At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The reason the purchase price was so low is that Aranzazu has a short mine life. The company made one other notable royalty purchase over the past year - a 0.135% NSR on the Copper World Complex project in Arizona which is being developed by Hudbay Minerals (HBM).

Emerita Resources reported it received approval for Infanta Deposit drilling from the Huelva Mining Department for its West Iberian Belt Cu-Pb-Zn-Ag project in Spain. Newmont Corporation (NYSE: NEM), the largest gold mining firm in the world, has also benefited from the copper business over the past few months.

Turquoise Hill Resources Ltd. (NYSE: TRQ) is a mineral exploration and development company.

That's not the case with lithium.

In the first quarter of 2021, a surge in prices helped the firm with a 31% quarter-to-quarter increase in revenue from copper mines in Chile, Saudi Arabia and Zambia. If nickel and copper prices increase significantly in coming years, as I think they will, Nova Royalty's long-lived assets could become considerably more valuable. We started Nova Royalty two years ago to create a royalty company focused on the most critical, supply-constrained portions of the electrification supply chain.

It's 100%-owned by major private equity fund Waterton Global Resource Management, which recently bought the remaining 28% of Dumont, giving it 79% ownership. [ER] has never been, and is not currently, a registered or licensed financial advisor or broker/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and does not perform market making activities. Streetwise Reports Disclosure: Our current portfolio contains 14 royalties, 13 in Canada, one in Chile, and we just announced an acquisition of a world-class asset in Argentina last week. For a variety of reasons, some of these metals are not amenable to royalty and streaming activities. It is placed sixth on our list of 10 best copper stocks to buy now. A place to find gems and meet new friends.

What is left is harder to find and more expensive to extract According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally.

Perform your own due diligence and consult a financial professional before trading. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. 2) ERO COPPER (TSX: ERO)Ero Copper operates theMCSA Mining Complex located in northeastern Bahia State, Brazil. The company is now about net-debt free. Precious Metals Company Kicks Off Winter Exploration at Ontario Project Source: Streetwise Reports (02/09/2021). The Importance of Stealth Investing, and How Not to Trade Silver Source: Michael Ballanger for Streetwise Reports (02/08/2021). Today, the picture looks much different as the company's portfolio includes royalties on 1 producing copper mine and 8 development stage projects. Last year, the firm produced almost 360,000 metric tons of copper. It's very hard to see a future copper industry at today's $3/lb. We have yet to see cobalt, graphite, manganese and vanadium achieve anything close to mass penetration, which is why we stay away from those commodities.

In this article, we discuss the 10 best copper stocks to buy now. We found copper and nickel mines to be the best places to focus on, and have completed three major acquisitions. /p> I wrote this article myself, and it expresses my own opinions. It takes decades to advance a major project from exploration to production, and operational challenges are not getting any easier. Explorer Finding Success Through the Drill Bit at Colombia Project Source: Streetwise Reports (02/09/2021). Streetwise Reports is registered with the U.S. Patent and Trademark Office. However, nickel and copper are thought to be well placed in this regard. In April, the firm was named among the highest convictions picks for the second quarter by Bank of America. Nova Royalty has added a cash-flowing royalty to its portfolio and increased its exposure to development stage projects. 2) The following companies mentioned in the article are billboard sponsors of Streetwise Reports: None. At the end of the first quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Barrick Gold Corporation (NYSE: GOLD), down from 53 the preceding quarter worth $1.7 billion. In its Q4 2020 investor letter, GoodHaven Capital Management, an asset management firm, highlighted a few stocks and Barrick Gold Corporation (NYSE: GOLD) was one of them. We're seeing a generational shift in how we live, and the massive energy transition is at the tip of the spear of that change. On the other hand, Insider Monkeys research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017.

