He's owned this forever. They're a prospect generator model.They now have a project to explore but it's in Argentina which attracts negative sentiment. He himself is positive Argentina. He sees little financing risk and should deliver. To lessen negative sentiment, MRZ has diversified into Chile where he expects good results.
Gold has long been range-bound. To change this, there needs to be a systemic risk that hits the general market to force investors to flock to gold, where greed overtakes fear. It's usually trade events that trigger a move out of equities and into gold. Conversely in past years, the rise of equities has made gold a dead trade. Now, we could see a bounce in gold to $1,350. Junior mining is risky, but more retail investors have been moving into this space. The industry is concerned that there isn't enough supply in minerals like gold and lithium. His end game is to find a junior miner that gets taken out by a producer. For the past 5-7 years, gold has been undercapitalized with not enough exploration. But he's really concerned how grassroots exploration has fallen since 2002.
Last November he did a site visit in Argentina and it was the biggest site visit he ever saw. The lithium sector was hot, but now there's a fear that it might be well-supplied because SQM in Chile is now allowed to produce at a much higher volume than before. The Chinese are now partnering in lithium.
Active vs. Passive funds in mining Mining ETFs have taken out active funds which are seeing redemptions now. There are 18 actively managed mining funds in the U.S. and they dropped $1-billion in AUM and now sit at $8.5 billion. On the other end the 10 passive mining funds increased to $7.2 billion to $14-billion AUM. This is a turnaround, and it's playing out across the spectrum, not just mining. Investors wants the liquidity and anonymity of ETFs.
(Past top pick March 6, 2018, Down 57%) When he bought it, he was interested in their copper play in Mexico. Since then, they had a big investment from Newcrest Mining. AMX has split into two companies, including Azucar. AMX is now the prospect generator. He owns them both. That transaction took a long time to close. Drillings have finally resumed.
Highly liquid at $1-billion market cap. Generating free cash flow and one of the only royalty plays where streamers show growth, driven by a gold asset in Turkey that should come in in 2022-3. This should generate a lot of free cash flow. (no dividend, Analysts' price target: $8.02)