How much savings do you have?

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Power Raid said:
I've been semi retired now for over a decade, retiring at 37.

I bought into a mining fund when Rothschild left Australia which we grew to the largest in Australia. Owned two controlling stakes in Atlas Iron ($0.22 and sold out when it had a market capitalisation bigger than Qantas), 20% of Riversdale at $0.20 and taken out by Rio at ~$16.......I was simply at the right place and right time when the mining boom came.

I then started up three property companies and numerous operating ventures.

My current fund is backed by an EU government development bank and I'm launching two more with US support and the other China. All three are development focused with a massive focus on employment, regional stability, security of supply, environment, health, taxation, anti-corruption etc.

I've just taken a controlling position in a nuclear power company, an enrichment technology that will transform the industry (clean up all the current waste) and buying up renewable power infrastructure. We've just bought a technology from the UK department of defence to unlock $1.7 trillion in rare earths, breaking China's strangle hold on the commodities. I've also got mines in the Philippines, Peru, Guinea, NT and WA.
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Interesting story, hard to verify of course but I don't think that matters. I'm curious for more details.

I have some knowledge of Atlas Iron, when did you sell out of Atlas Iron? When did you buy in?
Breaking China's stranglehold would take some doing, where are these resources located?
Any of the mines you listed operating? What kind of stake do you have?
With all of these interests aboard and the COVID restrictions, how are you finding monitoring your investments without being able to get boots on the ground?
Thoughts on Molybdenum, Gold, and cryptocurrencies?
 
sabre_ac said:
Interesting story, hard to verify of course but I don't think that matters. I'm curious for more details.

I have some knowledge of Atlas Iron, when did you sell out of Atlas Iron? When did you buy in?

The Oz fund records on hand
1618385410887.png
Plus the Options
1618385526790.png
1618385554348.png

The second fund was our Singapore vehicle IMC, that held ~20%, bought in at $0.45

Breaking China's stranglehold would take some doing, where are these resources located? Australia

Any of the mines you listed operating? What kind of stake do you have? In the private space we usually have 20-100% and dilute to 10-15% in the listed space. We were born from a bank, so the business model in ride the equity upside, secure the mezz, control the commodity hedge book , fx and fuel hedge and exit post full ramp up

With all of these interests aboard and the COVID restrictions, how are you finding monitoring your investments without being able to get boots on the ground? The secret is having good local management teams

Thoughts on Molybdenum, Gold, and cryptocurrencies? I don't like crypto as I feel govts will put their foot on their throats at some stage. Crypto is real but just like the internet in the 90s "it will never be regulated" turned out false. Loads will go to gaol be it for AML or tax.

Never liked boutiques like moly unless they are credits, as markets are manipulated by end users, glencore or china

Copper, gold and energy will be positive places to be over the next 2 decades (with the usual market swings)
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inserted
 
maryjames said:
Why people laugh at this comment?

Do they think I’m joking
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The issue I have with Bitcoin is it will be caught up in trade/ currency wars, taxation and crime

Bitcoin is by default governed by the US and China, as any transaction that used US and Chinese currency needs to comply with the US and Chinese laws. So if China or the US decide to lock up the founders, the top 100 bitcoin owners or system of Bitcoin, where is the market confidence in the platform?

Does anyone really think China and the US will allow Bitcoin to replace their currency? Of course not, they will let it run and then take control one way or another. Make money whilst you can but don't be left holding the baby.
 
Power Raid said:
The issue I have with Bitcoin is it will be caught up in trade/ currency wars, taxation and crime

Bitcoin is by default governed by the US and China, as any transaction that used US and Chinese currency needs to comply with the US and Chinese laws. So if China or the US decide to lock up the founders, the top 100 bitcoin owners or system of Bitcoin, where is the market confidence in the platform?

Does anyone really think China and the US will allow Bitcoin to replace their currency? Of course not, they will let it run and then take control one way or another. Make money whilst you can but don't be left holding the baby.
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Keep being poor. Not trying to be harsh just fact.

Do you understand what blockchain actually is and where the future is going?

You still have time to learn
 
maryjames said:
Keep being poor. Not trying to be harsh just fact.

Do you understand what blockchain actually is and where the future is going?

