Spock has better idea than expert!!!!!! BUT his choice of investments not bad.
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How Would Brent Cook Invest $100k in ’16? – Invest Like Experts, Mining Edition

Friday January 08, 2016 11:35

(Kitco News) – Invest Like The Experts (#InvestLike) has come to an end, but before leaving you this year, Kitco News would like to offer its readers a special Mining Edition of the series to see where one expert would invest his money in the sector in 2016.

We spoke with famed geologist and editor of a popular mining newsletter, Exploration Insights, Brent Cook to see how he would invest $100,000 in mining this year. What mining companies are best positioned for 2016? What projects may have the most potential?

Expert: Brent Cook

Claim To Fame: Geologist & Editor of Exploration Insights, a junior mining investment letter whose portfolio returned +18% in 2014 and -6% in 2015.

Thoughts on the mining sector: “The mining and exploration sector has been decimated over the past few years and is off over 80% from its highs,” Brent Cook told Kitco News Friday.

Mining companies have experienced another tough year with more cost, production and exploration cuts as well as downsizing and mine closures, among other negative news.

The Gold Miners ETF Market Vectors (GDX), which tracks the performance of major gold mining companies listed on the NYSE Arca Gold Miners Index, has steadily been declining since 2012 and is currently at record lows.

And, as Cook put it in his year-end newsletter, “it is hard to find anyone positive on the sector…or even think there is a need for exploration.”

“This is as bad as I have seen it, and I see very few logical reasons to think it gets better anytime soon,” he added.

However, when asked how he would invest his money in the sector this year, Cook said he sees potential in three key areas.

For more on the mining sector, watch Brent Cook’s 2016 outlook interview with Kitco’s Daniela Cambone.

How would you invest $100,000 in the mining sector in 2016?

40% Mid-tier Precious Metal Producers with low cost production and legitimate exploration upside

Examples: Lake Shore Gold & Claude Resources

25% Prospect Generators with sufficient cash to last a couple of years, partners spending money, legitimate exploration concepts and honest management

Examples: Mirasol Resources, Reservoir Minerals, Riverside Resources, Aurion Resources, Lara Exploration, Miranda Gold, Evrim Resources

35% Very Early Stage Discoveries that may occur this year