The Art Of A Mining Deal

I am currently in Bagota to meet a couple junior mining CEOs. Jerry’s a friend, and the CEO of one of my largest positions. Dennis leads the other, a company I’ve had my eye on for some time now. I just haven’t been quite ready to pull the trigger, maybe tonight is the night.

A word to the wise, if you wanna play on the world’s most volatile stock exchange, get to know your management. This is a business like any other, and who’s running it couldn’t be more important.

Never, never underestimate an idiot’s ability to screw up a good thing, regardless of how good the project looks on paper. They can tear down a company in far less time than it took to build in the first place. Even worse are the intelligent ones that just weren’t raised right.

Mining, like too many sectors these days, is littered with seedy characters the world would just be better off without. They’re sharp, charismatic, and believe me they can tell you a story, but don’t kid yourself. They’re way more concerned about their next Porsche payment than they are their responsibilities as a fiduciary.

Also, if management doesn’t have their own money at risk alongside yours, run. Get them on the phone and ask them point blank yourself. If they blink, or if they’re too busy to give you the time of day, next deal. Simple.

The best managers have their own money on the table, pick up when you call, and have a track record of winning for their shareholders. Jerry is all of those things, and one of the very best out there, full stop. I got in with him at .06 cents, today he’s trading at .35. Exactly the kind of guy you want running your companies. As my friend Orrin Woodward likes to say “Everything rises and falls on leadership.”

Including penny stocks.

I check into the Estelar La Fontana. It’s Valentine’s day, and they’re celebrating.

Bought me roses. Clever.

I head across the street to a bar, aptly named just “BEER.”

Jerry waves me over.

“Christoph, meet Dennis, CEO of the company we’ve been speaking about. As you know, I joined their board a few months back.”

I’m curious, that’s for sure. When Jerry called me 72 hours ago, all he would say is:

“I’m closing down a deal for these guys on Wednesday. You’re gonna want to see this Christoph. Game Changer.”

I ask for the largest stout on the menu. She returns with a gallon of what looks to be Guinness. My kind of bar right here.

We settle in. “How’s your son Jerry? How’s the band going?”

Jerry beams. His son is in a band I follow, Calpurnia. Lead singer is the famous Finn Wolfhard, lead actor on Netflix’s Stranger Things, pretty cool story.

“He’s great. Just recorded their first album. Man, they grow up fast.”

One proud father right there. I love watching this guy talk about his kid. Can’t wait.

Giancarlo joins the table. Country manager for the project. He’s young, Colombian, and has a smile that’d make Tom Cruise blush. Guy looks more like an Abercrombie model than a mining manager.

And he’s built like a brick sh*thouse. Former special forces. I like this company more already.

Another round of stouts for the table, and Jerry starts in on an overview of the existing projects, drawing them one by one on the stout-stained white paper placemats.

Four projects in Colombia, another in Nicaguara. Of particular interest is a 22 kilometer strip they have in the south of the country, adjacent to a property just scooped up by a Major for 190 million.

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Christoph Grizzard 3 years ago Author's comment

Sorry didn't have authorization to list the companies by name, but there's enough clues in the article to deduce with minimal research.

Bill Myers 3 years ago Member's comment

Lol, so you are going to make me work for my money? Alright, challenge accepted!

Bill Myers 3 years ago Member's comment

So which companies were these?