Junior Miners Need Consolidating

SOURCE:[Index Universe] – Thom Calandra was co-founder and chief columnist of MarketWatch before it was sold to Dow Jones in 2005. After taking a few years off, he returned with The Calandra Report, a mining-focused newsletter.

Calandra spoke to IndexUniverse contributing writer Hannah Tool about the downturn of junior miners and what he’d like to wake up to on a Monday morning.

IndexUniverse: When it comes to junior miners, geographically, where in the world are you investing?

Calandra: If you’re in an ETF like GDXJ [the Market Vectors Junior Gold Miners] (B-33) or GDX [the Market Vectors Gold Miners] (A-55), you’re all over the world; doesn’t matter which ETF, whether you’re investing in the majors or the minors. The indexes that underlie miner funds usually have at least 10 companies. For perspective, a new index running out of Germany that a friend of mine, Michael Koch, started about six months ago, has 80 companies, and the geography is everywhere.

But let’s just say you’re in the juniors. Speaking just in terms of GDXJ, you’re going to have Kinross; you’re going to have probably Yamana Gold, so you’re going to be in Latin America, Central America, North America, Asia. You’re going to be in every single jurisdiction, whether they’re safe or not.

IU: Then junior miners are very much a global investment?

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Junior Miners Need Consolidating

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