Metalla Royalty (MTA) - Aggressive, Smart, Precious Metals Dealmaking

the entire premise of the company has been to build a portfolio a world-class portfolio a diversified portfolio of high-caliber royalties in spread out around the world in strategic locations to remember that the profit and that company the operating profit of that business belongs to the shareholders he can and she's one to buy physical gold with the investment a royalty company hello my constructs investor first of all thanks so much for watching this video if you liked it remember to give us a thumbs up at the end and do leave your comments below have some Sun there's sorts of questions do you think we should be asking anything we're doing and of course what you thought of the company and you can also get this as a podcast an article and a transcription with Crocs investor calm and of course we're crooks club members you get early access to this video and if you haven't already done so please click the button in the corner of the screen to subscribe to our YouTube channel and of course for more videos like this click the notification about we spoke earlier today to EB Tucker he's a non-executive director at Matawa royalty and we're alike royalty companies this is also a precious metals royalty royalty company many gold and silver in fact that is talk also about a spin-off of a nickel copper project coming going public later this year but more of that at another time EB talks about what they're set up to do how they mitigate risk how they're getting deals across the line why their structure is allowing them to win where others are failing so lots discuss take a little description below at some of the topics discussed anything interesting in particular click on the number it let's call the time something I'll jump you to that part of the video otherwise enjoy everything that EB has to say eebee how you doing so pretty good excellent uh we spoke to a couple of weeks ago talked about your book why gold why now how things going how sales pretty good we've sold a tremendous amount of books it's available all over the world it's it's been interesting and you know you and I talked about this kind of why gold for the common man and so I wanted to show you something today of course you recognize what this is this is a one ounce American Eagle you know one ounce of gold these have been around for a long long time different forms but always one ounce so this ounce of gold used to cost twenty dollars this is this is twenty one dollar bills and today it cost $1,800 so this this is how many one dollar bills it takes to buy the same ounce of gold today that it did you know years ago it was $20 and people have asked me we've been doing the book interviews and talking with people and meeting with lots of interesting folks and they've been asking me what happened and I said look I have a 1908 ounce of gold I can show you it's the same size nothing has changed what changed is the dollar the u.s. actually used to produce these twenty dollar gold certificates this 20 dollar bill looks exactly like the same twenty dollar bill now and now that gets you nothing I mean you can't even have coffee and and crusts on or something for breakfast for 20 bucks I mean it's barely worth anything and that used to be the value of an ounce of gold and so I wanted to share that with you because I've found people are shocked you know as we're going out and talking to people that don't have experience in this in this industry they're just completely shocked that that that much has changed and the thing about it is is you never noticed the change it's a little bit it's a little bit it's a little bit I mean you know you add another couple hundred bucks on the top of that stack and and you barely even notice it well fast forward five years the stack is getting huge and I think everyone knows right now that there's a problem so I just wanted to say the book was really important at this time because we're on the edge of a period where you've still got time to do something you know and we'll talk about metallo which is my way to do something personally but I think the basics are gold you and I take it for granted all the time people just don't understand what gold is all about so hopefully this book helps them yeah I think that's pretty well-received I think generally we've had some really really positive comments and sort of ensured that the roleplay I think he kind of made it break it down make it simple for people to understand let's not get into the economics of that right now and let's not get into stay with the book I'm here to talk about metallic royalty excited about I like royalty companies weren't we're in a couple I think it's a great model you're a junior early days but when we kick off and just give people that woman overview and then what kind of get stuck into there what you're trying to do yeah so metallo royalty and streaming company we started about four years ago three and a half years ago and our business model we've told people since day one I don't think anyone is listen we've gone out and we've bought royalties in the third-party market and if you look at our presentation you see we have royalties on Pan American Gold Corp Newmont which is not part of gold courfeyrac egg Nikko Eagle and you say to yourself wait a second how does a company with you know to 50 to 75 million market cap get a royalty on Varick I mean how is that even possible well we told you this from day one there are thousands of royalties out there people in these royalties small companies on these royalties and we approach them and we said hey wouldn't you like to sell that royalty into a company that's gonna require you know many royalties of the same size and then