⛏ Should You Invest In This Region?

Greetings Contrarian,

Here’s another delightful Sunday edition, with one of your most pressing questions:

Hi Geographically Curious George,

Thank you for your question. Speaking of South America is almost as complex as speaking about Africa - the DRC is not the same as the Ivory Coast, which is different to everything else.

Same goes for S. America.

Projects in Peru and Ecuador still get a massive discount - politics being #1 reason.

Colombia is heating up and due a renaissance because of grade and size - we’re biased because of our newly woven ties with local company Quimbaya Gold which is in a unique position to profit from the coming boom. Leftist government has proven once again to not be popular enough to gain much of people’s hearts and therefore is unlikely to gain traction.

Guyana and Suriname are getting hot - there’s oil, and there’s gold to be had.

Brazil is a middle-of-the-road but potent beast. Because it’s so darn large and rich with minerals, the upside is only curbed by the potential red-tape - but at least there has been a mining code that’s been well-established for several years and seems to work. More on this on Matt Geiger’s excellent July letter here.

Argentina has had amazing discoveries (specially silver and copper) and its local governments seem to supersede the federal level, which is itself for the first time in forever leaning more libertarian than most thought possible, with Javier Millei having a real shot at becoming president. We don’t bet against Argentina.

Chile seems to be a big questions mark regarding its shifting politics and massive mineral endowment.

All in all, each jurisdiction seems to have its high and lows, but are generally OK for investment, as long as you are not too highly concentrated. Remember, any country or region can become as difficult as Niger with its current coup.

If you don’t believe us, take a look at Quebec - which is now a powerhouse for lithium discoveries but has yet to lift a ban on uranium mining. It was imposed in 2013 as a late knee-jerk reaction to Fukushima and it has yet to be looked at from a post-Fukushima lens.

When it does, watch out!

Diversify and thou shalt see thy profits multiply. Or not.

Happy speculating (responsibly),

The Editor

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational/entertainment and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.