A Tsunami of Capital is Coming Into the North American Mining Sector
Let's Start With Critical Minerals
Where am I getting this bullish nonsensical jargon from anyways?! Well, I will share a bit here in writing and you'll also have access to further color via the short video briefing below.
Let's start with critical/rare earth minerals. America, and quite frankly Canada, are SCREWED! The difference today versus, say, the bubble created in 2011 over this story revolving around China's control of the industry, is that NOW this is a DRAMATIC problem in plain sight! I'm not going to reference all of these figures below so keep in mind that I may be off somewhat in the actual data, but it's not going to be fluffed up to make the message clear. It doesn't need to be hyped, because reality is alarming to say the least.
For example, from what I understand (I collect data on this type of information from various institutional grade sources daily), the USA has something like 3 years MAX of a roadmap to supply of our needs of the critical mineral Antimony (the military metal is what they call it due to being required material in virtually all things categorized as munitions! Yes-ammunition). We only have ONE company in the USA PROCESSING (not producing) antimony that I'm aware of and the last administration gave away up to 40% (!) of our preexisting ammo stockpile to Ukraine (this number has not been entirely validated but I have heard this guesstimate from active special operations officers at the highest level of our military and there is a link below regarding this matter on state.gov)! Even if the reality is that we gave away 10-20% of our strategic stockpile, it's very dangerous for our nation.
China produces nearly half of the global antimony supply and when adding processing, they control nearly 80% of the distribution of material when including Russia's production! Russia sends most of their antimony to China for processing (as well as many other rare earth elements) and are actually a meaningful producer. The USA is DEPENDANT ON CHINA for our supplies of CRITICAL MINERALS. The best part??
In December of 2024, China banned any/all exporting of 3 critical minerals including antimony. This is in direct retaliation for the US clamping restrictions down on China regarding their access to compute power via semiconductor chips from various nations in the world, including Taiwan. Yes, the race to AI, despite the DeepSeek open source launch of a formidable LLM (large language model) and their claims of costs/GPU power utilized (no where near OpenAI's spend on the first several iterations of ChatGPT--same scenario with Gemini from Google, Llama from Meta/Facebook, etc., which was ironically launched (OpenAI) as a non profit open source entity that swapped into a now several hundred billion dollar valuation Silicon Valley unicorn starlet company) requires compute, AKA ENERGY, past our current capacity. "Compute" power is the foremost issue for our tech sector that is currently mitigating the speed of artificial intelligence acceleration and development.
The reality is that technological development in general, certainly including carbon reducing battery technologies like Lithium Ion in vehicles and Vanadium in industrial storage via VRFB's (vanadium redox flow batteries) solar panels (19-25% of global silver production, depending on the data source, went directly into solar panels in 2024 which is up markedly from 2023 -15-16%), nuclear (I am VERY positive about uranium exposure via my portfolio), and ANY other sources of clean energy production require METALS that need to be MINED- OUT OF THE GROUND!
Investors and global citizens are about to get a gut check education on what we as mining exploration, development, and production investors have known for awhile. That it takes an average of approximately 15 years between the discovery of an economic deposit of minerals in the ground to begin actually producing/mining material! The metals/mining sectors (base metals-precious metals-critical metals, etc.) have been undercapitalized for DECADES in the West. NOW, we need to play catch up....
What If?
What if in the next 2-3 years Newmont Mining is Wall Steet's new Palantir or Tesla in terms of clamoring for exposure by the largest institutional investors in the world? What if the Trump administration actually is beginning to grasp this matter and eventually issues a moratorium on capital gains taxes for US investors putting $$ into any mining/metals companies with actual project exposure in the USA? By the way, on Monday of this week I personally heard president Trump mention "rare earth" a handful of times in his recent executive orders session with journalists and the American public:
Trump says he wants Ukraine’s "valuable rare earth" as aid compensation
He needs one more word in this phrase aka rare earth "minerals" or "metals" will suffice. But isn't it quite interesting to hear this now rolling off the US president's tongue? I happen to have a unique perch in which I'm seeing this "tsunami" form. Technology and energy advancement are explicitly linked to minerals in the ground. Wise VC's and astute high net worth folks in Silicon Valley have begun getting a whiff of this reality and have already begun building exposure to our lil ole' mining sector.
I've been a professional investor for nearly 30 years and my experience, expertise, and energy have been virtually split down the middle of terms of financing and investing in both technology and gold/mining companies. I have numerous angel investments alongside of Silicon Valley's smartest firms and have been consistently active to some level during my career in both the private venture capital and public capital markets. I have substantial exposure (85% of my net worth) in gold, metals, mining equities, bitcoin, crypto, and various technology related equity investments). I initially recommended buying Bitcoin RIGHT HERE in this letter via spring of 2016 when the price was sub $500. I've pounded the table publicly prior to each cycle turn encouraging my subscribers to have exposure to bitcoin/crypto. Few listen in bear markets. But some of you did and now you are very RICH/wealthier because of it so there's a slight chance that what I'm highlighting here today should be acknowledged.
My sense is that the pendulum HAS already finally begun to swing towards our niche, wayward, and outcast mining sector. Tech has obviously been just fine and has witnessed the largest wealth creation trend in history during the last generation or so. Companies exploring for, developing, and/or producing new mines including silver, uranium, copper, vanadium, nickel, graphite, tungsten, and other natural resources? Not so much. Americans should wise up to the fact that many, even most of these various metals exist beneath our own soil yet the space has been undercapitalized for DECADES.
Politics
Meanwhile, China launched WW3 active strategies over 20 years ago by strategically and intentionally gobbling up enormous natural resource assets around the globe that stymie the critical supply chains of their counterparts. Where the fcuk have we been all this time?!? Asleep at the wheel! Well, it's time to awaken to this reality in the west and GET MOVING. If incentives and not bureaucracy and red tape are created for entrepreneurs and corporations to explore, develop, and eventually produce more natural resources in this country, the entire world will want exposure to our assets here just like sovereign wealth funds are long to the gills in all things QQQ/American technology leading stocks.
The fact of the matter is that we are going to need to sacrifice a few green eyed, sharp tooth, one eared salmon in Alaska to SURVIVE and THRIVE as a species. We have no choice. Even reasonable leftists are about to be educated on the energy renaissance that they've been pushing requires us to MINE in the EARTH. Nobody wants to harm our environment folks! The growing capital flows to this sector will help to develop new innovation to avoid where any harm to nature has occurred in the past. That's the ideal.
When I created my Facebook profile almost 2 decades ago now as well, when asked about my political association, I wrote "Less Government the Better". It stands there in my profile today and I feel the same exact way. That said, political policies obviously do matter and anything that I can do as an American, as a HUMAN, I am happy to help share any/all awareness of these issues that I have accumulated in my "rollercoaster on mushrooms" professional career. There are some more comments on these issues in the 7 minute ish video below and I will be actively sharing more with you all as things begin to CHANGE, starting NOW.
If you enjoy this information and believe it's important, please do feel free to forward and/or reference this email to anyone that you like. I've barely scratched the surface. Which stocks should you buy? For now, you need to join my premium or elite service to be privy to the juiciest of juicy ideas that I possess :)
Oh, were you about to give up on this sector? Don't be a putz-stand up straight and get ahead of the flows of capital heading our way. But, I will be featuring select stocks/investments here at the free e-letter very soon as well. In the meantime, America's leaders and citizens only need 3 distinct words as an action call.....DRILL BABY DRILL!!!!
7 Minutes of Further Comments: