TRUMP SAYS: HUNTER MAKES FORTUNE FROM SHADY DEALS!
BIDEN FAMILY STINKS TO HIGH HEAVENS OF CORRUPTION!
DON’T GET LEFT OUT: HUNTER MUST BE STOPPED!
I’ve got big news for you. Greg Jensen, who many consider to be Ray Dalio’s deputy, just went on record that gold has a viable 30% upside potential, which would take it to NEW all-time highs.
Jesnen’s life changed when he was introduced to Ray Dalio.
In business, you grind and you toil, until a special moment occurs. Then, the doors of abundance open to you and you walk in, as if it was always there for the taking. Some encounters, some nuggets of information, one moment of inspiration or just a single idea, could be like switching a light on where darkness used to rule supreme.
In 1951, a 20-year-old student learned that his professor was a board member in an insurance company. It was a Saturday morning; nevertheless, he took a train to the company’s headquarters, since he knew his professor was a brilliant investor. The doors were closed. ANYONE ELSE would have gone home, but he pounded on it until a janitor, of all people, opened them and pointed the student towards the office of the only employee who worked that morning.
The young student was Warren Buffett and the employee that was there that fateful day would later become CEO of that insurance company, GEICO. After Buffett told Lorimer Davidson, the employee in front of him that Benjamin Graham, then a board member in GEICO, was his professor at the university, Lorimer spent the next five hours explaining insurance to Warren.
Buffett became a shareholder, consequently, and twenty years later, he bought a controlling stake. Berkshire Hathaway owns GEICO today and Buffett often calls it his crown jewel and biggest money-maker. He believes it is the best business to ever exist.
In the early 2000s, a young mining entrepreneur noticed that Ross Beaty, a living legend in the industry, had perfected a new business model that created enormous wealth.
He decided, as Buffett did, back in the day, to NEVER let this kind of opportunity escape him and he launched a refined version of that business in 2011. Nine years later, it is one of the most unique companies in the gold sector.
In the early months of rally in 2016, its price soared from merely CAD$0.37 to a high of CAD$3.14. It has nearly doubled in price in the 2nd half of 2019 as well.
Not Warren Buffett, nor Bill Gates or even Jeff Bezos – no one alive can REPLICATE such a company, given the same amount of capital that has been invested in it. It is simply IMPOSSIBLE.
The reason is that it SCOOPED UP gold assets in the DEEPEST of the bear years (2013-2016) and it did so for pennies on the dollar, relative to historical exploration and acquisition costs.
In 2016, it reached a high of CAD$3.14/share, but even after DOUBLING in 2019, it trades for CAD$1.37 today. There are very reputable investors with a lot more riding on it.
Among its shareholders, this company includes Sprott Global, the largest resource investment firm on the planet, is a shareholder. Marin Katusa, a self-made multimillionaire, who was a mathematics teacher that mortgaged his house on a resource investment, owns millions of shares of this company. The founder of the company is the single LARGEST individual shareholder. IAMGOLD Corp., a NYSE-listed gold producer, worth $1.5B, is a shareholder. BRASILINVEST, the largest investment bank in Brazil, is a major backer as well.
A TRUMP Victory Will Send These Names Soaring… A Biden Win Means You'll Need to Protect Yourself with These Rarities!
Here are the main reasons I view this opportunity as a VIABLE way to repeat our success in 2019:
Amir Adnani: The founder of this company and two uranium companies, one of which is an NYSE-listed company and one of only a few that achieved production over the last decade, is considered by many to be the next big thing in the gold industry. That’s not my own words, but those of some of the most experienced analysts and street savvy magnates in the business.
Direct Leverage To Rising Gold Prices: In 2016, gold traded for $1,380 at its HEIGHT, a 30% rally in the January to August period. Respectively, GoldMining Inc. (TSX: GOLD & US: GLDLF) went from CAD$0.37 to CAD$3.14, A 665% BLOWOUT.
Resource stocks are HIGHLY CYCLICAL. The entire profession of smart speculation on mining companies centers on three basic PREMISES:
Once you’ve (A) identified a serially successful entrepreneur, (B) analyzed his portfolio of world-class projects in safe jurisdictions, (C) researched his balance sheet and found it to be clean, (D) noticed the strong insider ownership in the public stock, (E) and seen that management is actively advancing the pipeline of projects, you MUST be prudent and triple-check that this particular company is undervalued, offers ULTIMATE positive leverage and that the timing is ideal. This isn’t an easy task whatsoever.
