My essay, Why China Works and India Does Not, examines a contrast that, after almost two decades of traveling through China and a lifetime of familiarity with India, has become impossible for me to ignore.
In China, I repeatedly encounter a practical seriousness: defects are acknowledged, work is taken seriously, and competence carries its own pride. These habits appear in ordinary situations—in repairing a phone, maintaining a building, or resolving a simple administrative problem. Over time, they have produced cleaner cities, better products, smoother procedures, and greater order.
India has copied many of the visible forms of modernity—universities, corporations, bureaucracies, technology, and democratic institutions—but without absorbing the habits of objectivity, responsibility, quality, and truth that allow those institutions to function. Institutions cannot compensate for the absence of those habits. They merely reproduce and amplify the character of the people who operate them.
On Investments
I recently discussed all five companies below—and my broader view of the Chinese economy—in an interview with Shad Marquitz of the Korelin Economics Report.
- Cygnus Metals (CYG; C$0.17) is being acquired by Central Asia Metals for 0.06 CAML shares for every Cygnus share. The Cygnus shareholder meeting is scheduled for 18 September. At CAML’s 11 September closing price of 169.4 pence and prevailing exchange rates, the consideration was worth approximately C$0.19 per Cygnus share, leaving an arbitrage spread of 12%. I expect to continue holding the merged company.
- European Lithium (EUR; A$0.335) is being acquired by Critical Metals Corp. (NASDAQ: CRML), with EUR shareholders receiving 0.035 CRML shares per EUR share. The court hearing is scheduled for 15 September. I sell CRML call options in proportion to the shares I expect to receive. The option premiums significantly increase the potential return while reducing my exposure to a decline in CRML, although this strategy carries the risk that the calls could become uncovered if the merger fails.
- Silver47 Exploration (AGA; C$0.72) has agreed to merge with Bunker Hill Mining (BNKR; C$4.54). Silver47 shareholders are to receive 0.1724 BNKR shares for each Silver47 share. At the current BNKR price, that represents approximately C$0.79 per Silver47 share, or an arbitrage spread of about 10%. The transaction combines Silver47’s exploration portfolio in Alaska, Nevada, and New Mexico with the Bunker Hill mine in Idaho, which is ramping up toward commercial production. I don’t necessarily see the merger leading to economies of scale—for now, my interest is in just arbitrage. Shareholder meetings are to be held no later than 15 November.
- Aztec Minerals (AZT; C$0.32) has extended the strike length of the oxide gold-silver mineralization at its Tombstone project to more than 1,250 meters, an increase of perhaps 25%. Its latest reported hole returned 83.8 meters grading 0.90 g/t gold and 22.61 g/t silver, including 7.6 meters grading 6.97 g/t gold and 75.42 g/t silver. Following the rise in the share price, Aztec announced a bought-deal financing at C$0.32 per unit, with each unit containing half a warrant exercisable at C$0.42.
- Irving Resources (IRV; C$0.245) is another company in which I am a very large shareholder. Its share price has fallen to the C$0.25 level at which it last raised money, largely because investors have become impatient with Japan’s slow permitting process. At Omu Sinter, Irving has discovered a high-grade feeder returning 2.06 g/t gold equivalent over a 47.7-meter interval. JX Advanced Metals is funding shallow drilling to evaluate the silica as flux for its Japanese smelters, while the deeper mineralization remains entirely owned by Irving. Irving has applied for permission to test that deeper feeder later this year. The project requires patience, but I continue to like both the geology and the jurisdiction.
Capitalism & Morality 2026 will take place in Vancouver on 18–19 September. Speakers include Rick Rule, Adrian Day, Dallas Brodie, Fergus Hodgson, Charles Holloway, and others. I will speak on “Second-Hand Modernity: Why the Third World Is Not Emerging but Regressing.”
See the complete program and register here.
Jayant Bhandari
Disclosure and disclaimer: These are my personal observations, not investment advice. I may own, buy, or sell the securities mentioned. Please do your own due diligence. [Full disclaimer →]