Mark Lackey, investment strategist, Pope & Company in Toronto.
Focus: Financingsmall and mid-cap mining sector companies
Can you give us your perspective on what is happening in the market right now?
“If we look at global issues [that are affecting stock markets] they continue to be dominated by debt problems. We will be watching Spain very closely because it is the fourth biggest economy in Europe.”
How do you think this will play out over the next few months?
“At the end of the day, I don’t think that Europe is going to implode. We believe that the commodities cycle is still intact and that it will do well over the next few well. We haven’t changed our view on that China and some of the faster growing economies will continue to grow at a pretty brisk pace. We still believe that there is going to be very good demand for gold, silver, uranium and metallurgical coal. We think that venture capital markets will recover from current levels.”
How does this affect your work as an investment strategist?
“We tend to concentrate on certain sectors and certain jurisdictions. We have spent a fair amount of time looking at West Africa on the basis of the [region’s] growing gold potential.”
Can you name some of the companies that Pope & Co has financed recently?
Robex Resources Inc. (TSX: V.RBX, Stock Forum), a Quebec-based exploration and development company focusing on Mali, West Africa. Trading at 21 cents, Robex has a market cap of $39.2 million, based on 186.7 million shares outstanding.
Goldrush Resources Ltd. (TSX: V.GOD, Stock Forum). The Vancouver junior is exploring for gold in Burkina Faso, West Africa. One of its flagship projects, the Ronguen gold deposit, is thought to contain 249,000 ounces of gold in the inferred category, according to a NI 43-101-compliant estimate. Trading at 8.5 cents, Goldrush has a market cap of $11.8 million, based on 139.4 million shares outstanding. The 52-week range is 23.5 cents and 8 cents.
CanAM Coal Corp. (TSX: V.COE, Stock Forum), a Calgary-based company with interests in four producing coal mines, one development mine, and permits and leases covering 5,000 acres. Since November 2009, the company has gained control of RAC Mining LLC, predominantly a metallurgical coal producer, and Birmingham Coal & Coke Inc., predominantly a thermal coal producer. Trading at 16 cents, CanAm has a market cap of $20.5 million, based on 128.1 million shares outstanding.
Huldra Silver Inc. (TSX: V.HDA, Stock Forum). The Vancouver company has historically been engaged in the exploration and development of its mineral tenures at Treasure Mountain in the Similkameen Mining Division, British Columbia. Since 2010, the focus has been on putting Treasure Mountain into production, using offsite milling capability. Trading at $1.30 this week, Huldra has a market cap of $44 million, based on 33.9 million shares outstanding.
Roxgold Inc. (TSX: V.ROG, Stock Forum). The Vancouver company is developing a portfolio of large mineral concessions in Burkina Faso, West Africa. Trading at $1.64 this week, Roxgold has a market cap of $175.8 million, based on 107.2 million shares outstanding.