Rick Rule on Market Meltdowns, Mining Insights, and Investment Strategies
Summary
TLDRIn this interview, Shay Russell from mining.com engages in a deep conversation with Rick Rule, a seasoned private speculator, discussing market trends, the Japanese carry trade, and the impact on the US Treasury Market. They delve into the mining and metals sector, the role of AI in exploration, and the significance of commodities like uranium, copper, and gold. Rick also shares insights on private placements and his upcoming boot camp, emphasizing the importance of understanding value in investment decisions.
Takeaways
- 📉 The script discusses a recent market meltdown and attributes it partly to the unwinding of the Japanese carry trade, which has led to a significant drop in Japanese bank shares.
- 🌐 Rick Rule emphasizes the importance of recognizing market trends and probability, using the example of the unsustainable uranium price that eventually corrected itself.
- 💼 The conversation highlights the impact of foreign buyers, particularly Japanese investors, on the US Treasury market, suggesting challenges ahead due to the reduced participation in the carry trade.
- 📈 Despite a market downturn, the mining sector, specifically in Australia, did not fall as much as the broader market, hinting at potential optimism for miners.
- 🚀 Rick Rule suggests that the downturn in tech stocks was due to their overvaluation and speculative nature, contrasting this with the more grounded expectations in the mining sector.
- 💡 The use of artificial intelligence in mining, particularly in exploration, is seen as a tool to augment traditional methods rather than replace them.
- 🏕️ Diggers and Dealers conference is portrayed as a significant event in the mining industry, with discussions focusing on key commodities like copper, gold, and uranium.
- 💰 The script touches on the fundraising aspect of the Diggers and Dealers conference, noting a shift in focus towards commodities that are currently more appealing for investment.
- ☢️ Uranium is highlighted as having unique structural attractions as a commodity, with discussions at the conference indicating a renewed interest in nuclear energy.
- 🤝 Rick Rule shares anecdotes from his experiences at mining conferences, emphasizing the high level of technical knowledge present despite the informal atmosphere.
- 📈 The script concludes with advice on viewing market volatility as opportunities for investment, encouraging investors to understand the value of their assets and buy during sales.
Q & A
What is Rick Rule's perspective on the recent market meltdown?
-Rick Rule believes that the market meltdown was not surprising, especially considering the unwinding of the Japanese carry trade and the unsustainable uranium pricing. He suggests that people often ignore the signs until the price action makes the narrative more believable.
What does Rick Rule think about the Japanese carry trade and its impact on the market?
-Rick Rule explains that the Japanese carry trade, which involved borrowing cheaply in Yen and investing in higher-yield securities, has been a factor for 40 years. The unwinding of this trade, particularly when the Japanese banks' balance sheets are affected, is not unexpected and has contributed to the market decline.
How does Rick Rule view the role of the Japanese banks in the US Treasury market?
-He points out that Japanese banks, as a result of the carry trade, have been significant buyers of US treasuries, especially in the absence of China. Their withdrawal as marginal buyers could pose a challenge to the US Treasury Market, which is the largest securities market in the world.
What is Rick Rule's opinion on the mining index's performance during the market meltdown?
-Rick Rule suggests that the mining index, particularly in Australia, did not fall as hard as the broader market. He attributes this to the fact that mining stocks were not overvalued and did not have a success premium built into them, unlike the US technology sector.
How does Rick Rule perceive the use of artificial intelligence in mining exploration?
-Rick Rule acknowledges that while AI can't replace human expertise, it can make the deployment of human resources more intelligent. He cites examples of using satellite imagery to narrow down exploration areas and AI's role in synthesizing different types of data for target generation.
What are Rick Rule's thoughts on the importance of copper and gold in the current market?
-Rick Rule believes that the focus on copper and gold is warranted due to their importance and the ability to raise capital around these commodities. He also mentions that the market's softness presents a good opportunity for these commodities.
What does Rick Rule think about the political stance on uranium in Australia?
-Rick Rule finds the anti-uranium narrative in Australia puzzling, given the country's significant uranium endowment and the benefits of nuclear energy. He suggests that the opposition is thin and not well-founded.
What is Rick Rule's view on private placements in the mining sector?
-Rick Rule sees private placements as a significant opportunity, especially when the market is down. He advises investors to look at volatility as frequent sales and to be prepared to invest when others are running for the exits.
