Two potential mining tearaways

Natural resources are getting harder and more expensive to find. So a small-cap miner that finds a big deposit will attract a swarm of major players, says Tom Bulford. Here, he picks two junior miners with decent prospects.

The great mining investor Julian Baring used to have a bit of advice for small miners. "Whatever you do", he would say, "don't try to get anything out of the ground!"

Strange advice for a mining company, you might think. But his point was this: small mining companies are explorers. They consist of geologists, adventurers and chancers who like nothing better than peering at maps, striding over sandy plains, picking up soil samples and drilling exploratory holes. This is what they enjoy. This is what they are good at. And it is the dream that the drill will encounter a ten-metre slab of solid gold that sends them happily to sleep each night.

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Tom worked as a fund manager in the City of London and in Hong Kong for over 20 years. As a director with Schroder Investment Management International he was responsible for £2 billion of foreign clients' money, and launched what became Argentina's largest mutual fund. Now working from his home in Oxfordshire, Tom Bulford helps private investors with his premium tipping newsletter, Red Hot Biotech Alert.