You still have time to learn
Click to expand...

your right

blockchain is the future

the question is which ones will succeed long term
 
maryjames said:
Ethereum. .. not heavily invested or anything .. lol
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one thing to look for in currency is "does it fulfill it's role as a storage of wealth"

if it doesn't, then it won't succeed long term

storage of wealth does not only refer to decreases but also increases. what I'm seeing with most crypto is it is an investment, which suggests it is not likely to last as a currency.
 

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Power Raid said:
one thing to look for in currency is "does it fulfill it's role as a storage of wealth"

if it doesn't, then it won't succeed long term

storage of wealth does not only refer to decreases but also increases. what I'm seeing with most crypto is it is an investment, which suggests it is not likely to last as a currency.
Click to expand...
Anyway don’t invest.
 
Power Raid said:
inserted
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I can't quote your image but I appreciate the replies.

I understand hedging costs, are you hedging revenue as well? Interesting, did you hedge copper?

I agreed with Crypto, its got a future but it's unclear what that future is, right now it feels like gambling based on the unknowns and sheer number of players in the market, good luck to anyone who's in there though.

Copper appears to be all the rage right now and I worry about gold with the rise of crypto.

If you're concerned about China manipulating moly, couldn't the same be said for rare earth?
 
sabre_ac said:
I can't quote your image but I appreciate the replies.

I understand hedging costs, are you hedging revenue as well? Interesting, did you hedge copper?

I agreed with Crypto, its got a future but it's unclear what that future is, right now it feels like gambling based on the unknowns and sheer number of players in the market, good luck to anyone who's in there though.

Copper appears to be all the rage right now and I worry about gold with the rise of crypto.

If you're concerned about China manipulating moly, couldn't the same be said for rare earth?
Click to expand...

banks (including ourselves) force mining companies to hedge, as it protects the project funding. Essentially if the mining company fails to deliver, you sell the hedge book and get your money back. If the company plods, the you just take the cream of the hedge. If the commodity price goes nuts, you make a killing.

so hedging is easy money from the investor perspective.


you're right re gold. I've never liked it and never will. Copper is a real interesting one. We need more copper now than ever but South America's copper is high and deep, Zambia's copper is in corrupt Zambia and the best stuff is in the triangle of Pakistan, Iran and Afghanistan (good luck).


in terms of boutiques, we use a private equity model where we use strategic funding (ie the US, EU or other) to leverage our return and strategic offtake guaranteeing our return. Without a pre-agreed off take with a reliable credit worthy partner, I'd stay away.
 
Power Raid said:
banks (including ourselves) force mining companies to hedge, as it protects the project funding. Essentially if the mining company fails to deliver, you sell the hedge book and get your money back. If the company plods, the you just take the cream of the hedge. If the commodity price goes nuts, you make a killing.
Click to expand...

Fair enough, from a perspective of protecting your investment, I get it. I'd argue hedging isn't in the best interest of the company itself.

Power Raid said:
you're right re gold. I've never liked it and never will. Copper is a real interesting one. We need more copper now than ever but South America's copper is high and deep, Zambia's copper is in corrupt Zambia and the best stuff is in the triangle of Pakistan, Iran and Afghanistan (good luck).
Click to expand...

I like Copper but unlike Gold, I feel there is still some massive resources out there that are not being mined, particularly in safe jurisdictions like Canada.

Power Raid said:
in terms of boutiques, we use a private equity model where we use strategic funding (ie the US, EU or other) to leverage our return and strategic offtake guaranteeing our return. Without a pre-agreed off take with a reliable credit worthy partner, I'd stay away.
Click to expand...

Do you stream?
 
This is what you do with s**t savings.. bought smart. People invested in crypto 12 months ago and held are now 10x to 100x up. Facts.

stockhead.com.au

Theta riches: Young Aussie dad turns $17k crypto investment into $1.4m - Stockhead

A 23-year-old Aussie gamer dumped by his girlfriend because of his “addiction” to a cryptocurrency has had the last laugh now that his $17,000 investment has made him a millionaire. Twitter and Reddit user “Grave” says he bought 100,000 Theta tokens in April 2020, paying 17c apiece. But six or...
stockhead.com.au stockhead.com.au
 
sabre_ac said:
Fair enough, from a perspective of protecting your investment, I get it. I'd argue hedging isn't in the best interest of the company itself.