What is the main focus of Rick Rule's upcoming boot camp on private placements?
-The boot camp will cover various aspects of private placements, including how to structure them, when to invest, the differences between private and public investments, and the specifics of Australian, American, and Canadian private placements.
What advice does Rick Rule give to investors regarding market volatility and catastrophic declines?
-Rick Rule advises investors to view market volatility as sales and catastrophic declines as once-in-a-decade sales. He emphasizes the importance of understanding the value of an investment and being prepared to buy when prices are cheaper.
What is Rick Rule's recollection of his early experiences at the Diggers and Dealers conference?
-Rick Rule recalls the early days of the conference as a time of high technical competence, combined with a unique atmosphere of frivolity. He also mentions the profitability of attending the conference in its early years due to the lack of competition and the cheap valuations of Australian mining stocks.
Outlines
📉 Market Meltdown and Japanese Carry Trade Analysis
In this segment, Shay Russell interviews Rick Rule about recent market events, focusing on the Japanese carry trade's impact on financial markets. Rick explains the 40-year trend of Japan's government spending and how it has led to the current situation with Japanese banks. He discusses the artificially low interest rates that have allowed banks to borrow cheaply in Yen, and the consequences of unwinding this practice. Rick also touches on the importance of recognizing market signs and narratives before they materialize, using the example of uranium prices. The conversation shifts to the US Treasury Market and its challenges due to the reduced demand from Japanese investors, hinting at potential future issues in this sector.
🏭 Mining Market Stability and Technology Integration
The second paragraph delves into the relative stability of the mining sector during market meltdowns. It contrasts the resilience of mining stocks with the volatility of tech stocks, which were heavily owned on margin and lacked a value-based investment narrative. Rick suggests that the Australian mining market's strength is underpinned by free cash flow, allowing it to recover more quickly from market crashes. The discussion also explores the role of artificial intelligence in exploration, with Rick highlighting the benefits of technology in refining exploration strategies without replacing the need for human expertise.
🚩 Diggers and Dealers Conference Insights
This segment focuses on the annual Diggers and Dealers conference in Australia, discussing the key commodities of interest, particularly copper and gold. Rick notes a shift in focus from these traditional commodities to lithium and rare earths in previous years, but a return to copper and gold due to their reliability in fundraising. He also comments on the historical significance of gold in Western Australia and the current market conditions that favor discussions around these metals. The conversation includes Rick's personal experiences and observations from the conference, emphasizing the balance between technical knowledge and social aspects.
☢️ Uranium Advocacy and Political Dynamics
The conversation turns to uranium and nuclear energy, with Rick discussing the political stance on uranium in Australia and the inconsistencies in opposition to nuclear power. He critiques the anti-uranium narrative and highlights the benefits of uranium as a carbon-free energy source. Rick also touches on the economic and social benefits of uranium mining, suggesting that a more equitable distribution of profits could alleviate local opposition. The segment includes commentary on the political landscape and the need for a rational approach to nuclear energy.
🎉 Memories and Experiences from Diggers and Dealers
Rick shares his favorite memory from the Diggers and Dealers conference, which involves a humorous interview with the ABC where he appeared with two bottles of beer in his pocket. He reflects on the unique atmosphere of the conference, combining social frivolity with serious technical discussions. Rick also reminisces about the early days of the conference, highlighting the opportunities it presented for investment and the high caliber of knowledge shared among attendees.
📈 Private Placements Boot Camp and Market Strategy
In this paragraph, Rick introduces an upcoming boot camp focused on private placements, detailing the comprehensive curriculum and the intensive nature of the eight-hour program. He emphasizes the practical aspects of private placements, covering various types of investments and strategies for identifying opportunities. Rick also shares his philosophy on market volatility, advising investors to view price declines as sales and to act contrarian to market sentiment. The segment concludes with an invitation for listeners to engage with Rick's investment media platform for further insights.
💡 Final Thoughts on Mining Market and Investment Wisdom
Rick concludes the interview with final thoughts on the mining market, encouraging investors to see market declines as opportunities for buying and to maintain a contrarian mindset. He advises against greed during market peaks and emphasizes the importance of understanding a stock's value before investing. Rick's parting advice is to take advantage of market sales and to have the courage to invest when others are selling, highlighting the long-term benefits of this approach.
