Educational content only, not investment advice. Mining stocks are high risk.
By Ben McGregor
Saturday, November 7, 2026
Stephen Gorenstein manages the SGH ARI Resources Fund at SG Hiscock & Company, an Australian investment firm. In a Money of Mine interview published November 7, 2026, he explained how he picks commodities first and then tests the mining stocks inside them. Most of what he said was opinion. Company filings confirm some of his figures and correct others, and this article marks which is which.
The podcast feed lists the episode at 01:00 UTC on November 7. That was 5:00 p.m. on November 6, Vancouver time, PST. The recording date was not published.
Gorenstein runs a fund, which is a financial product, and he discussed companies it owns. Money of Mine promotes its own daily newsletter, the Director's Special, and the episode carried a sponsor message.
His core idea: commodity direction comes first and mine quality second, and the companies he named illustrate that process. They appear here in his talking order, which carries no ranking.
How did Gorenstein come to run a resources fund?
He started as a geologist at Rio Tinto, he said. The episode notes say he then spent a decade as a sell-side analyst at Goldman Sachs and Bank of America, writing research for the banks' clients.
He moved to mergers and acquisitions at Newcrest, a company he had covered for his whole research career. Once inside, he said, he saw how little he had known. He then joined St Barbara under Bob Vassie, its managing director for five and a half years, a 2019 St Barbara release confirms.
After a spell in merchant banking, he was introduced to the fund by its chairman, Ian Smith. Its manager was leaving, and Gorenstein offered to buy it. He said his team took control in April 2023, expecting resources to rebound. "I couldn't have been more wrong," he said.
He said resources fell about 17% over his first two years while his fund rose 22% to 23%. Those are his figures; the SG Hiscock fund page reports other periods, so CMR could not check them. Wanting a larger home, he spoke with about half a dozen firms and chose SG Hiscock.
Why does he start with the commodity?
As a young Goldman Sachs analyst, he said, he was handed unloved sectors such as nickel. He learned that even a good company struggles when its commodity is moving against it. So he gets the commodity right first and researches each company second.
On gold, he named "the only two things that I've ever seen really work in terms of gold." The first is the direction of real interest rates. A real rate is the interest rate minus inflation, so a 5% rate with 3% inflation is a 2% real rate.
The second is whether central banks are buying or selling. Central banks bought a net 863 tonnes in 2025, according to the World Gold Council.
At the time, he said, the fund held a bit over 40% in gold, about 30% in copper and about 15% in uranium. The rest sat in critical minerals, which governments treat as vital to industry and defence. These are his stated weights for his own fund on that day.
Why does he call copper generational but not uranium?
He called copper "generational," citing demand from wind turbines, solar panels and power grids, a market CMR covered on September 24. He also claimed no proper copper find has reached production in about 20 years. A BloombergNEF report, covered by mining.com on October 20, said new copper mines take an average of 17 years to reach production.
He said the world has plenty of uranium in the ground but too few permits to mine it. He added that most of the money in nuclear power is made at the power plant. "We don't think it's generational like a copper," he said, though he favours it for about five years or more.
Lithium taught him to check supply as well as demand. He agreed lithium demand was strong in 2023. But lithium is number three on the periodic table, he noted, linking that to abundance, and it is not hard to bring into production.
The same supply test explains what he avoids. The fund holds minimal lithium and has stayed out of nickel, because processing laterite nickel, a near-surface ore, has made supply plentiful. He called aluminium a cost-plus story tied to energy prices, adding, "There's no shortage of bauxite."
How does he size a position?
The first company raised was Andina Copper (TSXV: ANDC). Its board page lists Tony Manini as chairman, and a host said Manini sits on the fund's advisory committee. Gorenstein called Andina's Cobrasco deposit in Colombia a tier-one discovery, meaning one of the world's best. He put Andina's Argentina project at about 800 million tonnes on rough sums, which is his estimate, not a resource.
