While in London for a mining conference, I sat down with a CFA holder by the name of Anthony Moreau, and I asked him about read the financial reports of exploration companies.

The room this video was recorded in, as well as the production of it were paid for by American Eagle.

What's the first thing to look for when analysing an exploration company? Anthony thinks it's the cash position. He wants at least a year's worth of capital in the bank, before he even looks further into a company.

How much should a CEO be paid? How much should exploration companies pay for marketing? How much does drilling cost? When should exploration companies stop drilling and start preserving shareholder's capital? What are red flags in the financials of junior exploration companies? Those are some of the questions that Anthony answered for me in this interview.

Important Warning

Antonio Atanasov is not an investment advisor. Antonio Atanasov might own shares of companies mentioned in this publication. Companies mentioned in this video might be paying customers of Resource Talks. Always assume the speakers biased. More specifically, Storm Exploration is a paying customer of resource talks.

The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. It is also worth what you paid for it. If you’re not paying for the product, you are the product. Expect seeing advertisements – which will be verbally disclosed – in this video. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.

Shortly: you will lose all of your money and possibly most of your brain cells if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).

Readers are cautioned that this presentation likely contains forward-looking statements about expected future events and the financial and operating performance of any companies potentially discussed herein. Reality often varies from people’s expectations. Managements like over-promising and under-delivering. If a manager was speaking in here, beware. Readers are encouraged to read the Cautionary Note on Forward-Looking Information and to consult the Company’s Annual Information Form, which is available on www.sedar.com. Reading the full disclaimer on the disclaimer page on this website is mandatory.

Timestamps
00:00 Important warning
00:10 Introduction
01:00 Painful-to-watch joke
01:30 Who is this?
02:30 What's the first thing to look for?
04:30 Should companies stop drilling in bad markets?
05:30 How much cash should an explorer have?
08:50 How much should a CEO be making?
14:30 What are red flags in the financials of a junior?
17:00 How much should they be spending on drilling?
21:10 Does the jurisdiction really matter?
22:20 How would Anthony build a portfolio?
25:30 How does Anthony catch early plays?

Was there something wrong with what the guests said? Did I fail to ask an important question? Did I make a mistake? Is my hear ugly, my voice stupid, and my face misaligned? Please tell me about it. Criticism and skepticism are highly welcome and help me learn. Thank you.

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