Doc Jones – Energy Sector Investing Focused On Oil, Nat Gas, Lithium, Copper, Nickel, Zinc Stocks
Doc Jones, Private Investor and editor of DrJonesResourceInvestor.com, joins us to discuss different aspects of investing in the energy sector, from oil and natural gas, to lithium, and then to the battery metals or energy metals companies. Since he cut his teeth on the traditional oil and nat gas stocks over 2 decades ago, we start with his outlook on the pullback we’ve seen in this part of the energy space, what he likes, and the focus he has on the more established teams and assets with true scale and stability. He noted both Birchcliff Energy (TSX: BIR; OTC: BIREF) and Freehold Royalties (TSX: FRU; OTC: FRHLF) as examples of solid dividend paying companies with excellent financials and growth built in.
Next we jumped over to the battery metals theme and the huge amount of investor interest over the last few years in the lithium companies, along with some thoughts on how to filter down to the better quality company in this smaller niche commodity. Doc Jones outlines 3 companies at various stages of the mining cycle that he has invested in personally: Sigma Lithium (TSX.V:SGML, NASDAQ:SGML), Lithium Ionic (TSXV: LTH; OTCQB: LTHCF), and Brunswick Exploration (TSX.V: BRW; OTC: BRWXF) , and the rationale behind the investments he made into each personally. We also discussed the frothy nature of the lithium sector at present and that investors should really understand the deposits and team they are investing in, and stick with the larger producers if they are not sure how to evaluate earlier stage projects.
We wrap up with why he is more interested in investing in critical minerals like copper, nickel, and zinc companies over precious metals companies, due to all the positive tailwinds we see behind the green energy policies and investment capital flows. The discussion covers a number of areas ranging from government funds and direct investment into energy metals, to ESG, to the cost of capital for different commodities and related mining stocks. He outlines some recent news and catalysts in his favorite 3 critical minerals stocks to invest in: Emerita Resources (TSX.V: EMO; OTCQB: EMOTF), Magna Mining (TSX.V: NICU; OTC: MGMNF), and Osisko Metals (TSX.V: OM; OTCQX: OMZNF).*
* Doc Jones is not paid by any company to discuss these stocks, and these are simply what he is doing with his own money in his own portfolio, and this is not investment advice.