In this job description, an investment analyst who analyzes mining stocks shares his top stock picks. This geology career features a geologist who researches and reports on mining data to find the best financial investments.
This career involves mining and geology investments, not precious metal mining or oil rigs.
As a geologist, Dale Mah explored for base metals, gold and diamonds in remote areas of the Canadian arctic. He’s also worked as a mine geologist in an open pit mine.
Currently, Mah works as a Mining Analyst, Equity Research, with Mackie Research Capital Corporation in Vancouver, Canada.
“Most people are surprised to learn that there is such a thing as a ‘Mining Analyst,’” he says. “They aren’t aware of this side of geological exploration.”
Here, he describes what it’s like to work in the financial investment side of geology and offers career tips for geologists and mining analysts…
Investment Analysts Who Analyze Mining Stocks – Geology Careers
Mah works on the “sell” side of investment mining, with an investment bank in the financial services industry. He researches resource companies in various stages (such as precious metals exploration, development, production) to try and determine if they’re a good investment.
This mining analyst doesn’t directly tell clients which stocks and companies to invest in. Rather, he publishes research reports formed from his own opinions, and gives these reports to his firm’s clients.
“We have dedicated sales staff (institutional and retail) to get the message to the clients,” he says. “But if investors or potential investors want more detailed information, they can speak with me directly.”
Top 3 Mining Stock Picks – Based on Current Information
“Most of the investments I cover are highly speculative and therefore high risk,” says Mah. “All my research publications disclose this so all investors understand that potential return could be ±100%.”
Mah’s current stock picks include:
- Sandspring Resources. They are sitting on a multi-million ounce gold deposit in Guyana and could be a potential take out target.
- Geologix Explorations Inc. I can’t think of any other company with over 1 million ounces of gold trading for 30 cents (I was on them at the 20 cent level).
- East Asia Minerals. This stock is not as cheap as Geologix, but if their project is as big it appears, it could hold more than 10 million ounces of gold.
What is the Salary of an Investment Analyst?
The average base salary of an investment mining analyst is about $80,000 to $100,000+ per year. Annual bonuses could be up to two or three times that base salary.
The Best Parts of a Mining Analyst Job
“I like the variety of the job,” says Mah. “I like being exposed to different deposit styles and different commodities (precious metals, base metals, coal, diamonds, uranium, rare earth elements, etc). Most companies only have a few projects, and those same projects get worked on year after year – so those employees aren’t exposed to different projects.”
As a mining analyst, Mah learns about a variety of projects and commodities, and travels to different parts of the world. He’s not limited to the few projects one company may have in their portfolio — such as working as a diamond exploration geologist.
Mah also enjoys networking with people. “I can meet and talk to all the people involved with any company I feel like researching,” he says. “I could schedule meetings all day long with different people all the time if I wanted to. I like interacting with company executives.”
The Downside of Working as an Investment Analyst
“There can be a lot of pressure from investors if companies don’t develop the way you thought they would,” says Mah.
He’s also not a fan of the early morning start to his day – every day starts with a 4:45 am conference call (Pacific Time). That’s the time the offices across Canada (Montreal, Toronto, Calgary and Vancouver) discuss anything that affects the financial markets, such as overnight commodity prices, European and Asian markets, politics, pending news, state of the economy, new developments, etc.
Career Tips for Geologists or Mining Analysts
Mah encourages aspiring geologists and investment analysts to get a variety of experience. “Work in mineral exploration and production,” he says. “Expose yourself to as many different commodities as you can. It also doesn’t hurt to have international experience!”
For more information about precious metals and other types of mining investments, visit Mackie Research Capital Corporation.
If you have any questions or thoughts on this investment analyst job description, or about a geology career, please comment below.