After the best year for gold since 2010 and with the possibility that the dollar has PEAKED for this cycle, gold’s latest correction from $1,611/ounce on WW3 rumors, down to the mid-$1,500s today, is an IDEAL entry point for new positions, as we see it.
GoldMining Inc.’s current market is CAD$185M, even though (1) OVER CAD$280M has been spent on the company’s wholly-owned assets ALREADY by past owners, and (2) at their historical highs, the company’s current assets, when held by their previous owners, were collectively valued for CAD$822M, which is over CAD$600M more than the market cap of the company today.
This is a rare opportunity to own what we see as an IDEAL stock, entering 2020 with momentum after a strong 2019. The company has NO DEBT, nearly CAD$9M in cash (so no need to dilute), with gold ready to have another SOLID year.
Since 2011, the major mining companies have been deleveraging, spending less and less on (A) exploration, (B) mergers & acquisitions and (C) on building their portfolios, in general. Consequently, the slump in production, the delays in permitting new mines and putting them into production and the lack of new discoveries, have all played right into OUR HANDS.
Since 2011, GoldMining Inc. (TSX: GOLD & US: GLDLF) has focused on one thing: PURCHASING projects with documented resources, not speculative exploration projects, not dirt that may or may not hold minerals. In other words, no “hail maries,” but instead resources in the Measured & Indicated category and the Inferred category.
When I sat down and compared its properties with other companies in its size, GoldMining (US: GLDLF) controls one of the LARGEST gold resource portfolios across all juniors in the Americas. To put this into context, there is NO OTHER executive on the planet, which in the past decade has been able to purchase on behalf of his shareholders a group of projects with more resources at a lower cost, than Amir Adnani, as far as we can tell. That requires a keen sense of timing on his part, an ability to raise funds in tough times, and the discipline of PATIENTLY WAITING when prices are too high.
The result is this expansive portfolio:
In total, about $80M in cash and shares has been spent to acquire these properties, which, as you can see, hold a collective 10.5 Moz M&I RESOURCE and 12.4 Moz INFERRED RESOURCE.
One asset alone, the Titiribi project in Colombia, had a market capitalization of $334M at the turn of the previous decade; that’s nearly DOUBLE the company’s entire market cap today.
The point is that the HEAVY LIFTING has been done. Amir has assembled an expansive portfolio of gold projects, which we think is IMPOSSIBLE to mimic right now that gold prices have increased.
The efficiencies, created by consolidating this array of assets, which were once scattered among seven companies (all issuing salaries and paying regulatory fees) under one roof, with a coherent strategy, is an effective SYNERGY.
Leverage is what GoldMining Inc. (TSX: GOLD & US: GLDLF) offers most clearly, as we view the situation. As the price of gold goes up, its portfolio value should also logically increase.
I own plenty of physical coins. With this investment, though, I’m setting myself up for the rewards that come with LEVERAGE!
The best example of this paradigm shift is with the Optionality Plays. This is the reason I’m personally LONG on GoldMining Inc. (TSX: GOLD & US: GLDLF) right now.
As you can see, out of all the gold explorers and developers in the Americas, GoldMining Inc. (US: GLDLF) has one of the LARGEST portfolios of total Measured & Indicated and Inferred oz. across all projects.
In other words, if miners’ gold resources begin to get priced at more bullish valuations, then GoldMining Inc. (US: GLDLF) has special potential.
In 2016, the company’s assets were valued at a multiple of four, compared with today’s price. Said differently, in the eight-month rally of 2016, which saw gold peak around $1,380/ounce, this stock was 400% more expensive than today – that’s the potential upside, when things heat-up.
The thing is that even that would leave room for more upside, since, as you can see below, compared with the Haywood Jr. Developers, the stock is 84% undervalued, given that the multiples of peer companies are 43, whereas GoldMining Inc.’s is only 7.
Take a look below:
This is the reason I am personally LONG.
In our view, the company is one of the best-run in the business with Amir Adnani at the helm.
A TRUMP Victory Will Send These Names Soaring… A Biden Win Means You'll Need to Protect Yourself with These Rarities!
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