Rick Rule.
Rick Rule is chairman, Sprott U.S. Holdings. His focus is precious metals stocks.
Top Picks:
Ivanhoe Mines (IVN-T)
Ivanhoe has the best collection of development assets in one company I've seen in my career. Better yet, it's backed by the most successful mining financier of this generation, Robert Friedland. One company controls the best undeveloped copper asset in the world, the best undeveloped PGM asset in the world, and one of the best undeveloped (and highest-grade) polymetallic assets in the world.
Nevsun Resources (NSU-T)
Nevsun has shown spectacular performance from their operating Bisha mine in Eritrea, transitioning to a zinc rich portion of the deposit, in time for a rebound in zinc prices. The company has a pristine balance sheet, a robust income statement and an unparalleled growth profile as a consequence of their Reservoir Minerals takeover. A generous earned dividend makes the wait more pleasant.
Northern Dynasty Minerals (NDM-T)
It is an ultra-high risk optionality play. One of the biggest, and highest-grade copper gold deposits in the world, it is subject to a legal and political dispute. In our opinion, a political resolution with Alaskan Indigenous owners would solve the legal dispute, and both sides have ample incentive to reach a mutually beneficial agreement. This will be either be a huge win or a substantial loss, and the time frame is indeterminate.
Past Picks: Aug. 12, 2015
Alterra Power (AXY-T)
Then: $0.51 Now: $0.67 +31.37% Total return: +31.37%
Franco-Nevada (FNV-T)
Then: $60.94 Now: $101.97 +67.33% Total return: +70.00%
Ivanhoe Mines (IVN-T)
Then: $0.66 Now: $1.78 +169.70% Total return: +169.70%
Market outlook
Precious metals and precious metal equity markets continue to be very well bid, with zero and negative sovereign rates being the primary driver. Precious metal equities are outperforming gold because of margin expansion, recovery from prior oversold positions, and institutional rebalancing.
The rest of the resource space is very soft, a victim of weak global economic activity and a "hangover" from excess capacity developed during the last bull market. Very weak commodity markets are ultimately self-correcting, as negative operating margins eliminate productive capacity, a function Sprott refers to as "supply destruction." Sprott sees significant developing opportunities in other resource markets.
A particular focus of mine will be in stressed investment-grade debt and high-yield debt in resource industries. We believe that the energy junk debt market looks like a developing train wreck beginning in the fourth quarter of this year and extending through all of 2017, resulting in once-in-a-decade investment opportunities, as indiscriminate selling sweeps through an illiquid market.