Jeff Clark's Top 3 Silver Stocks

if there was just three i could hold i would i would probably want uh one in each category what i mean is a a producer developer and an exploration play uh the producer there's only one and that's first majestic silver um so the second one i would pick would probably be cassie or gold okay and then the third one would probably be right now would probably be i would say ascot gold um i think my favorite right now would probably be sandstorm because i know i'd like to get a bit more specific if that's something that you're at liberty to do on the stocks that you might like right now and i know about some of them since i've been stalking your twitter page and watching almost all of your interviews talking about reyna and and on and on and on but for the record one of my favorite questions to ask get into your head scenario if you could only pick three precious metal socks to invest in which which three would you pick and why that's a good question but i don't like it and i say that because uh the important thing about miners is you have to buy a basket right uh there's risk we can't control that risk there's risk beyond what you would have if you're going to buy apple whatever um and so i really believe in the basket approach so um i would like to see someone take a portion of their investment capital if they want to get into this field and buy up to 10 and not just go out and buy 10 right away but work toward 10 when the opportunities are right and not go too much over that either because you have to monitor them right but to answer your question uh if there was just three i could hold i would i would probably want uh one in each category what i mean is a a producer developer and an exploration play so for me uh the producer there's only one and that's first majestic silver partly because it's silver right so it's going to be more explosive than a gold play partly by default because a lot of other companies are just they're not that strong some are even losing money uh some are not doing well um some have too much political risk so by default i'm already looking at first majestic sober but uh there is another reason and that is because um i know management you know i'm on a first name basis with keith neumeier i know a lot of the the team there i've been to all their assets they've even been to their canyon mine their new gold mine in nevada that their focusing on as a turnaround um so if anybody can turn it around that's what they've done with all their assets is they've turned them around they they weren't great assets and they made them into great assets and that's what they hope to do jerry canyon so i've been to all their assets so i'm very familiar with the company uh i like keith neumeyer's uh view how he views things he withheld uh some of his production uh which impacted his earnings right which impacted revenue but he withheld it because he just thought the silver price was too low he did not want to sell at that price and keith is actually a former trader so he know he's very experienced at doing this and he's done it many many times since way back in like 2010 he was doing it so or maybe it was 2008 i'm sorry anyway uh so i'd like that i i like that he's you know trying to capitalize on the environment he does think that silver's too undervalued so i i like that but if you push me for one reason why i like that stock is because of the leverage that it offers it offers tremendous leverage if the silver price moves this stock moves dramatically more and i've documented this in multiple times going back 10 15 years this stock has a has a uh leverage to silver that no other stock really has um on average it outperforms you know silver three four five times it's outperformed silver by as much as ten times so if you want leverage to silver you think silver's going higher and you want a stock that's you know it's already a producer so the risk isn't that great as is if you're buying an explorer a junior right so it's lower risk than that and yet it's still going to have high leverage so you add all those things up and and for me that would be one of my three stocks i would want to own definitely for the bull market the second i would pick for a developer i'd probably pick a couple developers because the explorer's just too risky so the second one i would pick would probably be cassie or gold this is a newer position for me i've been buying this year but boy i really like this the prospects here they have two geologists on staff that if you made a list of the top 10 geologists working in the world today exploration geologists not not production geologists uh these two guys would both be on it so doug kerwin and david reese so they're they're uh rock stars pun intended there so uh they're very very good they have a very strong history other exploration geologists have told me oh yeah those guys are they're tops and both of them decided to join cassier gold because of what they saw here so they already have a resource but it's the exploration potential and the fact they can grow that resource that really makes us a very compelling play uh quentin henning is another name he's a geologist over at krescat capital he's bought into uh cassier gold he sees a lot of potential there and he's a top geologist in his own right so uh there's a lot there's a lot of potential there i really like that company a lot i think that's a good one um the issue there is just going to be how big is it going to get what's the grade going to be and it you know based on what the the experts the geologists on staff there are saying you know this this could be something fairly significant in size so if they're right you're going to see you know i made that one of my 