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Interview of Very Insightful Mickey Fulp, The Mercenary Geologist at PDAC 2017 by Dr Allen Alper

on 3/20/2017

Mickey Fulp, The Mercenary Geologist

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-chief of Metals News, interviewing Mickey Fulp from The Mercenary Geologist. Could you give our readers/investors some insight on what's going on this year?

Mr. Mickey Fulp: Well, it's been a year since we've talked. Let’s first look at one year ago, the market was just really starting to turn. There was a bit of a buzz after the down time at the Vancouver conference in January 2016. Five weeks later, that doom and gloom had turned to cautious optimism. We then had quite a run led by the gold price and quickly followed by the gold miners. A tremendous run for about six months before gold and equities took a step back.

In what I think is an incipient bull market for commodities, we have seen two steps forward, one step back. So it’s been a stepwise progression, which is always good. Gold went above $1350, fell back to less than $1200, now it's on a stepwise recovery.

The 12 month high is still a long ways away but the four month high was about a week ago at $1258. It’s backed off from there, but I like this stepwise rise in commodities versus what often happens, which is up, up and away, and then you get the top and the parabolic fall.

Dr. Allen Alper: So, what are your thoughts for 2017?

Mr. Mickey Fulp: Overall, I think we're in the beginnings of a bull market for commodities. The equities are also two steps forward, one step back, but there is pent-up anticipation of the next bull market. Lots of money is available, some of that came to the market last fall with private placements in gold space; less so now in the beginning of 2017. Of course, there are other influences in play, but Trump has certainly helped matters, not only for safe haven gold demand, but more importantly on the industrial metals side, and especially for copper and zinc. Copper is up 19% since Trump was elected, zinc is up 16%; the infrastructure build-out that we're anticipating in the U.S. will be very good for our business.

Dr. Allen Alper: Going forward, what would you say are some of the interesting commodities for our investors to look at?

Mr. Mickey Fulp: I’ll tell you where my money is going: gold, copper, zinc and uranium. I've participated in startup or early stage deals in all those commodities over the last six months because I think they have the obvious upside. When I was asked in late January in Vancouver my two favorite commodities for the year, I said copper and uranium. Well, uranium's up 31% this year and we already talked about copper at plus 19% since Trump was elected. Now, there are many more influences in play than Trump, but he certainly has had a positive effect. So, those four metals are the ones that have piqued my interest at this juncture.

Dr. Allen Alper: That's great. Now, in that area, what companies would you suggest our readers look at?

Mr. Mickey Fulp: I'll pass on that for now as my deals are still private or too tightly held for any liquidity and therefore, sound speculation at this stage. The only company I'm covering right now is Mawson Resources Ltd, and I've talked about them a lot lately.

Dr. Allen Alper: And they've done quite well, I just published an article on Mawson.

Mr. Mickey Fulp: Good to know, so I’ll just say it this way: Mawson is the only company that I've ever been on the ground on its flagship project three times as an analyst. That means I really like their gold play. Mawson has three drills turning to the right now and another moving in soon. I expect the program to deliver some significant results. This could be an entirely new gold camp in a relatively unexplored greenstone belt in Northern Finland.

Dr. Allen Alper: That sounds great. What other kind of insights would you like to share with our readers?

Mr. Mickey Fulp: Once again, I'll tell you what I'm doing: looking for new companies, new ideas, new projects, startup deals, RTOs, shells that have the right people and the right projects, with the four commodities that I've told you about; new deals where I can get in early and participate with my contrarian philosophy. I want to target stocks, deals, projects, and opportunities that are unknown, unwanted, unloved, and undervalued with respect to their peers. As opposed to a year ago, there are now those type of opportunities presenting themselves.

Dr. Allen Alper: What are your criteria?

Mr. Mickey Fulp: How about, in the words of David Byrne, “same as it ever was”. Tight share structure; people with technical backgrounds and successful experience, not failures in our business; the right project in the right geopolitical jurisdiction, with potential to make a mine; and finally, the ability to raise cash without suffering severe dilution to existing shareholders.

Dr. Allen Alper: Great criteria! That works.

Mr. Mickey Fulp: Yep, seems to work.

Dr. Allen Alper: Absolutely. What are your thoughts about PDAC, so far?

Mr. Mickey Fulp: Well, it's early as I've been here all of about four hours now and I've been extremely busy; this is my third interview. But first, I gave a talk on why seven is a lucky number. The junior resource market has peaked in years ending in seven for the last three decades: 1987, 1997, 2007. We’ll have to see if it peaks this year, 2017.

Dr. Allen Alper: That's very interesting.

Mr. Mickey Fulp: Yep, that idea is from a musing I published about two years ago. Actually I don't think it's going to happen this year as I’m optimistic that this bull market has some legs and we won’t reach the top this year.

Dr. Allen Alper: It’s been great talking with you as usual. Thank you for your insights.

Mr. Mickey Fulp: Thanks Al; it’s always my pleasure to chat with you.

Disclaimer: Mickey Fulp is a shareholder of Mawson Resources Ltd and it pays a fee to sponsor his website.

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