Discovering Uncorrelated Returns for Gold Miners – Live with James Rasteh

Published on
January 7th, 2021
Duration
59 minutes

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Discovering Uncorrelated Returns for Gold Miners – Live with James Rasteh

Live ·
Featuring James Rasteh and Max Wiethe

Published on: January 7th, 2021 • Duration: 59 minutes

James Rasteh, partner and CIO of Coast Capital Management, LP, joins Real Vision’s Max Wiethe to discuss how he identifies the most attractive opportunities in the gold mining sector. Coupling an increase in the global demand for gold, driven in large part by emerging market economies and central banks like China and India, with shrinking supply due to the reduction in successful discoveries, Rasteh explains why he is betting on an industry he sees as highly profitable and exceedingly undervalued. He also talks about why the ESG investment industry is little more than a marketing gimmick, why it will not lead to productive change, and Coast Capital’s approach to introducing environmentally friendly practices to mining companies as investors in this sector.

Comments

Transcript

  • JS
    Jon S.
    13 January 2021 @ 14:34
    When there are 36-37 minutes left the interviewee says we take 1700usd/once or 1500/once, as indicative price (along the lines of what he means) for his analysis. Why that price and was a different one before lets say when gold was at 1350 level? Many thanks
    • MW
      Max W. | Real Vision
      15 January 2021 @ 14:24
      I'm assuming they use some sort of trailing margin of safety to current price. James is looking for value, not for the price of gold to rise and make his miners suddenly attractive. As such, he is looking for companies that even if we saw an approximately 10% or even 20% correction, then the company is still undervalued. If you are more cautious or have a particularly negative outlook for gold price you can model with prices at lower levels but he is comfortable modeling at those levels (at least for now).
  • IW
    Ian W.
    14 January 2021 @ 04:21
    Haha yes Max Richter. Great interview!
  • NL
    Nikola L.
    11 January 2021 @ 02:22
    Botswana might be one exception when it comes to Africa. But overall agree. Great clip and thank you both.
  • JF
    Jess F.
    10 January 2021 @ 13:45
    The number of comments here is indicative of the 99% orientation on RV towards Crypto, this view is confirmed by the death of the Precious Metal section on the exchange.
  • SP
    Saxon P.
    10 January 2021 @ 06:06
    Great interview. James mentioned three macro factors on gold he keeps a close eye on. The first was all the USD money printing. Then the conversation moved on to ESG. I would love to know what James second and third macro variables of interest are! Regards, Saxon
  • SS
    Socrates S.
    9 January 2021 @ 19:37
    The disturbing thing about this interview is that I find myself agreeing with almost everything James said. Normally, I like interviews where my views are challenged, but I suppose this is good from time to time. ;) If there was one thing where he did succeed in challenging my view, it is that big royalty companies like Franco Nevada may find it increasingly difficult to outperform, because royalties are no longer cheaply available. That is a good point: the royalty space has become really crowded in the last couple of years, and it may be time to sell up the trusty old favourites like Franco and Wheaton.
  • jl
    johan l.
    9 January 2021 @ 10:08
    Another very good interview. James is a firework of a person, and Max did a great job. Interesting perspectives James mentioned on some miners, like Newmont. Very curious what he thinks about Barrick Gold.
  • EC
    Earl C.
    9 January 2021 @ 06:02
    Out freaking standing! To borrow from an ole bluesman legend's song by Lightening Hopkins "Now is a Needy Time" for this presentation. As good or better than any RV show I have seen though I have missed plenty. Both participants raised the bar for future RV shows.