Mining Weekly: Thinning crowd of junior miners provides both opportunity and risk
by Michaela Davies on Oct 18th, 2013
Newstrike Capital CEO Richard Whittall was featured in an October 18th, 2013 Mining Weekly article discussing the growth potential of smaller exploration companies. Click here to read the full article by Henry Lazenby.
Seasoned Vancouver-based investment banker and exploration junior Newstrike Capital director, president and CEO Richard Whittall believes that nowadays it is part of the junior business model to be acquired in the long run, which could potentially create significant value for investors.
“It’s a question of whether a junior can discover a deposit, how much of a mineral it can discover and at what cost the discovery comes,” he explains in an interview with Mining Weekly.
He points out that the normal investment rules for any business also apply to investing in the junior minerals sphere, which means taking a critical look at the margin at which the company would be, or is, producing goods.
“When assessing a junior for potential investment, the mantra ‘Have they got the likelihood of constructing a low-cost operation for low-cost capital expenditure?’ applies. Investors look for a rate of return,” Whittall says.
Among questions investors should be able to answer about any specific junior, before making an investment decision, are ‘can this be a low-cost mine?’; ‘what are the infrastructure requirements, such as roads, rail and electricity?’; ‘how stable and mining-favourable is the jurisdiction in which the project is located?’ and ‘can the company transform the discovery into an economical deposit with compelling enough character-istics to attract financing?’
He says these are the boxes juniors have to tick in order to raise capital through equity raises, which are, in general, the life force juniors need to survive.
In general, when a commodity price is high, one can afford to pursue a low-grade project, but when prices are low, high-grade projects tend to be the only saving grace.
Equally important to having a strong asset is to have the right management team in place. Investors should look to see whether the company has the expertise to bring a discovery into commercial production.
“You need ‘cradle-to-grave’ people in the management team. They need to have certain skills sets, such as the ability to raise cash, credibility and a proven track record and the ability to bring a discovery all the way through to production,” Whittall notes.
This is especially true in the face of the volatile commodity prices in recent months, underlining the need to have staying power in the team, which only comes with experience. Management needs to have been through several cycles to be able to know what to expect.
Dentons Vancouver partner Alan Hutchinson believes the management team is the most important element to look at when considering junior investment. He also advocates a thorough mix of senior management and young blood coming through the ranks.
“One would need an experienced team to know when not to panic in cyclical down markets. There also needs to be a changing of the guard as more senior staff step back. I believe a new generation of managers will lead the recovery phase, not assets,” he says.
The Street TV Interviews Newstrike CEO Richard Whittall
by Michaela Davies on Sep 25th, 2013
In a segment titled “Huge Gold M&A Poised to Explode,” The Street TV interviewed Richard Whittall on site at the Denver Gold Forum last week. Click here to watch
New Exploration Potential at Aurea Norte – Mining World
by Michaela Davies on Sep 13th, 2013
The following article appeared in the September 12th, 2013 Mining World. Newstrike Capital’s ZTEM geophysical survey has identified new exploration potential at Aurea Norte, Guerrero, Mexico. Newstrike Capital’s recently completed ZTEM airborne geophysical survey over its Aurea Norte property has successfully identified several high priority anomalies on a parallel trend with its flagship gold deposit at Ana [...]
Rob McEwen Interview: On Gold Prices, Gold Miners And Bitcoin
by Michaela Davies on Aug 30th, 2013
The following article by Eric Jackson was published by Forbes.com on August 20th, 2013. The CEO and Chairman of US Gold Corporation and Minera Andes Inc., Canadian Rob McEwen, speaks during a round table on the gold mining perspectives, in the framework of the Tenth International Gold Symposium, in Lima on May 14, 2012. (Image [...]
“Newstrike advances Ana Paula as it waits for the market to turn” – Mining Markets
by Michaela Davies on Aug 1st, 2013
Mining Market’s Alisha Hiyate published the following article about Newstike Capital featuring an interview with CEO Richard Whittall. See the entire article here, published on July 29th, 2013. Newstrike Capital (TSXV: NES) president and CEO Richard Whittall says he’s not marketing the company’s 2.3-million-oz. Ana Paula gold project for a takeover — at least not yet. A takeover [...]
“Watch: Gold is flashing a secret buy sign” – CNBC Talking Numbers
by Michaela Davies on Jul 26th, 2013
The following article is an excerpt of an article that appeared on Yahoo Finance, July 26th, 2013 by Lawrence Lewitinn of CNBC’s Talking Numbers. Gold has risen almost 10% in the last three weeks. According to one respected source, there are two very big signs that it may be getting better. Quietly, gold has risen [...]
Northern Miner: “Newstrike hits Ana Paula at depth”
by Michaela Davies on Jun 24th, 2013
An excerpt from Norther Miner’s article “Newstrike hits Ana Paula at depth” which provides coverage of Newstrike Capital’s latest press release. Published June 21st, 2013. VANCOUVER — Vancouver-based explorer Newstrike Capital (NES-V) remains hard at work at its wholly-owned Ana Paula gold-silver project in Guerrero State, Mexico. After releasing Ana Paula’s maiden resource in late March — [...]
Physical gold demand soaring on currencies’ turbo-charge
by Michaela Davies on Jun 5th, 2013
This article written by Martin Creamer was published by Mining Weekly on May 16th 2013. To read the full article, click here. JOHANNESBURG (miningweekly.com) – The demand for physical gold is soaring to potentially record highs, boosted by the current low dollar prices that are particularly attractive in several other currencies. “Gold is looking particularly attractive in many [...]
Newstrike CEO Richard Whittall on Bloomberg TV
by Michaela Davies on May 31st, 2013
In this interview from March 21, Simon Galante, chief executive officer of Controladora Fibra Hotelera Mexicana SA, Roy Sosa, CEO and founder of Rev Worldwide Inc., and Richard Whittall, president and CEO of Newstrike Capital Inc., participate in a panel discussion about business opportunities in Mexico. Bloomberg’s Jonathan Levin moderates the panel at the Bloomberg [...]
Hedge fund boss Baha sees gold at $3,000-$5,000
by Michaela Davies on May 30th, 2013
This article was written by Laurence Fletcher of Global Investing, posted on May 28th, 2013. Click here to read the full article. Christian Baha, the head of Austrian fund firm Superfund and representative of the hedge fund industry in Oliver Stone movie Wall Street 2: Money Never Sleeps, is predicting that the gold price could rise to [...]