Steve Todoruk | Investing in Discovery Plays: High Potential Reward with Minimized Risk

In this interview, Steve Todoruk of Sprott Global shares his insights on investing in junior exploration companies. Steve’s particular focus and expertise is in investing in discovery plays, which are junior explorers who have just released the results of their initial discovery hole. As a professional geologist as well as a stock broker, Steve is able to analyze the initial drill results and assess whether he thinks a large resource will be defined through subsequent drilling before he invests. Over the years this discovery play approach to investing in junior explorers has produced high returns for Steve and his clients with minimized risk. Steve graduated with a Bachelor’s of Science in Geology from the University of British Columbia in 1985. Since then over the course of his career he has worked as a field geologist for major and junior mining exploration companies, he worked in an underground mine for two years operating equipment learning that aspect of the mining industry and was also the president of two junior exploration companies between 1993 and 2003. Steve has also been a principal in a mineral exploration consulting and engineering firm. In 2003, Rick Rule recruited Steve to come work as a stock broker and senior investment executive for him at Global Resource Investments (now Sprott Global) which is where Steve still works today. 0:05 Introduction of topic and guest 1:38 Steve’s thoughts on current junior exploration industry 3:16 What is the ideal profile of a junior explorer takeover candidate? 5:56 Investing in non-joint venture explorers & prospect generators 9:10 Why Steve focuses on discovery plays 11:23 Investor expectation & due diligence post initial discovery hole 14:13 Discovery plays that ended up as losers 15:38 Some of Steve’s biggest discovery play winners 19:22 What if an explorer is not bought out before feasibility stage? 22:11 Steve’s thoughts regarding investing in uranium explorers 25:18 Steve’s brokerage services and contact information