Brian Leni sat down with INN at PDAC to talk about investing in risky jurisdictions, where gold may be headed and the upside of M&A.
The Investing News Network (INN) sat down with Brian Leni, founder of Junior Stock Review, at this year’s Prospectors & Developers Association of Canada (PDAC) convention.
Leni told INN why investors should look at risky jurisdictions as a new source of success within the markets, and what he thinks will happen to gold following the upcoming Fed announcement on interest rates. He also shared his take on mergers and acquisitions in both the gold and silver spaces.
“I’m always looking for a way to shift the probability of success in my favor, [and] I think one of the ways that people can realistically do that is by taking risk in the exploration companies and going to those jurisdictions which haven’t been touched by modern exploration,” he said.
“Those very reasons that make them risky jurisdictions are the reasons why they haven’t been touched, and as such I think it gives the investor a great advantage.”
Switching gears to the upcoming Fed announcement on interest rate hikes, Leni said he believes investors will have to wait and see how a pause or a hike will affect the price of the yellow metal.
“I think the next couple weeks leading up to the Fed announcement are going to be key to the gold market, although I could see gold rising in [an] interest rate hike or a non-hike situation. It’ll be interesting to see what they actually do with interest rates … we had some … double talk from Chairman [Jerome] Powell and a couple weeks ago, and so we’ll see.”
One catalyst he does believe will positively affect the gold space? Mergers and acquisitions.
“These are really good things for the market [as] it not only brings attention … from the mining media, but I believe in most of the major newspapers … and I think that’s good, we need those sorts of things to promote the sector and ultimately drive interest into M&A.”
Leni also believes there is a chance the industry will see M&A activity within the silver space as well.
“Time will tell, but I would say it’s something we’re going to see across the the bottom line in most of these intermediate or senior producers, whether it be gold and silver or any of the base metals, [as] their resources are dropping every year. And that’s the unique thing about the mining business, they have to keep on replenishing those reserves or they eventually go out of business. So I would say I think we’ll see it more,” he commented.
Watch the interview above for more from Leni. You can also click here to view our full PDAC 2019 interview playlist on YouTube.
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Securities Disclosure: I, Nicole Rashotte, 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.