Meet The Warren Buffett of Mining Properties

0
2632

THE WARREN BUFFETT OF MINING PROPERTIES

 
I want to introduce you to the Warren Buffett of  mining & exploration properties.

Like Buffet trades stocks, this man trades  gold and copper  properties.

His best deal (so far) went like this:

A junior gold company switched management teams, and the new team was wanting to divest a Nevada asset to focus on Saskatchewan (a little out-of-the-box, but whatever…).  As soon as The-Warren-Buffett-of-Gold-Properties found out this asset was available, he didn’t just rush out and buy the asset—for $250,000.

He ALSO found a buyer for it—a subsidiary of one of the world’s largest mining companies, who was willing to lay out US$22.5 million in cash and drilling commitments to earn-in to just a 75% interest.

For those of you without a handy calculator, that’s a 90x return.  Not 90%–90x, or 9000%.

That didn’t happen over years, or months, or weeks…this man had the property sold to a major before the buying had actually been completed.

This global mining giant is set to drill this copper gold property—in the next three months. 

If this major finds an economic porphyry deposit (which by definition would have to be quite large), the value of that remaining 25% would be in the tens of millions of dollars. 

In another deal, this CEO bought a Quebec asset in 2018 for just under $1 million.  A year later, he flipped it to another junior for cash and 3.75 million shares of their stock—which has now more than doubled to $1.25 per share.

Normally these mining entrepreneurs do these amazing transactions inside their own consulting firm, and reap huge amounts of stock and cash for their own portfolio.

But not this man. He puts all these deals inside a public company—where shareholders get the benefit of the incredible inflow of his non-dilutive capital.

Tomorrow, I’m giving you his name, and the name & ticker symbol of his company. Not only was he able to survive the low times in gold a few years ago, he exploited the commodity cycle like few others, buying up high quality assets and now he is selling them—for up to 90x returns for his shareholders.

Not only has he been able to bring in millions of dollars of non-dilutive capital, he has been able to find The One Property that he wants to drill himself. 

It’s in Nevada, already has several hundred thousand ounces of gold and he thinks it has potential to be a million ounce deposit.

Between his own company and joint venture partners, three high priority properties—all in Nevada or Quebec—are getting drilled in the next three months. Success on any one of them makes this 15 cent stock a big winner.
 

STRATEGIC M&A BRINGS IN WINNING DEALS


In 2017/2018—when this Buffett-style-CEO was buying—junior mining companies were in the darkest times this sector has been through. 

You can see what the capital rushing out of the sector did to share prices of junior gold miners in the chart of the VanEck Junior Gold Miner ETF below.  The sector dropped 80% from 2010 despite the price of gold remaining flat.

 



And remember, that chart represents the public market for gold stocks.  Sources of private capital for junior gold miners and their assets was even more scarce…which is where our Buffett-style-CEO was a rare buyer.

Now, in 2020, the gold price has touched $2,000, and many of the companies in which he received stock as part of the deal—have gone up as well.

So, for very few dollars, he has now positioned his company for huge potential success—with THREE properties getting drilled in the coming quarter.

I’ve brought you a lot of winners in the junior mining sector this year, and it may make this business look easy.  It’s not.  Finding an economic deposit is hard, so there is risk here. 

But you’re reading my stories because you want to own a penny stock with multi-dollar potential.  These are all high-risk stocks, but my job is to use my connections and experience to find ones with the best shot with the lowest risk.

Using other people’s money to drill, and using a lot of non-dilutive capital to drill yourself—is a very good way to do this business!

So, yes, I hope this company does as well as Vizsla Resources, Kodiak Copper and Fosterville South—three huge winners I brought to you early—but the drill has to find an economic deposit.

There are two things I would tell you about this man:
  1. He is very humble (much like Mr. Buffett).  When he walks into a deal, people like him and want to do business with him.
The flip side of this is…he never tells shareholders how good he is at his job.  So, his stock sits in obscurity until someone like me comes along and realizes the potential and says…WOW!!!.

And now is the time—after a lot of horse-trading properties for years, he has found The One he wants to drill himself!
  1. He has a very specific strategy with his property acquisitions.  First, he focuses on only Quebec and Nevada.  There are ALWAYS buyers for assets in these top two places.  They both produce a HUGE amount of gold and have very pro-mining governments.
 
Because of that, the value of gold assets in these two places is the highest—so he gets maximum leverage for his shareholders.
 
Second, he focuses on buying or staking land around existing mines and new greenfield discoveries.When this is all you do, you get pretty good at it!There are often properties that are deemed too small or too far away—at first, when something is discovered.This CEO is often in there buying.
 
He also keeps a long and meticulous list of private owners who have mineral interests in these areas (in Nevada there must be thousands!).If there is ever a hint of one of these people needing money or an exit, this CEO is one of the first there.
 

DO NOT MISS MY E-MAIL TOMORROW MORNING!!!



Tomorrow I’m going to introduce this man and his public company to you—and tell you everything that you need to know.

Here is what you will be learning:
  • Specific details on the company’s 90x score—the name of the property, and the major about to drill it
  • The Nevada oxide asset they intend to drill themselves
  • A peek at other properties and the mines they’re near
  • A look at the catalysts that are coming
  • And, of course, the name and ticker of this stock
Like Warren Buffet did in 2008, this CEO swept in during the darkest days of the junior gold market and began buying an incredible suite of assets—dirt cheap during the biggest capital crunch that the junior gold mining sector has ever experienced.

Now those same assets are being monetized into a roaring bull gold market with gold prices up 70% from when these assets were purchased…and you know that junior gold assets have exponential leverage to the rise in gold.

His disciplined strategy has now positioned his shareholders to benefit from any of one THREE near term drill programs—all in the best mining jurisdictions in the world—at almost no cost.
Previous articleSummer COVID Stocks are Fall-ing… What’s Next?
Next articleDAVE WATKINSON at EMGOLD MINING (EMR-TSXV) is The Warren Buffett of Mineral Properties