F E B R U A R Y / M A R C H 2 0 1 9
www.resourceworld.com 25
2019: THE PERFECT OPPORTUNITY
First, we make a few assumptions. In the
1990s gold companies found about 1.4
ounces of gold for every ounce they pro-
duced. Today, that number has dwindled
to 0.03 ounces for every ounce produced
and peak gold, by consensus numbers,
took place in 2015. This is a recipe for going
out of business if you don't find, buy or
merge more ounces into these companies to
increase production or add to reserves.
So, it is with that in mind that we
believe in the same approach we used in
2018; that is, careful research, looking at
quality committed management teams,
good properties in sound jurisdictions, a
strategic large shareholder, some money in
the bank, and a reasonable time table for
news and results as we start to look for
investments in the mining sector for 2019.
As we start 2019, exploration compa
-
nies are priced for failure. The threat of
more US dollar strength and higher inter-
est rates seem overblown and investor
pessimism and doubts are high. However,
this appears to be fertile ground for a new
leg up in the on-going bull market in pre-
cious metals, base metals, and strategic
metals going forward.
WHAT WE DO
We start by screening approximately 1,500
companies, looking for long bases, accu-
mulation patterns or a bullish technical
formation that gives us a clue to where
investor interest is or where investor inter-
est could be going. Shares in companies
that hold up better in down markets is also
a big clue.
We then we go to conferences, road
shows, meet with the company executives,
and maybe even do site visits, meet the
prospectors and geologists to get a feel for
the company and its personal. We build
on the fundamental story and opportunity
and have technical targets where we see
the share price potentially going.
We like to share the companies we like in
pictures and the chart below is a good cur
-
rent representation of the kind of company
we like. While this is not a stock recommen-
Courtesy StockCharts.com
Courtesy StockCharts.com
INVESTMENT
