You know what the worst thing is about investing in a junior energy metals explorer?
The fact that, no matter which metal you choose to focus on, for half the year you’ll be in fashion, and the other half you won’t.
Think about lithium plays – last year lithium took a nice big run at glory, but then uranium had a minute because prices rose hard, and the lithium guys jumped on that.
The cobalt guys have a moment now and then, but then people start talking about vanadium as an alternate to batteries that currently require cobalt, being as that metal is hard to find and generally involves exploitation of labour. Titanium has a run now and then, as a tensile strength additive to steel. And when that stuff isn’t happening, gold and silver do a thing.
There are obviously some junior explorers with an oar in every river, mostly as a means of chasing the casual investor, but that always ends in tears when it becomes clear none of their properties are going to be advanced.
And so it goes that, for most of us metals investors, we have to come to grips with the concept that we’re either short term in everything, or patiently long term in a few things.
BUT THERE ARE EXCEPTIONS.
Soon to the public markets is a company called Saga Metals, scheduled to go live with the SAGA.V ticker, and Saga is becoming infamous for bucking the trend above.
Saga has four projects that could each keep a company busy by themselves;
- The Double Mer Uranium project, based in Goose Bay, Labrador, which has hit as much as 20,000 cps on the scintillometer.
- The Legacy Lithium project in Quebec, which is smack dab in Canada’s newest lithium hotspot, and attracted the interest of the giant Rio Tinto last month.
- The Radar Titanium/Vanadium project, both of which are in demand for alternatives to lithium batteries and upgrading steel products
- The North Wind Iron Ore project in Labrador, which offers high grade iron that matches up nicely with the ore from the Radar project
Four projects, five metals, big opportunities that are already bringing in the big partners.
Saga is mostly focused on the uranium project, the work for which will be largely covered by the finances brought to them by Rio Tinto. Those finances have also allowed the company to expand the lithium project, without having to dive into their cash pool.
I respect the fact the company passed enough due diligence for Rio Tinto to partner up with them, and I super respect that they parlayed that deal into expansion and work on other deals.
Low risk, bets all over the table, actual work being done, and big money sitting RIGHT THERE should drill results continue to be positive.
Saga doubles down on the legitimacy by how they’re coming to market; rather than an RTO, which can often be weighed down with shell baggage, they’re coming to the market clean, with an IPO. That’s a LOT harder to do, takes longer, and requires more compliance with the regulators and exchange BUT, if you were looking to build a real company with room to grow, this is exactly what you’d do and how you’d do it.
Saga is a client of ours, make no mistake, so you can consider us conflicted all you like. Don’t believe a word I say, go look for yourself and draw your own conclusions based on the real information at hand.
The strength of the Saga deal is, they’ve done it the hard way to prove their worth, they’ve demonstrated that worth through the due diligence done by partners, their properties have real meat to them as seen by the enthusiasm for bigger players to come aboard, and they’ve used other people’s money to expand and begin the real work.
Lastly, the price they’re coming to market at isn’t stupid – there’s room for everyone to make money here, and I can count the number of times I’ve seen that in an IPO on one hand.
Respect when a company does it right by investors.
Watchlist: Saga Metals.
And while you’re here, enjoy my interview with CEO Michael Stier.
— Chris Parry
FULL DISCLOSURE: As mentioned, this is a client company.
