Exclusive KE Report Commentary – Fri 17 Mar, 2017

Brent Cook on the changing landscape for exploration companies

Today is going to be a lighter day for posting as I am recording a lot of the weekend show. In the meantime I figured I would post a preview to the weekend show… I hope you all enjoy and everyone has a great St. Patrick’s Day!!

Brent Cook joins me for the first 2 segments on this weekend’s show. This is a preview of the first segment where Brent and I discuss the optimism at the recent PDAC conference. This optimism is carrying over to the exploration side of the market. I get Brent’s outlook for exploration companies and what he find important.

Click download link to listen on this device: Download Show


Featuring:
Brent CookCory Fleck
View related posts on: ,

Comments:
  1. On March 17, 2017 at 8:26 am,
    OOTB Jerry says:

    thanks for having Brent……

    • On March 17, 2017 at 8:35 am,
      Excelsior says:

      Yes always nice hearing from the bearded one…

      Good interview guys, and yes the strategic investments in the smaller Jrs and some JVs are an encouraging sign that they are scouting out the companies that have developed real economical assets that they can eventually bring under their fold.

      It is still early days in the recovery for metals and mining companies, so it’s safe to anticipate another wave of Mergers & Acquisitions over the balance of 2017 and 2018 and it will be healthy for the sector to consolidate some of the great projects under more capable roofs.

      Often the explorers don’t have the skill sets to develop the mine, much less take it into production. Even some of the mine builders, may not be the best at optimizing production and recovery rates, so they become the takeover targets for the big boys. Looking forward to finding the quality companies that will become the takeover targets for this next metals cycle.

      Cheers!

      • On March 17, 2017 at 9:04 am,
        OOTB Jerry says:

        I would have to agree with you concerning the “skill set”…to develop the mine…
        It takes all kinds……..and some people just do not have what it takes for the stock holders to make money.

        • On March 17, 2017 at 9:06 am,
          OOTB Jerry says:

          It takes all kinds….I should have qualified the statement,…some rock pickers do not have the management skills, and therefore need some others to help in the management of a company.

          • On March 17, 2017 at 9:23 am,
            Excelsior says:

            OOTB – agreed. Looking at the stage or “sub-sector” of a company is important to cross reference their team:

            – Does this team have experience with brownfields development?
            – Have they ever permitted and built a mine before?
            – Do they have a team with the financial experience needed to raise that kind of capital?
            – Have they been producers before or can partner with another company who has?
            – Do they understand how to do open pit heap leach or underground mining?

            I like to consider “What is their exit strategy?” Do they just want to keep exploring and sell that property? Do they want to bring on a JV partner like with Prospect Generators? Do they plan on getting acquired by a larger Sr miner? Do they plan on taking into production themselves?

          • On March 17, 2017 at 10:10 am,
            Excelsior says:

            Here’s an example from the Lithium space.

            (LAC) Lithium Americas didn’t have the skill set to put their huge Lithium brine resource into production, but a major (SQM) SQM was interested, and they were both wise enough to JV the project. Now, when they needed to raise capital, they brought in one of the large Asian consortiums – Ganfeng to assist with the capital.

            This is the kind of partnering that leads to mines getting built versus them trying to go it alone, and was the right path forward. More companies, that lack the experience needed to move their project ahead should consider similar approaches.

            https://twitter.com/search?q=%24LAC&src=ctag

          • On March 17, 2017 at 10:29 am,
            OOTB Jerry says:

            thanks for the follow up……..thanks for the example………j

  2. On March 17, 2017 at 8:46 am,
    CFS says:
  3. On March 17, 2017 at 9:34 am,
    Excelsior says:

    The Market is Mispricing Volatility in Gold
    by @Goldfinger on March 17, 2017

    https://ceo.ca/@goldfinger/the-market-is-mispricing-volatility-in-gold

  4. On March 17, 2017 at 10:03 am,
    ANON says:

    VIDEO – Brent Cook and Joe Mazumdar talk Mining Stocks on BNN – http://www.pennyminingstocks.com/video-brent-cook-and-joe-mazumdar-on-bnn/

  5. On March 17, 2017 at 10:47 am,
    CFS says:

    Palladium up double digits, but Pt, Pd stocks selling off!

    • On March 17, 2017 at 11:21 am,
      Excelsior says:

      Things that make you go Hmmmmm……

  6. On March 17, 2017 at 11:58 am,
    Markedtofuture says:

    IRV IRVRF Irving’s new corporate presentation on its website –

    https://www.irvresources.com/assets/docs/ppt/irv-mar-14-2017.pdf

  7. On March 17, 2017 at 2:04 pm,
    Tad says:

    Is it me or does Brent Cook always bang on about Mirasol ?!
    I’m sure he mentions them every time I hear him do an interview.

    • On March 17, 2017 at 3:54 pm,
      Excelsior says:

      Yes he has mentioned Mirasol for years but it is a nice explorer.

      There are a number of companies he’s knocked in the past though that have have trounced the returns of Mirasol (including most of the Silver miners that only WingNuts invest in). There are also many other prospect generators that I like waaaayyy more than Mirasol, but that’s a different conversation.