February 10, 2023 (Investorideas.com Newswire) Chris Andrew of Clarmond Securities sat down with Streetwise Reviews to inform us about his firm and what a few of his prime picks are for 2023.
Clarmond Securities is a wealth administration and funding advisory agency that manages US$100 million and takes purchasers all around the globe, although they take a boutique method and deal with tailoring their funding to what’s going to work greatest for every of their purchasers.
Its managing director Chris Andrew spent 14 years within the funding world earlier than founding Clarmond and prides himself on growing worth for his purchasers.
By way of funding varieties, Andrew instructed Streetwise nearly all of his investments embody ETFs. He commented, “Make investments by way of ETFs, and funds and collectives as a result of it takes all the effort out of it. However then this edge, this fringe of the portfolio, with commodities, I wish to play in small corporations as a result of I feel should you get the best administration workforce and the best individuals, you may get a very nice efficiency. And you may actually get 5 to 10 occasions your cash.”
Due to this, we needed to achieve out and converse with him about which particular person corporations, Andrew believes are set as much as succeed.
Shares Set Up for Success
Andrew went on to discuss how commodity shares might be helpful even when the financial system is not wanting too good.
He mentioned, “The markets been horrible for the final previous two or three years, and commodity corporations have been chucked within the bin, and small-cap commodity corporations much more so. But, that is nice. As a result of clearly now you may make your fortunes in or you may construct your fortunes in.” He mentioned, with the market the way in which it’s, it could possibly be a time to get positions, which he believes are arrange properly for when issues flip round.
Slave Lake Zinc
One in all these positions is Slave Lake Zinc Corp. (SLZ:CSE). Slave Lake is a Canadian mining company named after the lake close to its largest declare in northern Canada.
“I prefer it as a result of it is low-cost,” Andrew mentioned. “It is gone very low-cost, like numerous these Canadians, and I actually appreciated the administration as a result of, to me, administration is every little thing.” Talking of administration, Andrew was notably impressed by how methodical and unrushed the workforce was in establishing this challenge.
“What I actually appreciated about it,” he mentioned, “was that they’ve taken numerous time to get to this place and this place, and so they have not rushed it.”
Andrew was additionally impressed by the corporate’s relationship with Northwest Territory Métis Nation (NWTMN). He mentioned, “That is a very highly effective factor to have as a result of, when you’re on the within there, every little thing turns into loads simpler.” Total, collaborating with native indigenous individuals aids in shifting a challenge ahead with out resistance. It is also mutually helpful. In line with the corporate, “It has advantages for financial development and first proper of refusal for employment alternatives and academic and coaching development for the members of the Northwest Territory Métis Nation first and the individuals of the South Slave second.”
Slave Lake additionally has a myriad of assets at its disposal. “It isn’t simply zinc,” Andrew mentioned. “It is copper; it is lead; it is silver; it is gold. By the sound of it, you scratch the floor up there, and yow will discover one other mineral. In order that’s additionally wonderful. So it simply appeared geologically like a really attention-grabbing space, on prime of a very good workforce . . . what’s to not like?”
Lastly, Andrew made some extent to reiterate the price of the inventory. “It is comparatively low-cost, and it is effectively managed, so there is a good likelihood that in the event that they execute their plan, then you definitely’ve bought a very nice asset right here that they are going to carry ahead.”
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In line with Reuters, 38.11% of Slave Lake’s inventory is owned by administration and insiders. Director and CEO Ritch Wingham has 9.32%, with 4.80 million shares. Director Glen MacDonald has 9.28%, with 4.78 million. President Jaskarn Singh Rai has 9.16%, with 4.72 million. Director Brandon Maxwell has 8.75%, with 4.51 million shares, and CFO Peter Cummings has 1.61%, with 0.83 million.
61.89% is in retail.
Slave Lake has a market cap of US$4.41 million and trades within the 52-week vary between CA$0.05 and CA$0.195.
Royal Helium
One other place Andrew spoke extremely about was Royal Helium Ltd. (RHC:TSX.V; RHCCF:OTCQB). Royal Helium is a Canadian helium exploration and improvement firm. The corporate primarily focuses on major helium in southern Saskatchewan and Alberta. At present, Royal Helium holds the place as one of many largest helium leaseholders in Canada, which is likely one of the causes it piqued Andrew’s curiosity.
Initially, Andrew invested in Imperial Helium In 2021, after Imperial fell into monetary difficulties, it was acquired by Royal Helium.
Like Slave Lake, Andrew discovered himself impressed by Royal Helium’s administration workforce. He mentioned, “That is why I like Canada as a result of the administration groups in Canada have been across the block alongside many occasions, they’ve seen many cycles, so that they know what they’re doing.”
Andrew additionally commented on the present helium market. Present international demand for helium “is estimated at round 6 billion cubic toes (Bcf) or 170 million cubic meters,” in keeping with Money Week.
Cliff Cain, CEO of uncommon gasoline consultancy commented saying, “Demand retains rising although, primarily from the medical, tech, and aerospace sectors, and “it can continue to grow.”
