’ve got nine other target areas just on that Western section of our Rook property that are based on the same principles of Arrow that haven’t yet been drilled.”

“The three of the twelve targets that we’ve drilled, we’ve hit mineralization in each of them. Arrow being the most significant to date.”

NexGen has $7.5 million in the bank currently, Curyer says, but they’ll have $5.5 million left at the end of March or in early April, when the Winter drill program concludes. That number could be slightly lower if they are able to bring in a third rig, which the company is working to procure before the end of the season. For now it’s just two rigs.

Curyer will be presenting the NexGen story at the PDAC convention in Toronto in early March, as well as at a Dundee Capital Markets uranium conference the Friday leading up to the PDAC.

“We’ve had finance offers and all sorts of things. I’m in Toronto at this moment and absolutely jammed for meetings.”

I let Leigh get back to it and told him I look forward to following more news from the company.

NexGen Energy shares trade on the TSX-Venture Exchange under the symbol NXE.

Yesterday Dundee Capital Markets analyst David Talbot re-stated his buy recommendation on NexGen’s shares with no price target.

We have been covering the company since before it became public and own a small share position which does make us somewhat biased.

Comments made by Mr. Curyer were off the cuff and are forward looking. Please read NexGen’s Cautionary Note Regarding Forward Looking Statements. All facts are to be verified by the reader. This is not investment or professional advice of any kind. Always do your own due diligence. Thank you.

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Veteran financial prophet Jim Dines shares his outlook for 2014

James Dines, Dines, Letter

Jim Dines (Photo: Don Parrish)

Jim Dines has been writing one of the world’s best read financial newsletters, The Dines Letter, since the 1950′s, and he’s still going strong…

A few days ago Dines joined King World News to discuss his outlook for 2014 (Listen to the interview).

Dines pats himself on the back for calling the coming 3D printing boom, and is especially excited for its applications in biotechnology. He recommends one stock, Organovo, which Dines says has no revenue and is a “moon shot”, however his subscribers have already had a double on it, and he’s not aware of any brokers having recommended the stock, which is why he still sees upside in the highly speculative ‘bioprinting” play.

Dines says 3D printing is going to become cheap, cheap, with the major money to be made in the materials which the printers will consume, such as plastic, wood, and metals, such as silver.

Dines thinks gold and silver are headed way higher, with a $3000-$5000 minimum target on gold. He was more cautionary on the miners, which he said are subject to overtaxation by greedy “tax pig” governments.

“No tax is ever high enough.”

Dines also sounded a warning about the executives leading many mining companies.

“Not all management’s have the integrity to respect shareholders when they overprint stock to pay for personal squandering so mining has more risk, but it has more upside…”

Dines added that mining stocks are cyclical and they are certainly out of favour, but that bull markets are spawn during times like these.

Uranium is still a favourite commodity of the legendary economic forecaster. He thinks the world’s nuclear power plants need to be replaced, and urges governments to start stockpiling uranium for the centuries ahead.

“Politicians need to think in terms of centuries the way China does… Uranium stocks will for sure rise again and it wouldn’t surprise me if we were close to a bottom now.”

The full half hour interview with Jim Dines is available at King World News ->

David Beatty’s Edgecrest Capital Acquires Stonecap Securities

Edgecrest Capital is led by David Beatty, the co-founder of Westwind Partners and Yamana (Image: Edgecrest Capital Corp.)

According to reports this afternoon the rumor that Edgecrest Capital was in talks to acquire Stonecap Securities appear to be true as the two announced the acquisition after the market closed today.  The price wasn’t disclosed, but the move by Edgecrest allows them to enter the US market via Stonecap’s FINRA registration without having to go through the lengthy regulatory process.

“When markets are absolutely terrible and in the dumps is when you can attract the people in the brokerage business,” David Beatty, 56, CEO of Edgecrest, said in a phone interview from Toronto to Bloomberg. “You can only kick a dog so far down into the hole, and then you make a contrarian move. That’s why we did this.”

Beatty co-founded Yamana Resources as well as Westwind Partners.

The Toronto-based firm that was created last year is adding 10 employees from Stonecap, including two investment bankers, three salespeople and four research analysts. They have not disclosed who the individuals are.  They are in discussions to bring a number of investment banking teams over and expect to grow to over 50 employees within 2 years.

