Matt discusses his company, MJG Capital which has a focus on the natural resource industry exclusively. MJG is a private equity firm which allows investors to participate in a fund approach vs. direct investing which offers an alternative for investors to gain exposure to the sector in the exact same way, accredited investors are able to participate in other asset classes such as real estate, oil and gas, etc.
Matt’s viewpoint is that investors in Natural Resources should think long term. His fund will allow redemptions after 10 years which is the lockout period, due to the market cycle this is ideal as the bull market for this sector is in the early stages vs. other sectors which are at the end of their cycle.
Matt feels that the broad hard asset space has bottomed and we are beginning a new bull market. 2017 has been a slower year and a consolidation period. He says their portfolio has done quite well over the last year.
The junior space is where they maintain their focus....
Jillian works for Crowdfunding Lawyers where she helps advise real estate entrepreneurs. They work with investors to acquire more extensive properties, set up the financing, and structure private placements. She started out in the music industry and then became interested in real estate investing and later in 2008 she began practicing law.
Crowdfunding is just another term for private money investors. It’s a term for getting a group of people to invest and is similar to partnerships or joint ventures. It can be equity financing and/or debt financing. It just means that multiple people are investing with you. Jillian works on structuring the deal terms for the syndicators/operators and their investors in what is called a private placement memorandum.
Anyone investing in this space should be looking for full disclosure. It’s important to make sure you know what you are getting into when making these deals.You can be assured that people with shady deals will likely cut...
Robert started prospecting with his father when he was nine years old. Newrange is a junior exploration company listed on the TSX.V and are based out of Canada. They began the company with a focus on South America where they have two properties under development near El Dovio and Yarumalito, Columbia.
They recently purchased a property in Pamlico, Nevada which has had minimal modern exploration. The property has been in private ownership since 1898 and therefore has missed most of the recent exploration cycles. They acquired the property in July of 2016 and are conducting an extensive drilling program. The region is part of the historical Comstock load where large quantities of silver and gold were discovered. He points out that Nevada is the third largest gold producer in the world.
Mr. Carrington feels there are some very promising anomalies to be further explored on the property and that 2018 should be a strong year for them. The drilling so far has seen grades of up to 10g/ton....
Carl discusses how he became an investor and his background in real estate. Very early on he realized he wanted his money to work for him. The career that offered the best chance for this was investing in real estate. He picked up an MBA and worked in the finance industry for a few years. He went on to build and own a shopping center. This was a business that produced steady cash flow. He says cash flow is of particular importance to him.
He saw opportunities in investments like the oil and gas sector as well as much of the resource markets. He is fond of streaming companies with their royalties.
Investors need to recognize the difference between good and bad debt. Good debt is money that you can put to work for you that makes you more money. Bad debt is credit card debt that just costs you money. He likes to build up a depreciation base which allows him to protect the income from excess taxes.
He discusses how money is made by being a general partner of a limited partnership. He...
Amir discusses the uranium market and the growth opportunities with nuclear power. The world’s population is growing, and everything needs electricity including electric vehicles. In the long-term, we can’t satisfy our energy needs just from renewables. Any balanced energy portfolio needs to have nuclear energy exposure. Today there are only ten companies in the world that mine uranium. Nuclear energy is carbon-free, and it takes very little uranium to produce incredible amounts of energy. These are things that drove Amir to get into the uranium business in 2005.
Uranium Energy Corp. wants to be a leading producer of uranium in the world. There used to be over 30,000 U.S. jobs mining uranium, but today there are only 400. For any commodity, you want multiple supply sources, and almost all of U.S. uranium is imported. In 2005, Amir looked at the uranium sector, and he realized that a lot of exploration was taking place in Canada but none in the United States. Several...
Jordan discusses Skyharbour Resources and how they invest in uranium projects in the Athabasca region of Saskatchewan. This area is the most massive highest grade depository of uranium in the world. His company explores and looks for uranium deposits in this region. They have accumulated several prospects and projects. They are one of the few surviving businesses that remain in the uranium space.
The uranium business has been a tough one over the past few years as the price is below the cost of production. Something has to give in the market, and we finally see some good news regarding production cuts. These have been made by Cameco which will hopefully help reduce whatever remaining supply is in the market which will allow the uranium price to rise.
He discusses Denison Mines projects who has recently found some of the highest grades of ore ever drilled. Uranium is increasingly used for power plants in places like China and India where air quality is important. Nuclear is a clean...
Starting with strategy, Amir explains that the key to understanding gold mining is recognizing that the commodity business is a very cyclical. In the last 15 years, there have been three bear markets and three bull markets for the gold sector. The valuations for gold mining projects tend to be extremes of either bearish or bullish.
He recognizes that the gold mining sector is running out of resources and reserves. They try to consolidate during bear markets on those projects that have been drilled out. If there is a known resource you’re not taking on high risks hoping to find something new. You’re not laden with overhead costs and operations which could be difficult to have especially in a bear market.
Correction: This episode is about the gold mining sector, the episode with Amir on uranium will be out soon. We apologize for any confusion.
In the last six years, Amir’s company has made acquisitions and now have one of the largest pre-production gold portfolios...
Teeka writes financial newsletters for a research group and is particularly happy with their cryptocurrency newsletter. He says, “Many people when they look at the space they think its crazy and they don’t understand the value. Many assume that it is too late to invest.”
Governments have had a history of confiscating private assets and gold. Cypress was a good example of this as is current events occurring within Saudi Arabia. When states get desperate, they will steal money from their citizens. So having some of your wealth beyond the control of anyone is a very valuable hedge.
The critical thing to understand with bitcoin is that for the first time in history there exists a form of money that is beyond anyone’s ability to confiscate. If you keep your private keys safe, no one can take these assets from you.
He explains how blockchains allow for a shared ledger amongst multiple participants. Any new entries in this ledger are verified and cannot be...
Doug discusses how he became interested in paleontology, geology and natural resources at a very early age. After university, he came across a book by “Henry Hazlitt” and another from “Harry Brown” which taught him about Austrian Economics and the benefits of precious metals. These areas of research were a natural fit for Doug and thus led him to become involved with mining stocks and mining financing.
There is very little reliable economic education in the United States, and most of it is of the Keynesian viewpoint. Which is the concept that the government should try to control and manage the economy like it is a machine instead of letting the free market decide?
He prefers the Austrian economics view which is a much more hands-off approach. Natural resources are crucial to modern society, and like agriculture and farming, many people have no idea where products originate.
Doug is writing a series of novels, one of which is called Speculator that discusses...
Frank talks about the volatility or the Bitcoin industry and points out that usually when everybody is talking about it and it’s “hot” that is a sign that you have to get out of it. Emphasizing to be very careful when investing in bitcoins because when it’s got high usually, that when it crashes and assets don’t usually get high as quickly as that so be cautious, be smart and take advantage of the market.
Talking about debts, when markets come down, usually they’re bullish at the top and those at the bottom perish and when this happens, the government it there to mediate and make money.
How the market moves are when people are talking about something, there will always be one entity that will make a need for something else to make money out of it. Be mindful of the risks which are those that you can’t see and not those that...
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