About 3,000 kilometres north of Cape Town sits Lusaka, Zambia, home to numerous copper and heavy metal mines as well as other resource-development projects. I headed there to see first-hand the status of a new open pit mine that one of the companies we hold is excavating. Like South Africa, Zambia is a country that, while blessed with substantial investment opportunities, is also rife with barriers to investing. To complicate matters, there are many widely held misconceptions about both the investment opportunities and risks present there.Leave a comment
While it would be nice if the next deposits of copper, oil and gas were to crop up closer to home, the reality is many prolific resource zones are found offshore in places where political and social unrest are commonplace. Some investment opportunities in Africa are a prime example of this, but it’s also a vast continent full of massive deposits, tremendous investment opportunities and well-run companies.Leave a comment
Of all the hands-on research I’ve done in my 20-year investment career, riding a donkey up a mountain in South America to view a company’s assets wasn’t something I’d anticipated.Leave a comment
I recently sat down with Morningstar Canada for an extended interview about the ongoing volatility in gold stocks. There are a number of reasons for the heavy sell-off in gold, but whatever the reasons, it’s clear to me that retail investors are seriously questioning the value of gold as a traditional safe-haven investment.Leave a comment
There is political risk that comes into play when making investing decisions in Africa. If I’m looking a company with assets in, let’s say, Mozambique or Ghana, compared to a mining company doing business in Ontario or British Columbia, the political considerations are very different.
In February, I spent some time in Capetown, South Africa for the annual Investing in African Mining Conference. Unlike many mining conferences, this event is more industry-focused than investor-focused. The participants ranged from suppliers and geologists to executives and engineering companies. And there were investors like me.