Investing in Gold Miners: The Midas Touch

Published on
August 19th, 2020
Duration
53 minutes


Investing in Gold Miners: The Midas Touch

The Interview ·
Featuring James Rasteh

Published on: August 19th, 2020 • Duration: 53 minutes

James Rasteh, CIO and co-founder of Coast Capital, joins Real Vision CEO, Raoul Pal, to discuss successful strategies for investing in gold mining stocks. Overspending on exploration has for the past decade been the most heinous sin of gold miners, Rasteh tells Pal, and that’s why balance sheet discipline can help unlock deep pockets of value in stocks other investors have overlooked. Rasteh shares with Pal specific examples wherein his activist strategy has been extremely successful, such as Jaguar Mining, as well as other companies he thinks have a bright future. Lastly, Rasteh and Raoul discuss the macro drivers of owning gold miners, and explore the risks and rewards of owning large-cap mining stocks vs. their mid- and small-cap counterparts. Filmed on August 14, 2020.

Comments

Transcript

  • AB
    Aditya B.
    13 September 2020 @ 23:53
    This was just a big sales pitch for his fund. My BS meter went off. I think Raoul's did too. He did ask some pointed questions. Think of it this way. He he did the same sales pitch about those various companies to Buffett, he would not even hear back from them.
  • JH
    Joel H.
    30 August 2020 @ 06:04
    Mining space is definitely space I need to learn more about. I am looking forward to hearing more about his fund in the future. Good interview, thank you guys.
  • JB
    Julian B.
    29 August 2020 @ 15:23
    Wonderful talk. I am investing since February in gold miner stocks made +40%. But when I hear this talk I need more knowledge and need to analyse the companies. Has anybody a book or tip for me how I can learn to analyse these markets?
  • GR
    George R.
    20 August 2020 @ 13:16
    I had to stop midway. To general and feels like when you read a full book and realize it was a bunch of general info that was stretched into a book. It’s the first video from Real Vision that I could not push myself to finish.
    • FC
      Frederick C.
      20 August 2020 @ 13:22
      100% agree. Fuzzy and wishy-washy, doesn’t give anything practical we can use...
    • JJ
      John J.
      20 August 2020 @ 19:18
      I completely disagree. If you were looking for a dozen ticker symbols, that is not what this or any other show is about. I think you should go back and watch the entire show all over again. James Rasteh is incredibly smart and experienced.
    • TP
      Tillman P.
      25 August 2020 @ 02:21
      I also felt he was too full of himself. One of the least useful or interesting interviews in my opinion.
  • PP
    Patrick P.
    21 August 2020 @ 03:33
    If you want to make money investing in mines ... follow the master of all miners ... Ross Beaty---- PAAS, EQX, ARG, LMGDF, ARREF....these are companies that Ross has holdings in. (EQX could be an easy 4 bagger IMO.) Look for all the Real Vision videos of Ross......very impressive.
    • MG
      M G.
      23 August 2020 @ 19:26
      Thank you for the reminder: Just watched https://www.realvision.com/shows/grant-williams/videos/grant-williams-in-conversation-with-ross-beaty breathtakingly beautiful & informative authentic conversation.
  • gr
    graham r.
    19 August 2020 @ 09:24
    An informative conversation. In the latter part he spoke about how to assess a mining company. I would add the quality of its management to his list.
    • JR
      James R. | Contributor
      20 August 2020 @ 03:36
      Entirely agreed. Management quality can make or break a good mine. But it can never alter the geology of it.
    • gr
      graham r.
      23 August 2020 @ 04:42
      Thanks for your reply James, but if you think about it, good management would not get involved with bad geology.
  • YB
    Yair B.
    23 August 2020 @ 00:57
    What a wonderful interview! Truly fascinating! Thank you, Raoul. James Rasteh seems like an impressive person.
  • LP
    Lynn P.
    22 August 2020 @ 19:10
    For smaller investors who want gold miner exposure, why is GOLD at 13X or NEM at 14X not a reasonable investment? Following Rick Rule, may be better to give up 15% return for the greater safety of own the larger names.
  • TG
    Thomas G.
