One of the fastest ways to understand the world of mining is to learn about the people who run the most successful mining companies.
Most investors are blinded by PR and “story stocks” that are at best a coin flip when it comes to whether they’ll be able to find, let alone mine gold.
If I can put this lesson in context: imagine if you had to decide which professional sports team was likely to win most of their games over the next 3 years – but you did so without knowing anything about the coaches, the players or the owners.
You need to know these people! You need to find out who has “done it before,” who has a good squad, and who is likely to do it again.
If you’re going to succeed as a precious metals investor, you should know the Larry Bird of geology. You need to know the Tom Brady of mine development. You need to know the Ted Williams of dealmaking. (Sorry, I’m from Boston.)
I know these people. I have many of them on speed dial. I frequently talk with them, or at the very least meet with them in person once or twice a year at the mining conferences I go to.
If you’ve been reading Golden Opportunity for very long, you’re likely already familiar with Pierre Lassonde, who is widely considered to be the godfather of gold investing. Knowing his name and that he’s the creator of the Lassonde Curve puts you at an immediate advantage over 90% of investors in the space.
Pierre Lassonde might be the greatest ever in gold miner investing, but over the past ~30 years, another name consistently worms its way into the “GOAT” discussion in gold mining.
I’m talking about the Lundins. The Lundin family has a fantastic track record. It’s not to say that every project they touch turns into a massive windfall, but if you see their name involved, you know the company has a fighting chance.
Today, one of their prime ventures is Lundin Gold that operates the Fruta del Norte mine in Ecuador which is the best, highest grade and most profitable gold mining operation in the world.
Over the past 5 years, this company soared more than 1,000%.
And it still has a 6% dividend yield.
There’s no company in the market, gold miner or otherwise, that currently has such a rich payout after such an enormous move in the stock price.
If you had bought the company 5 years ago, your cost basis dividend would be over 50%…
If that number sounds absurd, it’s actually not unheard of in the history of gold mining stocks. Many gold mining stocks during the great depression hit double digit dividends. Homestake famously paid out a 70% dividend in 1929, even as the entire stock market was swirling the drain.
Still, if you’re looking for a high-dividend paying gold company run by some of the most competent management in the business, Lundin Gold is worth taking a look at.
Buying Lundin Gold today is unlikely to hand you another 10X gain in the coming 5 years, but you can do far worse.
In the meantime, if you’re looking for the next 10X – you’re in the right place. My GP10X service is entirely dedicated to finding the Lundin Gold’s of tomorrow.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio