I recently attended the New Orleans Investment Conference (NOIC). It’s one of the best conferences for investors who want to learn about small companies with enormous potential, particularly those in the precious metals business.
I got to rub shoulders with miners, developers and explorers and recorded over a dozen video interviews, which I shared with my subscribers.
And now I’m sharing two of those with you.
Is there profit potential in these companies? Bet on it!
Video No. 1: Sandstorm Gold
My Gold & Silver Trader subscribers are already in Sandstorm Gold (NYSE: SAND), and they’re doing very well. At the NOIC, I interviewed Kim Bergen, director of capital markets for Sandstorm Gold.
Sandstorm is an excellent royalty and streaming company. That means that the company provides a single upfront payment to companies that need capital to develop their mines. In return, Sandstorm receives the right to a percentage of the revenue or production generated by the mines.
So, Sandstorm doesn’t manage the mines, employ miners or need to pay for water, power and so on. The fixed, low cost gives them very high margins. Most of its deals are net smelter royalties of between 1% and 3%. Nice!
I’ll let Ms. Bergen give you the scoop herself …
|Direct link: https://youtu.be/ZW0jTlUXTMM|
As I said, Sandstorm doesn’t work mines itself, but it has “attributable production”. That is ramping up quickly — it should be 65,000 ounces of gold this year, rising to 140,000 ounces of gold by 2023. AND Sandstorm is undervalued compared to its peers.
I think this stock’s bull run is just beginning. There is a lot more profit to come.
Video No. 2: EMX Royalty
We don’t own this next company in Gold & Silver Trader — yet — because I’m waiting for my “X Factor” “Buy” signal. Still, it’s well worth putting on your radar.
EMX Royalty (NYSE: EMX) is a project generator. That means it finds and advances great projects, which it sells to other companies to develop. EMX retains royalties on the projects it spins off.
In the video, Scott Close, director of investor relations for EMX, explains how the company is growing its royalty portfolio. He also touches on EMX’s tremendous success in the past couple years and his outlook on which metals have the most upside.
EMX has a more diversified portfolio than Sandstorm. In fact, 37% of its royalties come from gold and 35% from copper. The rest are polymetallic — all sorts of metals. Its current focus is the western U.S. and Scandinavia, but its footprint is worldwide.
Mr. Close breaks it down for you …
|Direct link: https://youtu.be/H5vox9eDmSs|
So, EMX has a diversified portfolio, with multiple sources of cash flow. It has royalty revenues from producing operations as well as cash flow from selling assets strategically. It retains a royalty interest as it sells those assets. And it keeps finding new and interesting projects.
What EMX needs for its share price to ignite is higher metal prices. I strongly believe that’s coming sooner rather than later.
And when we do see higher metals prices, Sandstorm, EMX, and a bunch of other companies are going to blast off. If you’re doing this on your own, it’s time to think about getting busy.
All the best,