Christopher E. Herald is CEO, President and Director of Solitario Zinc Corp. Mr. Herald has over 40 years of experience in the mining industry.
He was responsible for the formation of Solitario in 1992 and has directed the company since then. He was instrumental in discovering the 1.5 million-ounce high-grade Buckhorn Mountain Gold deposit and its subsequent sale to Kinross Gold for approximately $240 million in 2006.
In his exclusive 2,623 word interview, only in the Wall Street Transcript, this seasoned mining industry veteran discusses the development of his company for investors.
“Solitario has made a lot of progress in the last 12 months. I think by far the most important is the work that our partner Nexa Resources has done on our Florida Canyon zinc project in Peru. There, we’ve just completed a 17,000-meter drilling program, the largest drilling program in the history of the project.”
“One of the potential new major uses of zinc could be what’s called zinc-air batteries. Everybody’s going to battery storage, cars, in just about anything you see, people are trying to equip machinery with battery power.
Now, zinc isn’t a light metal compared to lithium. It’s not going to replace lithium in terms of car batteries, but what zinc-air batteries can do, they can store large amounts of electricity — for instance, for power plants such as for solar and wind generation.”
“I’m not concerned about the projects themselves; they’re very solid. They’re two of the three highest-grade zinc deposits held by juniors in the world.
Both Florida Canyon and Lik are 12%-plus deposits in terms of zinc grade, where the average zinc mine in the world today produces at an average grade of maybe 5% zinc, at most. And our two projects are 2.5 times that grade, so the projects don’t have a lot of risks to them.”
Get the complete 2,623 word interview, only in the Wall Street Transcript.
Stefan Ioannou, Ph.D., is Analyst of Cormark Securities Inc. Dr. Ioannou is a mining engineer and holds a Ph.D. in economic geology from the University of Toronto.
He joined Cormark in December 2016, working in equity research for 13 years with Haywood Securities — base metals analyst since 2006. Prior to that, Dr. Ioannou worked as an exploration geologist in Nevada and throughout the Canadian Shield.
In this exclusive 2,882 word interview with the Wall Street Transcript, Dr. Ioannou reveals his insight into near term metal prices.
“One of the things that we’re hearing a lot more about is electric vehicles and what they mean for metal consumption in general, and obviously for copper.
When you think of copper, you should think of electrification. And so that obviously fits right into the electric vehicle narrative. Copper consumption, as it pertains to EVs, is definitely a new emerging demand.
But to put it in perspective, the numbers that are out there right now suggest that incremental EV-related copper demand over time is going to be on the order of about 2 million to 3 million tons per annum.
Current global copper consumption is around 23 million tons per annum, so incremental EV usage stands to boost overall demand by about 10%.”
Some top stocks will benefit from this economic trend:
“One name that comes to mind is Trilogy Metals. They have a project in Alaska called Arctic, which is an advanced-stage project, very high grade.
It will produce copper, zinc and lead, as well as precious metals. A key thing here is that the project is relatively remote, so it will require about a 340-kilometer-long road to access it.
Work with the government is already well-underway to get that road permitted, and we should be seeing a sightline to those permits by early next year. Once in hand, it’ll be a significant catalyst for the project going forward.”
Get the complete recommendation list in this exclusive 2,882 word interview, only in the Wall Street Transcript.
Michael Curran is a Managing Director with Beacon Securities, where he has been a Mining Research Analyst for over five years. Prior to joining Beacon, he held similar roles over his 24-year career with RBC, CIBC, Merrill Lynch Canada and Midland Walwyn.
Mr. Curran is a geologist, having graduated with a B.S. in geology and chemistry from Carleton University in Ottawa and an M.S. in mineral exploration from the Royal School of Mines in London, U.K.
In this 2,803 word article, exclusive to the Wall Street Transcript, Mr. Curran reveals the best precious metal investment choices for 2020 and beyond.
“We still think we’re in a fundamentally positive situation for gold. We think even if you look at any of the technical analysis, it will tell you there’s still some strong support and that we could see gold back at $1,600 or $1,700 an ounce. So we’re definitely positive in terms of the general trend for gold.