Stonecap recently shutdown its Calgary office as a causality of the lengthy bear cycle in the resource sector.   In April of last year, Fraser McKenzie announced it was closing its doors as a result of the downturn in the resource sector.

Earlier this week,  Edgecrest announced it was underwriting a $75 million convertible debenture and warrants deal for North American Palladium (PDL:TSX).

Read: Edgecrest Capital Buys Stonecap Securities in Canada (Bloomberg)

Don’t Listen To Everyone With An Opinion: Deans Knight Capital Turns 20

Wayne Deans

Wayne Deans at his Vancouver office (Photo: Tommy Hump / CEO.CA)

If you’re in the investment business in Canada, you may be just a little jealous of Deans Knight Capital: it’s a super successful small company with savvy entrepreneur clients and a fun, friendly corporate culture. And if you’re a Deans Knight client, you’re probably a happy camper — the company has produced better than 15% average returns over the past 20 years.

On the occasion of the 20th anniversary of the founding of Deans Knight Capital, co-founder and CEO Wayne Deans co-authored a book about managing other people’s money called Don’t Listen To Everyone With An Opinion. It offers twenty colorful (and explicit) lessons to commemorate the firm’s 20th year of operation. When I heard about Don’t Listen, I called Deans’ office to interview him. We set up a meeting; at his office, I was welcomed by Mr. Deans and staff. Energetic and self-deprecating in person, Deans symbolizes the idea that smarts, hard work and aligning yourself with the right people can pay off for people who come from humble beginnings.

Deans tells me he was raised poor in the outskirts of Montreal. He was a competitive kid, academically and athletically, and he didn’t take much for granted. “Most kids I grew up with wanted a new bike and a pair of skis. I wanted central heat,” Deans writes in Don’t Listen.

During the late 60s, Deans attended Sir George Williams University (now Concordia) because he couldn’t afford tuition at the more prestigious McGill. After his undergraduate coursework, he pursued an MBA from McMaster University in Hamilton and planned on getting into investing. But because he didn’t yet have the pedigree to land an industry job, Deans ended up at the Bank of Canada. He spent the next decade getting an “on-the-job PhD in economics,” and was told that if he worked hard and was lucky, he could earn his age for the rest of his career. But the advice didn’t resonate.

“I wanted to be a millionaire,” Deans told me enthusiastically in his upscale boardroom, overlooking Vancouver’s stunning Convention Centre and North Shore Mountains. “Earning my age wasn’t going to work for me.”

In 1980, after a decade of service to the central bank, Deans landed a corporate gig, working with Wood Gundy in Vancouver. He quickly became a top producer there, brokering profitable deals between Quebec companies and the BC Government. In 1985, Milton Wong of MK Wong and Associates convinced Deans to join him. Deans eventually became the firm’s president and led its equities investment group. There, at what was then one of Canada’s leading pension fund managers, Deans met Deans Knight Capital’s future co-founder Doug Knight, a debt specialist ten years Deans’ senior.

Seven years after taking the job, Deans left MK Wong, citing “fundamental differences of opinion”. Doug Knight joined him on his way out the door, and in early 1993 Deans Knight Capital become officially licensed to manage other people’s money. Their corporate headquarters took up all of 500 square feet in a small downtown Vancouver office.

Deans Knight managed money for the mutual fund industry in the mid 90s, but the duo dropped the model in 1999. “Mutual fund investors kept bailing after years of poor performance, and piled in during good years, which is unsustainable”, Dean explains.

Deans and Knight avoided the Dot Com boom and bust of the late 1990s, and instead preferred out-of-favour mining and energy firms led by managers they knew personally.

And they had some massive wins. They were early investors in Robert Freidland’s Diamond Fields, which soared from $.10 to over $140 in 1995. Deans Knight picked up shares in Lionore Mining in 1997, which ran from $.50 to over $27 per share when it was bought out in 2007. They even made money on Bre-X, the most famous mining fraud of all time, by selling their shares before the fallout went mainstream.

“When something is the ‘biggest ever!’ be careful,” Deans warns in his book. “When the head geologist falls out of a helicopter, pay attention,” he adds.

