December 3, 2017
December 3, 2017


People getting bullish on Mongolia as an oil play


Every time someone puts a hole in the ground, they seem to find something valuable. What if Mongolia becomes a major oil exporter along with copper, gold and coal? The greatest country specific macro play continues to get even better…



Believe this was front page wsj article. Guess you were just a year early…

More Mongolia optimism. Slowly, the best investment theme out there is going mainstream.

Is there a website that has halfway decent info on the Mongolian stock market & the companies listed there? I was fairly frustrated trying to figure out what the “biggest company” was while poking around the BDSec website and using Google search. I’d love to open an account over there, but the lack of info will make due diligence pretty darn hard!

Face it, due diligence is difficult. Just get on a plane and figure it out in person. It’s the only way to do things. BDSec, Frontier, ResCap and Eurasia all have websites. Between the four you can probably patch together some data. It’s hard though. By the time this stuff is all standardized and in English, the opportunity is gone.

My small ‘lotto’ stocks have been crushed…. I’m considering adding here – under 50 cents.Have Andeans chances at obtaining their community agreements materially changed? I don’t think so, but AAG investors have been seriously spooked! What does Humala have to say or do in order for Andean (and NEM for that matter) to get back on track??

I don’t think anything has changed on the community agreement (positive or negative). Now that the election is out of the way, hopefully everyone can get back to work and finalize things. Humala has to prove to investors that he isn’t going to steal all the assets in the Peruvian economy. It’s a very large uphill battle for now. But Lula did it. If he wants to be a hero, he can do it too.

Hi, Just wondering which Mongolian bank pays the 1% a month? Thanks

I think all Mongolian banks pay that much. Some of the smaller ones pay even more.

Hi Kuppy! Been reading you for a while (thanks!) but first time with a question.
Do you still feel comfortable with Impact Silver if Energold sells their holdings? ISVLF hasn’t done much of late but I would would love to hear your current views on them.

I own quite a few shares of IPT. I have no issues with Energold selling their holdings and think it’s pretty severely undervalued.

Humala is reported to have won the race for President. How does this affect your view on AAG and other Peru mining stocks? How much of the risk has already been priced in?

I think that at current prices, the Humala risk is pretty well priced into AAG. Unless he is a complete idiot (which is possible), he will simply raise mining taxes and then life will go on. A slightly higher tax rate won’t destroy the project or the company. The economics of the mine are just too robust. I recently bought some in the mid 40’s. Its the first time I’ve bought any in over a year.

I was wondering what you thought about natural gas. Due to huge new supply, gas prices have been hammered and the outlook over the near to mid-term looks unfavorable. When would you begin to think about going long? Similarly, what about shipping?

I have found that buying out of favor assets works in the long run, but I always prefer to buy in the early stages of a bull market after the turn has come but before it is priced in. You may have to own both of these for years before they turn. Why tie up that much capital?

Have you had any interest in the oil and gas prospects in Mongolia? It looks like Petro Matad (MATD London)is having some luck with their area.

I haven’t looked at it much beyond what it does for the overall GDP of Mongolia. I much prefer to find leverage to increased consumer disposable income.

Are you adjusting your numbers down for energold based on the recent results? The tax rate looks higher, margins lower, and rates maybe lower than your recent est’s. Any other changes?

I generally use estimates as a very rough guess to future results. If someone misses by a few pennies, I generally ignore it. Quite honestly, I thought that Energold results were ahead of my estimates.

Now this is good. Major American corporations with negative tax rates. America is learning from Greece, or maybe it’s the  other way around?


It’s pretty much disgusting.