Brian Leni: Precious Metals Thesis is “Overwhelming” — Be Picky, Buy Best of the Best
Now trading just above US$1,800 per ounce, the gold price isn’t performing as well as some investors would like. But for Brian Leni, founder of Junior Stock Review, the outlook remains bright.
“To me the value in the precious metals and the overall precious metals thesis is just so strong it’s overwhelming,” he said at the Prospectors & Developers Association of Canada (PDAC) convention.
Leni describes himself as a value investor, and emphasized that for him the precious metals story isn’t a question of “if,” it’s a question of “when” — the key is picking the right companies and being ready to wait.
“I’ve been here before — I’ve been buying at bottoms of markets. And this is when you want to be a buyer in the best of the best companies — be very picky and you will be rewarded,” he said. “It may not be tomorrow, but I would say a year from now I’d be very surprised if the gold price wasn’t over US$2,000. Very surprised.”
In terms of which juniors are seeing success right now, Leni said it seems to be “at the end of the drill bit.”
“It seems like those drill plays, the exploration, you get paid kind of no matter where you are in the market,” he explained. “If people are looking, especially for short-term wins, that might be where you find it.”
Leni has done well this year with Aztec Minerals (TSXV:AZT,OTCQB:AZZTF), which he said has identified world-class gold targets. It was flying under the radar, but recently a producer bought a 10 percent stake in the company.
“A C$3 million investment into a small junior is huge, and that has been a wind for subscribers,” said Leni.
Watch the interview above for more from Leni on the junior resource sector, as well as on gold. You can also click here for our recap of PDAC, and here for our full PDAC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.