We are looking for higher prices in 2020. ”
“…One would be Velocity Minerals (CVE:VLC). That’s an explorer/developer in Bulgaria in Europe. They have one deposit, Rozino, where a preliminary economic study has already shown a robust project.
They have several other exploration projects in Bulgaria.
And I think the real key for Velocity being successful transitioning from an explorer to a producer is that their projects are all joint ventures with a local Bulgarian mining company that has an existing processing plant.
So it’s a lot easier in terms of permitting and in terms of the capital requirements to become a producer. So that’s one of our favorite names.”
Another recommendation is in an unlikely geography:
“…A third exploration early-stage company we like is called Japan Gold (CVE:JG). And obviously, from the name, they’re in Japan. We find this a very interesting situation.
We’ve never heard of any North American explorers active in Japan. And the laws just changed a few years ago allowing foreign mining companies to have exploration licenses in Japan.
It seems most of the gold mines in Japan were closed in the Second World War. Most of them have not reopened since the 1940s.
This is an area of the world where you have high-grade gold and silver veins.”
Get the full scoop on this and many other recommendations in the complete 2,803 word article, exclusively found in the Wall Street Transcript.
Caesar M.P. Bryan joined Gabelli Funds, Inc. in 1994 as the Portfolio Manager of the Gabelli Gold Fund. He has also managed the GAMCO International Growth Fund since its inception in June 1995. Prior to joining Gabelli Funds, Mr. Bryan was a portfolio manager at Lexington Management. At Lexington, he was responsible for managing the Lexington Gold Fund and international equity portfolios. Mr. Bryan started his career at Samuel Montagu, a London-based Merchant Bank in 1979.
Chris Mancini, CFA, is a Research Analyst at Gabelli Funds, Inc. specializing in precious metals mining companies. He has over 18 years of investment management experience and has worked directly on the gold equity portfolios at Gabelli for the past eight years.
In this 2,606 word interview, exclusive to the Wall Street Transcript, these widely reknown portfolio managers reveal the background to their current top portfolio holdings.
“We are global investors. This is an all-cap strategy.
There are very few large-cap stocks; there are many mid- and small-cap stocks. So we invest across the capitalization spectrum. We like to pay close attention to the quality of a company’s operations, mines and other assets.
Valuation is an important part of our investment methodology. We do apply a variety of different valuation metrics in our stock-selection process.
Since it’s a mid- to small-cap sector with a few exceptions, and it’s a difficult and hard industry, we do maintain close contact with managements of the current fund investments and also with potential investments. So we visit with management teams on a very regular basis.
Just to summarize, we are long-term investors…In terms of geographic breakdown, about 74% in North America, South Africa is about 2.7%, U.K. 5.4% and Australia 17.8%.”
One aspect of their mining investments is their social standing with the local workforce:
“Also, relative to its physical location, we want to see how close the population source is and what the company’s relationship is with the population source and whether that could be an issue at some point in the future and whether it could be a benefit or a disadvantage.
That means if it’s a mine that’s near a mining town, an established mining town like Val-d’Or, Quebec, or Elko, Nevada, that’s obviously a positive thing.
If it’s in a new place, like in the Democratic Republic of the Congo, and the company had to move artisanal miners from the mine site, that might be a source of friction for the company. We have to understand what the company’s social license is in that context.
The other thing we look for relative to the actual operation is its safety culture.”
One example of a successful company in the portfolio is detailed by the two asset managers:
“One of our strongest conviction names is Newmont (NYSE:NEM), which we think is really a turnaround story. Newmont acquired Goldcorp.
The deal was consummated in April of this year. Goldcorp’s assets were underperforming because we think that they were undermanaged and undercapitalized.
Newmont has a very good, proven management team, which employed a program called “Full Potential” at all of its mines from 2013 to even now; it’s ongoing.
During this time, the company brought down its all-in sustaining costs from around $1,200 an ounce to around $900 an ounce. They did this through maximizing…”
Get the full story on all the top portfolio picks from this 2,606 word interview, exclusive to the Wall Street Transcript.
James Morton is Chief Investment Officer and a Portfolio Manager at Santa Lucia Asset Management Ltd. He has extensive expertise in recovering and small-cap companies as well as emerging markets.
