With money rushing out of the junior resource space, Charlie Brookes, investment director at Arlington Group Asset Management and investment manager at Praetorian Resources, is rushing in-thoughtfully. In this Gold Report interview, he says now is the time to buy and hold, but it is crucial that investors do their homework before investing.
The Gold Report: What approach has Praetorian Resources Ltd. taken toward resource equities at this point?
Charlie Brooks: Praetorian Resources is focusing its attention on scalable and quality assets run by experienced management teams and wherever possible is trying to reduce its exposure to high levels of financing risk.
TGR: Can you explain what Praetorian is?
CB: Praetorian Resources operates exactly like a fund but is actually structured as an investment holding company. We hold 15 investments at the moment, a variety of junior resource companies. Polar Star Mining Corp. (POSRF.PK) is a significant investments for us. We also like A-Cap Resources Ltd., which is a Botswana coal and uranium company.
TGR: Why does Praetorian have two tickers on the website?
CB: One is for the subscription shares, which is another name for, effectively, a warrant. It’s basically a trading warrant. July 2015 is the expiry date on the 70p warrant from the IPO. So the PRSS is the warrant and PRAE is the ordinary.