Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to recap his key takeaways from the Precious Metals Summit in Beaver Creek and his speaking engagement at the mining event at the Colorado School of Mines last week. The topics discussed center around the dichotomy between the negative retail investor sentiment, versus the increased interest from major and mid-tier producers, royalty companies, and capital market companies with regards to the junior mining gold and silver stocks. We discuss the improved risk/reward set up for longer-term value investors, in the face of so much negativity with retail participants only looking at recent chart action and paper losses instead of the bigger picture in this cyclical sector.
We also discuss another dichotomy in the markets between the “haves” and “have nots” in the mining sector. There are clearly some companies that have cash and are continuing to do quality work and regularly putting out news and still getting traction with investors. Conversely, there is a stark difference with other companies that are dead in the water and do not have enough money in their treasuries and are unable to raise capital or announce significant work programs for the balance of this year or heading into next year.
Some examples of companies Erik flagged as having news releases that continue to have his attention are Goliath Resources (GOT) (GOTRF), Headwater Gold (HWG) (HWAUF), Inflection Resources (AUCU) (AUCUF) and Dolly Varden (DV) (DOLLF).*
*In full disclosure, many of the companies mentioned by Erik, in this interview include personal positions in his portfolio, and they also may be site sponsors on The Hedgeless Horseman website at the time of this recording. Shad also holds positions in both Goliath Resources and Dolly Varden at the time of this recording.