Still, Deans Knight never was solely a resource-focused investor. The firm was open minded and willing to consider any company in any industry. Their expertise also extended to high-yield debt, where Deans Knight was the first major investor to participate in the Canadian high yield market. Co-founder Doug Knight would roll up his sleeves and analyze debt contracts closely, especially for smaller companies whose instruments were just off of the radar of pension funds and other large institutions. Their generalist, “Know what you own” strategy has proved to be a winner.

“Investors should skip the readily available information and come up with their own,” offers Deans by way of advice. “If you can’t distill into one or two useful paragraphs why investing in a business is a good idea, then you probably want to move on to something else.”

As the Deans Knight model evolved, their clientele shifted to mostly wealthy entrepreneurs with net worths of “a few hundred million to ten billion dollars”. The benefits were obvious. Deans says his clients are themselves talented entrepreneurs and asset managers, who have helped immeasurably with due diligence and idea-flow throughout the years.

As a result, Wayne Deans values his clients immensely. He says he spends 70% of his time on the road looking at opportunities, often with those clients. At age 67, he has no plans to step aside. However, should he need to, he is confident his team can handle things.

And the people who work with Deans clearly admire him. “Wayne has this amazing ability to tell somebody what they’re saying is stupid without making them feel totally stupid – or maybe making them feel stupid but feeling good about it, knowing they’ve learned something,” commented Dillon Cameron, Co-Chief Investment Officer at Deans Knight.

One of Calgary’s most successful oilmen chimed in to offer Mr. Deans praise. “And there is the signature humour, warmth and utter lack of pretense,” said John Hagg, co-founder of Canadian Northstar Corp., and an early client of the firm.

1000 copies of Don’t Listen To Everyone With An Opinion are available by donation to the SPCA (Deans is a dog lover).

Ross Beaty reflects on five years in the renewable energy business

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.

Related: Ross Beaty CEO.CA Interview

Unlock confidence and boost testosterone with power poses

iPosture. Ever heard of it? It’s the hunch in your spine that forms from too much time slumped in front of a computer or squinting at a smartphone.

With daily physio exercises, you can halt or reverse this condition. But a kink in your spine is not the only thing that sitting like this will do — it may be stooping your social standing as well.

Michael Allison vancouver

In the picture above, we see a classic case of iPosture — mine. How important do I look? How important do you think I feel? If you were a scientist taking a saliva swab to measure my cortisol (stress hormone) levels, you might even find that they have increased.

Mike, Allison, Michael

What about in the picture above? Do I look more confident? Maybe even more relaxed? I certainly felt more relaxed and confident mere moments after taking this photo. If you were to do another swab, you might find that my stress hormone levels have decreased and my testosterone levels have increased as much as 20 per cent. Testosterone is a hormone present in both males and females that plays a role in confidence and risk-taking.

Research conducted by Amy Cuddy on this topic has shown that if someone holds a dominant pose for two minutes, their saliva will test positive for elevated levels of testosterone within 15 minutes.

What does that mean for you? Two things:

1. Your posture will inform biological responses within your body. If you act dominant, your body chemistry will make you feel dominant. If you act submissive, your body will respond accordingly.

2. Most Western workplaces reward those who are confident, capable and who take action. Testosterone is a hormone that makes it easier to exhibit these traits.

This is the result of evolution. Alpha gorillas take up space and impose their will on others. They have high testosterone. The betas make themselves smaller — for their own safety. They have lower testosterone and higher cortisol levels. When an alpha gorilla dies suddenly, a beta may have to take his place. The new alpha’s chemistry will adjust to fill the role of dominance. His testosterone will increase. In other words, someone with low confidence who fakes being confident will physiologically become more confident.

Cuddy recommends giving yourself a shot of confidence prior to a meeting, interview or any time you have to “perform.” Find a private spot and strike those poses for at least two minutes.

Poses include, legs shoulder-width apart, hands on hips — like Super Wo/man — or arms up in a muscle man pose. If no one is looking, put your feet up on the desk and clasp your hands behind your head. Do a Google Image search for Michael Jordan, Usain Bolt and Tiger Woods victory photos. Imitate them.

While you shouldn’t be strutting around work with your chest out — you’ll look silly for trying too hard — make an effort to own the space in which you preside, no matter what you’re doing.

As someone with a natural iPosture and who finds it easy to make himself small so that others don’t feel uncomfortable, owning my space something that I’ve been doing on a regular basis.

