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

TL;DR

The resource space looks promising, especially in minerals exploration, but there are still challenges in raising capital. Major discoveries, driven by technology and predictive modeling, are expected in the years to come.

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: Are major discoveries expected in mineral exploration in the near future?

Yes, major discoveries are anticipated, with examples like the success of James Bay exploration in Quebec. Predictive modeling and technology play a significant role in these discoveries.

Q: Is technology adoption increasing in the resource industry?

Yes, more companies, especially in minerals exploration, are embracing technology. Some companies claim to have the best technology, but the use of predictive modeling in Quebec's mineral properties has been particularly successful.

Q: Are companies doing enough exploration in the resource industry?

Historically, large companies have struggled to keep up with resource demand, so they rely on junior companies for exploration. Exploration is a challenging and dilution-prone business, but there have been positive turnarounds in recent months.

Q: What are the price dynamics of precious metals at present?

Precious metals like gold, platinum, and palladium have shown price increases. Palladium, in particular, has surged due to the growing popularity of electric vehicles. Physical metals may see significant price movements compared to their junior counterparts.

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.