VRIC 2020: My First Bull Market Conference

Good morning from Vancouver, Canada! I have spent the last two days at the Vancouver Resource Investment Conference (VRIC 2020). My biggest takeaways from this conference have to be the strong attendance and the bull market “climate” among the attendees.

It’s important to draw a distinction between bear market environments and bull market environments, as not all markets are the same. In bear markets investors are pessimistic and fearful of further losses which creates a climate of general risk aversion. Bull markets are the exact opposite; investors are seeking out risk and new investment opportunities.

VRIC 2020 felt decidedly like a bull market conference with investors actively seeking out new investment opportunities and even saying things like “announcing a financing in a bull market is a positive” – whereas, in bear markets companies that announce financing are typically sold vigorously.

Should we be concerned about bullish sentiment among mining investors?

I don’t think so. At least not yet. Bull markets are built on bullish sentiment and it’s too early in the bull market move to try to start calling tops and guessing which sentiment extreme is “THE top”. What you want to look for is extreme euphoria and a “nothing can go wrong” attitude among retail investors, then it would be time to get worried.

Additional highlights from VRIC 2020:

  • It was standing room only at multiple company workshops. The common thread among the “popular” companies was recent news and a strong recent share price performance. Would we have expected anything else?
  • Thom Calandra was too kind in making a point to introduce me and say some kind words at the beginning of his walking tour which kicked off with Banyan Gold (TSX-V:BYN). Banyan CEO Tara Christie was a natural in front of a considerable crowd which included many investors who were not Banyan shareholders yet. Banyan is working on a resource estimate for AurMac as well as continuing to interpret the latest batch of drill results. It feels to me like Banyan is really onto something special at its “Powerline Target” with grades increasing to the north. The goal will be to return to Powerline this summer and continue following the mineralization north.
Thom Calandra’s first stop, the Banyan Gold/Victoria Gold booth where Banyan Gold CEO Tara Christie held court in front of a sizeable group of interested investors. 
  • I had a really good chat with Argo Gold (CSE:ARQ) CEO Judy Baker who laid out her plan for 2020. This includes selling several properties (Abbie Lake, Macassa Creak, Mishi Lake) near Wesdome’s Eagle River Gold Complex (the deal is almost done and Argo will receive a cash payment plus shares in a shell company), spinning off the company’s cobalt/graphite assets into a new spinco, being laser focused on Argo’s flagship Uchi Project. Judy is also working on a lead order for an upcoming financing (the name is impressive) and once this is finalized I expect a financing to be announced, and then closed relatively quickly. Argo has also brought on board a world class structural geologist named Ken Williamson who worked for Newmont for many years – I believe this is a key addition that should optimize the upcoming drill program at Uchi.
  • Andrew Pollard was as confident as ever and Blackrock Gold (TSX-V:BRC) has a clear plan for its upcoming drill program at Silver Cloud. Carl Pescio (the man who staked Silver Cloud in 1999) talked about the sheer size potential at Silver Cloud and he is quite fond of the “northeast veins target” at Silver Cloud. Pollard expects the first tranche of the financing to be closed within a week with the rest of the money coming in shortly thereafter.
At the Blackrock Gold booth with CEO Andrew Pollard, Carl Pescio, and some guy with a beard and a blue sweater
  • Spences Bridge Gold Belt explorer Westhaven Ventures (TSX-V:WHN) indicated they are still waiting on assays from holes 41-49 from their 2019 drill campaign at the Shovelnose Project in southern BC, Canada. Westhaven would like to release an NR as soon as possible but they need more assays back in order to do so. Talked about drilling 35,000 meters in 2020 which will include 3,000-5,000 meters at Skoonka. Request for proposals from 9 different drillers and we can expect per meter drilling costs to drop in 2020. C$4.5 million in the treasury and expecting C$600,000-C$700,000 back in March from a tax credit from the government. Fully funded to drill to do what they’re setting out to do in 2020 and would only do a raise if they have exploration success which would warrant a 3rd or 4th drill to be added.

One final thought about VRIC 2020. I think it’s time for some new faces to be introduced as thought leaders in the mining sector. How many conferences are we going to have where Brent Cook, Rick Rule, Peter Brown, and Ross Beaty are the keynote speakers and capture much of the attention? While I respect all of these men and I don’t deny that they have delivered timeless contributions to the mining industry, it also feels stale to see the same exact faces (and many of the same stories and ‘pearls of wisdom’) time and time again. It would be nice to begin seeing younger faces, more women and people from different ethnic backgrounds. After all, mining is global and people of all shapes, sizes, and colors are involved in this industry in one capacity or another.

Disclosure: The author owns shares in all of the companies mentioned in this article and may choose to buy or sell at any time without notice. 

 

Disclaimer:

The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Argo Gold Inc., Banyan Gold Corp., and Blackrock Gold Corp. are high-risk venture stock and not suitable for most investors. Consult Argo Gold Inc., Banyan Gold Corp, and Blackrock Gold Corp’s SEDAR profiles for important risk disclosures. EnergyandGold has been compensated for marketing & promotional services by Argo Gold Inc., Banyan Gold Corp., and Bladckrock Gold Corp. so some of EnergyandGold.com’s coverage could be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.

This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.