Wednesday, 9 July 2014

Canaccord Junior Mining - Joe Mazumder

Interview at CEO .ca
There are companies that provide leverage as an ‘out-of-the-money’ option on the gold price because they have the liquidity to deliver a high beta. Those without the liquidity do not offer the beta despite having projects with high gold leverage......The asymmetry is derived by selecting
the companies with capable management teams with relevant experience to advance their higher quality projects that are proximal to infrastructure with low execution and technical risk........“We are seeing the generalist funds playing the high beta gold names, and even the far out of the money options which offer the highest betas, in order to gain alpha-like returns in the short-term versus trading physical gold,” Joe tells me, “They tend to be attracted to liquidity and geography over management, execution and technical risk.”
Followed include
Asanko Gold (AKG : TSX), Castle Mountain Mining (CMM : TSX), Dalradian Resources (DNA:TSX), Golden Queen Mining (GQM:TSX), Goldrock Mines (GRM : TSX-V), Midway Gold (MDW : TSX), Roxgold (ROG:TSX-V), Rubicon Minerals (RMX:TSX)
 Mining Investment Cycle

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