    21 August 2020 @ 16:22
    im a brazilian investor in the ibovespa stock index and Jaguar company isnt even listed on our exchange because its a sketchy unheard of OTC company. the largest miners in brazil are Vale, Gerdau and Kinross Gold, which are respectable companies. Interesting to hear about this company, all governance members are not brazilian, its a brazilian company owned by overseas capital, for me this is very strange. but the stock is up over 150% already. might be a great short-term play.
    • TG
      Thomas G.
      21 August 2020 @ 16:28
      this is a great interview though and this has been great source of knowleadge about gold, gold miners, costs, etc. very insightfull.
  • MB
    Mike B.
    21 August 2020 @ 07:53
    That was a bizarre interview.
  • CG
    Christine G.
    21 August 2020 @ 05:34
    Expert, commitment to making money and making companies into better versions of themselves, activism in human rights, environmental awareness - this guy is certainly one in a million (conservatively).
  • PP
    Patrick P.
    21 August 2020 @ 03:15
    For some reason ( not sure why) my pump and dump meter went off several times ... Just saying....
  • RC
    Reese C.
    21 August 2020 @ 01:54
    Really liked this video.
  • RI
    R I.
    21 August 2020 @ 01:21
    Once again, people miss the big picture: everyone wants gold and there isn’t enough to go around. Americans (under-weight), Chinese (over-weight), Europeans (equal-weight), Russians (over-weight), and everyone else (largely under-weight). What you should be asking yourself is: do you own enough gold-related exposure? My guess is: not even close.
  • DC
    Dave C.
    20 August 2020 @ 23:35
    To paraphrase a voice from the old days - interviews that make you go hmmm... At this juncture, I am prepared to take the moralistic sermonising from James at face value regarding TMAC resources - though it was interesting that the name of Kyle Bass cropped up, because at times James sounded like he was reading out loud from one of the Bass narratives on China. However, now he has gone on the record on this matter, observant eyes will be watching what stance he takes if (or when, I wager) Jaguar Mining receives a bid from a China related entity. Will he be consistent or will he just grab the money. Whilst being an active mining investor I have no horse in a Tmac / Jaguar debate. The peanut gallery awaits.
    • RI
      R I.
      21 August 2020 @ 01:21
      Once again, people miss the big picture: everyone wants gold and there isn’t enough to go around. Americans (under-weight), Chinese (over-weight), Europeans (equal-weight), Russians (over-weight), and everyone else (largely under-weight). What you should be asking yourself is: do you own enough gold-related exposure? My guess is: not even close.
  • NL
    Nikola L.
    20 August 2020 @ 23:10
    unless you are Norwegian.. well said. But try to explain this to an average Aussie and you'd think you are talking an an Arab.
  • SD
    Steve D.
    19 August 2020 @ 21:42
    Another time when the thumbs down baffle me. This guy just potentially gave you the keys to the kingdom with his comments about gold relative to the cost structure of the companies that mine it. Gold is just above the highs of 2011. The miners in aggregate have been in a bear market since 2011 and those that have survived it have zealously cut costs and cleaned up balance sheets. Estimates I've seen are that average all in sustaining costs in 2011 were roughly $1,300 per ounce so miners on average were making $600 gross margins. Today those average costs are roughly $950 so the margins have grown to roughly $1,000 per ounce. Back in 2011 the ETF he mentioned, GDXJ, reached a high of $179; today it is below $60. So, while margins are 67% higher today than in 2011, many miners are selling 67% below where they were then. He said the same thing in a different way but that's the deal. The miners don't need a higher gold price to be more profitable than they have ever been right at the time when most sectors will be in a dramatic profit recession. The light will shine here soon enough.
    • KB
      Kenneth B.
      20 August 2020 @ 00:01
      Totally agree Steve. The guy was just AWESOME. Great speaker. Concise. Incisive. Wicked Smaht.
    • NI
      Nate I.
      20 August 2020 @ 22:15
      If the gold price holds and I see no reason it wont with negative real rates, the companies with proven reserves will mint money - literally. I can't find a better investment.
  • PD
    Paul D.
