Investing in Junior Mining Companies – Challenges and Opportunities What are the key challenges? We have used 3 key pillars to identify challenges and opportunities that can assist investors to select companies for investments. TIMING – look out for right entry points and exit points. This sounds very basic and obvious. But being disciplined…
M&A Trends in the Gold Sector Number of transactions – that meet our outlined criteria – have significantly increased; a reflection of a higher gold price environment Activity has been at elevated levels for producers in 2020 & 2021: A significant number of takeovers, mergers and consolidations have taken place amongst the producers. COVID19…
Overview ESG Standards We have a strong belief that substantial ESG performance is essential for delivering sustainable, long-term value to shareholders. It is one of our core considerations that we take in each investment case. Attached an overview of current ESG frameworks which help us determine the maturity of a company in regard to…
Investment Case Study – Pure Gold Mining Investment decision was made after successful financing and construction start and meetings with management. Average acquisition share price: C$ 0.58 Exit during commissioning until first gold pour – in this instance ahead of commercial production due to rather high valuation (share price decline thereafter was propelled by…
Red Lake Gold District Claim Map The Red Lake District is a well known mining area which has seen its initial gold rush almost 100 years ago when two brothers, Lorne and Ray Howey found gold under the roots of an upturned tree (1925). This event lead to the founding of the town Red…
Gold to Money Stock Money Supply (M2 Money Stock) is steadily – and recently strongly – increasing. The strong increase and the amount reaching the same level as GDP is one major pre-condition for a higher inflation and potentially even hyperinflation We have used the Federal Reserve Bank of St. Louis’ adjusted monetary base…
Global Drilling Activity The anticipated governmental stimulus packages and associated demand for metals are expected to keep metal prices at elevated levels. Due to higher metals prices, budgets for exploration have increased. Exploration budgets generally move with metals prices, often with a 1-year lag. The S&P Exploration Price Index rose 31% yoy in 2020,…
Why invest in Gold? 10 Good Reasons to Invest in Gold – Sector Driven & Macroeconomic Factors A Sector Driven Factors 1. Undervaluation of the gold sector 2. Sustainably high yields for Gold (c 10% p.a.) 3. A decade of low financing volumes lead to a suppressed project pipeline 4. Still low exploration budgets…
Newfoundland – claim map what is a major “gold rush” in 2021 and probably beyond The gold rush in Newfoundland is gaining more momentum every day. New companies have been formed, restructured and many new claims staked by well known prospectors. Eric Sprott has continued to invest in the region with over CAD 15m…
Refractory gold ores: Challenges and opportunities for a key source of growth The reserve crisis of gold miners is a regularly discussed topic. The article from McKinsey summarizes an important aspect for the industry – exploiting ore that is more challenging to process. Gold Production from Refractory Ore is growing much faster than gold…