Jim Paterson: Precious Metals Becoming more Precious by the Day
Tom welcomes back Jim Paterson, Chairman, and CEO of ValOre Metals.
Jim says precious metals have become even more precious due to the massive amount of money printing. The inflation we are going to suffer in the coming years is a direct result.
When you put real money on the line, you ask more questions and pay closer attention as an investor. You need to be constantly investing because you will learn from your mistakes. A mistake in a cyclical bull market can often be overlooked, but an error in a bear market could be catastrophic.
Jim discusses what to watch out for in mining equities. It’s essential to understand what is happening in companies because you have to be very careful with your money. Experience and accountability matter in companies, and having experienced board members can be vital.
He discusses the uses for platinum, palladium, and lithium in protecting the environment. Most palladium production comes from just five companies, so that demand fluctuations can have outsized effects on the price.
The Fukushima earthquake and related problems had a very negative impact on the uranium market and price. Uranium remains a very long-term project for ValOre Metals, but when uranium finally moves, they are willing and ready.
ValOre Metals focus is on de-risking large district-scale projects and making them blinding evident to others that they are viable. Large companies are looking for projects that will produce for multiple market cycles. Larger projects allows companies to recoup their investment while having numerous opportunities for periods of good returns.
He is happy to see improvements in the uranium space. Those management teams that are forward thinkers are now raising money, purchasing and stockpiling physical uranium from the spot market. This is helping to promote change in the uranium space.
Utilities should be encouraging companies to conduct exploration. Instead, they will likely end up paying much higher prices when supplies run out. Uranium is a commodity that can quickly gap up when supply gets tight. In that kind of environment, the returns from juniors can be tremendous.
Time Stamp References:
0:00 – Introduction
0:33 – Precious Metals
1:37 – Investment Lessons
3:58 – Market Cycle Predictions
6:49 – Experienced Boards
8:35 – Dilution & Raising Equity
9:19 – Platinum & Palladium
11:23 – Demand & Exploration
14:01 – Uranium Holdings
16:34 – De-risking Projects
20:15 – Uranium Changes
25:36 – ValOre Palladium Project
27:00 – Discovery Group
31:04 – Wrap Up
Talking Points From This Episode
- Precious metals and money printing.
- Finding good mining equities and investing strategies.
- Platinum, Palladium & Energy metal demand.
- Uranium demand and coming supply issues.
Jim Paterson is Chairman and CEO of ValOre Metals Corp and is a principal of the Discovery Group. Jim remains actively involved in marketing and corporate development activities for the group companies since 2002.
Jim has over twenty-two years of industry experience, including capital raises, acquisitions, joint ventures, spin-outs, RTOs, and IPOs. As the Chairman and CEO of Valore Metals Corp., he was a driving force behind more than $60 million in equity financings for ValOre that lead to multiple discoveries and a 200% increase in mineral resources at ValOre’s Angilak uranium project.
Jim was a long-standing and active director of Kaminak Gold Corp. (acquired by Goldcorp.) and founding director of Northern Empire Resources Corp. (acquired by Coeur Mining). In 2007, Jim founded Corsa Capital Ltd. Corsa’s 2008 IPO lead to a 2010 transaction that created a leading U.S. metallurgical coal producer with a C$250M market capitalization.
Jim is the Chairman and CEO of ValOre Metals Corp., a director of Bluestone Resources Inc., and Strategic Advisor to Great Bear Resources Ltd., Genesis Metals Corp., Dunnedin Ventures Inc., and Ethos Gold Corp.