you own a more diversified version of what you have now cuz you just got one royalty on Varick that's great but I mean it's not really worth a whole lot because you have no diversity and that pitch is work I mean we've done about 18 transactions acquired about 50 royalties roughly and people ask well can you keep going well I mean if you have luck eighteen times okay I mean maybe it's not luck alright maybe maybe you maybe you've got a strategy and maybe it's strategy's working so you know metallus share price started out at a dollar 20 Canadian it's about 7:15 today it's been over eight bucks and I think the early shareholders have been able to see how this is not this is a business right this is a building a royalty portfolio okay we understand what you what you're trying to do but let's let's get into the weeds here at bet okay because there's a few things that have gone on you've been really busy you took you've done the most transactions out of you know all of your peers but I'd like to kind of help people break that down a bit and understand what it is that you're building how you're building and what it could mean in the future because this is a in a future future business so I'm what was it he set out today looks at your junior years by 250 million market cap that's nothing in precious metal royalties in in North America so day one you decide precious metals was the way to go why well we felt like something was going to turn in the gold market in 2016 Brett Heath and I used to run a fun together we bought precious metal equities you know we ran this fund for years so we have a long history together and we had a lot of history in the industry and we always saw these royalties that we called orphans and so we said how many can we acquire and this means ounces in the ground over years and years so it's not just having the signature royalty it's saying it's centric or to deceive their proving outs is just drilling drilling drilling drilling so what happens is and people need to understand that this is the power of royalties is that you have say a one percent yield off that claim that means everything that comes on to the ground every hundred ounces you get one of those ounces well that mining company egg Nikko is a serious company it's it's proving and proving and proving that deposit so every time it comes out with a new resource estimate we have more ounces what happens is is you end up with hundreds of thousands of ounces buried in the ground to come out in the future and as the gold price moves you get the value of those ounces today so you pull those ounce values back into today and that's the important piece to understand about royalties okay and so it's a net number as well right so that's right so you take an awfully tall you if there's a labor strike you know no one calls you to come down there and defuse the situation so so it's a it's a straight royalty stake it's at that stake there's a lot of different royalties you have smelter royalties you have all these different types but the reality is is that they they're all quite similar and what they mean is is that a three carried interest it's a non-operating carried interest on the production of that property okay so let's look at what you're trying to build here because it's really important the way that you blend the the that you do okay you have a lot of exploration in there quite a lot of development and a little amount of production okay so why do you offer that structure because clearly the more production you get the more cash you're producing you know as it stands right now year in year you have a 50% down on revenue so took me took me through the plan that's a great question because because I've been a pretty outspoken force on the board I'm not really that concerned about production to me development assets are the most important assets why is when you well when you produce with the royalty if you're like me you get a little bit upset because those ounces come out of the ground and you have to replace so when you have a development asset that means they're 24 36 months away from production they're working really hard to prove as many ounces as possible to get that thing into production and they're not pulling anything out so I have all those ounces in the ground every hundred dollars gold goes up I'm benefiting from those ounces whereas every ounce that comes out and I produce it I've burned that out up and I've got to go out and replace that outs and so the best royalty investment is the one that has development assets that are close in the pipeline now exploration look you're gonna get some exploration assets they're almost coming by accident you know you'll buy a package of royalties they'll be an exploration asset there you're not really on the hunt for exploration assets the development assets have tremendous value and in a year two years three years they will be in production it's not a junior I mean an eco Barrick Gold Corp American we're not talking about guys that are hoping for an equity financing to go into production these are guys they say they're gonna do it they're gonna do it so why are you getting on your junior why aren't you no more of your peers or people in the mid to the mid tier guys able to get these deals but what's so good about you guys yeah because there's because I'll talk I'll tell you exactly why because it happens over and over is that the guys you're talking about come over there with a checkbook they open it up they say how much money you want for that royalty I'll give you anything you want is gonna give me a credit line I can pay you a hundred million dollars right well okay then here here comes Brett he says has nowhere to pay a hundred million dollars that first logs it's