    20 August 2020 @ 20:33
    Raoul's face when he said Brazil lol "Do you have any US or Canadian names" Lol 🤣
  • VD
    Vishal D.
    19 August 2020 @ 11:30
    Raoul pushes for details but it just seemed like there were none that would be offered to the viewer. A frustrating interview to watch with lots of vagueness
    • MC
      Michael C.
      19 August 2020 @ 12:13
      Raoul didn't seem to know the right questions to ask and his guest didn't present a coherent framework for investing in mining stocks. Here are some questions for you Raoul for next time: 1.) How is investing in gold mining different to investing in other sectors like Industrials, Consumer, etc. 2.) Explain the differences between Majors, Mid Caps and Juniors? 3.) Investment objectives/risk appetite should influence your allocation in the sector (ie larger allocations to major and smaller allocations to juniors) 4.) Mine location is important. Stick to locations with strong rule of law, ie Australia, US and Canada (not sure that longer term Brasil is low risk like James says). Australia doesn't get a mention in this interview and yet has some of the best run companies and highest quality deposits in the world. 5.) What are the basics of understanding a mining company? Resource and Reserves statements, Production Profile, All In Sustaining Costs, Gold hedging, mine cashflow, mine life, CAPEX plans, debt/equity. 6.) What should an investor look for in a good gold mining company? 7.) What are the variables that effect valuation? Small changes to FX and Gold price forecasts have non linear outputs. How do analysts value gold miners (Mix of NAV and Cashflow based models)? 7.) For larger companies what are their commitments to returning capital to shareholders through dividends? 8.) And of course how is investing in the commodity different to investing in a mining company - leverage to the gold price. Picking a miner is about getting the best quality leverage to the gold price possible on a risk adjusted basis. These are just some of the questions that should have been asked and to be honest James should have offered to share some of his knowledge since Raoul is not a mining analyst.
    • ab
      alfred b.
      20 August 2020 @ 19:13
      In a nutshell: PM Mining is leverage to Metals and future looks bright. James likes to buy good companies for nothing. (I dont like this as a mantra). Hard to find companies who want to let James make all the money... shame... Being an activist investor can assist to leverage good resources, replace poor management and refund for big returns. PM sector ideal for this. Invest in my fund, which is going to buy a company for 1x earnings. I wont tell you the name. Invest in Jaguar although I have already sucked out all the juice... I won't give you any tips. Smart lad... but its all for me and my fund.
  • TO
    Truls O.
    19 August 2020 @ 21:03
    did he ever mention the name of the canadian comapny, where the chinese er involved?
    • MA
      Muhammad A.
      19 August 2020 @ 21:09
      TMAC was the one he mentioned as strategically important to Canada and the Chinese are involved.
    • JR
      James R. | Contributor
      19 August 2020 @ 23:52
      We are NOT recommending an investment in TMR . Just note the great nature of the asset and strategic importance.
    • ab
      alfred b.
      20 August 2020 @ 18:50
      delisting talk
  • IO
    Igor O.
    20 August 2020 @ 07:28
    Peak gold? I like it!
    • JB
      James B.
      20 August 2020 @ 17:13
      I guess James didn't hear the Winklevoss twins describe how Elon Musk is going to drastically expand the supply of gold by mining on asteroids. I also saw someone on Twitter (so you know it's true) say basically the same thing about mining gold on the ocean floor. I asked him at what gold price is this profitable. Still waiting for a response.
    • TM
      The-First-James M.
      20 August 2020 @ 18:48
      Yeah, as if Gold is going to be mined from asteroids within the next decade. LOL :) Also, that Ocean floor Gold mining story gets rolled out whenever Gold goes on a roll. Who knows; maybe it would be viable at prices of $10,000+...
  • KS
    Ken S.
    20 August 2020 @ 05:05
    There is a very interesting mismatch between the captioning and what James says around the 36 minutes remaining mark: James: "super profitable and cashflow generative, super undervalued on an NPV or DCF basis, 'and so' " Captioning: "super profitable and cashflow generative, super undervalued on an NPV or DCF basis, 'and super badly managed' " He never said "and super badly managed" though one can probably surmise that it's not often wrong. A bit of accidental editorializing by the captioning staff, possibly? Great conversation. I'd love to know the company James is picking up for 1x cashflow mentioned around the 3 minutes remaining mark. I think he didn't mention the name. Did I miss it?
