How to find the next multi-bagger resources stock: Part 3
Link copied to
Hitting the multi-bagger jackpot on a small cap exploration stock is every investor’s dream.
High profile success stories Auteco (ASX:AUT), De Grey (ASX:DEG) and Chalice Gold Mines (ASX:CHN) are up ~1,500 per cent, ~2,000 per cent and ~1,100 per cent respectively so far this year. And they aren’t the only ones.
Which ~$15m market cap Aussie battler could be next? Stockhead is here to narrow it down for you.
When it comes to speculative exploration stocks, a bit of research can boost the odds of a big win.
Here’s a few things to consider before investing:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Todd River Resources (ASX:TRT) is hunting for nickel, copper and PGE’s near Chalice’s massive Julimar discovery in WA. It’s a good spot to be.
Both these guys have experience turning struggling small cap explorers into +$1bn success stories. That’s rarefied air.
These three — John Young, Tony Leibowitz and Neil Biddle — then helped transform ~$20m market cap Spitfire Materials into a 3 million ounce, $130m market cap butterfly called Bardoc Gold (ASX:BDC).
Mont Royal Resources’ (ASX:MRZ) directors were behind Riversdale Mining, a coal explorer sold to Rio Tinto for $4 billion.
More recently, they sold another coal explorer called Riversdale Resources to Australia’s richest woman, Gina Rinehart, for $600m.
And the guys behind recent IPO Kaiser Reef (ASX:KAU) have listed six companies and built four mines, with another currently in construction.
Jubilee Mines, worth about $20m when it discovered the Cosmos nickel deposit in WA, was eventually sold for over $3bn.
Similarly, Western Areas (ASX:WSA), which floated with a market cap of $5m in 2000, is now an established WA nickel producer with a market cap of ~$630m.
Why these companies? It’s all about the “management team, the project and the commodity”, he told Stockhead.
“If you are in the right company, with the right management, going in the right direction – you will make something happen.”