Mickey Fulp VRIC 2022
With the general markets in turmoil, Mercenary Geologist Mickey Fulp sees few places to turn.
“It’s a difficult situation,” he said at the recent Vancouver Resource Investment Conference (VRIC). “I am very bearish, not necessarily on commodity prices, but on the whole resource space and the ability of companies to explore, develop, produce — there’s a variety of factors against that right now.”
Those include resource nationalism, socialism, anti-development initiatives and green agendas, Fulp explained. Meanwhile, mining companies are seeing energy and labor costs pushed up by inflation.
“The cost margins, profit margins, are going to decrease,” he told the Investing News Network. “I don’t foresee the kind of profitability we had in Q3 of 2020 — all-time records highs. That was really when we had very high prices for base and precious metals, but costs had not caught up — we didn’t have the rampant inflation.”
Speaking about where he does see opportunity, Fulp pointed to two key areas.
“I’m always bullish on something. I’m bearish on the markets, (but) I’m bullish on gold — physical bullion — and farmland right now. I am basically exiting the junior resource space at every opportunity where I can take profits, break even,” he said. “Or I’ll do some tax-loss selling at year end and convert that to US dollars.”
Despite that bearish take, Fulp did offer one stock pick: Nevada-focused Allegiant Gold (TSXV:AUAU,OTCQX:AUXXF).
Watch the interview above for more from Fulp on the resource space and his advice for investing during volatile times. You can also click here for our full VRIC 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.