Disclosures/disclaimers: Calibre Mining Provides Multi-Year Grade Driven Increasing Production Outlook, 2023 Increasing to 250 275 Koz & 2024 Increasing to 275 300 Koz, Prospector Metals Reports High Grade Gold Along Newly Identified Wiggle Deformation Zone, Savant Project, Ontario: Bedrock Grab Samples Yield Values up to 68.6 g/t Au, Kenorland Minerals Intersects 19.50 g/t Au over 6.65m on R6 Vein Discovery at the Frotet Project, Quebec, Arizona Metals Announces Receipt of Permit for Additional Drill Pads 500 metres West of Kay Deposit to Test Central Target, Kenorland Minerals Options the Tanacross Project to Antofagasta, Blackrock Silver Steps Out 1 Kilometre at Tonopah West; Drills 702 g/t AgEq over 0.7m Within 4.6m Grading 211 g/t AgEq, Azincourt Energy Identifies Uranium Enrichment at the East Preston Project, Nickel Creek Platinum Announces 2022 Field Program at Nickel Shw, Calibre Mining intersects Bonanza-Grade Gold at The Limon Complex; Reinforcing the Strong Potential to Add Resources and Expand the Panteon Mine, TriStar Gold Submits Major Environmental Permit Application at Castelo De Sonhos Gold Project, Para State, Brazil, Dynacor Group Reports Sales of US$104.0 Million (C$132.3 Million) for the First Half of 2022, ValOre Metals Reports Encouraging Trench Results from Tria Target, Pedra Branca, exploring its district-scale Golden Sidewalk project, Private placements give investors direct access to deal flow alongside management teams, brokerages and institutional investors, Private placement shares can generally be purchased at a discount to market prices and havepurchase warrants attached to them, If the underlying share price rises, warrants can be exercised tofurther build positions and enhance gains, Hold periods are typicallyrestricted to only 4 months and a day. The mine could generate annual EBITDA of close to $500 million. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We believe that will change in coming years. On May 12, Turquoise Hill Resources Ltd. (NYSE: TRQ) posted earnings results for the first quarter of 2021, reporting earnings per share of $1.18, beating market expectations by $0.63. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

And unfortunately, there are no call options available to hedge this risk. I think that there could be significant stock dilution here and that risk-averse investors should avoid Nova Royalty stock. Please disable your ad-blocker and refresh.

Massive copper projects are challenging to bring into production. Sign up to receive notificationsoffuture private placement opportunities. Whos backing whom in the Conservative leadership race?

At the same time, precious metal prices are near all-time highs, adding even more fuel to the valuation fire. Peter Epstein: Why focus on just two battery / green-tech metals (nickel & copper)? However, I don't expect this to start happening before 2024 which means that copper prices are unlikely to find support anytime soon. And this is bad for Nova Royalty as the company is tight on cash - it had just C$2 million ($1.5 million) in the bank as of May 24 and there were no warrants that could help it strengthen its balance sheet. Get the Latest Investment Ideas Delivered Straight to Your Inbox. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. And this is bad news for Nova Royalty as copper prices have crashed to a 16-month low due to concerns that aggressive interest rate hikes across the world could send the global economy into a recession and thus put pressure on demand. We will not invest in jurisdictions that do not have a consistent approach to successfully integrating the mining industry into their broader society. Dover authorities said a lack of French border officials was leading to waits of up to five hours for border checks at the English Channel port, with queues of tourist and freight traffic snarling roads for miles (kilometers) around. Subscribe, Source: Peter Epstein for Streetwise Reports(10/19/20).

[ER] is not responsible for investment actions taken by the reader. Like Dumont, Janice Lake is in a great jurisdiction and near key regional infrastructure. color: #910024; Peter Epstein: Thank you Alex, I will leave it therefour globally significant assets, operated by mining giants like Teck, Newmont, First Quantum, Rio TintoNova Royalty seems to be in the right place at the right time in the right commodities (nickel + copper). In February, the firm hiked the quarterly dividend payment by a whopping 38%. _tfa.push({notify: 'event', name: 'ReadToBottom', id: 1116557}); Are there popular destinations that Nova is bearish on? The industry can meet that demand, but supply growth will have to dramatically increase from the roughly 1%/year we've been seeing. In May 2021, I wrote a bearish article on SA about Canadian copper and nickel-focused royalty company Nova Royalty (OTCQB:NOVRF) in which I said that its royalty portfolio shouldn't be worth more than around $50 million at copper prices of $3.00 per pound. Thats why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. Mineral Explorer Selects Silver-Gold Drill Targets at Ecuador Property Source: Streetwise Reports (02/09/2021). Junior Mining Network ("JMN") is not a financial advisory or advisor, investment advisor or broker-dealer and does not undertake any activities that would require such registration. In February, Freeport-McMoRan Inc. (NYSE: FCX) CEO Richard Adkerson announced that the firm was seeking to approve expansions at US-based copper mines to keep up with the surging demand, especially as copper was a central product for the new climate projects of the US government. It is placed eighth on our list of 10 best copper stocks to buy now. We use cookies to enhance your experience. That makes royalties on copper and nickel deposits highly attractive. Investors in the royalty and streaming sector, most notably in precious metals, are well versed in the business model.

Here is what the fund said: Barricks recent results have been consistent with our expectations. 3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. Please. Royalties are the best way to participate in this energy transitionespecially royalties in the largest, most strategic assets in the world. Our goal is to create a safe and engaging place for users to connect over interests and passions. 1) Peter Epstein's disclosures are listed above. [ER] is not expected or required to subsequently follow or cover any specific events or news, or write about any particular company or topic. I have been investing in stocks for 13 years now, most of the time in my native Bulgaria. is to be considered implicit or explicit investment advice. I have a bachelor's degree in Finance and a Master's degree in International Business and I like reading Pratchett and Michael Lewis.

Most of the value in the lithium supply chain is captured by processors that refine the mined lithium into finished products. According to a prediction by Bank of America, the price of copper could climb to $20,000 per metric ton within the next three years. Both long and short ideas. Click to continue reading and see 5 Best Copper Stocks to Buy Now. The way things are going, I wouldn't be surprised if copper prices fall below $2.50 per pound by the end of 2022.

padding: 20px; Tory leadership timetable: What happens next in the battle to be prime minister, The final two candidates battling to become the next prime minister, Kim Kardashian shows support for Gunna as the rapper remains jailed in racketeering case, Ukraine farmers pray deal can free trapped grain. Copper and nickel are emerging as the gold and silver of electrification. United States Congressman Lee Zeldin was attacked on Thursday during a campaign speech in upstate New York, the local sheriff's office said. Disclose.

Rishi Sunak and Liz Truss have made it through to the final round of the Conservative leadership race and will now go head-to-head as the battle for No 10 intensifies.

is a leading shareholder in Vale S.A. (NYSE: VALE) with 38 million shares worth more than $661 million. His background is in company and financial analysis.

We also own a 1.0% NSR on the Wollaston project, located ~40 km away and on trend, from Janice Lake. LEARN MORE. We have acquired royalties on some of the largest, most strategic projects in the global copper/nickel pipelineand we believe these projects will become a priority to bring into production sooner rather than later. However, G&A expenses were C$1.97 million ($1.5 million). Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in BHP Group (NYSE: BHP) with 7.9 million shares worth more than $553 million.

I have no business relationship with any company whose stock is mentioned in this article. #added_dis_link{ The information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation, nor is the information an offer or solicitation to buy, hold or sell any security.

We understand that Rio is planning a diamond drilling program in 2021 after doing rotary drilling this summer. On top of that Nova Royalty had a C$6.84 million ($5 million) convertible debentures as of March, which had an effective interest rate of 9.9%. Additionally, Capstone owns 70% of Santo Domingo, a large scale, fully permitted, copper-iron-gold project in Region III, Chile, in partnership with Korea Resources Corporation. The content of this interview is for information only. Alex Tsukernik: Most of our activity is throughout the Americas and Australia. Maurice Jackson of Proven and Probably sits down with Dr. Eric Jensen, CEO of prospect generator EMX Royalty, to discuss the company's new option agreements on five battery metal projects in Scandinavia, as well as its other projects. However, construction of Phase 1 of the project alone will take at least 3 years, which means that commercial production is at least 4 years away. The company has added a cash-flowing royalty to its portfolio, but its G&A expenses are about 3 times higher than its revenues. 5) CAPSTONE MINING (TSX: CS)Capstone Mining operates two producing mines: the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. It is also used in consumer ware and interior components of housing.

[ER] is not directly employed by any company, group, organization, party or person. Very few projects can justify the investment and risk at this price level. [ER] is not an expert in any company, industry sector or investment topic.

At the end of the first quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $575 million in Turquoise Hill Resources Ltd. (NYSE: TRQ), up from 12 in the previous quarter worth $374 million. #added_dis_box{ However, short selling stocks in the commodities sector is usually dangerous as this market is notoriously volatile. However, the copper industry has been hit in recent weeks as the US prepares to lift interest rates, sending the price of the dollar surging and reducing the demand for the metal. Interviews, ideas, portfolios, watchlists, and comments from other investors I've invited to the service, A chat room with access to me and the other investors.

It's rare to see a major company pursuing an exploration project with such clear intent. Aurania Resources intends to drill test two outcrops on the northwestern margin of the Tiria-Shimpia target at Lost CitiesCutucu. Rakhmon Mirzoyev watches on as a combine harvester empties a steady stream of grain into a waiting truck on his farm some 60 kilometres (35 miles) from the frontline in southern Ukraine. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. Alex Tsukernik: Copper is the key ingredient in the decarbonization of the world. This article is not a solicitation for investment. The Copper Mountain mine currently produces approximately 100 million pounds of copper equivalent, with average annual production expected to increase to approximately 140 million pounds of copper equivalent. Looking at the risks or the bear case, I think that the major one is that central banks around the world decide to stop hiking interest rates and thus ease recession fears. Nova Royalty prefers to invest in net smelter return ('NSR') royalties, and back in May 2021 it had a portfolio of royalties on 5 development stage mining projects as well as 13 exploration stage assets. Please continue reading to learn a lot more about nickel, copper and Nova Royalty Corp. Peter Epstein: Can we get a brief history of Nova Royalty Corp.? Teck has been highly successful in developing mines in Chile, and Newmont understands copper-gold porphyries very well. Is this happening to you frequently? Just like Freeport-McMoRan Inc. (NYSE: FCX), Rio Tinto Group (NYSE: RIO), and Newmont Corporation (NYSE: NEM), BHP Group (NYSE: BHP) is one of the best copper stocks to buy now. Janice Lake: We own a 1.0% NSR on the Janice Lake copper-silver project in Saskatchewan being advanced by Rio Tinto. It produced more than 1.3 million tons of copper in 2020. Britons heading off on holiday by ferry faced hours-long waits at the port of Dover on Friday, with authorities blaming French officials for the chaos. We have seen this with precious metal royalty companies focusing on gold and silver. margin-bottom: 5px; Supply chain pricing power sits with miners: For both copper and nickel, most of the value in the supply chain stays with the miners. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. If you like this article, consider joining Bears and Resources. Historically, nickel projects have been even more challenging.

Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan and Cusco, Peru, and copper projects in Arizona and Nevada.

There's a big gap between having a technology and gaining a sustainable foothold in the industry infrastructure. The stock has returned more than 43% to investors over the past year. Copper World Complex has a net present value of just over $2 billion at $3.50 per pound of copper using an 8% discount rate and the cash costs are just $1.12 per pound over the life of mine. So, how do you play this? Peter Epstein is the founder of Epstein Research. As I mentioned, everything from renewable energy assets to the EVs themselves will require a multiple of the copper that is currently being consumed. Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Teck Resources Limited (NYSE:TECK) with 9.3 million shares worth more than $179 million. First Quantum is the operator. } With cash running low, significant stock dilution could be inevitable. Nova Royalty bought this royalty in August 2021 for $9 million, with expected annual payments of around $1.5 million.