{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Company Interviews","title":"Investor Insights from Industry Veterans on Riding Cyclical Opportunities","html":"","width":"100%","height":180,"duration":1670,"description":"Interview with Dave Lotan, President & CEO of LHI Capital, and Mark Shelby, CEO of Canada Nickel.\nRecording date: 27th October 2023\nNavigating the Mining Sector for Outsized Gains\nVeteran mining investors Mark Selby and David Lotan reveal key insights on profiting from the sector's boom-bust cycles. By targeting the right opportunities at the right time, substantial gains can be achieved.\nFocus on Gold, Copper, Battery Metals\nStick to metals with obvious end demand like gold, copper and lithium. When underlying commodity fundamentals improve, these see the most interest. Exotic minerals rarely attract capital inflows.\nIdentify Likely Acquirers in Advance\nBefore investing, consider who may eventually acquire the company or project. With limited buyers, this is crucial. For gold, only a handful of majors and mid-tiers can afford over $1 billion in acquisitions. Ensure your target fits their criteria.\nSeek Low-Cost Entries in New Discoveries\nThe best gains come from new discoveries made by junior explorers. Selby targets quality teams that have delivered discoveries before. A $50 million explorer finding major gold could reach $500 million in takeover valuation.\nAvoid “Recycled” Assets\nLotan cautions against old assets being repackaged as new discoveries. Focus on fresh finds revealing major potential where little previous work existed. The narrative must justify turnaround.\nTarget 10x Potential Upside from Current Value\nIdeally, the upside should be 10x or greater. A $500 million company finding 100g/t gold does not move the needle much. But a $50 million explorer could rise tremendously on similar success. Pay close attention to the entry point.\nBenchmark Against Historical Takeout Values\nUse past transactions of similar assets to benchmark potential value. Is the project large enough to interest majors? If few relevant deals exist, acquirers may not pay premium prices.\nMonitor Fund Flows as an Indicator\nAccording to Selby, fund flows reveal when capital is...","thumbnail_url":"https://img.transistorcdn.com/1wv-MFlQAgnm-ca64e5kK4984dZB0os8-HJdRVsI74M/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzEzNTcyLzE2MjM5/NTQyMDctYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}