Categories: Base Metals / Energy / General Market Commentary / Precious Metals
Topics: General Base Metals / General Energy / General Market Commentary / General Precious Metals

Joe Mazumdar: Exploration-stage Gold Plays are the Place to Be

Joe Mazumdar: Exploration-stage Gold Plays are the Place to Be

Mazumdar runs Exploration Insights with Brent Cook, and in this interview he also mentions a commodity that they currently have no interest in.

Brent Cook and Joe Mazumdar are the minds behind Exploration Insights, and in their talks at this year’s Prospectors and Developers Association of Canada (PDAC) conference they focused on a few key ideas:

Major miners’ gold reserves are declining;
Due to cost cutting, most of these gold producers are not doing much exploration;
As a result, they don’t have the means to replace their gold reserves themselves and are instead funding or acquiring juniors to ensure that they have access to new sources of gold.
For those reasons, Cook and Mazumdar currently believe that exploration-stage gold plays are the place to be — as long as you choose companies that are likely to be appealing to major miners.

“Everything is very specific to the suitor,” Mazumdar explains in the interview above. “If it’s really near their operation, maybe the hurdle rate’s much lower. But if it’s a grassroots, greenfields project they might need a higher production level,” he said.

That said, “in the end they want to make a double-digit return at a $1,250 gold price, so if the asset can offer them that, then that should be a better chance that they will get acquired.”

Listen to the interview above to learn more of Mazumdar’s thoughts on the gold space, and to hear what commodity he and Cook are not currently not interested in.

The transcript for this interview will be added shortly.

To listen to interview please click link http://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/joe-mazumdar-pdac-2017/?mqsc=E3875974