In an article published today by Business Insider, Lawrence Roulston speaks with The Gold Report about his optimism on gold juniors.
TGR: What are you concentrating on in this market environment?
LR: I’m focusing on the more advanced-stage exploration projects over earlier stage exploration because that’s where we’re going to see the near-term price action. The gold and silver companies are getting a lot more respect than base metal companies. One of the most important criteria investors want to see now is potential for a big payoff. If they’re going to put their money at risk, they want to know there’s at least the chance of a big payoff.
To throw out a couple of companies here to illustrate these various points, Newstrike Capital Inc. (NES:TSX.V) is an early-stage exploration company but its share price is up 2.5x in the last year. It’s getting strong support from investors even though it’s well ahead of having a resource estimate. The investor interest in that company is based on the possibility of a very large deposit that it’s drilling in Mexico.
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