Taking this approach will not only make you feel more confident, it will put others at ease. When your boss knows that the tasks they’ve assigned you are going to a person who is confident, capable and who will speak up, they will be relieved. You will convey the sense that your boss’s burden is not a problem for you to carry. This ability will serve you well throughout your career.

Here’s what you need to do this week: On Monday and Tuesday, try your power poses in the morning before work and at least once in private during the day.

By Wednesday, start taking up more space in general. In meetings, put your arms on your armrests or on the table — no cradling your elbows or clasping your hands — that self-soothing posture will spike your stress hormones.

For Thursday and Friday, see how you can utilize your personal space. Take it up. Confident people use their space creatively. They lean on things or drape their legs over the arms of chairs. If you’re going to be a confident person, you should do this, too.

You will see results immediately, but the power will come in the long-term. Over time, you will see a transformation, that is not just in your head but a true physiological change: a new, more confident version of you.

Also by Michael Allison: Building Rapport Through Power Questions

Greatest mining and energy wealth creation (and destruction) quotes

Today is the one year anniversary of making this video with my brother.

I thought it would be a great opportunity to share some of my favourite mining and energy quotes, starting with one from Mr. Lowell, of course:

“If there’s anything my career says about me, it’s that I’m very good at being wrong.”
- Dave Lowell, Mining’s Greatest Explorer

”It’s the find, eh… You don’t really do things for the money. You do it to try to find something, eh.”
- Chuck Fipke, Founder, Dia Met Minerals

“Time is short. If you want to achieve much, you’ve got to run.”
- Peter Munk, Founder and Former Chairman, Barrick Gold

“If it’s the single minded pursuit of wealth that drives you, make sure you don’t really really care about family, friends or health. Go get the money, pile it up, then jump and that pile, and enjoy it, because that’s all you’ve got.”
- Brett Wilson, Co-Founder, First Energy Capital

“Whether it’s copper, whether it’s oil, whether it’s zinc, it’s a cyclical business, and you know that you’re going to get all of your money back in 2 or 3 good years. What you don’t know is when those 2 or 3 good years are going to be. However, if you have 50 years, you’re going to have those 2 or 3 good years 5 or 6 times.”
- Don Lindsay, President and CEO of Teck Corporation

“Like venture capital, it’s not about cheap paper, it’s about ‘first mover advantage’, the speed to have the vision and ability to attract talent, money and an outstanding asset… Few people are able to do all three like Frank G. He has the know how and the know who with the energy to make it happen.”
- Frank Holmes, CEO of US Global Investors

“Commodities will always be in demand. But as it fluctuates, the prices of various commodities oscillate between a price that allows companies to earn a good margin to a point where there’s negative margin. And often when one commodity is hot, another is distressed. This is a game you can play forever.”
- Kevin Bambrough, Former CEO, Sprott Resource Corp.

“If you make rich people richer, they will make sure that you get rich.”
- Rick Rule, Chairman, Sprott Global

Continue reading

The gold sector is ready to rock – Interview with Kitco News

A few notes from my friendly conversation with Kitco’s Alex Letourneau yesterday:

M&A has been seen as a critical catalyst to get the junior mining sector going so I’m glad Goldcorp’s made a move on Osisko and I agree with the market that Goldcorp will sweeten their bid.

The China Gold Stone Mining Development / Allied Nevada story is just weird.

The gold price needs to move higher for Colossus Minerals’ Serra Pelada project in Brazil to have any hope.

“These junior mining development companies are like a shark, and when they stop swimming, they are dead.” – A quote I stole from Nolan Watson

I am bullish on the gold price today for fundamental and technical reasons. Fundamentally, the marginal cost of gold extraction is effectively the cost of production. Technically, there was a powerful double bottom (June and Dec 2013 at the 1180 level) in the gold chart amid massive media pessimism for gold, which illustrates to me strong support for the yellow metal and more upside potential than down.

That’s the way I see it. As always these are opinions, and not advice.

Follow @Alex_Letourneau on Twitter ->

Zinc is the commodity for 2014 – Teck Resources CEO Don Lindsay

Don Lindsay Teck CEO

“You know that you’re going to get all of your money back in 2 or 3 good years. What you don’t know is when those 2 or 3 good years are going to be.” Don Lindsay (Photo: BNN)

Teck Resources (TSX:TCK.B) CEO Don Lindsay made a brilliant comment on BNN Television earlier about long life mining assets.