Mindmap
Keywords
💡Market Meltdown
💡Japanese Carry Trade
💡Uranium
💡Speculative Tech Stocks
💡Free Cash Flow
💡Enterprise Value to EBIT
💡Artificial Intelligence in Exploration
💡Diggers and Dealers
💡Private Placements
💡Contrarian Investing
💡Value Investing
Highlights
Rick Rule discusses the Japanese carry trade's impact on the market and the importance of recognizing trends and probabilities in investment.
The conversation touches on the unsustainability of uranium prices and the importance of cost analysis in commodity investments.
Analysis of the recent market meltdown, attributing it to the unwinding of the Japanese yen carry trade and its effects on the US Treasury market.
Rick Rule suggests that the Australian mining index's relative stability is due to its underpinning by free cash flow and less speculative nature.
Exploration of the role of artificial intelligence in the mining sector, with a focus on how it can enhance traditional exploration methods.
Discussion on the Diggers and Dealers mining conference, highlighting its significance in the industry and the focus on key commodities like copper and gold.
Rick's perspective on uranium as a commodity with unique structural attractions and its importance in the current market context.
Reflection on the political stance towards uranium in Australia, questioning the anti-uranium narrative and its implications.
Rick shares his experience with private placements and their significance in natural resource investing.
Announcement of an upcoming boot camp focused on private placements, aiming to educate investors on this investment method.
Rick's personal anecdotes from the Diggers and Dealers conference, emphasizing the unique atmosphere and high level of technical knowledge.
The importance of understanding value in investments and viewing market volatility as opportunities for savvy investors.
Advice on not being too greedy with investment gains and knowing when to sell during market highs.
Invitation for listeners to get their natural resource stocks ranked by Rick Rule for free, offering insights into individual stocks.
Closing thoughts on the importance of being a contrarian investor and capitalizing on market sales and declines.
Transcripts
I'm Shay Russell from mining.com and
joining me today is Rick rule who humbly
calls himself a private Speculator but
really Rick you don't need any
introduction Rick how are you today it's
so good to see you again life is very
good uh the better in fact Shay for
being on air with you thank you uh I am
thrilled to have you back on I have now
recovered from both my hand hang over in
my incredibly long time it took me to go
see you in boa R return Florida this
year for the rural investment Symposium
that took a little bit but I don't want
to talk about uh my travel WS I actually
want to talk about some of the things
that are happening in the market today
uh and I guess most recently is this
Market meltdown that we've seen in the
past two hours uh listen there's a few
moving elements to it but if you sort of
got a A View here on what happened that
you can share with everybody well I
guess a couple views uh I think it's
interesting that people people are
surprised for the first thing um you
know I'm not as you know a real doomster
but I do look at Trends in motion and
talk about probability so let's talk
about the Japanese carry trade first 40
Years of excessive government
spending 40 Years of debt and
deficits and 40 Years of fostering
exports through weakening the currency
with artificially low interest rates
allowing the banks to reflate their own
balance sheet by subsidizing them uh
allowing them to borrow cheaply in Yen
with a low interest rate that
presupposes that the currency will go
down while allowing them to buy higher
yield us secur uh uh Securities where
the currency might go up is it a
surprise that when you begin to unwind
that the Japanese Banks decline by 30%
in price probably not
the thing that's interesting is that
investors look at narratives where the
narrative hasn't been proven by Price
action and they ignore it Shay you
remember talking to me in
2022 when I said to you the uranium
price at $20 a pound is unsustainable
because it costs the world $60 a pound
to make the stuff you make it for 60 you
sell it for 20 try and make it up on
volume because you're a dumb minor uh
and sooner or later you have a problem
this was apparent to everybody but
nobody wanted to buy uranium until it
had already gone up to 80 bucks the
circumstance that we see with the
Japanese carry trade and the
circumstance that we see with with
uranium are the
same the sign posts are there and people
ignore them until they come to pass when
they come to pass the price action makes
the narrative much more believable um
okay so some of these major indices have
bounced back up is this really just an
overreaction from the markets to the
unwinding of the dolly Yen carry trade
uh I think not but I think we've seen
the most dramatic part of it remember
Shay at least with regards to the
American market and in particular the
American treasury
market that uh prices aren't set across
the whole spectrum of buys and sells
they're set against the
margin and if the marginal buyer goes
away then the price
declines uh the most important foreign
