Brent Cook of Exploration Insights is looking to build a portfolio of about a dozen exploration companies with assets majors will want to acquire.
Brent Cook: I'm Shopping for Juniors, Here's What I Want to Seeyoutu.be
Economic geologist Brent Cook isn't looking to buy junior resource stocks right now, but he told the Investing News Network that he's assembling a list of companies that he can pounce on when the time is right.
"Right now, what I'm really focused on is finding and identifying maybe a dozen companies that have projects that will be economic, with good management and have the money to last a year and a half minimum. Because I think that's what they're going to need," said Cook, who is a partner at Exploration Insights with Joe Mazumdar.
Explaining further about the criteria that are on his mind, Cook said he wants to see explorers with deposits that are so good that they'll be bought out by a major mining company instead of having to do the work themselves.
"So many companies get stuck into this rut of, okay, they've made a discovery. Now their shareholders want them to drill it out and do some sort of feasibility study on it, yada yada yada," he explained. "That is not where I want to go. I want something that's so good that a major mining company buys it, and they don't have to build it."
When asked if he favors any specific commodity, Cook said copper is one of the better ones, but it is really high margins that make the biggest difference. "I think any metal that's high margin, any deposit that has high margins, is worthwhile — silver, gold. I always like gold. It's more the quality of the deposit as opposed to the actual commodity," he said.
The time to buy may not be too far off. As Cook commented, "I think within the next six months — maybe this November, December — these things are going to be so cheap that it's time to step in and buy them."
Watch the interview above for more from Cook on how he's approaching the junior resource sector. You can also click here to read our recap of the New Orleans Investment Conference and here for our full event playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.