Focused on Industrial Metals

 

Opportunity

Global demand for industrial metals, particularly in Asia, remains strong and there are several emerging catalysts that stand to reinforce this trend in the years and decades to come. These include the following:

  • rapid economic growth in India
  • China's One Belt, One Road initiative
  • a renewed focus on infrastructure development in the United States of America
  • a transition to electric vehicles that will require a significant build-out of the world's electric grids 

At the same time, supplies of copper and zinc are both on pace to enter a greenfield development phase near the end of the decade (i.e., 2019 - 2021). Brand new mines—not just the expansion of existing mines—will be required to meet world demand. Under this scenario, developmental stage mining projects with strong economics will become increasingly valuable. 

There are no mutual funds or similar exchanged traded products that invest exclusively in junior miners that are focused on the industrial metals. The Junior Industrial Miners Portfolio is a truly unique opportunity for investors. 

 

Objective

For the purpose of the Junior Industrial Miners Portfolio, industrial metals are considered to be all metals excluding gold, with the main focus being copper, lead, silver, and zinc. The Portfolio is primarily focused on junior explorers and developers, but smaller capitalization producers may also be held. 

 

Advantages

There are several advantages to investing in the Junior Industrial Miners Portfolio versus an exchange traded fund or a mutual fund. These include:

 

Flexibility

  • Client cash is invested only when compelling values are available. If the miners, as a whole, are overvalued, the portfolio is free to hold substantial amounts of cash or other short term securities and hedge exposure with inverse ETFs.
  • Company selection is not restricted to only those trading on Canadian and U.S. exchanges. The portfolio is managed using a broker with low cost access to all major international stock exchanges.  
     

Customization

  • Unlike mutual funds, each client has their own portfolio that is not effected by investment flows from other investors. Portfolios never have to liquidate undervalued companies or purchase more shares of overvalued companies due to market volatility and swings in investor sentiment.
  • Individual portfolios allow for custom harvesting of capital gains and losses. The sale of securities can be structured to ensure that clients receive the maximum tax benefits for their unique situations. 
     

Communication

  • Clients always have direct access to their portfolio manager. 
  • Market analysis, price forecasts, and company research published on The True Vine Letter and Seeking Alpha provide investors with a clear picture of my strategy and some of the unique, company-specific opportunities that I am following. 

 

Suitable Investors

The Junior Industrial Miners Portfolio is an ideal solution for individuals, with a total portfolio of at least $200,000, and institutions looking to gain actively managed exposure to this often overlooked, mining sub-industry. Silver miners can be very volatile so access to the portfolio for individuals is restricted to a small portion of their overall investments. This varies for each individual depending upon their financial objectives and risk tolerance. 

 

Timing

The Junior Industrial Miners Portfolio was initiated in May 2017, based upon my broader economic and market forecast, which leaves a runaway of about 2 years to prepare before inflation begins to accelerate. Natural resources are essential investments for preserving wealth during periods of high inflation. The leverage component of junior miners provides the added potential for investors to not just preserve their wealth, but grow it on an inflation-adjusted basis.

 

Management Fees

The management fee for the Silver Miners Portfolio is the same as that which I charge for managing regular client portfolios. Here is the fee schedule breakdown:

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Diversify your investments with a portfolio dedicated exclusively to junior industrial miners.