Willem Middelkoop, founder of the Commodity Discovery Fund, also talked about current trends in the exploration space.
It’s been a good year for the Commodity Discovery Fund. After taking a hit in March due to COVID-19, it’s since rebounded significantly and looks set to end the year on a high note.
“Our assets under management almost tripled to C$150 million, and I think we’ll end this year around 70 percent up,” Willem Middelkoop, the fund’s founder, told the Investing News Network in an interview. “We’re very happy with how things have been performing for us this year.”
As its name suggests, the Commodity Discovery Fund is focused on exploration-stage companies with the potential to make discoveries in the near term. It currently has more than 100 holdings.
According to Middelkoop, when the fund makes an investment the goal is to see upside of 100 percent in the next 12 to 18 months, then a takeover situation in the next two years.
Speaking about trends in the exploration space, he said Australia’s dominance in discoveries is key.
“The most important trend we’ve seen in our field of discovery investing is that … most of the major discoveries, the world-class discoveries, have been made in Australia,” he said. He pointed to Greatland Gold (LSE:GGP) and De Grey Mining (ASX:DEG,OTC Pink:DGMLF) as two examples of companies making waves in the country; both are focused on the popular Pilbara region.
In terms of where the gold price may go next year, Middelkoop said he believes the correction that started in August seems to be over, or at least close to ending; in his opinion, the yellow metal should reach US$2,000 per ounce again in the next 12 months.
“The next jump could be spectacular, and the (VanEck Vectors Gold Miners ETF (ARCA:GDX)) could jump 50 to 80 percent within the next 12 months — that’s our analysis,” he said.
Watch the video above to hear more from Middelkoop about gold and discovery investing.
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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.