    • SD
      Steve D.
      20 August 2020 @ 13:39
      Pretty sure he was still referring to Jaguar (JAGGF) and he was referencing what he paid for it, not where it is currently priced.
    • ab
      alfred b.
      20 August 2020 @ 18:46
      Jaguar overpriced already. Nice buy on a 25% pullback... He was teasing with a new deal... wasnt Jaguar at 1x..
  • DP
    Daniel P.
    20 August 2020 @ 08:41
    What is James' advice for someone without the time or expertise to do their own research? Not invest in gold mining companies? Invest in an ETF? Invest in large-caps? Invest in his fund?! This is selfishly the main thing I'm looking for from interviews like this.
    • ab
      alfred b.
      20 August 2020 @ 18:43
      GDX, GDXJ
  • MF
    Michael F.
    20 August 2020 @ 13:15
    As an investor in the area this was a great interview. Any guess who the last miner he talked about was? It may have been T M A C Resources (TMMFF) but not sure.
    • JM
      Justin M.
      20 August 2020 @ 17:05
      The two closest to what he described that I know of (single asset miners with high FCF/mkcap in the Americas) are Torex and Serabi. I would throw in Americas Gold and Silver into this basket as well since they are opening a new mine in Nevada.
    • ab
      alfred b.
      20 August 2020 @ 18:42
      TMAC yes. Still listed, bought by Shandong. I hold some. Talk of a delisting...
  • YD
    Yusuf D.
    20 August 2020 @ 16:09
    Hi James. Would like to bring your attention to a company called orion minerals. They not a gold mine but a copper miner. They are based in South Africa and I think is deeply undervalued.
  • JF
    Jess F.
    19 August 2020 @ 08:32
    I would love for you to follow up with an interview with Eric Sprott.
    • gr
      graham r.
      19 August 2020 @ 09:25
      Yes, or any of the Sprott analysts.
    • tc
      thomas c.
      20 August 2020 @ 15:26
      Add Marin Katusa to the list. I have done really well with recommendations he gives out on interviews, like 50% in 2 months and 70% this yr.
  • RH
    Rob H.
    20 August 2020 @ 01:11
    Glad I started to read the comments first before I wasted an hour of my time. Scanned through it, all a bunch of vague talk. " Gold is usually mined in resource-rich countries." Oh, you Think!!!!!
    • KC
      Kainoa C.
      20 August 2020 @ 08:40
      Agreed. I watched 30 minutes and it was a waste. Feels like an introduction and resume reading moreso than anything else.
    • SD
      Steve D.
      20 August 2020 @ 13:49
      On the other hand, when Raoul Pal begins the interview by stating that the guest is "one of the most connected people that I have ever met" the guy might actually be someone you should pay attention to and do so with a great degree of detail. Otherwise, why would you ever listen to anyone on this platform?
  • JE
    Jonathan E.
    20 August 2020 @ 13:13
    It was great to hear his views on the mining sector irrespective of the macro picture. There's surely got to be loads of highly undervalued companies out there.
  • BB
    Ben B.
    20 August 2020 @ 01:08
    You might have dodged a bullet there with Red Lake James, getting pretty deep there, seismically active. If a mine is using the Avoca method and its tight fill blasting they have some serious ground stability issues. Once production issues start playing a part the unit costs go up dramatically. Evolution picked it up and they have a good track record of turning mines offloaded by majors into very profitable operations, I wish them well, but this one could really test them. Overall I enjoyed the interview, don't agree on peak gold though, peak gold with current mining methods and fundamentals yes, time will tell.
    • JR
      James R. | Contributor
      20 August 2020 @ 03:25
      Thank you Ben - certainly the recent fires have not been a help to the acquiror. I agree that evolution in mining technology and global warming may lead to more gold discoveries - but for the foreseeable future the lots seem to be cast (esp as new mines take sometimes decades to navigate their way to production). Are there any specific game changing techs you see out there?
