Arbitrage: Low-risk, High-reward

In this presentation at the International Metals Writers Conference in Vancouver on May 28, 2017, I discuss how arbitrage opportunities in the junior resource sector can offer investors a way to make money with comparatively lower risk.

I explain how arbitrage works, why mispricing arises in junior mining transactions, and why investors must still understand a company’s underlying value before committing capital. Arbitrage can provide excellent upside, but only when the risks, deal structure, liquidity, and timing are properly understood.

Watch the full presentation below:

Key Takeaways

  • Why arbitrage can offer lower-risk opportunities in the junior resource sector.
  • How mispricings arise in mergers, acquisitions, and cross-border transactions.
  • Why investors must understand the underlying value before entering an arbitrage trade.
  • How liquidity, deal timing, and jurisdictional issues affect arbitrage outcomes.
  • Why disciplined arbitrage can provide attractive upside without depending entirely on market direction.