RE:Funds Are Buying BAY Met2020 Underexplored Copper Play with Massive Potential: A Conversation with Willem Middelkoop about Storm Copper Project
Robert Sinn interviews Willem Middelkoop, an investment manager running the Discovery Fund who owns shares in both American West Metals (AW1) and Aston Bay Holdings (BAY), speaking about the prospects of Storm Copper Project.
Here are the key points he raises:
High Demand for Copper: Willem believes there will be a significant copper deficit in the coming decades, driving up demand.
Large Copper System in Arctic Canada: The Storm Copper Project sits on a vast copper system spanning 10's of kilometres in Arctic Canada. It's a unique Project.
Open Pit Mining and Direct Shipping: The project benefits from open pit mining and direct shipping methods, making it more efficient.
High-Grade Copper Core Found on Surface: Encouragingly, high-grade copper core has already been identified on the surface.
Undervalued Opportunity: Willem finds the current valuation of AW1 and BAY to be significantly undervalued considering the potential upside. Willem states, "It's a No-Brainer" investment.
Long-Term vs. Short-Term Strategy: He acknowledges the long-term nature of the project but views it as a high reward, low-risk strategy in the context of the copper deficit.
Fund Manager vs. Private Investor: Willem highlights the advantage fund managers have in allocating a portion of their portfolio to long-term plays, unlike private investors who may need quicker returns.
Diversification is Key: Willem emphasizes the importance of diversification for fund managers, spreading investments across multiple stocks (50-80) which can be challenging for private investors.
Team of Researchers: Willem’s team of researchers allows them to stay informed and make strategic investment decisions based on a strong understanding of geology, mining and market trends. Good thing is they still believe in the upside potential of the Storm exploration program.
Overall, Willem Middelkoop sees the Storm Copper Project as an intriguing opportunity with substantial long-term potential due to the global copper deficit and the project's favourable characteristics such as the size of the copper system and the mining advantages. He believes the current valuation presents a low-risk entry point for investors with a long-term perspective.
Transcript of the Interview on 18th April 2024:
https://twitter.com/i/spaces/1YpJkwEVjaYJj
at 46:00 – 49:05 minutes mark,
Robert Sinn, CEO Tech: Another one that we've talked about before is BAY at Storm Copper,
WILLEM MIDDELKOOP: Yeah that is intriguing,
Robert Sinn, CEO Tech: Very positive on this last year, it had a bit of roller coaster ride. What are your thoughts on BAY, you know, heading into this season?
WILLEM MIDDELKOOP: Well when you know that Cooper will be in High Demand for the next decades. When you know there's a huge copper deficit coming, and when you know in Arctic Canada there's a Copper system which runs for 10’s of kilometres, well when you know you can you can do open pit mining, you can do direct shipping, You know the high grade core is just to be found on surface, and you can buy in this situation in a company which is valued, you know, $20, $30, $40 million.
That's a great risk reward strategy longer term.
Short term anything can happen, but longer term, so we own a few percent of American West, who is the operator. They are Australian listed, and we own, also a few percent of Aston Bay which has a free carry, and for me this is a no brainer!!!
Robert Sinn, CEO Tech: yeah that’s
WILLEM MIDDELKOOP: it’s a unique project, where can you find this,
CEO Tech: I know, I know, I mean that's why I got all hot over it last August because it is one in a million project, but obviously it takes a long time, is a long time to
WILLEM MIDDELKOOP: Sorry Robert, but as a private investor you invest your own money, you know, you always have to ask yourself should I put it in a place which gives me better returns? And as a fund manager we need to do the same, but as a fund manager we have over $130,000,000 Canadian funds under management, you can put some of your money in long term place, you don't have to chase the hypes and high rollers with all of your money and that makes life as an investor much easier. I can spread our money, I need to spread our money over 50, 60, 70, 80 different plays and as a private investor that's almost impossible.
Robert Sinn, CEO Tech: Oh, it is impossible and if you do it's not advisable.
WILLEM MIDDELKOOP: No, you know, we have a large team, we have a team of four different researchers so you can assign certain groups of company with all with every researcher and then you stay on top of the story, and you can do the financing and trade around your position, and that's very fortunate especially in this new developing boomer.