The Gold Report: Resource equities have been rejected, beaten up and ignored. Make your case for small- and mid-cap gold stocks.
Jeff Killeen: It's true that investment dollars have been moving out of the resource sector over the last year and gold exploration companies in particular have seen a drastic decline in market value over the last 12 months.
However, the space cannot be ignored. These commodity sectors are cyclical and putting investment dollars to work strategically in the space when equities are at such low valuations makes sense, but patience is required.
"My recommendation is that investors focus on the fundamentals when looking at junior exploration equities."
My recommendation is that investors focus on the fundamentals when looking at junior exploration equities. Does the management team have a proven track record? Does the company's asset or assets have strong grades relative to the proposed extraction method, which can secure healthy margins, even at lower commodity prices? Does the company have balance sheet strength to significantly derisk and advance these projects?
TGR: What gold price are you using in your models? Continue reading "C is for Cash and Catalysts in a Chaotic Market"