Amir Adnani, founder of GoldMining Inc. (TSX: GOLD & US: GLDLF), isn’t shy about the fact that he’s not the originator of the business model of the company. He’s following the trails of success left by others. Just like Buffett mimicked, tweaked and then surpassed his own mentor, Benjamin Graham, becoming the best investor in history, so Amir has utilized a PROVEN model, implemented by billionaire mining entrepreneur, Ross Beaty.
That’s greatness, in my book. Even Warren Buffett famously said that the FASTEST and SUREST way to succeed in life is to learn what WORKS in similar cases and to personalize it.
Here’s what Lumina Copper’s strategy was in the early 2000s. This is the company that GoldMining Inc. (TSX: GOLD & US: GLDLF) is basing its strategy upon, and has the potential to experience similar success.
As you can see, in 2003, Ross Beaty began acquiring copper assets at $0.80/lb. The company’s market cap was a mere $10M. As copper’s price jumped by 20%, the market cap quadrupled. By Mid-2005, the market cap was 16-TIMES what it was just two years prior, as the rising price of copper made the assets more valuable, because their ECONOMICS improved.
Beaty then decided to implement an exit strategy of splitting the parent company into four separate entities, unlocking the value of the individual assets, by letting standalone management teams focus on each of them as a main goal.
93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.
Wealth Education and Investment Principles Are Hidden From Public Database On Purpose!
Build The Knowledge Base To Set Yourself Up For A Wealthy Retirement and Leverage The Relationships We Are Forming With Proven Small-Cap Management Teams To Hit Grand-Slams!
The original company was split into four companies. Over the next few years, those assets were sold for about $1.2-billion, an incredible return on an investment of just $80-million.
That’s how you make 1,500% RETURNS in the mining business: (1) buy distressed assets, which have a higher degree of potential, (2) patiently wait for the cycle to turn, while keeping low overhead costs, (3) implementing a WISE exit strategy, which could be (A) splitting the various assets into individual projects, (B) selling them, (C) developing them on your own or with a JV partner, and (4) creating royalty deals.
Here’s the timeline of GoldMining Inc.’s (TSX: GOLD & US: GLDLF) acquisitions:
The price of gold bottomed at $1,053/ounce in December 2015. At that time, the company’s share price was CAD$0.48. By August 2016, the price of gold had risen by 30%, while the company’s share price SOARED by hundreds of percent, finally touching CAD$3.14.
Instead of implementing an exit strategy as Beaty did, management, in this case, decided that the cycle wasn’t topping off and that the price of gold would allow it to extract even more equity and value in the future.
Gold, indeed, has continued to rise, now up 50% since bottoming. But, COMPARED with copper’s move above in gaining about 450%, gold’s cycle is still in its early days.
Beaty’s companies were sold after the spot price of copper had doubled, compared with the cycle’s bottom. For gold, this would mean at least $2,000. In other words, there’s upside potential right now, if this company is following in the footsteps of previous successes.
Judging by the shareholders of GoldMining Inc. (TSX: GOLD & US: GLDLF) – people like Rick Rule, Marin Katusa, Doug Casey and others, who were THERE in the days of the copper rally and backed Ross Beaty as well – this is the real deal.
Consider shares of GoldMining Inc. (TSX: GOLD & US: GLDLF)!
Research Partner, PortfolioWealthGlobal.com
Protect Yourself Now, By Building A Fully-Hedged Financial Fortress!
Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!
No matter how good an investment sounds, and no mater who is selling it, make sure you’re dealing with a registered investment professional. Use the free, simple search at investor.gov This work is based on public filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought. Never base any decision off of our advertorials. Wallace Hill Partners LTD (PortfolioWealthGlobal) stock profiles are intended to be stock ideas, NOT recommendations. The ideas we present are high risk and you can lose your entire investment, we are not stock pickers, market timers, investment advisers, and you should not base any investment decision off our website, emails, videos, or anything we publish. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this profile was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. Never base any investment decision from information contained in our website or emails or any or our publications. Our report is not intended to be, nor should it be construed as an offer to buy or sell, or a solicitation of an offer to buy or sell securities, or as a recommendation to purchase anything. This publication may provide the addresses or contain hyperlinks to websites; we disclaim any responsibility for the content of any such other websites. Wallace Hill LTD has been compensated by Gold Mining Inc for this email coverage. We have entered into a one year digital marketing agreement and have received one hundred thousand Canadian dollars and stock options that vest over twelve months. We also own shares of the company and will never sell shares within four weeks of any email coverage. Please use our site as a place to get ideas. Enjoy our videos and news analysis, but never make an investment decision off of anything we say.
Please read our full disclaimer at PortfolioWealthGlobal.com/