The mandate caps any holding at 10%. He calls the shape "a fat head and a long tail." A core position is about 2% to 2.5% of the fund, sometimes about 5%. It must pass three checks: the commodity work, company research and models, and a review by his network and advisory board.
Tail positions start near 0.5%, because a share price can rise 30% to 50% during months of research. At 10%, the fund looks for chances to trim, though he likes to let winners run.
What does he mean by a management-proof ore body?
In Africa, the country comes first. Because he was burned more than once as an analyst, the fund avoids Burkina Faso even when companies there look cheap, and keeps Mali exposure very small. He sticks to places such as Côte d'Ivoire, Guinea and Namibia.
Asara Resources (ASX: AS1) is a core holding and his clearest example of a "management proof" ore body. He meant one simple enough that it does not need a brilliant team. His traits: shallow, oxide, decent grade and a very low strip ratio. Oxide ore is rock weathered near the surface, usually cheaper to process than the fresh rock below.
The strip ratio is the tonnes of waste rock moved for each tonne of ore. Asara reported its Kada resource in Guinea on August 31, 2026. It holds 2.08 million ounces at 0.70 grams of gold per tonne for the whole Kada project, matching his "2 million ounces." That total is not only oxide ore. The release gives no strip ratio, so "very low" is his description.
Asara named Jeff Quartermaine chairman on April 14, 2026, after his nearly 13 years as chief executive of Perseus Mining.
"We like to call it a strip adjusted grade," Gorenstein said. His first case was ore at 1.5 grams per tonne with an 8 to 1 strip ratio. His second was ore at 0.8 grams with a 1 to 1 ratio. In CMR's arithmetic, the first moves 9 tonnes of rock per tonne of ore and the second moves 2. Each tonne moved in the second carries more gold.
Many Peaks Minerals (ASX: MPK) in Côte d'Ivoire started as a tail position. He called its ore body steeply dipping, continuous and better at depth. "It's not quite management proof, but it's not far off," he said, adding that recent holes pointed to at least 500,000 more ounces.
On November 5, Many Peaks reported that its Ferké resource rose by 754,000 ounces to 2,077,000 ounces. It also gives 2,434 ounces per vertical metre in the planned pit, meaning the gold held in each metre of depth.
PDI Gold (ASX: PDI), which reported as Predictive Discovery in its March 2026 accounts, came next. He said the Bankan mine permit in Guinea seems close, while admitting he has said that before. PDI says the Mining Licence awaits final sign-off by Guinea's government. He said he never invests for a takeover, calling it "a mug's game."
Which other mining stocks did he use as examples?
Vault Minerals (ASX: VAU) was the fund's first real core position, bought around June 2023 when it was called Red 5. He said gold was then about A$3,100 an ounce. The Perth Mint reported gold ended June 2023 slightly above A$2,870.
Brokers disliked Red 5 for missing production targets, he said, but his team saw King of the Hills reaching richer benches. Genesis Minerals (ASX: GMD) agreed on July 14, 2026 to buy Vault through a scheme of arrangement, a takeover that shareholders vote on and a court approves. Vault's scheme booklet offers 0.7629 new Genesis shares plus approximately A$0.5125 cash per Vault share, subject to adjustment.
Benz Mining (ASX: BNZ; TSXV: BZ) took him a while to understand. He praised the geology at Glenburgh in Western Australia, noting a low-grade halo around the core. An exploration target is a company's estimated range of what might be there, before drilling can support a resource.
He said the target is 8 million ounces even without the halo. Benz reported its higher-grade core in June 2026 as 6.1 to 7.3 million ounces. The full target, halo included, is 10.1 to 12.0 million ounces. Benz says that range is conceptual and is not a mineral resource.
Pantoro Gold (ASX: PNR) is a recent buy that fails the management-proof test, because its Norseman lodes are narrow and let in waste rock. "Grade's easy," he said; thickness is the problem. He returned for the Racetrack discovery, which he said is about 3 metres thick. Pantoro's September 21 update gives an average Racetrack drill width of 3.58 metres and puts the discovery about 600 metres north of its OK Underground mine.
