December 3, 2017
December 3, 2017


Do you think Energold Drilling has a potential market in Mongolia?

Mongolia is mostly flat without much tree cover. They don’t have as strong of a competitive advantage in those conditions. They have a potential everywhere, but Mongolia would be one of the last frontier markets for them to think about.

Came across Khan Resources that has an interest in a uranium mine in northeast Mongolia. They seem to have an extensive legal battle with the government over their license to mine. Arbitration theoretically will resolve it shortly.
and most recent
I have no clear take on if the process Khan is going through with the Mongolian government is a good sign or bad sign or an irrelevant sidenote for non-Mongolian based companies doing business in Mongolia.

While I think this is an sidenote for non-Mongolian based companies doing business in Mongolia–clearly it isn’t irrelevant. I would caution people that what you read in Western papers isn’t always the whole story. In any case, this is the reason that I continue to tell people that mining is a very hard business.

First, thanks not only for sharing your own insights but also fostering a community of people asking some great questions. Was wondering if / how you think about the disconnect between what’s going on a geopolitical and fundamental economic level versus markets’ seemingly indefatigable strength? Any worry that the tide might go out in a way that overrides company specific factors?

Living in the West, we forget that most of the world is booming. Many companies listed in the US actually are having big growth from overseas. I am not so sure that the markets aren’t acting rational in many cases.

The geopolitical all scares me, but many asset markets are cheap. Finally, you have money printing. I really am not worried about a major market decline. As long as they keep printing money, Ben Bernanke has your back…. That’s not an excuse to go speculate, but I just don’t see much serious downside risk.

What is your opinion now on New Zealand dollar? Long back you had mentioned that it was cheap at 0.5USD. Do you think it is a good place to hide for the long run. With Ag prices going up, and expected it go up further, shouldnt it do well?

NZD is one of my favorite currencies, though I worry about how much upside it has from these prices. At least it shouldn’t lose too much value.

.It’s not as good as the Mongolian Togrog or anything even close, but if I had to chose 5 fx to own for the next few years, NZD would certainly be in that basket, along with RUB, THB, CAD and by far the biggest weight going to MNT (Togrog). A few others like AUD and PEN (if the elections go ok), would probably get honorable mentions.


Hope all is well. Do you use Vickers or any other paid services that focus specifically on insider trades?  I’ve been using Capital IQ for some insider trade screens but curious if there is anything better. Thanks

I’ve never heard of Vickers. I use inkresearch.ca for Canadian companies and Insiderinsights for US companies. There are lots of services out there that are good. These are simply the 2 that I use.

I know you like to find a trend, then find the best companies in the trend, and then you would like to make sure you have got the trend right.

In case you have missed the Lubrizol Analyst Meeting Report, The CEO has come up with a Mega-trend that I found interesting.

“A set of megatrends are all around changes to lubricant performance that are occurring because of increased needs for things like fuel efficiency, energy efficiency in this case. Emissions drive a lot of what happens to our OEMs and how they respond with technology. Lubricants are shaped based on that.

And so as emission regulations become more and more strict, performance requirements for lubes go up, more additive is used. And again, we benefit from that in conjunction with our customers. And then durability of equipment. If you’re going to build a large diesel engine, you want to make sure it’s protected with the right lubricant. And as changes occur technologically, performance requirements for lubes continue to increase.”

In case you haven’t seen the report:


That’s really quite fascinating. I wouldn’t even know where to start looking for ways to play that trend. I am posting this for the benefit of AIC readers who may be interested to dig in on their own.