buyer of us treasuries in the absence of
China which has been largely absent for
five or six years has been the Japanese
as a consequence of the the carry trade
the marginal non-us buyers of us
treasuries has gone
away which is going to be I think maybe
not a catastrophe but certainly a
challenge for the US Treasury Market
which is the largest Securities Market
in the world by a country mile it may
also impact other markets like the US
equities Market but I think the place
that's concerning in the next 12 to 14
months will be the US Treasury Market I
just want to shift gears just to smidge
and bring it back to sort of Mining and
metals now I noticed in Australia and
I'm probably about to be caught out here
because I didn't check the um US market
but in the market meltdown that we've
just seen the mining um the mining index
our ASX 300 metals and Mining index
didn't fall as hard as the broader
Australian Market uh tell me is that
reason to be slightly optimistic for
miners or was this mostly people just
dumping speculative tech stocks I'm not
as familiar with the other components of
the Australian Market as I am the US
market I think
that the expectation of success around
the US technology Market was so
extraordinary
that there were a lot of people who
owned tech stocks without a sense of its
value they owned it for the momentum and
I think too A lot of people own tech
stocks on
margin the expectation in the North
American market for success in the
mining business was nil and so there was
no success premium built into the stocks
H and not very many people decided to
own them on margin very few people were
that
dumb so my suspicion is if there were
sectors in Australia that were as
extended as the US tech sector did that
they of course would have been hit
harder than
miners the beauty I would suggest of at
least the senior part of the Australian
Market the Australian mining Market is
that the share prices are underpinned by
free cash
flow there are circumstances where you
have a market crash or a flash crash
that's liquidity driven in that
circumstance everything
falls because the sell decision isn't
made by the investor it's made by the
margin
clerk but those companies which have an
underpinning of value generally recover
more quickly and I would suggest that
the Australian mining majors and super
Majors trading it with Enterprise Value
to ebit at five times or six times or
seven times were much less extended than
the US technology sector with Enterprise
values at 30 and 40 and 50 times ebit
and the consequence of that is not
having inflated so much they didn't
disinflate quite so badly that is an
excellent answer and I'm going to stick
on the technology aspect for just one
minute and how it relates to mining now
we're seeing the rise of artificial
intelligence being used um across the
exploration sector and in obviously when
mins are up and running through the use
of virtual reality in you know how uh
companies work with people across
different sites but just bringing it
back to exploration for the moment how
is AI going interchange exploration or
are we being a little bit ambitious with
this uh I think the answer is some of
both I don't think that there is a
substitute for boot leather and the
human eye but I think that you can
deploy both more intelligently with
technology I remember 20 years ago
seeing the application of Aster
imagery uh taking pictures of 2,000
square kilometers from space looking at
the uh spectral differenti ation and
looking for surface alteration from
space uh and using coincident anomalies
uh looking as an example at geological
structures from space that were so large
and perhaps so subtle that you couldn't
see them on earth now that didn't make a
discovery but what it did was it allowed
you to focus that boot leather those
human beings on two or three square
kilometers out of a 2,000 kilom data set
so that you could employ that boot
leather more
intelligently I've seen a couple really
pretty miraculous displays of Target
generation using AI because AI seems to
have the ability after the information
has been
digitized at synthesizing a bunch of
different type types of data overlaying
the data on each other and doing what
desk exploration explorationist do which
is coincident anomaly analysis uh
measuring structure measuring geophysics
measuring surface
mapping uh and looking to Target by
coincident anomalies then focusing
traditional
expertise with a a much better
application of talent rather as I say
than exploring 2,000 square kilometers
exploring two square kilometers using of
course traditional methodology all right
now Dominic ating the mining Market at
the moment is the annual diggers and
dealers conference here in Australia I
know you're laughing cuz you've had some
good times there I'm sure now you know
it's sort of one of the ongoing jokes in
mining markets in Australia is that you
know if you're not a diggers who are you
so unfortunately I didn't get to diggers
this year so I clearly don't count but I
know you have been I'm going to get to
one of your favorite memories of diggers
in a moment but first of all we need to
be serious um and there are three key
Commodities that are being talked about
at Diggers at the moment the first two
are copper and gold they seem to be
