Jayant Bhandari – What To Consider When Doing Due Diligence On Resource Stocks In A Tough Market, And A Site Visit To Irving Resources

November 28, 2022

Jayant Bhandari, Private Investor, joins us for a focus on the broad resource stock sector especially focused on the juniors. It’s been a bad couple years for the stocks and now many companies are running out of money. Even the companies doing work at projects are still seeing little to no return on their investments. Jayant shares what he is looking for in stocks right now when doing his due diligence. We also recap a recent site visit to Irving Resources in Japan.



Click here to visit Jayant’s website.

    Nov 28, 2022 28:00 AM

    Damn. Totally missed how much kodiak had sold off. That was a bargain too. I need more time and funds. 😒

      Nov 28, 2022 28:16 PM

      Yeah, I was waiting to get back in Kodiak Copper as well, but had blown out most of my copper positions earlier in the year, especially exploration stories, but with the intention of scouting for good entries at the end of the year. Now KDK has basically doubled off it’s low, and so it’s hard to chase it here when so many other copper stocks haven’t really moved nearly as much yet.

    Nov 28, 2022 28:21 AM

    Here is an interesting research firm (Equinox Partners) that has highlighted company Directors in mining companies that who have served for two+ years but have invested less than two years of compensation back into their company’s stock. The firm believes financially-aligned directors are more likely to prioritize returns on and of owners’ capital.

    Below is a list of directors from gold mining companies in the GDXJ index who fail the Equinox Partners policy.

      Nov 28, 2022 28:51 AM

      Interesting Ex, some famous names in the list of mining companies where the directors fail the Equinox Partners policy. I don’t own any of these companies listed but if I did, I would think twice about my investment. The under current here is that they have a low opinion of their shareholders as well as the company. DT

        Nov 28, 2022 28:09 AM

        Very interesting how many companies have numerous directors on the list…. Not to defend any directors but I think one caveat that should exist is if a director already holds a certain % of the company.

          Nov 28, 2022 28:12 PM

          Totally misread that….. that’s even worse than I realized. 🙄

        Nov 28, 2022 28:13 AM

        Yes, indeed DT. There are a few companies that have multiple directors not really investing in the companies they “direct” with their own money, and shows that many of them are on the job for the salaries or options, and that they are not as aligned with investors that actually buy in the open markets.

        Keep in mind, those are just from gold & silver companies featured in GDXJ. If we drilled down in the Junior space, it would be such a long list that it would discourage most investors from even considering investing in mining stocks.

        Bottom line, if Directors were not inspired to pick up shares of their respective companies while they were “cheap” or “on sale” over the last 2 years, then either they are overly bearish still, or don’t think much of their Board of Directors and Management teams ability to go build value in the company the work for.

        Personally, I’d be fine with some changes to many teams B.O.D. to bring in people that are active in buying the shares of the companies they helm, and more aligned with investors that they pitch on buying shares in their companies. We look into dozens of companies every week, and I see a lot of stale boards with lifestyle members, sucking money out of the company treasury, and not really putting much or any back into investing in the company’s future prospects. It’s a pretty big tell when management teams actually do invest their own money in shares, and is something I look for on SEDI.

        Many corporate executives in mining companies hooked themselves up early with really cheap shares or gift themselves options in shares on a regular basis, and thus “own” a lot or have a nice percentage holding from yesteryear… However, that is not the same thing as taking their salaries pulled from the capital raised or the revenues generated from the company and actually plowing their own money back into shares of the company on the open market.

        Sadly, for many corporate executives, especially people just thrown onto a Board of Directors for their “name drop,” they are just there for the income it pays them, they don’t put in but a few hours a week, and they aren’t really that aligned with shareholders.

        As an industry, across the board, most mining companies, development companies, and exploration companies compensate their management teams, and especially their board of directors far too richly. I’d much rather see a smaller B.O.D. and have it filled with active, enthusiastic supporters of the company, putting in the hard work and buying shares when they suggest they are “really undervalued.” Let’s see less lip service about their low valuations, and instead have these C-suites put their money where their mouths are.

          Nov 28, 2022 28:15 PM

          Some notable names and companies stick out like dog’s balls. I took some off my watchlists.

      Nov 28, 2022 28:01 PM

      I don’t know whether to feel good or bad…. I don’t own any of those companies where Directors hold zero shares. I am electing to feel good as the shares I own continue to get their heads handed to them on a garbage can lid.

        Nov 28, 2022 28:26 PM

        Hey there Lakedweller2. I actually do own a few companies on that list, but reduced my position in a few of them somewhat today, and rotated money into other companies I feel are doing good work.

        Again, those were just on the companies held in the GDXJ. If we dove down into the juniors not included in that ETF, there would be plenty of skeletons in the closet of other mgmt teams that haven’t supported their stock through purchasing it the last 2 years while their valuations were so attractive.

        Unfortunately the mining sector is chock full of executive teams that suck money out of the companies, and rarely put any to work backing the company’s share price performance. That’s the way it’s always been and will likely always be.

    Nov 28, 2022 28:58 AM

    From Bix W………………………
    The FACT that the ex-CFTC & current SEC Chairman Gary Gensler was aware of both the massive JP Morgan Silver Manipulation and the FTX Crypto Ponzi Scheme BEFORE THEY HAPPENED is more than disturbing.

    He did NOTHING to help those who invested in assets subject to these ongoing crimes.

    This Non-Action of a Regulator makes him an ACCOMPLICE TO THE CRIMES!

      Nov 28, 2022 28:57 PM

      Looks like Gensler has always worked full-time for the Banks. I thought he was part-time.

    Nov 28, 2022 28:18 AM

    Powerful head-fake Dollar bottom rebound today.

    Nov 28, 2022 28:18 PM

    What???? No Brixton chatter???😏

      Nov 28, 2022 28:55 PM

      Brixton is not up enough to cover all the bullet wounds in my other stocks. But, I appreciate its effort.

    Nov 28, 2022 28:55 PM

    Don’t see much impetus to pump the dollar significantly higher…

      Nov 28, 2022 28:34 PM

      The main reason the Dollar went up this year was because other fiat currencies were sucking wind worse than the dollar, so the Euro, Yen, and Pound were taking nosedives driving up the Buck. So, it really hasn’t been so much the greenback doing well due to a great economy, but more so the aggressive Fed rate hikes have been leading the charge higher in interest rates and this gave foreign investors and currency traders more confidence in the Dollar over other currency choices (with a few exceptions in some lessor currencies).