Mr. Morton’s career in the investment industry began in 1985, and he was a subadviser to Mackenzie Cundill between 1996 and 2018. He is an accomplished author, editor and investment columnist.
Mr. Morton holds a degree in law from Trinity Hall, Cambridge University and an M.A. in third-world economics as well as an MBA from Stanford University.
In this exclusive 4,817 word interview in the Wall Street Transcript, Mr. Morton reveals many hidden investment gems and the rationale behind their position in his portfolio.
“We’re in the Thucydides trap, so it’s not just about trade; it’s about a whole relative shift in economic performance and global power.
In that context, I think whatever the day-to-day narrative and whatever the news flow is, you have to look at the broader longer-term picture and position your portfolio in a relatively defensive way.
We’ve identified four themes where we can find value around Asia with income as well, and also, there are winners in this environment, although probably more losers. Obviously, the first is yield.
We can still find plenty of good-quality companies yielding over 6%. Even if U.S. interest rates are ticking up a bit now, that’s still a heck of a gap over government bonds, which are coming down still in most countries here in Asia, coming down in India, Indonesia, Thailand, for example, and the Philippines.
So the spread to government bonds is widening, and we now find a number of companies that have a higher equity yield than bond yield.”
One example is an Asian based equity play:
“They’ve won a recent deal in Abu Dhabi, where they were preferred to National Oilwell Velcro (NYSE:NOV), and this is a sort of game changer really because this was won not on price but on product quality.
For years, Hilong has been the number two, and now, according to someone who uses a lot of pipe, at least is on par in quality to the world number one. So that’s the good news there.
The second operation is onshore drilling rigs and related services. Now, this is a capital-consumptive business. You have to spend the money and make an upfront investment and only then get your stream of cash earnings in the future.
Hilong has built up an attractive global footprint. Interestingly, they don’t do any work in China itself because they haven’t found the business terms sufficiently attractive, but they are in many countries around the world.
Over the last five years, they built up their drilling rig fleet from six to 24…”
Get the rest of the detail on this and many other investment gems in the 4,817 word interview with Mr. Morton, only in the Wall Street Transcript.
Stephen Bonnyman, MBA, CFA, is Co-Head, North American Equity Research and Portfolio Manager of AGF Management Limited’s Canadian and global resources portfolios.
Working closely with the AGF research teams, Mr. Bonnyman focuses on identifying resource companies with solid balance sheets, advantaged cost structures, attractive valuations or unrecognized growth. Mr. Bonnyman is a member of the AGF Asset Allocation Committee — AAC — which is comprised of senior portfolio managers who are responsible for various regions and asset classes.
In this 2,879 word interview, exclusively available in the Wall Street Transcript, Mr. Bonnyman reveals his best bets for investors in real assets.
“AGF Global Real Asset Fund was constituted in the first quarter of this year looking for a solution for clients to provide an inflation hedge and a market hedge that didn’t require them to be active traders.
The real asset fund effectively is designed as a long-only public market portfolio to hedge against inflation and to be uncorrelated with the broader market.
We do that by focusing the investment universe on infrastructure, utilities, real estate, energy, materials and precious metals.
The fund has the capability of investing globally in equities, in debt, in physical precious metals, and it utilizes a derivatives overlay strategy to either enhance the yield or modify the risk characteristics of the securities within the portfolio.”
In the interview, Mr. Bonnyman reveals many of his top investment prospects:
“We have a bias toward production since, for the most part, what we’re trying to do is gain leverage to the gold price and reflect that into the portfolio. But we do own explorers.
As I had mentioned, where we see mispriced opportunities or where we see a catalyst in place, where a stock can make a material difference in its valuations over a couple of years, we will step in. In fact, one of our larger precious metals positions is a company called SilverCrest (NYSEAMERICAN:SILV) where they are approaching a production decision. It’s an extraordinary geological opportunity, and it’s been a great stock for us.”
Get the rest of Mr. Bonnyman’s exclusive 2,978 word interview, only in the Wall Street Transcript.
