You don't get opportunities in Small Caps like this too often17.08.2012

In all his 30 plus years since being a geologist and subsequently managing over $6 billion in resources based investments at Colonial First State, Dave Whitten says he's never seen as good a time to invest in gold stocks:

“The gold price is high, we’re buying gold junior stocks that are trading at discounts to their appraised (net present values) of 20 to 30 per cent. You don’t get opportunities like this too often."

Whitten agrees with what Under the Radar has often said, that the quality of the project is the key when deciding whether or not to purchase a mining stock. This is a very important point at this moment, because many stocks in the sector are getting smashed because they will have to raise more than their market cap in funds in order to develop a project. Says Whitten:

“The way to make money is to find companies with outstanding ore bodies, and you decide whether its high quality. After that you look at management.”

Quality is a subjective thing. Find out in the next issue of Under the Radar (Thursday 23 August) what David’s definition of quality is, and where he is putting his fund’s money.

Radar's Share Tips are on a roll. Our top 10 performers have returned over 100 per cent on an annualised basis.

Also, to remind you, we are busily working on our Under the Radar Report: Small Caps Tips Tracker, which will provide subscribers with recommendation updates, as well as the performance of our tips.

Best wishes

Richard Hemming

About the Author

Richard Hemming

Investment analyst and Editor of Under the Radar Report

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