My Reputation is now 1.The truth is hard.But i know this since years.
Ca. 20 Jahre Erfahrung, ein interessantes Interview zu Insidertrading, Kupfer und mehr.
Junior resource companies have had a bad year, but the bottom is in and recovery is just around the corner, said Willem Middelkoop, founder and CIO, Commodity Discover Fund.
In mid-November Middelkoop spoke to Kitco at the Deutsche Goldmesse fall 2023 show.
He said he expects the market to bottom out around Christmas, followed by “a very strong recovery in the last week of December and the first part of ‘24 because on average stocks jump 20 to 40 percent after the tax-loss selling season, but because prices are so depressed now, we could even have a larger recovery.”
Being at the end of “a very long bottoming out phase,” Middelkoop said it’s normal to see low valuations and consolidation. He identified SolGold (TSX:SOLG) and its Cascabel copper-gold project in Ecuador as a company that is particularly under-valued.
“That’s one of the largest copper-gold discoveries on planet Earth, actually it’s the largest still in independent junior hands, and it's valued at less than $300 million. If you compare that to the valuations in the tech industry, a company like that would have been worth billions.”
“I think the only way is up from these kinds of ridiculously low valuations,” he added.
Middelkoop was asked about short-selling and other market-manipulation techniques.
“Canadian junior mining markets have become very unhealthy, the way companies are being financed, many of the insiders are trading with insider knowledge,” he said. “The regulator has a very poor track record in trying to kill these bad practices… many of the regular retail investors feel they almost can't win because so many insider deals are being organized.”
Thus, Middelkoop said his fund has decided to concentrate only on the largest discoveries, “where there's more liquidity in the market, where less games can be played because it's more about the real value creation of the company.”
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