Our Investment Philosophy
Our investment philosophy is dedicated to the concept of long-term committed capital. Gone are the days of short-term investment vehicles (e.g. mutual funds and hedge funds) funding long-term projects such as mines.
The proper de-risking of a project to an operating mine has many layers of de-risking, with value being added at each stage. Small companies need capital to advance through each phase of the de-risking process. These companies also need advice regarding how to navigate the political, social and technical challenges that may be encountered.
Mining investments are long-term investments. Each level of de-risking cannot be expected to produce a higher stock price, so investors need to commit for a longer period to make a proper return in the mining sector.
Producers will still pay a large premium to purchase a future mine but they will require the junior company to fully de-risk the project first. That means that at the very least, the junior will have to provide a shovel-ready project. All technical studies must be complete, all permitting must be complete, and a social license must be in place. Our objective is for the premium to accrue to our clients.