    • BB
      Ben B.
      20 August 2020 @ 12:24
      I know of at least one.
  • JF
    Jess F.
    19 August 2020 @ 08:49
    Hat Tip to James for helping Kirkland Lake get the steal of the decade when they acquired Detour. Peak Gold? maybe not, I can think of several exploration companies that are currently finding gold, top of the list would be Wallbridge.
    • JB
      Jonathan B.
      20 August 2020 @ 00:00
      Uncle Eric owns a huge amount of that one too. I always assumed he will try to get them acquired by KL, especially after the Balmoral deal. Regardless, am long WM for the exploration upside.
    • JR
      James R. | Contributor
      20 August 2020 @ 03:37
      Mr. Sprott is yet to send us a bottle of wine... The problem with Detour was the chairman - and it was clearly a take out candidate. With a proper management team and board, we would have been a lot more patient with them.
    • IO
      Igor O.
      20 August 2020 @ 07:22
      Peak gold? The better. Explorers who actually find gold will cost a fortune.
  • MF
    Michael F.
    20 August 2020 @ 04:36
    As an investor in the area this was a great interview. Any guess who the last miner he talked about was? It may have been T M A C Resources (TMMFF) but not sure.
  • sc
    sung c.
    19 August 2020 @ 18:07
    Raoul's quote of the day, " Don't be a dick for a tick.". Love it.
    • B
      Bob .
      20 August 2020 @ 04:26
      Cute quote AND there are millions of $$$$ of meaningful wisdom in those words. We all need to be reminded of this from time to time.
  • PB
    Pieter B.
    19 August 2020 @ 08:59
    This was a great conversation! Thanks a lot James & Raoul!
    • JR
      James R. | Contributor
      20 August 2020 @ 03:36
      Thank you!
  • Dv
    Daniel v.
    19 August 2020 @ 14:14
    Was looking forward to this interview but James talks a lot but says nothing.
    • DL
      Dan L.
      19 August 2020 @ 17:35
      One useful nugget: There is no juice left in exploration. I guess that means the JPL/NASA mission to Psyche is a non-starter?
    • PF
      Patrick F.
      19 August 2020 @ 18:02
      Exactly. Raoul was very gracious but this guy is questionable.
    • JR
      James R. | Contributor
      20 August 2020 @ 03:31
      Patrick: entirely agree re Raoul being gracious.
  • GT
    Gene T.
    19 August 2020 @ 16:33
    I really liked this discussion. It's understandable that James believes ETFs are the wrong way to invest in the space, but the rest of us don't have the time or resources (or advisory boards) to find the diamonds in the rough. As for GDX vs. GDXJ allocation decisions, I liked Rick Rule's shared nugget that the big miners always move first, and the juniors later play catchup.
    • JR
      James R. | Contributor
      20 August 2020 @ 03:30
      hi Gene - super glad you didnt find it terrible - and entirely agree with Rick's rule as well.
  • mf
    massimo f.
    19 August 2020 @ 18:07
    How do you find them? Google, they often refer to other juniors in their investor presentations. As well, there are many interviewers like crux investor that focus on nothing but mining juniors. Right now however, they focus mainly on PM miners, developers, and explorers. But, like he said you’ve got to look at a lot of companies. I currently monitor 200+ companies which is a fraction of all the ones I’ve seen and even then a lot of them are duds. Good management, good projects. Take mai for instance, up 700% in the past year and still has potential for another 5x. Staying in mid tiers is not terrible in terms of risk reward, but you can reduce the risk greatly by doing research which exposes you to massive upside. Pm juniors are hands down more interesting than bitcoin.
    • mf
      massimo f.
      19 August 2020 @ 18:40
      I also think the idea that exploration is dead is objectively wrong, the main reason for the average grade dropping is giant mines taking advantage of economies of scale. Gold production has gone up almost 6x since 1900. Peak gold is equivalent to peak oil.
    • JB
      Jonathan B.
      20 August 2020 @ 00:05
      Fairly new to MAI. it has done well in the few months I've owned it. Managed to catch Wesdome in beginning in mid March 2019. I know it is about AISC, but I am a junkie for grade. Pure Gold is interesting too. Guatemala discount, but have also been scaling into Bluestone. Hopefully the Lundin's will make it work as they have many times before.