FireFly Metals (ASX, TSX: FFM) owns the Green Bay copper-gold project in Newfoundland. FireFly reported a discovery at Mount Joy on October 26, about 35 kilometres from its Ming Mine; he recalled about 25. Mount Joy is a VMS deposit, short for volcanogenic massive sulphide, metal-rich rock laid down on an ancient seafloor.
He put copper at "660 or whatever" on the day he spoke, with no unit. COMEX copper for November delivery settled at US$6.2180 a pound on November 6, Dow Jones Market Data reported. He also named copper explorers Midas in Namibia, White Cliff and Solstice.
In rare earths, the metals in strong magnets, he discussed Lindian Resources (ASX: LIN) in Malawi. He believes selling a concentrate will be enough there. Lindian said on October 26 that first concentrate is targeted for December 2026. He also owns Viridis in Brazil, which he framed as Western supply, a theme in a CMR piece on Greenland.
For uranium, he called NexGen Energy's project the best undeveloped uranium mine globally, which is his view. Atomic Eagle (ASX: AEU) said on September 24 that its 60%-owned subsidiary had signed a mining convention for Madaouela with Niger. He called the country risk "not low." His newest early-stage names were Castle, NGX and Peako.
What is his non-consensus view?
He said the world is in the early stages of a multi-year mining boom, arguing from history. In the 1970s, Japan tied up coal and iron ore to become a steel power, he said. In the 2000s, China bought mines in almost every commodity.
In 2025, he said, a new US administration moved to secure critical minerals for defence and AI. He described all three as "nationalizing resources." CMR traced a related deal pattern in its critical minerals takeover piece on May 21.
He also said gold just over US$4,000 is still a good price for producers. Reuters put spot gold at US$4,074.36 at 10:54 a.m. Vancouver time, PST, on November 6.
What does this mean for a retirement-age reader?
For readers living on savings, the interview shows how one professional thinks. A podcast is a conversation, while a filing is a document a company is legally responsible for. Where they differ, as with Benz's target, the filing holds the checked number.
His weights also come with his fund's rules: a 10% cap and wholesale investors only. Many companies he named have no producing mine, so they pay no dividends and often sell new shares, which shrinks each holder's slice.
Benjamin Graham's The Intelligent Investor, Chapter 20, offers a test. A true margin of safety, Graham wrote, is one that "can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience." The interview offers reasoning and experience; the filings supply the figures.
How I read it. The strongest evidence is the match between his tests and the companies' own papers. Asara's 2.08 million ounces fits his "2 million ounces," and Pantoro's December quarter target fits his timing. On Benz's target, Mount Joy's distance and mid-2023 gold, the documents sit beside what he said and supply the dated figures.
What happens next, and when?
These dates come from company documents, listed by date. This is not a ranked list of securities.
- Vault's scheme meeting is at 9:30 a.m. Perth time on November 11, 2026. That is 5:30 p.m. November 10, Vancouver time, PST.
- Many Peaks expects its scoping study, an early economic review, later in the fourth quarter of 2026. Gorenstein gave no date.
- Pantoro is targeting an updated five-year Norseman plan, including Racetrack, in the December quarter. Gorenstein said December.
- Lindian targets first monazite concentrate in December 2026.
- FireFly expects a feasibility study for Green Bay in the first quarter of 2027.
What else are readers asking about Gorenstein's interview?
What fund does Stephen Gorenstein manage?
He is portfolio manager of the SGH ARI Resources Fund at SG Hiscock & Company in Australia. The fund page lists it for wholesale investors only.
Why does he avoid lithium and nickel?
He said both have plentiful supply: lithium because it is abundant, and nickel because laterite ore is now processed at scale.
What is a strip ratio?
It is the tonnes of waste rock moved for each tonne of ore. A lower ratio means less waste moved per tonne of ore, since ounces still depend on grade and recovery.
FAQ
Is CMR recommending these mining stocks?
