Michael Gentile: Why Should Investors Take a Portfolio Approach to Junior Mining?

Diversification and disciplined research can help investors navigate the opportunities and risks of the junior mining sector.

Choosing a single junior mining company to invest in can be challenging. According to Michael Gentile of Bastion Asset Management, investors should instead consider building a diversified portfolio of 10 to 15 junior mining companies. While not every investment will succeed, he believes a small number of strong performers can more than offset weaker positions and generate meaningful long-term returns.

Gentile also points to a supportive backdrop for the sector. With governments placing greater emphasis on critical minerals and resource development, and many junior mining companies still trading at relatively low valuations, he believes opportunities remain for investors willing to do their research and take a disciplined, portfolio-based approach.