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In August 2021, Fairfax invested C$100 million into Foran Mining - an exploration and development company. At the time, the purchase was a bit of a head scratcher. An exploration company? Mining? Canada? Really? Well, 18 months later, what have we learned? 1.) the energy transition to EV’s is happening. And lots of inputs, especially copper, are likely going to be in short supply looking out 2 or 3 years. Copper prices are spiking. 2.) ‘the story’ at Foran continues to get better. They are discovering more, large deposits (copper, zinc, gold and silver). Mine development is progessing, with initial production scheduled to begin in 2025. More savvy, deep pocketed partners are signing on. The company is looking to ‘graduate’ its stock listing from the venture exchange to the TSX. What is Fairfax’s exposure? As of today, Fairfax owns 25% of Foran. - Aug 2021: 55.6 million shares @ C$1.80 = C$100 million - Oct 2022: exercised 16 million warrants @ C$2.09 = C$33 million Shares of Foran Mining closed Friday at C$3.88, near a 52 week high. - 71.6 million shares x C$3.88 = C$277 million = US$204 million. - the value of Fairfax’s initial investment has doubled over the past 18 months. What does it mean for investors in Fairfax? The story at Foran Mining continues to get better. Yes, it is still early days. And there will be lots of volatility. The significant exposure to copper could turn this investment into a big winner in the coming years for Fairfax shareholders. Foran Mining is looking like yet another example of the team at Fairfax hitting the ball out of the park with their equity purchase decisions over the past couple of years. - https://foranmining.com/wp-content/uploads/2022/09/Foran-Corporate-Presentation.pdf - https://foranmining.com/wp-content/uploads/2022/08/WILTW_2022-08-18_E02_BHP_Groups_bid_for_OZ_Minerals_highlights_its_forecast_for_accelerated.pdf