Liechtenstein-based Incrementum gold fund manager Ronald-Peter Stöferle sees bargains in mining shares after gold’s pullback, even as his active gold strategy holds almost 40% cash.

The strategy’s investment signal turned defensive earlier this year, Stöferle told The Northern Miner late last month at the Mining Forum Americas in Colorado Springs. Yet meetings with mining executives left him encouraged by their restraint on acquisitions and new projects, suggesting producers are maintaining spending discipline as earnings rise.

“It doesn’t mean that they won’t screw it up at some point in the cycle,” he told The Miner’s Western Editor, Henry Lazenby. “But I think now it’s kind of the sweet spot that we’re seeing in the mining space.”

For miners, the opportunity is to attract investors who have overlooked the sector. Stöferle sees investors with broader mandates gradually warming to gold exposure, potentially widening the pool of capital available.

Watch below the full interview: