CUR - Making The Most Of The New Gold Cycle

2024-05-01 06:20:00 ET

Summary

• Metals exploration investing is risky and we believe this is an industry where investors can benefit from professionally managed stock selection.
• With gold having broken out to new all-time highs recently, mining exploration companies have strong upside potential, in our view, as they have lagged significantly and should soon begin to catch up.
• What do you get when you mix a decade or more of underinvestment in mining with a booming new demand for metal resources?
• There are still many ways for investors to lose money in mining stocks, but it is an industry that we are very excited to be investing in today because of where we likely are in the gold cycle.

There are three supporting themes driving our conviction that the timing for investing in gold, silver, copper, and other metal exploration stocks has never been more compelling:

1. In our analysis, the unsustainable debt and government deficits in developed economies make inflationary pressures intractable and fiat currencies more susceptible to debasement than they have been since the 1970s.
2. We believe there are critical metal supply constraints under rising demand given US government spending initiatives going toward commodity-hungry infrastructure, reshoring of manufacturing supply chains, and green energy projects.
3. There is an opportunity to generate significant alpha and beta to outperform metal prices in their likely coming bull market through our activist exploration portfolio where our companies seek to make economic discoveries and build resources through carefully constructed drill programs in viable mining jurisdictions around the world.

Metals exploration investing is risky, however. There are 3,596 publicly traded mining and metals stocks globally, more stocks to choose from than any other industry. The vast majority of these are junior explorers, i.e., small and microcap companies that own mining claims with hopes and dreams of big discoveries. Most of them will never get much further than that. Therefore, we believe this is an industry where investors can benefit from professionally managed stock selection....

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