not worth one hundred million dollar but more importantly is because that's that's way it's way too much for this asset and I'll give you stock too I'll give you a little less stock but when you take my stock you're gonna you're gonna take this ride from a dollar twenty to eight dollars and this ride is not just an accident I mean we're not hoping that somebody puts drill in the ground and find something we're diligent in buying assets at the proper valuation and then piling them on what happens is as you expand 50 60 70 80 assets your multiple starts trading higher and sellers of assets no no perfect example this last week we announced we acquired a royalty on core mining it's in South Dakota which is it's it's it's very close to Mount Rushmore we're not talking about a war zone with lots of problems okay so this royalty pays us you know over a million dollars a year beginning now and is scheduled to go for seven years we think potentially I mean I'm sure the company wants to stick around there so I mean the odds are they probably gonna try to keep producing after that we'll see but this is the type of asset where the seller wasn't interested in a bunch of cash I mean he's quite wealthy he drives a Ferrari is very interesting guy this is a couple of ranches doesn't need you know a bunch of a bunch more money because then he'd try to buy royalties so with us he has stock in metallo he can sell the stock if he wants to it's a very appealing sales pitch and the big guys can't do it okay that's fascinating what are you saying is we've got more potential for growth than the big guys because we're small we've got a ways to go here and there's a partnership that you're trying to create I did want to ask you about core occur and how how that came about because despite that there still are people in the same position as you who will offer the same deals as you so you know how do you how do you I'm talking you know people like Mavericks or even you know a lease of coming up coming up from behind those guys must be come and have the same sort of conversations is this just down to contacts or your ability to do and structure deals well it's also about performance I mean we bought assets from core and gave them stock in the mid $2 range and then they were able to sell all that stock on north of $7 Canadian in a secondary offerings quite a success story I mean if they had just sold those assets for cash they wouldn't have had near that amount so to the competitors I mean I know all these guys that you mentioned these guys are social friends in the business and they have a good pitch but the reality is is that when we give the pitch for highly confident you can say look at what's happened to the last 50 things that we bought I mean it you know it's it's not something where you're bidding you're just saying look I mean if the guys that you mentioned can prove with the stock chart that it's better to take equity in their company then maybe that's the best deal but so far it hasn't been the case okay save Nick and I want understand you know again the mentality of how you go about structuring the finance of this because I think what you're saying I don't care that revenues are down I don't care that your and your losses are up because this is a long-term business we're able to raise capital relatively easy and we can find deals because people want a piece of what we're doing here so are you saying no we're not really raising capital so what happens is we go to buy an asset say the seller wants five million bucks for the asset we say how much cash you want okay well maybe a million cash four million stock okay let's see if we can probably make that work so each time that we do a deal it's up to the seller kind of what they want if they didn't want stock they wouldn't be talking to us do they be talking to one of the other companies right so you know with us it's like we're not people get this wrong all the time they say oh this is dilution well I'm sorry but if you buy royalty with the 12 percent internal rate of return and use stock to do it that's not dilution that's accretion when you sell stock to keep the lights on that's dilution okay so the royalty company generates plenty of cash you know to run its business and pay its bills it's not burning things up making widgets what we're trying to do is build the net asset value of the company that's the most important thing everyone thinks about this this thing is a widget company they say well you run the registry you make the widgets you're losing money but it's not the case it's kind of like in real estate you know you show an operating loss and real estate okay because you're not trying to this is depreciation factor that's going on here people think that it's kind of like a company that's like a chicken shop or something it's it's not it that's not the the deal is is that you're trying to build the net asset value of the company and real people in the business you know the capital markets guys to Canada they realize that the multiple and that asset value is how do you value the business it's not a p/e multiple business you're not going for that if you look at Franco Nevada look at all these other guys it's all about building that net asset value pipeline and then catching that rise in gold on that you know you don't really have capital needs you're not gonna you're not dependent on selling some stock and a private placement I mean it's it's only gonna be asset based capital issuance okay so that's the model the the days of raising capital have gone you've got you've got enough revenue coming in and you've got a structure a structure which he liked and seems to be working let's talk about the New York listing seen you needed to do four to one roll