Sentiment is positive in the resource industry right now, but Thom Calandra of the Calandra Report is encouraging investors not to get ahead of themselves when allocating capital.
“If you’re investing in juniors and you care about minerals exploration, try not to get too diversified,” he said at the recent Vancouver Resource Investment Conference.
“Stick to two, three, four companies — try to understand them … Read the press releases, find out what their reputations are. Find out what the valuations are in terms of metals in the ground,” he said.
Juniors are Calandra’s favorite place to invest in the mining space, but he acknowledged that the risk level is high, meaning developers or producers might be a better choice for some investors.
“The largest metals companies … all of them — they have to rely on the juniors for solid exploration. And as you know, the juniors are a savage business. A savage business filled with bad luck and fraud and bad timing and dilution, dilution, dilution until you’re left holding almost nothing,” he said.
One explorer that Calandra is excited by is Azimut Exploration (TSXV:AZM), which enjoyed a major share price spike in mid-January after announcing a discovery at its Elmer project in Quebec’s James Bay region.
“Maybe Azimut will do for James Bay what Great Bear Resources (TSXV:GBR,OTCQX:GTBDF) did for Red Lake,” he commented.
Calandra also spoke about the tech angle of the find, highlighting Azimut’s use of geoscientific databases to generate exploration targets. “One has to hope that more and more investors say that there’s hope for marrying minerals exploration with technology,” he said.
Watch the interview above for more from Calandra on exploration and the mining space overall. You can also click here to see our full VRIC 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.