“Whether it’s copper, whether it’s oil, whether it’s zinc, it’s a cyclical business, and you know that you’re going to get all of your money back in 2 or 3 good years. What you don’t know is when those 2 or 3 good years are going to be. However, if you have 50 years, you’re going to have those 2 or 3 good years 5 or 6 times.”

Mr. Lindsay, 54, has been the President and CEO of Teck Resources, Canada’s largest diversified mining company, since 2005, earning his stripes by guiding the giant successfully through the global financial crisis of 2008-2009.

He joined Howard Green of BNN’s Market Call Tonight earlier to share his 2014 outlook (Click here to watch part 1 of 3 on BNN.ca).

Lindsay sees the zinc market tightening at some point in 2014, and also expects copper to be range bound until 2016, although he noted that oversupply in the copper market recently has been less than expected.

For metallurgical (steelmaking) coal, Teck’s largest business, Lindsay has a negative outlook for the next couple of quarters. The demand (for steel and thus met coal in the blast furnaces) is there; the issue is oversupply, Lindsay believes.

“In fact, and just being honest, conditions are worse than they were [in coal] in the global financial crisis. The spot price is down to about $131 whereas five years ago we had $129 but you’ve had five years of cost increases along the way. Margins are actually worse today than they were then, but you know, it’s always the darkest before the day.”

Mr. Lindsay also stressed that Teck is not in the thermal (steam) coal business.

While there are a lot of mining projects for sale currently, Lindsay says sellers’ expectations are still too high for his company.

He expects Chinese buyers to be more aggressive going after copper projects than Western companies.

Lindsay complimented the new leadership regime in China, and noted that growth in that country is still powerful.

Watch Howard Green’s interview with Don Lindsay, President and CEO of Teck Resources at BNN.ca ->

Follow: @HowardGreenBNN

Sprott protégé Bambrough contemplates a future on his own

kevin b

Former Sprott Resource Corp President & CEO Kevin Bambrough (LinkedIn)

An edited version of this story was first published in the Globe and Mail.

the-globe-and-mail-logo1The man who recently left his job as head of Sprott Resource Corp. says he has yet to sell a share in the company.

Kevin Bambrough, who exited his role as the chief executive of Sprott Resource Corp., as well as his role as Sprott Inc. president in October, said in an interview that he still sees value in a distressed resources market and that he is looking at ways to get back into the business when his non-compete expires in April.

Throughout 2013, Sprott Inc. was criticized for its flagship funds’ poor performance. Founder Eric Sprott – one of the world’s most prominent supporters of gold and silver bullion – saw his investment portfolio shrink from $3-billion to less than $400-million.

The 43-year-old Mr. Bambrough abruptly left his leadership positions at Sprott Inc. and Sprott Resource Corp. on Oct. 22. The move closed out an 11-year career with the embattled natural resources asset manager.

During his six years at the helm of Sprott Resource Corp, the company he co-founded, Mr. Bambrough oversaw net asset growth from $77-million to $383-million, and a 150 per cent net asset value per share increase.

This performance is even more impressive coming out of a depressed resource market.

While Mr. Bambrough is proud of his track record at Sprott, he regrets the discount to net asset value that Sprott Resource Corp. receives in the market (as much as 40 per cent). That discount comes even in the wake of over $80-million of stock buybacks.

This is why he hasn’t sold a share of his original Sprott Resource Corp. position, Mr. Bambrough explained by phone from his Richmond Hill home, just north of Toronto.

Steve Yuzpe, former Sprott Resource Corp. CFO, was promoted to President and CEO upon Mr. Bambrough’s departure. So far, it seems Mr. Yuzpe’s only move has been to sell $76-million worth of bullion to repay debt and raise cash for future opportunities.

Though he’s two months into a six-month non-compete period, Mr. Bambrough is looking at the current market and licking his lips. Some $88-billion departed commodities investments in 2013, yet Mr. Bambrough believes institutional investors will be back to support natural resources.

“Commodities will always be in demand,” Mr. Bambrough said, “But as it fluctuates, the prices of various commodities oscillate between a price that allows companies to earn a good margin to a point where there’s negative margin. And often when one commodity is hot, another is distressed. This is a game you can play forever.”

