[What are you buying today?]

3 hours ago, Cod Liver Oil said:

I have owned Itafos (IFOS.V) for a couple of years and buy more when it pulls back like now.

It is the cheapest thing I own at 2 times fcf. Yes, it is a fertilizer company but is a secular bet on the American

food supply chain becoming an area of national security. It's main asset is in Idaho. It is paying down debt rapidly with the gushing fcf, selling non core assets and has responsible and aligned owners in Castlelake.  We don't own much commodity related stuff except TPL but I like the odds on this.

https://itafos.com/

 

This is an interesting one. I looked at this earlier in the year but was concerned by the limited remaining life on their key asset. They tout the potential for expansion but wouldn't that come with substantial capex requirements and other development risks? 

[What are you buying today?]

15 hours ago, Castanza said:

adds AIV, PCYO, PINS, INTC

 

new (small position) CMMC.TO trading at levels from 1 year ago with balance sheet improvements. Hit some operational issues Q4 but are expected to resolve by 2H 22. Trading at like 2.5x cash compared to 9x industry average. Upcoming call April 26th…will be interesting to hear updates on AUS mine. 

 

Anyone else looking at the copper/metals segment? Definitely open to ideas as this area is not my forte….

 

 

For copper, have a look at ARG.TO. They process tailings from one of Chile's largest state owned copper mines. Leveraged to copper prices but limited capex requirements as they are not directly mining (also a nice ESG angle). Low cash operating costs and favorable long-term power supply agreement with locked in prices for the next 15 years. CAD$320m market cap, net cash, and at today's prices are generating in the range of CAD$90 - $100m in FCF per year. Big focus on capital returns...currently paying a 6.5% div yield and buying back stock - in addition to NCIB in place they completed an SIB at the end of last year scooping up shares at 1.30 with stock now trading at 1.80. And mgmt has recently committed to return all excess cash back to shareholders in the form of special divs (subject to min cash need of US$25m). They are currently sitting on about USD $75m of cash at the end of Q1...