back there is that part and conditional on the listing well you have a certain price threshold I mean they don't allow you to trade for nine cents you know on the on the New York Stock Exchange unfortunately but if you look at our trading volume yeah you go back and you see when you did this roll back and you and you listed in January the trading volume picked up quite a bit if you look now the u.s. volume is quite a bit more than the Canadian volume so so I think it was a natural part we try to explain to people that there's their significant US funds that can't own cross-border and can't get involved in the stock now I would encourage people to watch how this course sale went you know there's a lot of funds getting involved that came into the to the stock because this was an an SCC registered kind of process right and so they were we were able to attract some people that have been wanting to get involved in Matala but the the stock price is kind of continued moving higher and it's been a very tight market and so this is a chance for them to get involved NYC made that a lot easier so what was the threshold I think it's just something like two dollars and then a market cap minimum or something with it but you have to you don't quote me on that because it's been something in that range maybe maybe three bucks or something there's a there's a floor for listing you know you have to meet this this base listing requirement and so you you know people kind of don't understand why you do the roll back I mean and they think like Oh something wrong are you gonna issue lots of stock well I mean look at the history I mean don't take my word for it pull up the history of the stock I mean there hasn't been a scenario where where we've done that so why would we start now you know the entire the entire premise of the company has been to build to build a portfolio a world-class portfolio a diversified portfolio of high caliber royalties in spread out around the world in strategic locations and use equity to do it and so to do that you've had to make sure you manage the equity properly and be responsible with your shares and so people that bought in day one and heard this pitch day one are very very happy because they haven't had to do much at all except for just sit back and watch the portfolio grow and that is not done okay say with the robot comes obviously less shares less liquidity do you see that as a problem as it's something I mean happy and if you do you how do you overcome it well it's kind of it's relative because you some trading 2 million bucks a day or something of stock I mean how much liquidity do you need right I mean that that's that's like pretty strong and and so you look and the liquidity is kind of stepped up and up and up and up but you get to the point where if you wanted to buy several hundred thousand dollars of stock in a day I'm not sure that we would notice so I mean I mean that's that's to us I mean that that matters I mean you want people professionals to be able to come in there and pick up you know significant quantities of stock moving around without without anyone noticing a lot of these companies the small ones they trade by appointment so you want to buy stock at ten o'clock we'll buy stock I mean it's ridiculous so here I mean we tell people all the time go right in there I mean there's there's lots of stock trading you see it right behind me here it's about to open up I've got the the real time you know on both markets and we watch it because we want our partners that bring in assets to understand that this is not a prison you know you decide that you need money to pay for something in life your stock do whatever you want with it okay solicitous about risk mitigation here okay so you're in precious metals say mostly mostly gold and silver gold Engstrom orally only oh I know so I know some understand copper and a bit of zinc in some of this as well that's why I say in in other company we're gonna take a company public in the fall that focuses on that and the reason why is that we we feel like you've got to maintain rigorous focus on precious metal because Scotiabank puts out a monthly report where the precious metal royalties trade at twice the net asset value multiple two base metals so if you mix base metals in what happens is is you damage that royalty you start pulling that down and some of the peers which can go unnamed have occasionally dabbled in these other metals and what happens is is that you drag down the value of the gold and silver rose now you've got a you better take some of those out of your presentation then instantly yeah because because they're we bought a copper gold royalty in Chile but the the company the the battery metal company that you know we could talk about the future took the copper right so so metallic took the gold is a joint deal and then this comes now there's an advantage to doing that joint deal because you'll come across a portfolio where you'll say well there's copper in this silver and gold what do we do with it and we say okay well we'll take it as well but it's it's not coming in to Matala it's going off into another company and so and so it gives us the ability to do more transact okay great so that makes a lot of sense to me no I look forward to talking about that what does it was it going to be copper and nickel I guess those beautiful okay I must parked that but let's come back to this risk mitigation component obviously gold big big bull market at the moment exciting people are well we talked a couple weeks ago gold girls going to the main so that's kidneys silver at least just going a little you know up into the clouds so maybe not the moon but take that good okay you're avid followers would disagree I think I