Q: Do you see investor interest in graphite coming at the expense of others in the exploration sector?
A: I wouldn’t say it’s at the expense of others because it’s part of the exploration process. And the fact that graphite is one of the only sectors that are advancing on the market at the moment gives credit to the graphite people. I don’t think they’re stealing anybody else’s market, no.
Q: But you are involved in other companies besides graphite. There’s a lot of talk about how stocks have been lagging in the junior-exploration sector in general. What future do you see for the juniors?
The world is moving forward; and there’s tremendous consumption of all kinds of commodities; and those commodities will have to be found by the junior-exploration sector. The market will come back —Dave Hodge
A: Clearly, this whole rollercoaster of a junior-exploration market is part of the market and part of its history. We’ve been in the doom-and-gloom area many times before, and I’m very confident we’ll climb out of this altogether at some point. The real question is when. If I knew the answer to that I’d be a lot wealthier than I am at the moment. That’s the key question—when is the market going to turn around? But the question is, “When?” It’s not, “Is it going to happen?” It will happen for sure, and it’s happened a thousand times before.
How long this tough part will last is anyone’s guess. The fact of the matter is that the world is moving forward; and there’s tremendous consumption of all kinds of commodities; and those commodities will have to be found by the junior-exploration sector. The market will come back.
Q: I can certainly understand that no one can say when this will happen, but can you possibly imagine what would trigger an upswing or any change of circumstances?
A: Certainly if the world starts getting the global economic problem straightened out, and I’m talking about the European problems and the problems in Greece and even the US, that would certainly fuel a turnaround.
A discovery could definitely fuel a turnaround in individual stocks or in individual sectors. That could turn this whole junior-exploration market around. People just need to get greedy again.
Q: You don’t think there’s enough greed going around?
A: No, not at the moment. We need more greed!
Q: We’ll start a campaign for that one. Graphite certainly looks good; but at some point do you see interest leveling off; or maybe the bubble could burst?
A: What I would say is the graphite market will mature. We’ve seen this in other sectors, and at the moment the world is saying we need more graphite. And the junior-exploration companies, venture-listed companies, are working to answer the call. Yes, at some point there will be enough discoveries moving towards production that will satisfy that demand. But clearly we’re at the beginning of the cycle. I believe there’s lots of opportunity in the graphite space left. It’s an exciting market; and the demand is there; and we’re answering that demand.
Q: Where do you see Zimtu a year from now?
A: There’s no question that we’ve been building the assets of Zimtu very successfully. We’re going to continue to execute our business model over the next year. As our asset base grows, so will our reputation for being solid partners for exploration teams. We’re already being recognized for that. It’s opening up new possibilities and opportunities working with new groups. These types of activities could help Zimtu grow significantly in the next year.
Q: In summary, what would you say to a potential investor who was looking at Zimtu?
A: I would tell them that by owning Zimtu it gives you access to that diversification of several early-stage opportunities. Allow us to sort out those early-stage opportunities and let us help you profit from them.
Q: Okay, that’s excellent. So you’re attending the Toronto Graphite Express-Conference?
Q: What did you think of the Vancouver conference?
A: I thought it was dynamite! Go listen to my speech I made at the end. I think in that speech I said the conference was impressive, and the audience was impressive as well.
Q: Is there anything you want to add that we haven’t discussed?
A: Just that it’s all about the team, and it’s all about the people.
At press time, Zimtu Capital had 10 million shares trading at $1.10 a share for a market cap of $11 million.
Disclaimer: Zimtu Capital Corp is a client of OnPage Media, and the principals of OnPage Media may hold shares in Zimtu Capital.
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