reoccurring themes according to our
journal on the ground there my question
to you is I've been talking about Golden
copper and the importance of it for half
a decade it feels a little old hat to me
tell me is this because I was ahead of
the curve or it's because these medals
are that important that we need to keep
having these conversations sum of both
and a third Factor diggers and dealers
if you're an exhibitor or if you're a
speaker is all about raising money and
diggers and dealers took a Holiday from
copper and gold uh and went into lithium
and rare Earths uh and a bunch of stuff
nickel there were a bunch of topics at
diggers and dealers that were easier to
raise money
around those themes have disappointed
and in some cases disappointed mightily
so the theme comes back to raising money
I mean copper and gold
uh and I think that's really what you're
seeing uh I think it's important to note
too that uh you know gold is always
going to be a good sub theme in Western
Australia when I first started attending
diggers and dealers probably coincident
with your birth Shay um they produced
about a million ounces of gold in town
in Cal
gurly uh you know it it it truly was a
gold Centric conference because the
whole
town well ran on beer sales at the
palace uh and other than that it ran on
gold um but you know I think the renewed
focus on gold and copper uh has to do
with the fact that in the Australian
Market you can still raise money around
gold and copper and there is at least
more hope among the
punters around gold and copper than
there is as an example around uh nickel
or
pgms uh or heaven forbid
lithium whatever I suspect gives people
the least discomfort or in a better
Market the most comfort will be uh what
is talked about at diggers I I happen to
believe that uh diggers is probably more
rational this year talking about gold
where I think there's a good outlook
talking about copper where I think
there's a great Outlook and the market
is soft uh a wonderful circumstance and
of course uh talking about uranium uh
which I think has structural attractions
that no other commodity has I am so glad
you closed on uranium because that's
exactly where we're going next and I
don't have to do some hard segue into it
uh so our opposition leader in
government flew in to diggers and
dealers uh yesterday to talk about
uranium and nuclear energy within wa now
obviously he's preaching to the choire
here um and there is definitely a
political angle but we've touched on
this before about embracing uranium is
that really the best way to do it to win
over a mining crowd that's already most
likely pronuclear energy I don't think
he was trying to over the crowd I think
he was sucking for campaign
contribution
um you know if they were trying to win
over the proud they would have had
skimpies cheering uranium uranium
uranium um I I I you know I remember a
provincial politician in British
Columbia coming and delivering a red you
know a red meat speech to a mining crowd
and he wasn't trying to convince anybody
you know there was a campaign coming up
and he was trying to fill the till uh he
was in fact an unpaid exhibitor if you
think about it
um Australian uranium policy has always
amused
me
um the three Minds policy as an
example why three just out of
curiosity
um your country has an incredible
endowment around
uranium and
the traditional
labor
party should I think be
attracted to high-paying High skills
jobs they should be attracted to the
export of intellectual capital from
Australia rather than making high
earners leave Australia and pay tax
somewhere else the unconventional left
might be uh attracted to the idea that
you could lower utility bills for poor
people in other places that seems
charitable to me and they might be
attracted too to the carbon- free nature
of Base load power from
uranium the idea that they can conjure
up some opposition to it is astonishing
now they say of course that there are
dangers to
uranium not understanding that the fly
ash piles from burning coal generate
more background radiation than every
nuclear power plant in the United States
uh we say in the United States more
people died in Ted Kennedy's car than
have died in nuclear power plants in the
United States when we're dealing with
our left um so it it it really does
mystify me the the joking aside the
anti- uranium
narrative we's
thin I understand that there are
consequen quences to pay when mistakes
were made but if we were trying to avoid
mistakes we wouldn't allow people to
drive we wouldn't allow them to
fly we wouldn't allow them to vote
because they cause
Wars so where does it stop you know
um I guess I I I guess that's my whole
point it's difficult for me to
understand the anti-power generation
stance exhibited by some parts of the
Australian political
Spectrum it's difficult for me to
understand the anti-product
uh I I can understand perfectly the
local opposition to
jabala uh because all the rents went to
the
center cber got all the money and the
aboriginals got the
shaft um nothing particular unusual
about that in politics so the local
opposition probably can be dealt with
with a more Equitable sharing of the
social benefit of the social rent should
camber really be concerned about the
Aboriginal rights they should loosen up