think despite your core your caution but Silver's got a better playing about a catch up it's sort of 17 bucks at the moment I think people expect that to go harshly what's your what's your approach to doing deals in a bull market how do you ensure that you don't overpay and you don't because you have lived to regret it where if the market corrects itself oh so it's a it's a fantastic question it's all about discounting the the future cash flows I mean you you it's all about what number you plug in for gold and how you discount that future value and die so we don't really get involved and speculating you're betting and saying well it's bet on silver really big you know if we encounter a silver royalty we model that very conservatively just like we would any royalty because if you nail down the the economics day one and then it's good economics you can absorb some softness in in metals whereas if you if you say golds get into the moon so I'll plug that into my financial model what happens is usually digesting that you know it's it's it's stuck and you can't continue growing the company so I mean I I to believe Silver's going to have some sort of dramatic rise at some point and personally I've made bets that I give me about a year and a half to experience that I I do think that's coming however with the company we're not going to make that type of bet you know we're eager to to acquire silver royalty but we're we're very realistic about the silver price because we're only willing to to model what we see right in front of us and even when silver starts to move it has to be heavily discounted because it's so volatile you have to be very careful with these things absolutely and the other complaints that you took about the presentation or obviously geography stage and metal and metal is easy connects to you go any got to but your geography and state is that is that planned or is it a fracture of because it's competitive because it's not not that many deals happening at any one time and when it is there's lots of people you know in there competing with each other do you you have a rough plan of the development stage as you talked about earlier and you've got a rough plan about geography oh there's some geography you avoid are you more North America South America well I mean what happens is it's all about how you value it so someone comes to me with a with a great royalty in the middle of a war zone you know I can't even send geologist look at it because it's too deadly I mean I'm gonna model that and I'm going to apply economics down on that where I'm only willing to pay you know a quite low multiple on that and then the seller says come on man this thing is kicking out you know so much gold you're right it is but but I need to model that whereas if I'm buying something in South Dakota then the the the there's no you know armed bandits at least so far there haven't been in the last hundred years you know take attacking the Brinks truck as it leaves the the the smelter right so so everything has a price now the reason why I'm kind of building this picture for you is that if you're disciplined with that approach then the diversity naturally sorts itself out because I could buy stuff in a war zone all day long if I just said show me the highest yielding royalties you've got I mean that they say what yeah we got stuff in the middle of nowhere you can't even get there to look at it okay great but but if you're disciplined then naturally you're going to pick up something we have a great royalty in Tanzania it's paid us for something like almost four years now we've had no problems with it's fantastic and people look at our our balance sheet and they just there's no value for that it's been great it's been fantastic now we're not necessarily eager to go and buy lots of assets in the in the area however we're open to it we'll look at it I mean we're willing to put the time into it and so when you go like that you end up with a lot of high-quality North and South American assets you get some Australian assets you don't see much in Asia you know you don't not seeing a lot come out of there seeing its tiny bit in Africa yeah so so all of a sudden you look at the map and it makes sense and you you have concentration in the areas that are you have strong judicial kind of structures and and you're able to have confidence and then you have a little bit on the fringe but it's not it's not what you're building the company offer okay so if I look at a lot of the numbers here you know your share price is a nice steady growth nice you don't really mind about revenue at the moment you don't mind losses at the moment it's about the number of deals that you're doing where's that but you're a 10 or 15 million market cap you want to be a mid-tier that's with your classification that's half a billion to three billion bucks where's the inflection point and how long does it take to get there based on your current approach to aggressive quite aggressive approach to you yeah deal-making yeah you're nailing it on the bull's eye because there's a point when we try to explain this to people where you reach a certain level of diversity with your with your assets that the market all of a sudden says pop and applies a higher multiple and if you look you know mean Franco at times trades close to three times an asset value whereas you know we're trading at half that as a multiple so so what happens is you get to a certain level where all of a sudden institutions say no this is this is worth of premium because if one of your assets you know falls off the rail for half a year it's not that big of a deal you know because you've got you've got you end up with this spread where you don't have one big lumpy asset that brings in all of