Phosphate Mine Opportunity
Small cap phosphate mine trading a discount to peers, 3.2x LTM P/E , and desirable asset in a tier 1 jurisdiction and expanding mine life.
One fact about me that I believe some may know is that my first “love” when it comes to businesses has always been metals/mineral extraction. Whether it be iron, gold, lead, oil, gas, lithium, phosphate rock, potash, limestone, etc. I have always had an affinity for not only the commodity, but also the businesses that extract the commodity. To me, there are few businesses as real as the ones directly supplying the world with materials and goods to create, well, anything. Everything we touch is a function of someone taking a risk to extract a metal or mineral out of the ground. The computer I am typing on contains copper, the energy that powers our society is oil/gas (amongst others), the walls in my house contain gypsum, and the food I ate was fertilized with phosphate or potash.
My fascination with commodities didn’t appear recently. In college I studied Geology and Marine Science, with the goal of being an exploration geologist. Long story that I won’t get into here, but life had other plans. I still, to this day, use those skills I learned to look at metals/mineral extraction businesses – albeit I would not say I am an expert, but I know enough to invest, or at least investigate.
Investing in commodities is enough to give one a profound mental disability. It is full of some of the worst actors you could imagine, I even have a tweet about waging war against the TSX.V:
Despite all of that, this sector is full of some of the smartest investors, scientists, and businesspeople I have ever met/studied. They have my admiration. Today I want to talk about a company mining a mineral that many people forget and whose stock has 50% in the past year and more than 700% over the past 5 years. With it’s competitors trading at easily 2x the valuation the below looks to be a bargain.
