We Study Billionaires - The Investor’s Podcast Network TIP235: Gold Miners and Other Commodity Companies w/ Marin Katusa (Business Podcast)
Mar 24, 2019
Marin Katusa, a commodities expert and CEO of Katusa Research, shares his insights on investing in the gold mining sector. He discusses how to identify promising small gold stocks likely to attract larger competitors and highlights the importance of analyzing executive compensation and debt trends. Katusa explores the cyclical nature of gold prices and advocates for risk-management strategies in resource investments. He also unveils the benefits of private placements, emphasizing thorough research to maximize potential returns.
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Gold Sector Debt
- The gold sector's debt-to-equity ratio drastically increased from 1:1 in 2007 to 18:1 a decade later.
- This shift resulted from cheap debt replacing equity for dividend payments, enriching debt holders at the expense of shareholders.
Contrarian Value Investing in Gold
- Partner with the best people in the industry.
- Buy undervalued assets in a down market, focusing on multi-generational assets with low production costs.
Gold Buyout Factors
- Marin Katusa's research on 340 gold buyouts revealed six key factors large miners seek in acquisitions.
- These factors include permitting risk, jurisdictional risk, and the type of metallurgy.