Mark Madsen, CFA, is a Portfolio Manager and Senior Research Analyst at Grandeur Peak Global Advisors. He works on the Grandeur Peak Global Reach Fund (MUTF:GPROX), Grandeur Peak International Opportunities Fund (MUTF:GPIOX) and Grandeur Peak Global Contrarian Fund (MUTF:GPGCX). He is also a senior research analyst with a specialty focus on the industrials, energy and materials sectors globally.
Keefer Babbitt, CFA, is a Portfolio Manager and Senior Research Analyst at Grandeur Peak Global Advisors. He works on the Grandeur Peak Global Contrarian Fund (MUTF:GPGCX) and the Grandeur Peak Global Reach Fund (MUTF:GPROX).
Dane Nielson is a Research Analyst at Grandeur Peak Global Advisors. Mr. Nielson is a global research analyst covering Australia, New Zealand, Canada, Latin America, the Middle East and Africa. He is also Lead Analyst on the Grandeur Peak Global Contrarian Fund (MUTF:GPGCX).
In this 3,439 word interview, exclusively provided to the Wall Street Transcript, these 3 money managers inform the investing public of their top convictions
“We try to find companies that we call best-in-class growth or undiscovered gems. As Mark was alluding to, we’re looking for companies that are small and under the radar. They’re really well-managed companies, but they’re tiny in terms of market cap.
A lot of people don’t spend a lot of time looking at them on the active side because you can’t put a ton of assets into them. And then, passive investing doesn’t really want to own these either because there’s not a lot of liquidity typically. And again, since they’re small on the microcap side, they don’t make it into the index in a meaningful way most of the time.
One name that we really like right now is called BBI Life Sciences (HKG:1035). This is what we call an undiscovered gem, best-in-class growth company. It’s a $150 million-market-cap company, and it’s a Chinese-based company. And what we’ve identified here is a play on the Chinese health care and life sciences industry.
The Chinese government is pretty set on developing their own R&D and pharmaceutical industry in China itself. And we want to participate in that, but we don’t really want to try to choose what pharma company or what drug specifically will end up becoming the big winner.
What we want to do is play that trend.”
Get the other top picks exclusively from this 3,439 word interview, only provided to the Wall Street Transcript.
Melody Prenner Bryant joined Gabelli Asset Management Company in 2018 as a Portfolio Manager and recently also joined the portfolio management team of the Gabelli ESG Fund in February 2019.
Ms. Bryant has almost 30 years of experience as a Portfolio Manager, having begun her career as a security analyst for Oppenheimer Capital Corp. She then joined John A. Levin & Co., Inc. as a security analyst and subsequently became a portfolio manager, Co-Chairman and a member of the board of directors of BKF Capital, a holding company for the asset management firm. She lives with her husband and five children in New York City.
Christina Alfandary rejoined Gabelli Asset Management Company in 2016 as Managing Director, Environmental, Social & Governance — ESG — and Sustainable Investments.
In her role, she leads the company’s expansion of its ESG integration efforts and ESG investing capabilities. Prior to rejoining, she was Senior Managing Director, Co-Head of Nikko Asset Management Americas, Inc. where she worked from 2005 to 2015.
A native of California, Ms. Alfandary received an MBA in finance from Columbia Business School and earned her B.A. from Lewis & Clark College.
In this 2,802 word interview, exclusive to the Wall Street Transcript, these two top portfolio managers reveal a unique investment vision with specific examples.
“A second name is Alphabet (NASDAQ:GOOG), the parent company of Google. And here we have done a considerable amount of work, particularly because there are ESG concerns regarding cybersecurity and privacy issues that have come to the front.
But we feel very confident after speaking to the management many times on these topics that they’re ring-fencing the business and they’re doing their best to comply with all requirements that the government is demanding. Their cybersecurity is extremely robust.
What’s interesting to us isn’t so much the plain-vanilla Google business, the search business, but rather the business that’s called “Other Bets.”
The Other Bets are a group of companies that Alphabet has invested in over time. And these collectively are losing money at the moment, but many of them represent really significant value and opportunity.”
Get the complete picture on this and several other top picks in this 2,802 word interview, exclusive to the Wall Street Transcript.
