‘This is when we make our money’ — Inventa Capital’s Craig Parry on undervalued juniors
Craig Parry, co-founder of Inventa Capital, said the current malaise in the junior resource sector is comparable to the period right before the last boom in 2010. The trigger then was a spate of mergers and acquisitions (M&A) and he sees the same thing starting now.
Parry spoke to Kitco at the Rule Symposium Natural Resource Investing 2023 show held in Boca Raton, Florida.
Although we haven’t yet seen much M&A in the juniors, several deals have been struck or proposed within larger companies, such as Teck-Glencore, Newmont’s takeover of Newcrest, and Hudbay’s acquisition of Copper Mountain Mining.
“There’s big deals happening and that very much feels like 2005-2006 to me. That was all a front runner to the serious boom that came from 2007 onwards, so I think we’re starting to see that,” said Parry, who believes there will be a fresh round of deal-making among juniors and mid-tiers in the next couple of years.
Parry was asked whether juniors are “too cheap” right now for M&A.
“For quality companies I think these valuations we’re seeing at the moment are almost unique, an extraordinary buying opportunity. So many investors have thrown the baby out with the bath water,” Parry said, adding he has personally deployed over $1 million into the market in the past six months.
0:00 Who is Inventa Capital?
1:10 Portfolio
2:23 Critical minerals
3:30 Gold equities
8:31 M&A
13:56 Valuations
15:37 Flow through
17:41 Turnaround
20:18 Catalysts
Kitco Mining’s coverage of the Rule Symposium Natural Resource Investing 2023 was sponsored by G Mining Ventures.
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