How to Value Mining Stocks with Canada’s Top Gold Stock Fund Manager Kevin MacLean

Kevin MacLean is the best gold stock investor in the history of Canadian long-only funds. In this interview, he reveals how he analyzes and values potential mining investments. If you are serious about mining stock investing then this MSE episode will be one you will re-listen to many times. So make sure you grab a pen and paper to take notes as you listen to this 1-hour masterclass. Kevin’s approach to mining investing was so thorough that mining company executives were afraid to come ask him for money when he was a fund manager. He shared: “One of the greatest compliments I’ve had was from the mining sales guy at the Royal Bank. He said, ‘I’ve got companies that are afraid to come see you.’ They are afraid to come see me because I’ll politely disassemble their arguments if they are not making sense to me.” Kevin MacLean is the Chief Investment Officer of Star Royalties. He has over 30 years of experience specializing in precious metals and mining investments. He was the senior portfolio manager heading the resource investment team at Sentry Investments until 2017, with peak assets under management of approximately $2-billion. Mr. MacLean received 13 Lipper awards over multiple time periods for best risk-adjusted returns in the gold mining sector and was the recipient of seven Brendan Wood International Top Gun awards for recognition of being a leading mind in the gold mining sector. Mr. MacLean is a Professional Engineer, holds a Bachelor of Applied Science (nuclear engineering) from the University of Toronto, and is a CFA charter holder. 0:00 Introduction 1:45 Kevin’s journey to becoming a gold stock fund manager 6:25 The key quality you possess which produced your successful career? 9:02 Incorporating a macro analysis into bottom-up investing 10:53 How to value a producing mining company 20:49 Why do generalist money managers buy gold stocks? 24:42 Harvesting gold sector volatility 26:53 How to value developers 30:07 Role of site tours in due diligence 32:51 Developers’ feasibility study cost inputs are inaccurate now 34:30 How to value an exploration company 40:42 Explorers and warrants 43:04 Appropriate management compensation 46:16 Role of royalty companies in mining sector 49:46 Non-traditional questions you ask mining company management? 55:20 Your biggest mistake and what did you learn? 1:00:56 Macro-view of current gold stock investing opportunity 1:04:16 Carbon markets Kevin is CIO at: https://starroyalties.com/ Sign up for our free newsletter and receive interview transcripts, stock profiles and investment ideas: http://eepurl.com/cHxJ39 This interview was not sponsored. The content found on MiningStockEducation.com is for informational purposes only and is not to be considered personal legal or investment advice or a recommendation to buy or sell securities or any other product. It is based on opinions, SEC filings, current events, press releases and interviews but is not infallible. It may contain errors and MiningStockEducation.com offers no inferred or explicit warranty as to the accuracy of the information presented. If personal advice is needed, consult a qualified legal, tax or investment professional. Do not base any investment decision on the information contained on MiningStockEducation.com or our videos. We may hold equity positions in some of the companies featured on this site and therefore are biased and hold an obvious conflict of interest. MiningStockEducation.com may provide website addresses or links to websites and we disclaim any responsibility for the content of any such other websites. The information you find on MiningStockEducation.com is to be used at your own risk. By reading MiningStockEducation.com, you agree to hold MiningStockEducation.com, its owner, associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.