Tom welcomes back Steve Todoruk back to the show. Steve discusses his background in geology and his work in the Yukon. After 15 years, he became involved with running Junior mining companies. Now he works out of California with Rick Rule in cherry-picking the best of the best mining companies.
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Steve discusses the risks with discovery companies and when the optimal time occurs for the optimal investment. Steve details what he likes to see in exploration phases and how to evaluate drill hole results. You want to see sufficient reserves and grade to make mine development practical.
You always want to be invested in the best companies, those with the best discoveries, the best deposits, and good management in an excellent mining-friendly country. You want to understand the metallurgy of a project and the methods necessary to process the ore.
You can't paint a better picture for gold than the world we live in today. So he tends to think we're still relatively early in the cycle.
Steve explains why exploration is essential and why Prospect generators are more than welcome. It's key to bet on good people with excellent track records. He says, "Focus on swimming in the good end of the pool as this is a highly speculative market. In a bull market it's fairly easy to do well but try and be invested in the best companies. Don't spread yourself out too thin there aren't that many good companies."
Time Stamp References:0:00 - Introduction0:40 - Steve's Background1:44 - Discoveries and Risk3:05 - Evaluating Results5:29 - Finding Ten Baggers6:22 - Managing Risks9:18 - Institutional Approach11:30 - Placements & Deals?12:59 - Cycle Phase13:41 - Lack of Discoveries14:41 - Deposit Considerations17:30 - Prospect Generators19:24 - Portfolio Evaluation20:54 - Concluding Thoughts
Talking Points From This Episode- Steve's geology background and his work at Sprott USA.- Finding good companies and avoiding risk.- Estimating where we are in the mining cycle.- Why you want to be invested in the best companies.