Andrew conquered this in our assembly and mentioned, “Persons are going to wish this helium.”
In August, Royal Helium announced that it has entered right into a long-term settlement with a serious North American area launch firm for the availability of helium. Preliminary deliveries beneath the availability settlement will start in 2023.
Whereas Andrew doesn’t know for sure who this firm is, he has his guesses. He mentioned it might solely be certainly one of three corporations: Nasa, Virgin Galatic, or Area X. His primary choose is Area X. Andrew famous, “I would be most delighted if it was Area X as a result of that appears to have a bit extra momentum with it.”
Andrew general believes in Helium’s alternative. He ended by saying, “It should steadily develop. It is good. It should be the principle helium play for , for years to come back.”
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In line with Reuters, 4.59% of the corporate’s inventory is held by administration and insiders. Prime shareholders embody director Samuel “Kyler” Hardy, who has 2.28%, with 5.45 million shares. President and CEO Andrew Davidson has 0.87%, with 2.08 million shares, and CFO Jeff Sheppard has 0.62%, with 1.48 million shares. 60% is institutionally held. The rest is retail buyers.
Royal Helium has a market cap of CA$79.72 million and trades within the 52-week vary between CA$0.20 and CA$0.52.
Soperior Fertilizer Corp.
Final, Andrew spoke about Soperior Fertilizer Corp. (SOP.H; TSX). Soperior is an exploration and improvement firm, and a near-term producer of SOP (sulfate of potash) fertilizer, alumina, and sulphuric acid from its large Blawn Mountain Alunite useful resource asset in Utah.
Andrew mentioned, “Soperior fertilizer is precisely what it says [superior]. They’ve this gigantic asset known as Blawn mountain, which appears to be a lump of potash, so far as I can inform, and potash could be very beneficial.”
The corporate added, “Blawn Mountain has a large alunite reserve which you’ll be able to with one easy course of make high-value potassium sulfate fertilizer, alumina – to make aluminum, and sulfuric acid which is in excessive demand domestically for mineral processing, so three extremely beneficial merchandise from one operation.”
He famous that Soperior had a little bit of dangerous luck previously, with the premature dying of its BOD Chairman. Nevertheless, Andrew believes the brand new CEO, Andrew Squires, might carry the corporate numerous success.
In line with Andrew, Squires has been making an attempt to lift cash and develop this for the previous couple of years. Up to now, Andrew famous, the corporate would not have the infrastructure it wants. Nevertheless, he sees promise on the horizon.
The corporate is within the technique of closing a joint venture settlement with an unnamed strategic companion to get a first-phase manufacturing facility financed and constructed. The deal right here is that the group is buying 50% possession within the asset and might earn as much as a further 35% working curiosity within the challenge by financing and constructing it. That first section might value as much as US$400 million or extra to get into manufacturing and Soperior would personal 15% of it.
Andrew mentioned, “What we all know is that they have a three way partnership with an unnamed group and I am unable to get on the group as a lot as I would wish to nevertheless it’s bought some huge cash.”
Andrew famous that the corporate has been engaged on this JV deal for over a yr with this counterparty. He mentioned, “We have been on the verge of getting a deal for the final yr for 2 or three years. I feel we’re lastly now on the funds with this group. Current international occasions underpin how important it’s for the U.S. to develop home provide sources for strategic and important mineral assets and this challenge makes three of them.”
Andrew additionally said that in terms of recommending the above shares, “I attempted to have somewhat bit of every of them and all my consumer portfolios, however Soperier could possibly be the one which funds strikes first like actually strikes first.”
In line with Reuters, 0.12% of the corporate’s inventory is held by administration, with CEO Andrew Squires proudly owning all the 0.12%, with 0.32 million shares.
The remainder is in retail.
What’s Subsequent?
Because the market strikes, so will Andrew. Whereas he can’t say precisely the place it can take him, he does know that his picks will all the time be centered round Clarmond’s philosophy.
Within the phrases of the corporate, “The panorama of funding and enterprise has modified radically during the last 20 years; the subsequent 20 years will doubtless have even larger change. Clarmond will stay alert to those actions and can endeavor to remain one step forward of {the marketplace}.”
Disclosures:
1) Katherine DeGilio wrote this text for Streetwise Reviews LLC. She or members of her family personal securities of the next corporations talked about within the article: None. She or members of her family are paid by the next corporations talked about on this article: None.
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5) Occasionally, Streetwise Reviews LLC and its administrators, officers, workers or members of their households, in addition to individuals interviewed for articles and interviews on the positioning, might have a protracted or quick place in securities talked about. Administrators, officers, workers or members of their speedy households are prohibited from making purchases and/or gross sales of these securities within the open market or in any other case from the time of the choice to publish an article till three enterprise days after the publication of the article. The foregoing prohibition doesn’t apply to articles that in substance solely restate beforehand revealed firm releases. As of the date of this text, officers and/or workers of Streetwise Reviews LLC (together with members of their family) personal securities of Slave Lake Zinc Corp. and Royal Helium Ltd., and Soperior Fertilizer Corp., corporations talked about on this article.
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