Jordan Rusche, Founder of Mining Stock Monkey, joins me for an in-depth and nuanced discussion on the recent volatility in oil prices, gold and silver prices, and his approach to valuing precious metals mining stocks and royalty companies; along with which companies he is actively trading in his portfolio.
We start out catching up on how the war in the Middle East has spiked the oil price over the past month, allowing savvy energy companies to go out on the forward futures curve and hedge partial amounts of future production at much higher levels.
- We revisited the value proposition synergies from ongoing business combination of Devon Energy (NYSE: DVN) and Coterra Energy (NYSE: CTRA) which announced an all-stock merger back in February. The business combination will create a leading large-cap shale operator with a high-quality diversified asset base in the Delaware Basin, Permian Basin, Marcellus Shale, and Anadarko Basin. We discussed the additional natural gas assets that will give the pro-forma company better margins, and secondary value lever beyond the rising oil prices.
Next we shifted over to some of the valuations in the gold stocks in light of the large corrective moves we saw across the board during the month of March.
- Jordan breaks down that these big pullbacks have him looking anew at quality development companies, like Rupert Resources Ltd (TSX: RUP) (OTCQX: RUPRF) (FSE:R05), that have dropped precipitously in market cap and share price and are presenting a compelling accumulation environment.
- He also remains animated by the continued the growth on tap for royalty and streaming companies, highlighting Royal Gold, Inc. (NASDAQ: RGLD) as undervalued on a number of fundamental metrics compared to all their larger peers.
- Secondly, Jordan highlights that he is able to gain access to copper and other metals by way of investments in Altius Minerals Corporation (TSX: ALS) (OTCQX: ATUSF), Elemental Royalty Corporation (TSXV: ELE) (NASDAQ: ELE), and Orogen Royalties (TSX.V: OGN – OTCQX: OGNNF).
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This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing in equities and commodities involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.