Here is another article from Excelsior. He is focusing on the Capital Groups that I’m sure you all have heard or seen on certain Company websites. As much as every analyst says you need to focus on management, the truth is management extends to the group behind the scenes as well.
If any of you have articles you would like me to post leas email me at Fleck@kereport.com and I will happily read over it and post it.
Here’s Excelsior’s article!
Backing Quality Management Teams Through Backing Quality Capital Groups
By: Shad @ Excelsior Prosperity
We hear a great deal from industry experts, newsletter writers, and seasoned resource investors about the importance of backing good management teams, that have been serially successful. The challenge is that most retail investors are not knowledgeable about which teams really are quality, which ones have the skills to execute in their designated roles, or which individuals have successful track records. As a result most have no idea which jockeys to back.
There is no magic bullet for finding the best people, but one observation to make about the resource sector is that often we see that quality capital teams are the ones that can curate the best management teams and boards of directors.
Quality capital teams also have the ability to share synergies, talent, and expertise within their groups of companies, and also to band together in promoting their portfolio or brand of companies. As a result, one approach that can help investors separate the wheat from the chaff regarding quality teams, is backing the companies that fall under the umbrellas of success capital groups. There are much fewer capital groups to keep up with, and they’ve helped do some of the vetting for investors before picking up a new company, project, and team. This is just one tool amongst many to give retail investors an edge.
Here are some examples of winning capital groups that have caught my attention over the last few years, and where I personally invest in some of their portfolio of companies.
- Oxygen Capital Corp – (Pure Gold Mining, Discovery Metals, Liberty Gold, Northwest Copper, Frontier Gold {acquired}, True Gold {acquired})
- Inventa Capital Corp – (Vizsla Silver, Tarchi Gold, Gold Bull Resources, Surge Copper, Iso Energy, Outback Goldfields)
- Discovery Group – (Great Bear, Kodiak Copper, K2 Gold, Bluestone Resources, Fireweed Zinc, Elemental Royalties, Ethos Gold, ValOre Metals, Genesis Metals, Kaminak {acquired})
- Metallic Group Companies – (Metallic Minerals, Group Ten Metals, Granite Creek Copper)
- Crescat Capital – (Novo Resources, Lion One Metals, Irving Resources, New Found Gold, Goliath Resources, Eloro Resources, Eskay Mining, Nulegacy Gold, Precipitate Gold, Tristar Gold, White Rock Minerals, Labrador Gold, Timberline Resources, NV Gold, Defiance Silver, Kuya Silver, Rokmaster Resources, Altamira Gold, and more…)
- Featherstone Capital – (Newmarket Gold {acquired}, Calibre Mining, Newcore Gold)
- Lumina Group w/ Ross Beaty – (Equinox Gold, Pan American Silver, Lumina Gold, Solaris Resources, Lumina Copper {acquired}, Lumina Resources {acquired})
Investors should always do their own due diligence, but I’ve found these teams have delivered some solid success stories over the years, and are able to attract the quality teams we so often hear about. They are able to incubate quality projects, find the right management teams, raise money more effectively, promote their companies better, and have synergies sharing some G&A expenses/technical knowledge/industry experience across their portfolio of companies.