“The price you get in is very important for investing, it’s one of the few things you can control,” said Kwantes at PDAC.
Uncertainty reigns in the world today, but according to James Kwantes of Resource Opportunities there’s still room for some companies to make positive progress.
“There’s a lot of companies that raised money last year that are fully funded for 2020 — (they have) good projects, good management. And those are the types of companies that you want to own in this kind of market,” he said at the recent Prospectors & Developers Association of Canada (PDAC) convention.
Kwantes also emphasized the importance of knowing how to identify buying opportunities, especially during tumultuous times like the markets are seeing right now.
“The price you get in is very important for investing, it’s one of the few things you can control, especially in this sector,” he said, adding that the COVID-19 outbreak should ultimately help the yellow metal.
“I’m very positive about the gold price and the gold fundamentals. I think the coronavirus can only be another tailwind for gold … if the governments keep printing money or trying to stimulate the economy. We’ll see how it shakes out.”
He is particularly interested in Canada-focused companies with large amounts of high-grade gold in the ground, such as Great Bear Resources (TSXV:GBR,OTCQX:GTBDF), Sabina Gold & Silver (TSX:SBB,OTCQX:SGSVF) and Ascot Resources (TSX:AOT,OTCQX:AOTVF).
That focus stems from the point the gold price is at in Canadian dollar terms. “Good projects in Canada will gush cash at that level, so it’s a really good buying opportunity,” he explained.
“Because the economics just on the gold price alone, what it’s done in the last year … makes a huge difference on the economics and makes the Canadian projects pretty attractive.”
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Fireweed Zinc is a client of the Investing News Network. This article is not paid-for content.
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