Alberto Alvarez: Uranium, Ero Copper, and PGMs

13 snips

Mar 22, 2024

The podcast delves into the world of commodities with a focus on uranium assets, Ero Copper, and Platinum Group Metals (PGMs). Discussions include transitioning from uranium to copper investments, marketing strategies in the mining industry, analyzing investment opportunities, and exploring the future of PGMs. The conversation also touches on investment opportunities in metals and royalties, engaging discussions on Substack and Twitter, and ends with gratitude and sponsor ads for financial services.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

ANECDOTE

How Uranium Research Started

Alberto discovered uranium after watching a mining conference video and dove deep into the thesis despite initial losses.
He lost ~50% from 2017–2020 but stayed because the producers were selling below production cost, which convinced him of long-term value.

INSIGHT

Copper Mirrors Uranium's Structural Case

Copper and uranium share structural demand from electrification and lack substitutes, making them strategic metals.
Declining grades and deeper mines raise costs and environmental footprints, tightening future supply.

ADVICE

Model Multiple Production Scenarios

Model both base and doubled production scenarios and use conservative historical costs with inflation baked in.
Anchor valuation to peer P/E multiples and realistic commodity prices to estimate upside conservatively.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Alberto is one of the most underfollowed accounts on Twitter/X. He provides tremendous value for generalist investors willing to hunt in commodity markets.

This week, Alberto dove deep into uranium assets, Ero Copper, and the bull case for Platinum Group Metals (PGMs).

I'm a huge fan of Alberto's Substack, which you can read here: https://albertoag.substack.com/

Also, make sure to follow Alberto on Twitter @AAGResearch

Finally, a big thanks to the following sponsors for making the podcast a reality.

Mitimco

This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns in support of MIT's mission. To help the emerging manager community more broadly, they created ⁠⁠⁠⁠⁠⁠⁠⁠⁠emergingmanagers.org⁠⁠⁠⁠⁠⁠⁠⁠⁠, a website for emerging manager stockpickers.

For those looking to start a stock-picking fund or just looking to learn about how others have done it, I highly recommend the site. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers and more!

Tegus

Tegus has the world’s largest collection of instantly available interviews on all the public and private companies you care about. Tegus actually makes primary research fun and effortless, too. Instead of weeks and months, you can learn a new industry or company in hours, and all from those that know it best.

I spend nearly all my time reading Tegus calls on existing holdings and new ideas. And I know you will too. So if you’re interested, head on over to ⁠⁠⁠⁠⁠⁠⁠⁠⁠tegus.co/valuehive⁠⁠⁠⁠⁠⁠⁠⁠⁠ for a free trial to see for yourself.

TIKR

TIKR is THE BEST resource for all stock market data, I use TIKR every day in my process, and I know you will too. Make sure to check them out at ⁠⁠⁠⁠⁠⁠⁠⁠⁠TIKR.com/hive⁠⁠⁠⁠⁠⁠⁠⁠⁠.

Marhelm

Marhelm is an information service for investors to find real value in an overvalued market. With a focus on shipping and commodities, Marhelm helps you stay on the pulse of global trade, track global sentiment, and identify compelling investment opportunities. Get 20% of your subscription by using the code VALUE at checkout. Check it out ⁠⁠⁠⁠⁠⁠⁠⁠⁠here⁠⁠⁠⁠⁠⁠⁠⁠⁠.