Contango Ore: Fully financed, derisked, and just months from production.

I chatted with CEO Rick Van Nieuwenhuyse a couple days back and I was impressed by his vision for his company and his execution in pursuit of that vision. Contango operates according to a little bit of a different working thesis than your typical small scale developer. Their plan is to bring a couple small, high-grade mines into production rapidly and cheaply over the next couple of years. Ultimately, the objective of any investment is to opportunities of asymmetrical risk and reward.  And that metric doesn’t change whether the returns are 10% or 1000%.  In the junior resource sector, the natural desire of most investors is to be a part of a discovery story, and they are naturally alluring. But I would counter that they aren’t necessarily always smart money picks. Rather, I believe that near-term, fully-permitted, fully-financed producers like Contango could and should be a critical part of any resource investor’s portfolio specifically for the reduced risk they present will still presenting an outsized opportunity to capture serious alpha.

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