Thom Calandra: My Best Tip for Investing in Juniors This Year

TL;DR

Thom Calandra’s key lesson for investing in junior mineral companies is to understand how they explore, finance projects, and control share dilution. He highlights a Quebec explorer that used predictive modeling developed since 1993 or 1994 before reporting strong gold values across seven substantial intercepts at the Elmer property in James Bay. Read on for his views on technology, jurisdictions, major discoveries, and junior-company risk.

Transcript

I'm Charlotte McLeod with the investing use network and here today with me is Todd Glander of decline or report thanks so much for being here today Oh Charlotte always a pleasure great I work here at pric it's very early in the year how are you feeling about the resource space overall right now Wow yeah I was just telling Joe yeah I know I was just... Read More

Key Insights

• 🤨 Small resource companies face challenges in raising capital for mineral exploration.
• ❓ Technology, like predictive modeling, is increasingly being used in mineral exploration.
• ❓ Major discoveries in mineral exploration are expected in the near future.
• 🤘 Precious metals like gold, platinum, and palladium are experiencing price increases.
• 🌐 Global events and market dynamics can influence resource prices.
• ❓ Investors should focus on understanding companies and industries before investing.
• 🎚️ Different sectors within the resource industry, such as producers or explorers, offer different levels of risk and reward.

Questions & Answers

Q: What is Thom Calandra’s best tip for investing in junior mineral companies?

Understand the company, its exploration process, and how carefully it spends money before investing. Calandra favors evidence such as years of groundwork, clear targeting criteria, credible technical leadership, and financing that limits unnecessary share dilution.

Q: Why is raising capital difficult for junior mineral companies?

Calandra says small companies remain broken when it comes to raising capital and still have many wounds to heal. Mineral exploration is a difficult business exposed to bad luck, fraud, poor timing, and repeated dilution.

Q: Why does Calandra view Australian junior resource companies favorably?

He says Australia does a better job of moving companies toward production or arranging property deals for cash. Reaching those outcomes sooner can reduce how much companies must dilute their shares.

Q: Are major mineral discoveries expected in the coming years?

Calandra expects major discoveries and points to recent exploration results in Quebec’s James Bay region as an encouraging example. He describes strong continuity and substantial gold values across seven intercepts at the Elmer property.

Q: How is predictive modeling used in mineral exploration?

The Quebec company discussed has applied predictive modeling across its mineral-property portfolio since 1993 or 1994. Its team uses defined parameters, criteria, and years of groundwork to select targets before spending exploration money.

Q: What made the James Bay exploration results notable?

Calandra highlights tremendous gold values across seven substantial intercepts at the Elmer property in James Bay. He says the continuity was unlike anything he had seen, and the stock rose about 75% after the results.

Q: Are larger mining companies doing enough exploration?

Calandra says large resource companies have historically struggled to replace enough resources to keep pace with the products they sell. As a result, major metals companies must rely on junior companies to conduct solid exploration.

Q: What risks should investors consider when choosing junior explorers?

Junior exploration companies face bad luck, fraud, bad timing, financing problems, and dilution. Investors should examine the company’s methodology, technical team, jurisdiction, property portfolio, spending discipline, and path toward a discovery or producing asset.

Summary & Key Takeaways

• The resource space is generally optimistic, with many companies reporting profitability.

• However, small companies in mineral exploration still face challenges in raising capital.

• Other nations, like Australia, have shown better success in supporting and developing small resource companies.