Brent Cook of Exploration Insights talks about the exploration space, investor due diligence and shares his top stock picks for 2019.
Speaking with the Investing News Network at this year’s Vancouver Resource Investment Conference, Brent Cook, co-editor of Exploration Insights, discussed the exploration sector in 2018, what’s ahead in 2019 and why every investor needs to do due diligence to succeed in the junior resource space.
Cook said that a trend he saw last year and that he expects to continue in 2019 is producing companies investing in early stage exploration by either private placement financings or joint ventures.
“[The producers] are looking down the pipeline and they are not finding enough new deposits to replace what they are mining,” he said.
Cook added that “they are finding that it is more time and cost efficient to buy a junior which is operating in an area they are interested in rather than having to set up their own team and do it on their own.”
For the expert, 2018 was a worse year than he expected and there were not many discoveries.
“Almost everything that looked like it could be a discovery, almost all ended up being a failure,” he added.
Cook also shared his tips for investors when doing their due diligence on exploration companies and what could be some warning signals when evaluating projects.
As the new year has just started, investors interested in the space should keep an eye on a few catalysts, with a key one being the US dollar, according to Cook.
“I think that confidence in the US dollar is rolling over, the economies around the world are stalling if not rolling over, and we’ve got Trump in the US,” he said, explaining how these factors could impact the junior mining sector.
Watch the video to learn more about Cook’s thoughts on exploration, his best suggestion for investors this year and his top stock picks. You can also click here to view our full interview playlist on YouTube.
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Securities Disclosure: I, Priscila Barrera, 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 contributed article. 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.