    • JR
      James R. | Contributor
      20 August 2020 @ 03:28
      Hi Massimo - for what its worth I think there are a number of really great exploration projects, but usually in areas where gold has already been found and nearby veins and assets suggest important potential that further exploration + drilling can corroborate. We like buying these things when they are priced like free options.
  • mw
    michael w.
    20 August 2020 @ 02:58
    Wonderful talk and video production.
  • FR
    F R.
    19 August 2020 @ 18:48
    Studpid question for anyone who can help: What's the difference between gold ETF and gold trust? Can I assume that gold ETFs track miners shares, and gold trusts track underlying real gold?
    • gh
      graham h.
      19 August 2020 @ 20:11
      There are ETFs for gold itself (eg GLD) and the price moves mimic closely the changes in the price of gold, and there are ETFs for gold miners. With a gold ETF (eg GLD) you can not convert your ETF units to actual gold. A trust (eg PHYS) allows you to convert your shares/units into physical gold.
    • FR
      F R.
      19 August 2020 @ 21:38
      Thank you! @graham h.
    • KB
      Kenneth B.
      20 August 2020 @ 00:04
      I personally recommend $PHYS from Sprott over $GLD which may or may not have full allocation of it's gold 'assets'.
  • HK
    H K.
    19 August 2020 @ 20:19
    Couldn't get myself to complete this. Just something missing
    • JS
      Jon S.
      19 August 2020 @ 21:36
      The Interviewee style of narrative is pretty boring- but The content is very nice. Try to read the script
    • KB
      Kenneth B.
      20 August 2020 @ 00:03
      REALLY? This was one of the best speakers in a long time. To each his own I guess.
  • DN
    D N.
    19 August 2020 @ 12:42
    Interesting comments on jurisdiction risk - how many people here think about this ? Not just for gold miners, but all your wealth and property rights...
    • Dv
      Daniel v.
      19 August 2020 @ 14:27
      There was an interesting part on this with Kaplan on RV when he discusses the Novagold mines in Alaska.
    • TM
      The-First-James M.
      19 August 2020 @ 22:12
      That was an interesting interview woth Thoman Kaplan. Regarding Novagold and the Donlin deposit, yes the jurisdiction is safe. However what that interview failed to articulate IMO is that Donlin is going to require a Gold price at close to $3000 per troy ounce to be viable as a mine. The following piece is dated, but I'm of the opinion it still very much applies today: https://incakolanews.blogspot.com/2010/03/novagold-ng-call-option-for-megarich.html?m=1
    • TM
      The-First-James M.
      19 August 2020 @ 22:13
      Once again, I wish it were possible to edit comments in the immediate aftermath of posting, in order to fix typos...
  • SS
    Simeon S.
    19 August 2020 @ 20:58
    Was this filmed in the 90s ;)? When such opportunities existed... just kidding, nice interview!
  • IF
    Ian F.
    19 August 2020 @ 19:16
    If inflation, then why would I want to be long gold stocks over the homebuilders? Real assets will prevail. Value play as well.
  • PJ
    Peter J.
    19 August 2020 @ 08:36
    Got very little new insight from this. If you have an interest in gold miners I strongly suggest viewing the Ross Beaty and Rick Rule interviews.
    • DR
      David R.
      19 August 2020 @ 10:33
      I personally did as it confirmed that this space has deep value from a guy that has a diverse successful investment background. I agree Ross Beaty and Rick Rule interviews are great , yet as always Real Vision delivers different dimensions to a sector. Well played James !
    • cz
      chris z.
      19 August 2020 @ 16:24
      On RV? If not can you provide a link?
    • PJ
      Peter J.
      19 August 2020 @ 18:48
      Ross Beaty interview with Grant on RV in September 2018 is one of my favourites here, period. Rick Rule has been on a few times most recently October 2019. Both interviews still well worth listening to IMO. Rick is interviewed frequently in the media if you search via browser, one of the best informed analysts and thinkers in the commodities space IMO.