David Corris, CFA, is Head of Disciplined Equities and Portfolio Manager, Disciplined Equities at BMO Global Asset Management. Mr. Corris heads the BMO Disciplined Equity Team and is responsible for equity portfolio management and research. He joined the company in 2008.
Mr. Corris began his investment management career in 1999 and was a quantitative equity portfolio manager/researcher at Northern Trust Global Investments and a quantitative equity research analyst at Citigroup Asset Management.
He holds an MBA from Harvard Business School and a B.S. in mathematics and quantitative economics from the University of Wisconsin. In addition, he is a CFA charterholder and a member of the CFA Institute, the CFA Society of Chicago and the Chicago Quantitative Alliance.
In this 2,394 word interview, exclusively provided to the Wall Street Transcript, Mr. Corris delivers some insights from his portfolio:
“One example of a lesser-known holding is Bright Horizons Family Solutions (NYSE:BFAM). They offer employer-sponsored child care. Their revenue growth has been in the high single digits, their earnings growth has been in the mid-double digits, and their business model is stable because employers would not cut off the child care benefit, even during a recession.
It’s also a business that tends to have longer-term contracts with employers and becomes a locked-in part of the employee benefit package, which again makes it a defensive holding.”
Another top pick further illustrates his investment philosophy:
“…Another example would be Waste Management (NYSE:WM). They are the largest public waste management company nationally. They’ve demonstrated that they can achieve mid-single-digit revenue growth with low-single-digit earnings growth in a consistent, organic manner.
They also have a stable business model, and while they’re technically considered an industrial company, in many ways, they behave as a utility. We view them as a fundamentally strong and highly stable business that will do well in all types of market environments, including a recession.”
Get the full detail on these and all the other top picks from David Corris, only in this exclusive 2,394 word interview, in this new issue of the Wall Street Transcript,
Erik Holmlin, President and Chief Executive Officer of Bionano Genomics, Inc. (NASDAQ:BNGO), has more than two decades of experience developing innovative solutions and companies in the life sciences and health care industries.
His experience includes positions at GenVault Corporation as CEO, Exiqon A/S as CCO and Becton Dickinson as Vice President of Marketing and Development.
In 2001, Dr. Holmlin led the formation and financing efforts of GeneOhm Sciences, Inc. and orchestrated the company’s acquisition by Becton Dickinson in 2006. He also served as an entrepreneur in residence — EIR — at leading life-science venture capital firm Domain Associates, LLC. Dr. Holmlin was a National Institutes of Health postdoctoral fellow at Harvard University and a National Science Foundation predoctoral fellow at the California Institute of Technology, Pasadena — Caltech.
He holds a Ph.D. in chemistry from Caltech and MBAs from UC Berkeley and Columbia University.
In his exclusive 1,777 word interview in the Wall Street Transcript, Dr. Holmlin describes the upside for his company:
“The opportunity that is in front of Bionano and the Saphyr is made possible because while traditional/commercial sequencers are incredibly robust — Illumina is an example of a sequencing company — those sequencers are able to analyze some types of genomic variation but not all types, and the Saphyr system analyzes the types of genomic variation that sequencers don’t.
The types that we analyze are called structural variations, and they involve a change in structure of the genome as opposed to a change in its sequence.”
This proprietary platform technology enables genetic sequencing not covered by the Ilumina product line:
“But in the middle, there’s a whole class of variation called structural variation, and sequencers are essentially blind to those because they don’t so much involve a change in sequence, but rather, they involve a change in genome structure, the location of the sequence on a particular chromosome.
Now, structural variations are very important in cancer, for example. Ninety percent of blood cancers are caused by a structural variation, and yet sequencers cannot detect those.
So we built the Saphyr to be a structural variation detector. It’s based on direct imaging of the chromosomal fragments that are contained in the cells, and that imaging reveals certain patterns that in turn we’re able to read and interpret and, therefore, determine the structure of the genome.
What’s unique about us is that we can see structure, but we cannot see point mutations, and it’s the inverse for sequencers. For example, the sequencers that Illumina sells can see point mutations but not structure. So we are a very perfect complement to sequencers out in the field.”
Read the entire 1,777 word interview with Dr. Holmlin, exclusively in the Wall Street Transcript.