Latin America: Increasing Leftism
Irving Resources
Sri Lankan, Laotian, Ethiopian and Pakistani economies are visibly crashing. In many ways, these societies are among the better ones in the Third World. They have a bit more courage to drag their politicians out to the street once in a while. But that does not mean that you should hold much hope for them, but understand that the other Third World countries are teetering on the edge of collapse:
On Investments
Irving Resources (IRV; C$1) is doing a private placement, which should close in a couple of days. I have given them a lot of money, as have my clients. Newmont has given them US$4.4 million, at a price much higher than others, and they got no warrants. Crescat Capital is giving them $1 million.
IRV will be very well cashed up to work on its projects. They are currently drilling using a Sumitomo rig. They have bought two rigs of their own and have the permits in place. Japan is now open for those visiting for business. Newmont is in Japan helping Irving with geophysical surveys. As with any junior mining company, the risks are high, but IRV has the possibility of striking it big.
(I was on the board of Directors of the company from which IRV was spun-off. I have a conflict of interest).
I recently had a linked talk with Cory Fleck and Shad Marquitz on why Latin America is destined to be increasingly leftist and why I will continue to invest there.
Last year, I gave a presentation on Latin America. What I said continues to hold:
I spend a bit of time looking at other sectors for a client and my own investments. In the future, I will be mentioning some of those names. Nameson Holdings (HK:1982; HK$0.42) has a dividend yield of 9% and P/E of 6. They make clothes for some of the top international names. They recently constructed a plant in Myanmar, which is yet to go into production. Even if it does not go into production given the political problems there, I still see Nameson’s share price as very well-supported by its other operations. I like their Hong Kong-based management.
Finally, on 20th August 2022, we will hold the next Capitalism & Morality seminar. While we have enough spaces, your early registration helps with organizing it better.
Jayant Bhandari
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