Gold needn't get any better to make investors a lot of money right now: Keec

The Resource Insider co-founder talked to Kitco today. "It is one of those rare times when investing in a junior company in some ways carries a lot less risk than a mining company or even a later stage development company," said Keech. Keech notes that there are high costs to keeping a mine on care and maintenance. "There's millions or hundreds of millions of dollars of equipment that needs to be cared for and maintained. "There's cyanide moving and percolating through heap leach pads. There are a huge costs associated with making sure that even if a mine is not running, that it is safe and well cared for," said Keech. Regarding Keech's investment strategy, he said there has been a big change, and he is looking at later stage companies, such as producing mining companies and royalty businesses. "This is very different than our typical strategy, which involves primarily investing through private placements in junior stage companies or in new companies–companies that are still private, which are typically about 12 months from going and going public. "So we're actually buying things on the market right now, and the main reason is that you're able to get cash-flow in companies that are long-term established businesses that we know are going to be able to survive a shutdown or be able to survive the pandemic. And hopefully be able to see a massive rebound." Keech is delighted with precious metal prices. "Gold does not need to get any better for people to be making a lot of money right now. Mining companies are a lot more valuable than they were even a year ago, and there's going to be a lot of projects that were sub-economic that are going to be able to print money at these valuations. Additionally, companies are starting to wake up and realize that their supply is constrained, especially in gold." Listen to our conversation with Jamie Keech.

David