Doc Jones, Private Investor and editor of DrJonesResourceInvestor.com, joins us to discuss how he sees the environment for investing in oil, lithium, gold, nickel, and copper stocks, and how he distinguishes between the times to be buying or selling. We start the discussion off with the pattern of strategic investments into the critical minerals companies by major producers, key investing groups, and industry manufacturers into junior mining stocks. We reviewed some recent transactions where the Lundin family came into Fireweed Metals (FWZ) (FWEDF) as key stakeholders, where Ford Motor Company (F) made offtake agreements with 5 lithium companies, and just today where Rio Tinto (RIO) announced a key stake into Midland Exploration (MD) for their lithium properties.
Next we jumped over to the energy sector and how he sees the supply-demand picture setting up for oil and the oil stocks, as he still maintains a portfolio of these companies for their attractive dividends and low valuations compared to other sectors. Doc Jones mentioned selling off some of his energy pipeline stocks, and even physical gold in the recent past, to store those funds temporarily into treasuries paying attractive yields without as much risk, allowing him to be opportunistic and take advantage of further pullbacks in other sectors. This leads to a more broad discussion on what sectors or companies he is buying or selling in his portfolio, and the rationale behind those trades.
In the lithium space, we discussed his selling of Sigma Lithium (TSX.V:SGML, NASDAQ:SGML), a lithium producer in Brazil, after a nice multifold gain in it, but that he was maintaining his position in Brunswick Exploration (BRW) (BRWXF). With regards to the gold stocks, Doc Jones noted he had exited many of those positions in late 2020, but noted that in 2021 he had added back in Banyan Gold (BYN) (BYAGF) as a position he still is positive on. He also spends some time unpacking his thesis on the inefficient market valuation around West Red Lake Gold (WRLG) (WRLGF). Moving over to #BaseMetals he flagged Magna Mining (TSX.V: NICU; OTC: MGMNF), as a nickel-focused company he still likes despite the recent pullback due to resources and exploration results. He also reviews why he is still quite constructive on Emerita Resources (EMO) (EMOTF) a copper, zinc, and PM developer; despite the pullback in pricing as the court date for Aznacollar was pushed out and in light of negative retail sentiment regarding their recent financing. We wrap up getting comments from Doc Jones on what conditions make him more likely to average down in a position that he feels is still undervalued from a contrarian standpoint, and what conditions push him to sell a stock or sector.
* 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.
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