CMR is not recommending any of them. They appear because Gorenstein discussed them on Money of Mine, in his talking order. This article reports what he said and checks it against company papers.
Are his 40/30/15 weights a model portfolio for readers?
They are the weights he gave for his own fund on the day he spoke. His fund has its own rules, including a 10% cap per holding. CMR does not offer them as a model.
Is an exploration target the same as a mineral resource?
An exploration target is an estimated range of what might be found, made before drilling can support a resource. Benz states that its Glenburgh target is conceptual and is not a mineral resource. A resource needs enough drilling to estimate tonnes and grade with stated confidence.
Sources
- We're Still Early in This Mining Boom (Stephen Gorenstein), Money of Mine (YouTube), November 7, 2026. Primary source; interview video and captions. Source
- We're Still Early in This Mining Boom (Stephen Gorenstein), episode notes and publish time, Money of Mine via Podfollow, November 7, 2026. Web research. Source
- MD and CEO transition in 2020, St Barbara, December 6, 2019. Web research; primary company release. Source
- SGH ARI Resources Fund, SG Hiscock & Company, page updated October 28, 2026. Web research; fund manager's own page. Source
- Central Banks, Gold Demand Trends Full Year 2025, World Gold Council. Web research; primary industry source. Source
- Copper Nears Record Highs as Supply Tightens. Can the Rally Continue?, Canadian Mining Report, September 24, 2026. Internal context. Source
- Copper surplus masks looming $332B mine shortfall, mining.com, October 20, 2026. CMR Research Library. Source
- Board of Directors, Andina Copper, accessed November 7, 2026. Web research; company page. Source
- Kada Interim Mineral Resource Grows 125% to 2.1 Million Ounces, Asara Resources, August 31, 2026. Web research; primary company release. Source
- Appointment of Jeff Quartermaine as Chairman, Asara Resources, April 14, 2026. Web research; primary company release. Source
- 2,077,000 Ounces at 1.87g/t Gold in Interim MRE at Ferké Gold Project, Many Peaks Minerals, November 5, 2026. Web research; primary company release. Source
- Financial Report for the Nine Month Period Ended 31 March 2026, Predictive Discovery, 2026. Web research; primary company filing. Source
- Bankan Gold Project, PDI Gold, accessed November 7, 2026. Web research; company page. Source
- Perth Mint gold bullion sales hold firm as prices slide, The Perth Mint, July 7, 2023. Web research. Source
- Scheme Booklet Registered with ASIC, Vault Minerals, October 6, 2026. Web research; primary company release. Source
- Benz Defines Maiden Gold Exploration Target at Glenburgh, Benz Mining via Newsfile, June 23, 2026. Web research; primary company release. Source
- Operations Update and North American Roadshow Presentation, Pantoro Gold, September 21, 2026. Web research; primary company release. Source
- FireFly makes another significant high-grade copper-gold VMS discovery, FireFly Metals via GlobeNewswire, October 26, 2026. Web research; primary company release. Source
- Comex Copper Ends the Week 3.72% Lower at $6.2180, Dow Jones via Morningstar, November 6, 2026. Web research; exchange settlement data. Source
- Operational Readiness Update and Local Partnerships Established Ahead of December First Production, Lindian Resources, October 26, 2026. Web research; primary company release. Source
- Greenland Rare Earths Just Got a Security Fence. Ore Still Has to Be Mined, Canadian Mining Report, September 25, 2026. Internal context. Source
- Madaouela Mining Convention formally executed with Republic of Niger, Atomic Eagle, September 24, 2026. Web research; primary company release. Source
- Why Critical Minerals Are Driving a New Mining M&A Boom, Canadian Mining Report, May 21, 2026. Internal context. Source
- PRECIOUS-Gold drops as strong US payrolls boost dollar, yields, Reuters via Longbridge, November 6, 2026. Web research; Reuters reprint. Source
- The Intelligent Investor, Benjamin Graham, Chapter 20. CMR Research Library, published book.
