John Feneck: Better Times Coming for Gold Juniors After Head Fake

TL;DR

Despite overall market volatility, portfolio manager John Fennick remains bullish on the mining sector, particularly in small-cap explorers and royalty companies, as they continue to offer value and growth opportunities.

Transcript

i'm charlotte mcleod with the investing news network and here today with me is john fennick portfolio manager and consultant at bennett consulting thank you so much for joining me here in person at gdc pleasure to meet you yes yes it's great to see you off the computer screen we're here on the second day of the conference and i just want to take yo... Read More

Key Insights

• 👲 Fennick remains bullish on the mining sector, particularly in small-cap explorers and royalty companies that offer potential value and growth opportunities.
• 🥡 They emphasize the importance of active trading and monitoring of mining investments, as some companies may require selling into strength or taking profits at certain milestones.
• ❓ Fennick highlights specific companies, such as US Gold, Golden Minerals, Group Ten Metals, Clean Air Metals, and Canadian Palladium, as potential investment opportunities within the mining sector.
• 🏅 The investor sentiment in the mining sector is influenced by overall market conditions and the actions of the Federal Reserve, which could impact gold and silver prices.

Questions & Answers

Q: Why does Fennick remain bullish on the mining sector despite the overall market volatility?

Fennick believes that there is still a lot of value in the mining sector, particularly in small-cap explorers and royalty companies. They find potential in companies with successful drilling results, discoveries, or mergers and acquisitions, which they believe are being undervalued by the market.

Q: What are some updates on companies that Fennick previously mentioned?

Fennick mentions US Gold and Golden Minerals as two companies with positive developments. US Gold has released a preliminary feasibility study (PFS) indicating potential for significant gold production, while Golden Minerals is expecting to restart its Bellardania project, which could be a catalyst for stock price appreciation.

Q: What are Fennick's thoughts on precious metals prices, especially gold and silver?

Fennick believes that gold is still performing well, with higher lows over the past few months. While some investors may question why gold isn't higher given inflation concerns, Fennick sees it as an attractive store of value considering its performance compared to the broader market. Silver, on the other hand, has been more volatile due to its industrial and precious metal nature, but Fennick anticipates that it could rebound with increased market stability.

Q: What are the biggest challenges for junior mining companies currently?

Fennick suggests that one of the major challenges for junior mining companies is effectively communicating their message and partnering with media and social platforms to raise awareness among investors. They also note that raising capital has become more difficult in recent months, which could impact the survival and progress of these companies.

Summary & Key Takeaways

• Fennick maintains a zero exposure to the broad market and a 50% cash position in their energy portfolio due to market conditions. However, they are bullish on the mining sector, particularly in small-cap explorers and royalty companies.

• Fennick believes that there is still a lot of value in the mining sector, especially in lesser-known names, and sees potential in companies with successful drilling results, discoveries, or mergers and acquisitions.

• They highlight two gold companies, US Gold and Golden Minerals, as attractive investments due to positive project developments and strong leadership. They also mention several palladium companies, including Group Ten Metals, Clean Air Metals, and Canadian Palladium, with high growth potential.