He talks about gold and copper. He. is a bull on both metals.
https://youtu.be/tfVnBTAxY64
founder of Franco-Nevada Mining interview
Re: founder of Franco-Nevada Mining interview
Does anyone follow Franco Nevada now. It had a huge beat down when one of their major assets in Panama had some issues. Looking at it and wondering whether it is a buy at these low prices
Re: founder of Franco-Nevada Mining interview
Lbark, I watch FNV and added on this dip.
My view: the Panama Government ordered shut down of the Cobre Panama mine is the news that hurt FNV. Looks like that mine (in which FNV holds royalty interest) impacts around 21% of FNV’s revenues. FNV’s share price has taken around a 20% dip on the news so to me it looks like the bad news is priced in (if not more than priced in on the down side).
In my opinion, there might even be ground to reverse some of this bad news. From reuters:
Cobre Panama is an equally significant business for the Central American nation, contributing about 5% of Panama's GDP. J.P. Morgan warned this month that the odds of Panama losing its investment-grade rating would rise significantly if the contract was revoked.
https://www.reuters.com/markets/commodities/top-panama-court-rules-first-quantum-mining-contract-unconstitutional-2023-11-28/
Not sure what the odds are in anything being reversed or appealed but 5% of Panama’s GDP seems significant to me. Can Panama really afford to keep the mine shut down? Buying FNV shares at these low prices now seems like you are getting some “free optionality” to the up side on this bad news not sticking. Oh and Gold is at all time highs as well which is definitely good for FNV.
My view: the Panama Government ordered shut down of the Cobre Panama mine is the news that hurt FNV. Looks like that mine (in which FNV holds royalty interest) impacts around 21% of FNV’s revenues. FNV’s share price has taken around a 20% dip on the news so to me it looks like the bad news is priced in (if not more than priced in on the down side).
In my opinion, there might even be ground to reverse some of this bad news. From reuters:
Cobre Panama is an equally significant business for the Central American nation, contributing about 5% of Panama's GDP. J.P. Morgan warned this month that the odds of Panama losing its investment-grade rating would rise significantly if the contract was revoked.
https://www.reuters.com/markets/commodities/top-panama-court-rules-first-quantum-mining-contract-unconstitutional-2023-11-28/
Not sure what the odds are in anything being reversed or appealed but 5% of Panama’s GDP seems significant to me. Can Panama really afford to keep the mine shut down? Buying FNV shares at these low prices now seems like you are getting some “free optionality” to the up side on this bad news not sticking. Oh and Gold is at all time highs as well which is definitely good for FNV.
Re: founder of Franco-Nevada Mining interview
Thanks for the insight. I was tempted to add