Rick Rule had some soothing words for battered investors, who showed up to see him discuss potential buying opportunities in Vancouver, Thursday.
The California-based founder and Chairman of fund company Sprott Global said stocks have become so “stupidly stupidly cheap” that many in the audience will come to think of this period as “the good old days.’’
“The stage is set for a rebound. But you have to be there to participate,’’ he said.
During an 80-minute speech, Rule touched on a number of themes, including his renewed interest in sectors such as uranium, platinum group metals and geothermal power.
At one point he described Ivanplats Ltd. (TSX: T.IVP, Stock Forum) executive Chairman Robert Friedland as the most successful mining entrepreneur since De Beers founder Cecil Rhodes. This was an obvious reference to the company’s assets in South Africa and the Democratic Republic of Congo.
However, as often happens, Rule saved the best for the last when he was asked about specific stocks on his radar screen.
As it turns out, he is the largest investor in Spur Ventures Inc. (TSX: V.SVU, Stock Forum), which is focused on gold and base metals, after recently selling its phosphate mining and fertilizer related assets in China.
“I trust the guy who runs it,’’ said Rule, who was referring to Spur’s President and CEO John Morgan.
Spur was unchanged Friday at 32.5 cents, leaving the company with a market cap of $19.6 million, based on 60.4 million shares outstanding. The 52-week range is 41 cents and 32.5 cents.
Rule said he was excited to read that Bear Creek Mining Corp. (TSX: V.BCM, Stock Forum) appears to have won the public support for its Corani silver mine development in Peru. Last week, the company said about 800 people from affected communities showed up at public hearings that are part of the process of getting the environmental and social impact assessment approved.
Bear Creek eased 10 cents Friday to $2.55, leaving the company with a market cap of $235.2 million, based on 92.2 million shares outstanding. The 52-week range is $3.81 and $2.
When asked about Fission Energy Corp. (TSX: V.FIS, Stock Forum), Kelowna, B.C., he said it would be a conflict of interest for him to talk about the company. However, he offered a broad hint that he is buying more of the stock.
“I’m increasing my conflict of interest with respect to Fission,’’ he joked.
Fission was down 3.5% Friday to 84 cents, leaving the company with a market cap of $108.5 million, based on 129.2 million shares outstanding. The 52-week range is $1.26 and 33.5 cents.
Finally, he said recent drill results from Reservoir Minerals Inc.’s (TSX: V.RMC, Stock Forum) Timok base metals project in eastern Serbia “are as good as anything I have seen in the business.”
The stock was up 3.1% Friday to $2.62, leaving the company with a market cap of $109.2 million, based on 41.7 million shares outstanding. The 52-week range is $3.85 and 35 cents.
Rule was speaking Thursday at Resource Opportunities 2013, an event that was hosted by Canaccord Wealth Management.