10x plays but uh whether or not it does 10x i think the risk there is much lower than if you go to an exploration company and then the third one would probably be right now would probably be i would say ascot gold they're a development they're a pre-producer i think is the better word they're actually building a mine now in canada so it's a very good strong jurisdiction i like the pre-producer and this is something lobo i'd mentioned earlier has made a lot of um done a lot of research on he was the first one to really comprehensively evaluate what does the stock do when it's in this pre-production phase in other words it's it's not in development they're not doing feasibility studies and permitting they're actually building a mine now it's feasible we can build a mine we think we can operate it properly so they're building a mine up to when they actually pour metal that process is about a year and a half technically it's from construction decision when they declare they're going to build a mine to when they actually have first poor it's called that 18-month period on average studies show and this is over 100 cases over time that you have a 90 chance of a 90 return in the stock during that period for a mining stock that's incredibly strong that's very reliable that's that lowers your risk and it still gives you very good upside potential in a relatively short period of time ascots in that mold right now so i would pick them because i think they get re-rated and that's the reason why these stocks move up during that period especially as you get closer and closer to first poor they get re-rated because they should they're they've just been doing nothing but spending cash and capital right and all of a sudden they're going to generate revenue generate earnings so it's exciting a new gold mine is coming into production so that's why they get re-rated so ascot is in that period right now now the caveat is i will be taking profits maybe even selling i don't know we'll see at the time when they begin to uh pour meadow and they actually go into production because the re-rating takes place up to that point after that point once they pour first metal the story changes the story completely changes now it becomes okay can you be a profitable producer and sometimes minds have difficulty getting into commercial production right it takes a while to get to full commercial production and there can be issues there maybe they're not profitable right out of the gate some are and some aren't but my point is the story changes and so i would reserve the right in your question to take profits on that once they hit first floor but that's about a year away so that's it's a good buy right now great overview and that pre-production sweet spot that's what lobo calls it he told me all about it when i when i talked to him as rick ross said that's probably one of the that's probably the most important work that he's done in the space yeah that's a very very good point something that you explained extremely well and i'm happy that you do yeah um often times i want to speak to people in the gold and silver space they would mention royalties as the best risk reward space but you didn't even mention them in your top three why no royalties um because i want to take more risk that's just me and so that's something you know uh again back to your question of you know what what do you invest in how much you put in it comes down to that you know how much risk are you willing to take and because i you know have an understanding of the industry i'm willing to take more risk as i know what to look for to get potentially a greater return on my investment so royalties are great they're a great place to start now they are they do tend to be overvalued by traditional metrics because they're so well liked they've been bid up a lot right a lot of investors like them but for a good reason they're great plays there are excellent companies out there um they're low they're definitely lower risk they're not no risk they still have risk if a mining company doesn't get a permit that they have a royalty on well guess what no production is coming from there which means no royalties coming from there so they're not zero risk but they're definitely low risk uh they're a great way to play the bull market for those you know i think my favorite right now would probably be sandstorm because i know nolan watson personally i've interviewed him many times so i really like him again they have some risk but they just got a permit approved uh yesterday i think it was uh an environmental permit and one of their projects in turkey so they're they're they're gonna be okay there are others too uh you know i've talked to pierre lassonde many times pardon me and you used to be at franco nevada he since retired that's a great stock wheat and precious metals is a great stock so it's a great place to to to look if you want to lower your risk and still have upside the royalty companies should outperform the gold and silver price themselves too so you'll still get some leverage uh maybe not as much as something ex more explosive like some of the ones i named but you're still do very well i believe awesome awesome when it comes down to the explosiveness that you mentioned i know you like reyna silver so that's not something i'm gonna bring up but i know you do and uh yeah no jeff we've been at this for almost an hour i've i really appreciate you being generous with your time so i'm just going to start wrapping up here is there something that you had helped we talk about here but i failed to bring up

Channel: Resource Talks

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Id: FA9fxFnbCYQ

Length: 12min 21sec (741 seconds)

Published: Sun Nov 21 2021