I like Copper but unlike Gold, I feel there is still some massive resources out there that are not being mined, particularly in safe jurisdictions like Canada.



Do you stream?
Click to expand...

you're right re hedging.

hedging is for the benefit of the lender, not the mining company. Without a hedge, the commodity goes south and the mining company goes bust and the lender goes through an ugly two year period with the administrator in a highly regulated procedure. but if the company hedges, the mining company may still go under but the hedge book is sold by the lender and they walk away with their capital back.

in the case the commodity price goes north the mining company gets no benefit but the lender takes the cream. However if the mining costs go up in this boom, the mining company can go bust. So hedging flips the risk from south to north and the lender wins regardless.

but let's get real, you don't lend to a mining company on a 6% risk. you invest hoping for a 85% return on each investment, with wins and losses a 35% average is achievable year in year out. This reflects the risk.


Australia, US, Canada are all low risk but deposits are becoming harder to discover as they are deeper, harder to exploit as they often occur in national parks or other protected areas (faults leading to depression which = river or the opposite beautiful hillsides). They are lower grade and the cost of labour high. This has lead Rio into calling the lost decade, where they explored in low risk jurisdictions.

I'd say, watch conflict and the return of dictators in areas like Afghanistan, Africa and South America.


No we don't stream but we do inventory finance for the purposes of relationship management. We do however take royalties as part of our investment strategy.
 
Power Raid said:
you're right re hedging.

hedging is for the benefit of the lender, not the mining company. Without a hedge, the commodity goes south and the mining company goes bust and the lender goes through an ugly two year period with the administrator in a highly regulated procedure. but if the company hedges, the mining company may still go under but the hedge book is sold by the lender and they walk away with their capital back.

in the case the commodity price goes north the mining company gets no benefit but the lender takes the cream. However if the mining costs go up in this boom, the mining company can go bust. So hedging flips the risk from south to north and the lender wins regardless.

but let's get real, you don't lend to a mining company on a 6% risk. you invest hoping for a 85% return on each investment, with wins and losses a 35% average is achievable year in year out. This reflects the risk.
Click to expand...

I think you're making a good case for equity financing over debt ;).

Power Raid said:
Australia, US, Canada are all low risk but deposits are becoming harder to discover as they are deeper, harder to exploit as they often occur in national parks or other protected areas (faults leading to depression which = river or the opposite beautiful hillsides). They are lower grade and the cost of labour high. This has lead Rio into calling the lost decade, where they explored in low risk jurisdictions.

I'd say, watch conflict and the return of dictators in areas like Afghanistan, Africa and South America.
Click to expand...

Good point on labour costs will always be an issue in places like Australia and Canada as is the growing ESG movement and removing certain resources because of the long term environmental damage.

The U.S is an interesting one, the labour costs are not as much of an issue there (at least as far as I am aware) and their environmental regulations are more "workable".

Power Raid said:
No we don't stream but we do inventory finance for the purposes of relationship management. We do however take royalties as part of our investment strategy.
Click to expand...

Have you considered streaming? It doesn't seem to be a concept that is that prevalent in Australia.
 
maryjames said:
Anyway don’t invest.
Click to expand...

since our discussion china has sent shock waves in crypto

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: China bans crypto yet again

Bitcoin price has fallen 27% over the last ten days, making it the largest ten-day loss since the March 2020 collapse and the second-largest since Nov
www.fxstreet.com www.fxstreet.com

it does not mean the end of crypto. Just the opposite............crypto is the future.

my only question is which crypto? I feel china will destroy any crypto not controlled by them and same said with the US government.



FYI China and Russia murdered a Kazakh who wanted open pricing and trading on kazakh uranium. so will we see major powers give control over currency away?
 
Power Raid said:
since our discussion china has sent shock waves in crypto

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: China bans crypto yet again

Bitcoin price has fallen 27% over the last ten days, making it the largest ten-day loss since the March 2020 collapse and the second-largest since Nov
www.fxstreet.com www.fxstreet.com

it does not mean the end of crypto. Just the opposite............crypto is the future.

my only question is which crypto? I feel china will destroy any crypto not controlled by them and same said with the US government.



FYI China and Russia murdered a Kazakh who wanted open pricing and trading on kazakh uranium. so will we see major powers give control over currency away?
Click to expand...
Lol China ban crypto again.. more like they crash the market and buy more.
 
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