Philip O’Neill: Uranium Made Investors Crazy Money Last Time
Philip started his career in the junior mining space in the early 2000s by investing in uranium. He discusses the last bull market and how it did exceedingly well and how the market can surprise you. Today there is much more experience in the uranium markets so the coming bull market should be more mature.
He feels we are in a good place for precious metals at the moment. Gold and silver seem to have hit their lows, and there seems to be forward momentum. Some companies can finance anywhere in the cycle, but most juniors are more limited, so they need higher commodity prices.
Management and the potential of a project are essential when looking at a company as there is a lot involved with making money in the junior mining sector. Rarely mentioned however is the importance of knowing who is involved behind the scenes in backing the management team. You want to position yourself with the key influencers. He won’t get involved unless the company has a decent chance of returning good returns.
He discusses Victory Metals (TSX-V:VMX) which is a vanadium play in Nevada being put together by Paul Matusek and Collin Kettell. It’s a nice project, with lower grades but the potential to have very good cap-ex. The infrastructure is all there, and so it has a lot of things going for it.
Another exciting story he is following is Gold Spot Discoveries (TSX-V:SPOT). It’s a story where artificial intelligence brings an enhanced perspective to junior mining. The company has assembled a team of Ph.D.’s and are partnering with several prominent players. They are going to leverage A.I. into certain junior miners in exchange for some royalties. He feels that there is some good potential for making new discoveries with this concept.
Both companies are going public soon.
Time Stamp References:
1:20 – The last uranium bull market.
2:15 – More experienced market now.
3:00 – Gold and silver companies and financing.
4:45 – Experiences in the market.
7:30 – What financiers look for in junior companies.
9:30 – Philip discusses two companies that are going public.
Talking Points From This Weeks Episode
• The performance of the last uranium bull rally.
• He looks for companies that have an excellent chance of good returns.
• Why management and their backers are important considerations.
• Artificial Intelligence uses in junior mining exploration.
• Victory Metals and Gold Spot Discoveries.
Philip O’Neill is President and founder of MP1 Capital, a Calgary based investment company created in 2006 to focus on the natural resources sector. At MP1 Capital, Phil is also the author of Phil’s Natural Resource Blog an outlet created to share his thoughts, musings, and investment holdings in the sector.
Phil was a founder, director, and CEO of TSX listed Sunward Resources wherein a 10-month span from going public in 2010, he raised $81 million to advance the Titiribi gold/copper project in Colombia. In 2015, as CEO, Phil negotiated Sunward’s acquisition by NovaCopper, now Trilogy Metals, at a +140% premium to market. He has also been a director of several TSX, TSX Venture, and ASX listed companies. In 2012, Phil was honored with induction into the inaugural Casey Research NexTen a group of industry players identified as the “Next Generation of Resource Industry Titans.”
Prior to establishing MP1 Capital in 2006, Phil worked as a research consultant for Casey Research, the publisher of such iconic newsletters as The International Speculator. Phil holds a Bachelor of Applied Science degree, Honours Program, from the University of Guelph.