Speaking at the Prospectors & Developers Association of Canada (PDAC) convention, Brent Cook of Exploration Insights shared his thoughts on the resource sector, saying that the macro environment for metals looks positive.
“I think the realization’s going to come, hopefully this year, amongst the large investors and the general public and fund managers, that this is a sector that has been underinvested in for a long time,” he told the Investing News Network (INN).
“We are needing more and more metals for the electrification of the Earth, etc. The metals are going to become more expensive, and the companies that are mining them are going to start making a lot more money.”
Cook mentioned two companies he’s invested in recently: Headwater Gold (CSE:HWG,OTCQB:HWAUF) and Arizona Sonoran Copper Company (TSX:ASCU,OTCQX:ASCUF). The former is pursuing grassroots exploration in the Basin and Range Province in the US, while the latter is one of the top picks for Joe Mazumdar, also of Exploration Insights.
Aside from where he’s putting his money right now, Cook commented on challenges for juniors, including inflation.
“Certainly if a company is trying to advance a project from say a preliminary study to a prefeasibility or a feasibility — if the study is more than two or three years old, they’re going to have to redo the numbers,” he said.
Watch the interview above for more of Cook’s thoughts on how to invest in the mining industry, including red flags to be aware of and the importance of geology when doing due diligence. You can also click here for INN’s full PDAC playlist on YouTube.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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Image and article originally from investingnews.com. Read the original article here.