your value and then a bunch of other things that can cause problems and so to answer your question I can't tell you exactly when that's gonna happen but I'll tell you that when you cross 50 royalties and you start moving up from there you're starting to reach a point where people say wow I mean this is not just a royalty you know this is a pipeline of deals this is a a diversified stream of assets you know that's all working together and it's worth you know maybe a tick more than it's at least worth the average multiple maybe it's worth a tick more than the average multiple and that tends to happen quickly and so now's the time whereas a regular investor you've got you look look at the stock chart and people are upset well I don't know it's a dollar 20 and now it's 7 bucks I seems like it's too much really because when it was a dollar 20 it was quite lonely you know how about three assets and it wasn't many people involved in the market cat was like you know 15 million and they'd buy that stock then your brokers gonna tell you're crazy okay so when you look it could be cheaper today than it was back then because you didn't have this pages and pages of presentation that you're looking at didn't have it and so now you look at it today and you say wow I mean this is about to be at that inflection point where it begins to earn that mid tier multiple and I can I can get involved in it and see everything that that's going on here and and get involved before it does that and once it's in all the ETF's and it's and it's you know highly covered by everyone I don't know I mean then then you're just trading as a proxy to gold let's be honest I mean that that's you get to a certain size you know and one deal is not going to catapult you whereas now we're at the place where you can get visibility but also you can you can get involved as a regular guy right say I said I guess there's this cumulative tension which is building and the inflection you have an exercise it's hard to call but okay here's a question for you based on the conversation from two weeks ago we were talking about the economy quantitive easing what's coming down the line girls the safe haven you need you need to have physical gold and that's what you did at the beginning of this program right so what do you think is gonna happen for the ability of some of these companies big or small to finance some of these exploration projects and bring them through do you think there's going to be some kind of delay to some of that some of those numbers which you're kind of forecasting will the development projects be able to get their you know capex you know their plant finance what's how's it gonna impact you it's going it's going to happen and the way it's going to go is if first there'll be a panic that the supply of gold is falling while the demand is rising so you're gonna kick into the bull stage of the market now 1900s where that begins to happen believe me this is 1900s like a magnet you're gonna run up to this you go over it a little bit wakes people up I mean in the US the reason why I had to write the book as you know is that people think Gold's illegal they've never seen it before they have no idea what the point of it is it's crazy so you break through 1900 you see interest money starts to flow into the to the sector wait a minute supplies going down we need more supply the big I say sorry 2015-16 was so bad we cut all the risky exploration we've got our development that we've got but that that's it so you kick into this stage where people now they go panic hunting for assets we're gonna see a tremendous Canadian bull market in these stocks sadly we're gonna see companies that have no idea how to find cold changing their name from you know ABC cannabis to XYZ gold we're gonna do a listing at a dollar everyone will just trip over themselves to give these guys money and message boards and they think they might have found gold in Antarctica I don't know they just need a quarter billion to get it this is all gonna start happening and you've seen this before so so the answer is is that the first you'll bill be a shortage type of thinking then there'll be the frenzy to get it in the middle of that you've got to keep your head be an average investor I mean listen to me you've got to keep your head now's the time where you can look at high-quality and I've got to spend 45 minutes you know show you everything to say it's high-quality you we're going into a time where when that frenzy kicks in you know if you're if you're an investor working with your nest egg I mean you've got to be you got to keep your head on straight because there's gonna some things happen you know I've been through that before we've seen that right and and you got to make sure you know what you own and you got to speculate okay you have to play in that market there's gonna be chances to make big gains as this happens by being involved in being on top of these things and then you got to keep your head while you still paying dividends why don't you just invest well Chuck's yeah so so people hate the dividend but our philosophies been 50% of operating cash flow so you you look at the royalty company you don't look at profitability because it's not a hardware store okay so you know the depreciation schedules you know you have you have all these carry forward losses when you buy assets that you know these losses come with them so you don't want to look at it's just like with the real estate with an apartment building or something you don't want to look at you know net income it's not the right metric you know you look at operating cash flow that means how much money did we make they you know compared to how much money to be spent you know by the time it flows through the rest of the accounting you know you you factor in depreciation and all these different things that can that can confuse people okay but operating cash flow now our philosophy day one was 50% operating cash flow should be given back to the shareholders even if it's a penny because it's their money they're the ones that finance this whole thing so philosophically speaking people when you have to write checks to your shareholders you treat them differently it's it's it's an old-school way of thinking but I'm telling you it's very important for the executives and the board of a company to remember that the profit and that company the operating profit of that business belongs to the shareholders not to anyone else so we found that paying 50% of that out and then using 50% for growth is it is a completely sufficient way to grow and it also keeps us aligned with the interests of the people that made this all possible which is the shareholders and they continue to do that and so they need to be rewarded as the business makes money okay he can I and she's one two people by physical gold or they invest in a royalty company well I mean I gotta say the royalty company I mean because because physical gold is not going to go up with so much I mean I think you should have it to protect your wealth but the reality is is that the multiplying effect of wealth and the royalty company shares that is is dramatic I mean it is so dramatic I mean I play with these models what does another hundred dollars due to the net asset value Matala hundred dollars in gold it's unbelievable I mean as this starts to move you know it really goes and so if gold goes from 1775 you know to 2000 I mean you you've had a nice little low double-digit gain ten twelve thirteen percent right in there okay but but the the reality is is that that two hundred and twenty-five dollar move on metallus and asset value is so dramatic because you have hundreds of thousands of ounces proven in the ground these are 43-101 ounces and you pull the value of that back into today and just so if you have to do one might as well make some money okay and then yet she's one of these as well so your gold guy you're a gold bug it said it on when it popped up on Zoom gold-bug so I'm DJ's a gold royalty company or a nickel copper royalty company gold royalty company without a doubt yeah so what's gonna happen with with nickel and copper is that you're going to have a surge and the economics are different so so that's why we've got a nickel copper royalty company because nickel is gonna get hot and it's gonna get so hot that it's gonna make your head spin around and it's gonna be too late to find these assets once it gets hot but it's the economics are totally different because it's a demand and supply driven situation that's arising out of changing the way we fuel the economy so so that is totally different from what drives gold and so you know if you mix those two together you get all kinds of confusion and they've got to be kept separate because the things you and I are talking about our driving gold which is it which is a wealth and a money story you know and so so that's a separate story and and the gold trade is much easier you know the nickel copper trade you got to be on top of that you got to think you know we have separate management for that you know we it's it's a very focused approach and then it's that way for a reason but you're excited about a nickel and you're excited about copper in the near term I've been a ton of money on on this you know I think I think I don't know if it's gonna be a year I don't know if it's gonna be two years it's too hard to know because there's gonna come a time where people say wait a minute it's not enough nickel to make all these batteries and then the average guys to say why do you need so many batteries man I don't understand well yeah because look I'm telling you that you don't see a lot of smokestacks being built okay this is a reason why it's because the way you fuel the system is changing and part of that change is you've got to capture all the suitable energy that's being produced and you think there's a lot of renewable energy now there's gonna be way more of it and so you've got to put it somewhere cuz the sun's out in the middle of the day and that all the solar power is produced and then it goes away at night it's never gonna change so so that's that's a different scenario and so I'm very excited about that however it's not a I don't know if I'll write a book about that I mean I don't know that there's a that there's a a there's an importance with the message the why gold why now message is so important the the copper nickel message is important but it's different it's not something that affects every single person everyone has money you know and so and so the gold thing is something that's really people need to understand you know it's it's a totally different approach beautiful PB great run three man love royalty come missus that I like what you guys are doing there I hope you get that growth I hope that inflection point comes soon and you know keep the deals flowing thanks for having me

Channel: Crux Investor

Views: 26,364

Keywords: mining, gold, lithium, precious metals, crux investor, cruxinvestor, cruxcasts, miningnews, TSX, investing in stocks for beginners, investing in gold, investing in gold uk, mining news, invest in stocks for beginners, invest in gold, invest in gold uk, metalla royalty, metalla royalty and streaming, metalla royalty & streaming ltd, metalla royalty news, metalla royalty dividend, eb tucker metalla, eb tucker 2020, eb tucker gold, eb tucker metalla royalty, why gold why now eb tucker

Id: A2-uf8b__p8

Length: 37min 57sec (2277 seconds)

Published: Fri Jul 03 2020