Find out why the Mercenary Geologist hopes the lithium bubble has begun to burst
SmallCapPower | September 28, 2016: SmallCapPower spoke recently with Mercenary Geologist Mickey Fulp, who talked about a “smart money” precious metals conference he attended and mentioned two junior resource stocks he likes at this time.
SmallCapPower: Hi Mickey, I understand you attended the recent Precious Metals Summit in Colorado. Can you give us a brief summary of your speech?
Mickey Fulp: Well, I didn’t speak at the conference, but I did attend. It’s quite an interesting conference up in Beaver Creek, Colorado called the “Precious Metals Summit.” It’s kind of a who’s who of both companies and investors. You have to be qualified, so basically, most of the people that are on the investor side, I mean, you must qualify them as essentially pro investors, either individuals or representing institutional funds, etc., and there were 130 companies that were there. They all gave presentations, short presentations, and then they took one-on-one meetings. It was quite productive.
SmallCapPower: Great. So, was there one thing that stood out for you at the conference?
Mickey Fulp: I think just the quality of the people there. You know, it’s not really designed for the retail investor, it’s really people that are perhaps you’d call it “smart money” in the business, and the people that drive the business, people that do the startups, the people that do the deals. And for me, it becomes a very good networking opportunity. All in all, I think there were about 700 delegates, and they closed the registration I think about a month ago.
SmallCapPower: So, switching gears, what’s your take on the recent lithium stock craze? Has the bubble begun to burst in your opinion?
Mickey Fulp: Oh, I hope so, because as you know, I don’t think very highly of the potential, the ultimate potential to end up with new lithium mines, but…and this is running the course of a typical bubble, and my focus certainly has not been on lithium, although I do own one lithium company.
SmallCapPower: So, do you see another commodity that could be the next big thing?
Mickey Fulp: Well, I think gold is the next big thing. I think there’s no doubt that gold is the next big thing. Most of these bear markets that we go through are led out of the bear market toward an incipient bull market by gold. We’ve seen that at this juncture.
I’m also interested in copper, very contrarian at this point with my ultimate bullishness on copper. But I think copper looks very good in the midterm perhaps, not so good in the short term, but I think this would be a good time to position yourself in good copper deals or acquire good copper deals, you know, in beaten down markets is when the contrarians start to move.
SmallCapPower: So, the last time we spoke with you, you mentioned that you liked a company called “Nevada Sunrise Gold Corporation (CVE:NEV).” Since then, its stock price has performed really well. Do you still like this name?
Mickey Fulp: Well, certainly I do, and I am a shareholder and I don’t think I’ve sold a share of Nevada Sunrise since I became a shareholder, what, almost two years ago. They made a foray in lithium space, and when I referred to the lithium company I do own, Nevada Sunrise Gold, but it’s mainly a gold company. They have now joint ventured their lithium project to another lithium start up, some really good promoters in the business, and so, Nevada Sunrise Gold will now go back to focusing on being a gold explorer in Nevada. That makes the strategic group of investors I’m involved with quite happy.
SmallCapPower: Are there any other junior resource stocks that you like at this time and why?
Mickey Fulp: Well, I’m taking a look at gold companies that haven’t made their run yet. You know, we saw a big run in gold, and a big run in the kind of the large capped, even small capped gold producers, the advanced explorers and developers. So, I’m looking at companies a little bit further down the food chain.
The company I like right now, and I’ve been involved with them for quite some time as a shareholder, and with intermittent coverage, would be Mawson Resources Limited (TSE:MAW) in northern Finland, a gold, uranium discovery up there that looks like it has very strong potential. They’ve had some very serious environmental opposition in Finland. They are presently waiting for a court decision, which will then open up their exploration efforts. So, there is some risk involved in the stock at this time, but it’s something that maybe investors would want to put on their radar screen.
Editor’s Note: After this interview was conducted Mawson got its expected favourable ruling from the Finnish Supreme Administrative Court (it cannot be appealed), and now the Company is ready to go ahead with its planned big winter drill program. Its stock price hit a high of $0.56 on Sept 26, 2016, or 75% higher than when the stock was first mentioned by Mr. Fulp.
SmallCapPower: Great. Well, how can investors learn more from you, Mickey?
Mickey Fulp: Well, I run a sponsor-based website, a newsletter, mercenarygeologist.com. We have about around 6,500 subscribers at this point. And we are very active on Twitter @mercenarygeo with 54,500 Twitter followers, and we grow that on a constant basis. And finally, this interview as all my interviews, will be posted on our 24/7 streaming audio internet station – mercenarygeologist.fm.
SmallCapPower: Great. Well, thanks for taking the time. Always great to talk to you, Mickey.
Mickey Fulp: All right. Thanks a lot.