  • AA
    Aymman A.
    19 August 2020 @ 15:24
    What is his website address and what will be the name of the mining fund he is launching?
    • RS
      Roger S.
      19 August 2020 @ 16:51
      https://www.coastcapitalllc.com/
  • RA
    Ross A.
    19 August 2020 @ 07:07
    Hi, I look forward to hearing about the fund. I dont have the resources to do the research that is required to pick the winners in the Americas' market so i have taken the view that buying the basket(s) (GDX, GDXJ, SIL & SILJ) is better than buying some duds. I'm an Aussie investor and it is interesting to note that there isn't an Aussie Gold Miners' ETF despite the size of our industry down here, so i am forced to do the research here, although i would rather not!
    • BG
      Bart G.
      19 August 2020 @ 08:31
      Hi Ross, if you don't mind sharing - what miners are you looking at on ASX? Cheers,
    • RC
      Robert C.
      19 August 2020 @ 10:24
      You'll find that a few of the large Aussie miners are in GDX and GDXJ. Evolution, Silverlake to name a couple that have been added in the most recent reweightings. I find these interesting since they represent only a small portion of the ETF so there is a price floor from the passive funds, but they have pretty good upside in that only those of us in Oceania would really be aware of them on the ASX.
    • RA
      Ross A.
      19 August 2020 @ 11:02
      Some "boring" ones... EVN, NST, PRU, RRL, SAR, SLR, And some speccy ARV, DEG, SVL. In US 100% Silver at moment via SILJ I would put cash in to a fund like is mentioned in the video, as i am a gold bull and i think a good researcher would be able to id better opportunities than i can. Having said that, as i am a gold bull it is really the higher cost of production miners that will do the best from a rally in gold but i find them harder to find as they may be dormant at the moment and flying under the radar. SVL probably falls in to this category.
    • AR
      Alexander R.
      19 August 2020 @ 14:57
      It is probably easy to buy a basket of Gold, NEM, KL, AEM, FNV, WPM instead of GDX With juniors it is very volatile sector, so maybe you will not get the most, but you will also not gonna lose all your money So stick with gdxj, even if gold have half of the predicted move upside Gdxj will fly to the sky
  • CB
    Clifford B.
    19 August 2020 @ 14:33
    Buy companies below their intrinsic value. where have I heard this before. Ah yes Buffet. Sector is Gold this time but principle is the same.
  • AM
    Alonso M.
    19 August 2020 @ 14:14
    Some valuable nuggets of information in here. Food for thought on the relevance of mine location: if a company owns and operates a mine in a country where the currency gets pummeled from time to time (Brazil?), the labour component of the miner's cost is likely to provide a tailwind for operating cash flow. This is a natural offset to the perceived political risk of owning such a name. Another thought: to the extent that a precious metals producer carries any debt, that debt is typically denominated in USD which is helpful in that there isn't a currency mismatch between the company's revenue and its interest payments/debt repayments.
  • NT
    Nicholas T.
    19 August 2020 @ 12:12
    Fantastic interview. I love the Tesla fun moment. It takes less research to find a money-making gold miner, in a safe jurisdiction like Canada, with good management, than it would be to try and understand the worldwide EV market and its potential impacts over the short and medium term on Tesla stock. The gold mining industry got shaken out over the last decade with low gold prices. The ones still standing are built to make money at last year's gold prices and oil much higher. And now all of sudden we have POG increasing and AISC decreasing with the cost of oil, and the Mr. Buffet gets the whole world into FOMO last week.
  • BL
    Bart L.
    19 August 2020 @ 09:51
    Great interview, I believe Evolution Mining In Australia bought the Red Lake mine
    • BL
      Bart L.
      19 August 2020 @ 09:54
      Evolution announced an 11 million ounce resource this week as well
  • MZ
    Mark Z.
    19 August 2020 @ 07:34
    Overspending allows ceos of juniors to funnel money back to the companies they own: exploration management for contract workers, equipment rentals. And then they tip each other off before press releases.... Dont be their liqudity to sell onto the strength.
  • RK
    Rusev K.
    19 August 2020 @ 05:26
    First!