Investors remain cautious on metals. There’s consensus that metals from gold to iron ore are setting up for a solid run – but that run has yet to really get underway.
Until it does, exploration companies have to compete for a very limited pool of investor dollars. Only the very best succeed at raising money.
What do these ‘best’ companies look like? They have strong projects in favoured jurisdictions. Their targets are what the market wants, which right now is high-grade gold or copper with grade and scale. They have tight share structures so that success drives major share price gains. They are managed by folks with past successes who are focused on creating new value, know how to manage and tell an exploration story, and are careful with cash.
Companies offering all of this can raise cash. With cash they can explore, which means they have a chance to make a discovery. And with so few companies really exploring, discoveries get a lot of attention – which means share prices really move.
Troubadour Resources (TSXV: TR) (OTCQB: TROUF) fits all these requirements, which means it is a company with that chance.
