Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
At the conclusion of my Skype interview with Brent Cook a couple of weeks ago, he told me to reach out to the folks at Focus Ventures to learn a bit more about what they are doing at their Bayovar 12 phosphate project in Northern Peru.
I responded that I had heard quite a bit about Focus over the past couple of months. Multiple senior representatives from Canaccord had told me to take a closer look, and I understand it is a top pick of fellow junior resource stock blogger, Inca Kola News.
Such excitement from all angles caused a bit of reluctance on my front, which I relayed to Mr. Cook. He told me, still, to check it out.
Fast-forward a week to last Wednesday, and I’m driving through the Colombian jungle with Simon Ridgway, chairman and CEO of Focus Ventures, for a site visit of Córdoba Minerals’ Colombian exploration property of which Mr. Ridgway is also on the board of directors (I will write more about that field trip when I get back from Colombia in the coming weeks).
Simon Ridgway is a former professional poker player turned staker turned mining CEO. To put it simply, he is a really funny, successful guy, and although he was quiet about Focus at Cordoba, my exposure to him was enough for me to put my toe in and buy a few Focus shares last week at $0.285 and $0.29.
Earlier today Focus put out a press release with drill results from their Bayovar 12 project which confirms potential for a large, shallow 15%+ phosphate resource. The geology and grade of which is similar to mining super major Vale’s Bayovar mine, one of South America’s largest phosphate mines, which happens to be just 15km from Focus.
The company is planning infill drilling and a resource calculation for Q3 of this year.
We would expect that resource calculation to be firmly on the radar of the major fertilizer companies.
To tell you the truth, I know little about the project as well as the fertilizer industry. As well, the junior mining industry is fraught with risks. However, the Focus stock chart is suggestive of good things to come for the company, and it is probably worth putting on your radar if you are interested in the sector.
I will try to track down Mr. Ridgway for a full interview early this summer, when things quiet down for me. In the meantime, here’s a link to the news release:
And the company’s May 2014 corporate presentation.