the purse strings with regards to the
money they extort from Mining and leave
more of it in local hands that doesn't
seem to occur to politicians on either
the right or the left uh listen Rick
your knowledge of Australian geology
minds and government uh surpasses almost
any International person I have ever
spoken to so I want to really localize
that knowledge with this next question
and take it right back to diggers and
dealers by the way thank you for shaving
a decade off my age before when you said
it probably started around the year I
was born I'll take that compliment um
all right I know you've talked about uh
your experience with P um palladian uh
just recently in a interview we did and
how you met John borof and that was how
you became an investor in that company
what I want to know now is with the
diggers and dealers and probably a few
sore heads this morning what is your
favorite publishable memory of diggers
and dealers uh I guess my favorite
conference memory in Australia isn't
diggers uh it was appearing at a
conference hosted by our mutual friend
Carrie
Stevenson when she arranged for me to be
interviewed uh by the
ABC Uh I had not one but two bottles of
beer somehow and the cameraman said
that's okay put them in your pocket
we'll do a head shot and then proceeded
to interview me with both bottles of
beer very obvious for a national
Australian audience um miraculously that
did a lot for my reputation in Australia
he unknowingly did me a lot of favors
among Australians for Fairly obvious
reasons the thing that really astonished
me about diggers and dealers and it's
the it's the memory that I will always
take from it is despite the
romp uh you know the only conference in
the world where they begin serving
alcohol in booths to attract to
attendees after lunch I've never seen
anything like that in my life the
combination of
frivolity and absolutely
incredible uh technological knowledge
has been always astonishing to me I
watch people show up in the morning that
should be in
hospital and actually impart truly truly
spectacular knowledge the when you look
at the and I haven't been for a couple
of years but when you look at the Antics
that go on at night and then you look at
what gets accomplished during the day it
is truly an astonishing circumstance
now as a 71y old male uh are there Parts
about the historical political and
social incorrectness of diggers and
dealers that I
miss uh absolutely you know
absolutely uh I I won't go into all of
them but uh it was a hilarious time it
was good for me to have been there 35
years ago as opposed to now probably for
those reasons but the truth is also that
there has been a uniformly high level of
technical competence at that conference
not usually on display after 6
PM
uh but it's uh you know it has really
really really been of High Caliber I
also need to say in the early days days
I may have been the only yank that
went uh and there were two things there
one I made a lot of money at diggers and
dealers I mean I made a lot of money at
diggers and
dealers uh and when I started going in
the early part of the decade of the 90s
and the last part of the the latter part
of the decade of the
80s there was no money at all in
Australian markets none and the fact
that there was a fresh check writer
better yet An American unschooled in
Australian ways
uh well I knew how a very pretty girl in
a very tight skirt felt walking down the
aisles um I had no trouble talking to
anybody I had trouble shrugging people
and the consequence of the fact that
stuff was so cheap and nobody cared uh
and I did care uh and I represented a
reasonable sum of money meant that
diggers was truly spectacularly
profitable for me in those days one day
we'll see if we can coax you back to
diggers um and I have heard some of the
Glory Days and the War Stories of the
activities after 6 PM it's apparently
not as wild as it used to be when you
were first there um now as you pointed
out at diggers and dealers it's very
much about attracting uh money I get
approached quite a bit about how uh
private placements work when it comes to
mining companies because there's a lot
of high net worth investors that very
much want to get a set at this table now
um this might sound like a bit of a
commercial but I know that there's a lot
of people interested
I know you've got sort of a boot camp
coming up can you talk me through what
to expect and then I'm going to send a
link to my M well thank you for the
opportunity uh as you know Shay once
every three months we work up the energy
to do an eight hour long deep dive on
one subject or another around natural
resource
investing we've done uranium we've done
silver we've done Prospect generators
and exploration we've done royalty and
streaming now we're doing boot well now
we're doing a boot camp around private
placements uh private placement
investing has been very very very good
to me Shay over 50 years I've learned a
lot about
it uh this product this boot camp will
be eight hours long and I need to tell
people ahead of time uh that this is not
an entertainment product uh we're going
to work you very very hard for eight
hours there are going to be parts of it
that are technical there going to be
parts of it that are boring but you're
going to learn a lot uh the the
recordings of the boot camp will be
available for a year and I would suggest
that to be successful you'll have to
play all or part of part of them three
or four times because the amount of
information that we give you in eight
hours is more than you're going to be
able to absorb in eight
hours we are going to talk practically
about private placements we're going to
talk about what to look out for what to
look for how to structure them when to
say no how to say yes we're going to
talk about private company private
placements inv investing in private
companies that never go public we're
going to talk about
pre-public private placements we're
going to talk about the fact that IPO is
usually an acronym for it's probably
overpriced we are going to talk about uh
public investment or private investment
in public offerings which is to say
pipes we're going to talk a lot about
debt private placements and a lot about
convertible preferreds they're less
wellknown and I suspect more attractive
on a risk to reward basis we're going to
talk about timing and private placements
we're going to talk about warrants yes
we're going to talk extensively about
Australian private placements Gold Card
Investments which are investments for
non Australian participants in
Australian private placements but we're
also going to talk about aim private
placements American private placements
and Canadian private placements we will
cover the Waterfront I would suggest
with Mining and oil and gas Investments
privately so you took away my next
question which was yeah but are we is
there really any benefit for Australian
investors this is great so this sounds
like it's got a real Global uh Focus to
it now for everybody listening I will
share the link with you I'll pop the
link in the description of today's video
uh Rick before we close out today any
final mining Market thoughts that you
might want to share well one that we've
talked about before Shay which is to say
uh a different way of describing a bare
Market as a
sale people seem to be intelligent when
they buy physically Goods when somebody
goes to the store and tuna fish are on
sale they substitute tuna fish for
canned salmon or for chicken when they
go to buy a winter coat they're
delighted to see the the coat mark down
50% for some reason people want to pay
up for financial
assets uh I can understand why a 50% off
sale on a stock that you own is
problematic but the truth is you have a
choice between being a contrarian or
being a victim if you liked it for a
dollar you better love it at 50 cents or
you better know you made a big mistake
at a
buck um I I I can't say this often
enough uh the money that's made in
Investments is made on the Delta between
price and value and if you haven't done
the work to understand the value the
price information is no of no use to you
Buffett says
famously you shouldn't buy a share if
you wouldn't be delighted to see it fall
30% in price in the next month so you
could buy more cheaply now Shay sedle
I've tested that thesis dozens of times
in my career but it turns out in fact to
be true uh if you've already done the
work to establish the value and the
price gets cheaper that's a good thing
not a bad thing so I would encourage
people to look at volatility as frequent
sales and I would encourage people to
look at catastrophic declines not the
kind that we've just seen I mean
catastrophic declines 2008 style
declines as once in a decade sales keep
some powder
dry work on your
knowledge and have the guts to pull the
trigger when everybody else is running
for the exits
similarly if you've been lucky enough to
buy uranium stocks in 2022 when nobody
owned them and they're up 500% and
everybody's complimenting you for as
being a genius don't be too greedy not
to sell you haven't made the money if
you haven't taken the money when the
world is on the cell side be on the buy
side when the world is on the buy side
be on the cell side sounds simple tough
to do take it from me if you
occasionally get it right it
works uh Rick this has been a fantastic
conversation today I have to say I've
thoroughly enjoyed it uh listen thank
you so much for being here I know it's
your afternoon and the sun's still out
so I'm going to let you get back to it
thanks again I will do it before I do it
I would invite your listeners to go to
rule investment media.com
and list your natural resource stocks uh
I will for no obligation and no charge
rank them one to 10 one being best 10
being worst I'll comment on individual
issues if I think my comments have some
value if you've enjoyed my macro
thinking maybe you'll enjoy my micro
thinking confined to your own stocks uh
I will also pop a link to that in the
description of today's video I will just
let everybody know I personally have run
this Gauntlet and if you mentioned some
explorers Rick hasn't heard of I suggest
you you the Explorers you've got in your
portfolio uh Rick thank you so much for
being here this is great I look forward
to next time always a pleasure and thank
thank you for your support of our
conference this year it was great having
you there and seeing you there and thank
you for the gauntlet you ran getting
there and
home it was a bit intense
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