I recently attended the Sprott Natural Resource Symposium in Vancouver. It was a whirlwind of valuable information. I spent my time having sit-down chats with miners, developers and explorers.
Some big changes are afoot in the industry. Without exception, every company told me it was now much easier to raise money if they needed it compared to last year. The days of great junior projects going begging are over.
That said, investors still need to be cautious. Prices can go down as well as up. Depending on your time frame, that could be painful.
Now, I get very excited about miners, especially junior miners. They have a lot of value that the Wall Street crowd can’t see over the tips of their white shoes. (Note: Before you invest, be sure to review my vetting process for good junior miners.)
But for the bold, there is also value in explorers.
Explorers carry a lot more risk than producers. Simply because things can go wrong on the path from bare patch of dirt to producing mine. But if you find those risks acceptable, consider putting a small portion of your investable cash to work in explorers. The potential payoffs can be extraordinary.
Here are three explorers I talked to in Vancouver. You may find them worth further investigation. These are profiles, not recommendations.
Explorer No. 1: Mirasol Resources
Pardon us if we can’t keep our eyes open in this video. Stephen Nano gave me the scoop on Mirasol Resources at 6:45 a.m.
Mirasol (TSX-V: MRZ; OTC: MRZLF) is a prospect generator. That is, the company finds good projects. Then it partners with big miners that carry it through to production.
This isn’t just a dream; Mirasol was quite successful at this in the last gold bull cycle. It has A-list management and is working in “elephant country” down in Chile and Argentina. Elephant country is where you find big, undiscovered projects.
Mirasol has a market cap of $103.7 million and 44.7 million shares outstanding. Its tight share structure is another thing going for it.
Explorer No. 2: East Africa Metals
I found a quieter place to interview Andrew Lee Smith of East Africa Metals. East Africa Metals (TSX-V: EAM; OTC: EFRMF) is looking for gold in Ethiopia – and is finding it. In fact, it expects to have a mine in production next year.
Mind you, a lot can go wrong between now and then. But to the company’s credit, management has already done this before. They found a project in Tanzania and inked a gold streaming deal on that one.
East Africa Metals is a small company. It has a market cap of just $25.7 million and 113 million shares outstanding.
Explorer No. 3: Telson Resources
Telson Resources (TSX-V: TSN; OTCQX: SOHFF) is tiny, with a market cap of $22.2 million and 92.9 million shares outstanding.
Nonetheless, it just secured a $10 million line of credit and is advancing its Tahuehueto silver-gold project in Mexico.
President Ralph Shearing tells me the company expects to have a revised preliminary economic assessment out soon. What’s more, he wants to put this underground project in production by the end of next year.
All three of these companies offer a combination of risk and opportunity. From here, you can choose to investigate any or none of them. But if you decide to act, just be sure to do your own due diligence first.
One final note: We all are agreed you don’t chase anything in this market, right? Wait for the pullbacks and buy them; you’ll be happier. Put your money to work wisely and sparingly.
The opportunities to score huge returns in gold and silver miners are going to be great for the next few years.
All the best,
Sean
P.S. It’s not too late for you to catch the best of the Sprott Natural Resource Symposium. That’s because now you can listen to the audio presentations from speakers including Rick Rule, Doug Casey, John Embry, and James Rickards. And the PowerPoint presentations are included!
In fact, you’ll get all four days of General Session speakers, who covered the most important financial ideas and investment opportunities in the gold and resource markets… market analysis… and much, much more.
There is bonus material, too. To see this exclusive offer, just click here.
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