Matt Geiger, managing partner at MJG Capital Fund, spoke about the health of the junior mining sector as gold continues to run, acknowledging that explorers haven’t moved as much as investors might like.
However, in his view, that may bode well for their future performance.
‘One could argue that the fact that we’re seeing it play out in this manner could suggest that this move is going to be more long lasting and drawn out than those exciting but flash-in-the-pan rallies that we’ve seen in years past,’ he said.
‘I do think we’ve turned an inflection point — I would say in late September, early October.’
He also shared tips on how to determine which juniors to invest in, saying that management is the main factor he evaluates, along with asset quality, company structure and funding to progress toward catalysts.
Geiger pays less attention to the commodity a company is focused on, saying it’s at the bottom of his list.
‘The urge is to go out and find that hot commodity … I really do not think, unless you have exquisite market timing, that this is the way to succeed as an investor in the junior patch,’ he said. ‘The factor that I look at very last is the metal.’
Watch the interview above for more from Geiger on due diligence and trends in the resource space.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.