Musings on Investing

Trump: Why I am Increasingly a Fan

ValOro Resources (VRO), etc.

As time has gone by I have grown increasing respectful of Trump. Not only he is doing what he said he would, but he is also among those rare people who understand the problems that the West faces. Trump is having to deal with the massive problems that the earlier—short-terministic, populist and vision-less—regimes left behind. But people’s failure to put issues into perspective means that it is Trump who gets the blame. That is why I don’t like democracy, for most people use soundbite-level, isolated information—mostly rationalizations—to reach conclusions. Or more accurately they look for justifications for their emotions.

Despite all its flaws, the USA is still among the best places in the world.

As a child, I often dreamt of emigrating to America. America’s military-industrial complex rightly has a bad name. But, alas, if I had a switch to get rid of it, I would not use it. Without US interference, the world would be an extremely unstable place. For example, had the USA not interfered, Saudi Arabia, Iran, Iraq, Brazil, Libya, etc. would have all had nuclear weapons. Perhaps humanity would have seized to exist. Without US interference, the Third World tyrannies, tribal-warfare and massacres would have been much worse, which would have rightly kept their population-number under control, but also refugees would have flooded the West:

On investments…

Linked is a recent discussion with Cory Fleck on how I go about investing in the mining sector. In the same talk I mention a few stocks.

Here are some more that I like:

  • Novo Resources (NVO; C$1.95): At the current price, the market likely gives NVO value only for its cash and Beatons Creek project. The upside from conglomerate deposits is available mostly for free.
  • Altus Strategies (ALTS; C$0.045): I spent the last month in the UK, including visiting with ALTS management and some of its key shareholders. I am concerned about their G&A expenses, which have been too high for my comfort. But for now, the market capitalization is comparable to the share ownership that ALTS will eventually have of Canyon Resources, an ASX-listed company.
  • De Grey Mining (DEG; A$0.12): The situation here is similar to that of NVO, although I don’t know their management much. Their current market capitalization likely gives zero value to the conglomerate areas.
  • Amarillo Gold (AGC; C$0.20): AGC over the last few months has cleaned up their balance sheet by getting rid of the debt they had, sold a royalty to Royal Gold for a very good price, and have done a lot of work on the project. They currently have six drill-rigs at the project, drilling 15,000 meters. They expect new resources by the end of January 2019. Feasibility and basic engineering are expected in August 2019. The market is rightly worried about the country risk. And my superficial look at the latest financials tells me that their G&A expenses have gone up significantly. I hope they will be able to control it going forward.
  • ValOro Resources (VRO: C$0.11): VRO is being acquired. There is a nice arbitrage upside.
  • FPX Nickel (FPX; C$0.08): I am invested in this company not only because of the value I see, which might improve significantly when they have optimized the metallurgy, but also because their CEO, Martin Turenne, is one of the smartest young people I have known in the industry. He understands the macro issues driving the market and is a delight to discuss those issues with, which when the time comes, will enable him to look for the right majors to do off-take agreements with or to sell the project to.

On other matters…

Videos of last year’s Capitalism & Morality are now available. They are linked here.

The next Capitalism & Morality will be held on 3rd August 2019. Please register using the Paypal button on this page, if you haven’t already done so. One-third of the seats are already gone, and being a capitalist I do increase the ticket price—very substantially—as we get closer to the event.

Warm regards,

Jayant Bhandari

Associate: Rajni Bala

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