At Sprott, Mr. Bambrough convinced his previous firm to invest heavily in uranium, oil, gas, potash and agriculture before they took off. In 2008, amid the global financial crisis, Mr. Bambrough led a $55-million investment in PBS Coal alongside resource investor Lukas Lundin that netted $186-million in gross profit. In 2010, Sprott Resource sold part of a phosphate company for a $60-million haul, and in 2012 it followed up with a heavy oil company sale that earned over $70-million.

Despite the moves, Mr. Bambrough maintains he’s a long term investor who “only buys things [he is] prepared to hold for a decade,” though he also quipped, “I’ll sell any investment I have if I see better value elsewhere.”

“I don’t care how great a resource company may be,” Mr. Bambrough said. “If its sector is overvalued and there are better risk to reward opportunities elsewhere, you have to move on and capitalize.”

It’s been quite the rise for the one-time Microsoft systems engineer. Mr. Bambrough fell in love with the stock market during the late 1990s and early 2000s Nasdaq tech stock boom and subsequent bust. When the tech world began migrating industry to China and India, Mr. Bambrough foresaw a quickly approaching emerging markets-led commodities boom, and shortly after turning his attention toward junior gold miners and distressed resource companies, he was introduced to Eric Sprott.

In 2005, after contributing to the firm’s investment strategy and stock selection, Mr. Bambrough was appointed to Market Strategist. In 2007, Mr. Bambrough founded and became CEO of Sprott Resource Corp. He was promoted to president of Sprott Inc. in 2009.

Under his leadership, Sprott Resource favored concentrated bets on just five or six opportunities that he would actively manage with his team, and exhaustively investigate with industry specialists.

“All of our major winning investments were found, managed and monetized by myself and [chief operating officer] Paul Dimitriadis,” Mr. Bambrough said.

Mr. Dimitriadis, who resigned his own position at Sprott Resource on December 31, 2013, says his former colleague “has tremendous instincts and is incredibly bright, but also understands his limitations,” he wrote in an email.

Mr. Bambrough explains he doesn’t believe he can personally assess the quality of a resource project based on the raw data, or by visiting the site.

“I get true experts who I can rely on,” he said. “You have to be aggressive, but you have to balance that with extreme carefulness. Most portfolio manager blow-ups occur because they overestimate their abilities and let ego take over. Fear is healthy. And I hate losing money.”

Marc Faber, a director of Sprott Inc., and editor of the Doom, Gloom and Boom report, believes Mr. Bambrough’s best days are ahead of him. “I have known Kevin for 15 years and I have always been very impressed by his innovative and creative but disciplined investment strategy,” emailed the Swiss-based economist.

Mr. Bambrough’s contract with Sprott means he can’t return to the sector until April 2014 so he is clearing his head and contemplating his next strategy. This time, Mr. Bambrough says he will incorporate mechanisms to allow him to return 100 per cent of net asset value to investors to avoid the discount issue of his previous firm.

He’d be wise to conserve energy. While being a contrarian is easy in theory, raising money for a distressed asset class never is.

Sprott protégé Bambrough contemplates a future on his own | Globe and Mail

Kevin Bambrough (Linkedin)

Kevin Bambrough (Linkedin)

The man who was arguably the best performing junior resource fund manager IN THE WORLD from 2007-2013, Kevin Bambrough, Ex-President of Sprott Resource Corp., and President of Sprott Inc., abruptly departed the Sprott Group October 22, 2013 after an 11 year career with the embattled natural resources fund manager.

Mr. Bambrough delivered a 150% net asset value per share increase and grew assets under management from $77 million to $383 million between 2007-2013, while at the helm of the Sprott Inc. subsidiary he co-founded, Sprott Resource Corp.

This performance is even more impressive in that the TSX-Venture, a proxy for the junior resource market, fell over 75% during the same period.

In an exclusive interview to the Globe and Mail and CEO.CA, the 43 year old Toronto based resources financier Bambrough vows he will return to the sector after his non compete with Sprott expires in April, 2014.

“You have to be aggressive, but you have to balance that with extreme carefulness. Most portfolio manager blow-ups occur because they overestimate their abilities and let ego take over. Fear is healthy. And I hate losing money,” Mr. Bambrough commented during our recent interview.

Marc Faber, a director of Sprott Inc., and editor of the Doom, Gloom and Boom report, believes Bambrough’s best days are ahead of him. “I have known Kevin for 15 years and I have always been very impressed by his innovative and creative but disciplined investment strategy,” emailed the Swiss-based economist.

Read our full interview with Ex Sprott Inc. President and Sprott Resource Corp. CEO Kevin Bambrough at Streetwise, the capital markets section of the Globe and Mail, Canada’s national newspaper. 

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Paul Harris Has Something to Say About Colombia’s Gold Exploration Sector

Ari Sussman’s Continental Gold (client and long position) was discussed in this interview with Paul Harris, Editor of the Colombia Gold Report:

Paul Harris Has Something to Say About Colombia’s Gold Exploration Sector

Excerpt:

PaulHarris

Harris

TGR: How do investors make money in Colombian mining equities or companies with projects in Colombia?

PH: Well, Brian, I think you, as a journalist writing about exploration stocks, are in the unusual position of making more money than those that invest in exploration stocks at the moment. Seriously though, management, as always, is a key thing. There are companies that have very good management in Colombia. One of the best examples is Continental Gold Ltd. (CNL:TSX; CGOOF:OTCQX), but there are others likeB2Gold Corp. (BTG:NYSE; BTO:TSX; B2G:NSX). The company has been very successful raising funds, finding projects, drilling and developing resources.

Continental is continuing with its pre-project developments, such as driving three development tunnels to better access its Buriticá deposit, and it continues to put out good drill results. It’s working on a new resource estimate and a prefeasibility study for mid-2014 and is working with the mining ministry on a program to legalize about 500 informal miners in the Buriticá area. Apparently the government is very pleased with its progress and participation to date.

TGR: Is Continental still the best bet to be the first company to go from discovery to production in Colombia in the modern era?

PH: Yes, without a doubt.

TGR: Will Continental need to return to the market for more cash?

PH: I would imagine so. It’s in a pretty good cash position, but the mine is going to cost more than it has to build.

TGR: Will the company need a partner?

PH: It shouldn’t because it is planning a relatively low capex project, so financing through debt and equity should be within its capacity and ability.

Read more: Paul Harris Has Something to Say About Colombia’s Gold Exploration Sector

Related: Continental CEO Ari Sussman Interview

[Disclosure note: We are biased in bringing forward coverage on Continental Gold Corp (client company and long position). This is not an investment recommendation. Please see our disclaimer.]

Doug Casey on how to get rich

Doug Casey

Doug Casey lighting up in 2000. Photo: Joe Martin, Cambridge House

Tekoa from Bull Market Thinking has published an interview with the always fascinating anarchist libertarian author, speculator and founder of Casey Research, Doug Casey.

Here are Doug’s comments on getting rich, and what he’s up to nowadays.

“First thing I’d say is that there’s not a fixed amount of wealth in the world. It grows constantly and it’s a product of human actions. So it’s not a question of there being a fixed amount of whatever is there.”

“The most important thing is to always keep in mind, if you want to become wealthy, what good or service can I provide to other people that they’re going to pay me for?”

“Most of your spare time if you want to be wealthy should be devoted to educating yourself, how to make something, becoming an expert in some area, cultivating some ability that’s of value and you have to be diligent and you have to work hard in order to do that. So it’s really not rocket science. It’s a question of developing good habits and doing those things.”

“But the insurance game is a dead duck at least in the United States today and stock brokers are on their way out for lots of reasons as well. So I don’t know. If you want to make some money, what do you do? You follow your nose.”

“The key is knowledge and skills. You’ve got to develop knowledge and skills to make yourself unique.”

“I prefer the company, everything else being equal, of other libertarians. I like people that have done enough thinking about the world at large that they don’t believe in initiating force or violence against other people and that’s a good place to start.”

“I have a new book out called Right on the Money, that I think people might enjoy reading and my [newly published] book the last time we talked was called Totally Incorrect. If people would like to hear a lot more about lots of different subjects, both of those books are good. After that, I would say in six months I will have the first of my series of novels out. Other than that, just trying to do things that I enjoy; go to the gym, pump iron, [and] ride my horses.”

MP3: http://bullmarketthinking.com/wp-content/uploads/2013/12/12302013casey.mp3

Transcript: http://bullmarketthinking.com/full-transcript-doug-casey-we%E2%80%99re-really-close-to-the-edge-of-the-precipice/