Interview at Palisade
Rough notes below ....
What has allowed Cook to pick companies to avoid major losses?
70 companies in GDXJ. Cook picks 15-20 very conservative in high risk industry, investing own money. Few companies make sense / money.
Identify prospects early which will offer margin in production.(JGMS many explorers will be well outside the GDXJ)
Learned the hard way, lost a lot of money first working for Rick Rule.
Input costs increased with gold prices. Miners struggling to make money Cutting exploration to zero. High grading current deposits to stay alive, sterilise reserves. Hard to find new deposits.
Identify the very few good deposits early which will become acquisition targets.
Reminded of 1997-2002 bust, brutal, coming to match.
When does the money come into the sector, came in early 2000's thesis gold price had to rise, bought companies they believed would leverage, didn't work, were burned, not sure where money will come from.
Now to end 2015 will be rocky, but time to buy. 2016-2018 run on valuable assets to identify those which will increase in value. Initial catalyst, not sure.
Majors will be running short on deposits, will acquire legitimate projects, bank account, good people. Find a team that knows when to quit rapidly assess and kill a project.
Company pick - Bought a couple of months ago has doubled. Calibre exploration B2 and Iamgold JV. Nicaragua. Minnesota project interesting to Cook (JGMS Lassonde invested in Calibre recently). Virginia gold ref royalties ( just acquired by Osisko Royalty). Pilot gold good prospects in Turkey and Nevada.
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