Dave Forest’s Copper Royalty Company – 700% Profits?

In one of his latest interview videos, TV star Chris Hurt promises to reveal one investment opportunity that can help you easily increase your returns. Without having to spend hundreds of dollars buying just one share of the popular Amazon, Google, or Tesla stocks. He interviews geologist Dave Forest, who has over 20 years of experience in the mining and petroleum industries about a $3 copper royalty company that “could multiply your money far quicker”. 

To find out the name and ticker symbol of this investment opportunity, you have to sign for Casey Research’s “Strategic Investor” newsletter, which will cost you $49 per year. For this price, will receive 12 monthly issues of the report and three bonus reports, including “The #1 Copper Investment in America”, the stock teased in this interview. We must also mention that if you wish to automatically renew your subscription to the investment letter, you will have to pay $129 for the second year. However, Casey Research does offer a 60-day money-back guarantee for all its newsletters, which means you can cancel at any time and receive your full money back. For those who wish to skip the subscription cost, here is what we were able to uncover for free.

Dave Forest has been working closely with Casey Research for several years now, releasing a series of investment newsletters. The Casey Energy Specular was exclusively tailored for finding potential investment opportunities in uranium, natural gas, oil, and renewable energies worldwide. His two-decade background as a geologist and business acumen even made Forest found his own mining exploration and development companies, none of which really panned out.

Throughout the years, Dave Forest has recommended a series of stocks in a variety of fields from IT to gold and copper mining that have gone on to soar by over 700% within months.

 

A Copper Opportunity?

Whereas most investors nowadays are placing most of their attention on emerging technology sectors such as artificial intelligence, 5G, and virtual reality – all sectors that we have reviewed teasers in at one time or another, such as our latest for 5G:  Keith Kohl's 5G Volta Company. These are at the core of what has been termed a 4th industrial revolution, Forest is determined to find great profit possibilities in areas that are often overlooked by Wall Street. 

One of these markets is copper – an essential metal used in the manufacturing of various components that help fuel electric cars, smartphones, and other devices. According to Forest, due to the increased technological adoption brought forth by the coronavirus pandemic, we will see a surge in company stocks that extract copper, as this metal will be required to build millions of new devices. 

However, what the author is pitching in this interview is not your regular copper stock investment, but rather a backdoor opportunity to get in on the imminent cooper boom by investing in a royalty trust. In his words, “they’re called a royalty trust. They don’t own big factories or employ thousands of engineers… There’s only 40 employees in the whole company – and very little overhead.” You could “think of them as a bank… providing capital to promising startups”. 

 

The Copper Royalty Trust Being Teased

As previously mentioned above, this investment opportunity presented by Dave Forest isn’t a regular stock but rather a royalty trust with a share price of around $3. Throughout the interview, Forest gives enough hints to help us identify the opportunity he’s teasing, so let’s take a closer look at what he offers up:

• He starts by saying that “this company is involved in products at the heart of every iPhone, Tesla car… and a whole number of gadgets from tech companies – large or small”, which points towards the importance of the investment. 
• He goes on to mention that “this tiny $3 company is poised to profit from the giants of Big Tech as well” and that it “is involved in producing products (copper) that are highly sought after throughout the world. The U.S. government has even called its products “critical to national security”.
• His personal opinion is that “this $3 company is more critical to America’s tech boom than any of the other big suppliers”. 
• We also learn that the company Forest teases is a royalty trust “so, instead of focusing on production in just one location or several, this $3 royalty stock has stakes in dozens of copper producers all over the world. And it distributes a large portion of the profits it earns”, which makes this a dividend opportunity as well.
• The author also mentions that “this company – and others like it – are among the most profitable ventures on the planet” and that “the products it collects royalties on are exploding in demand as we speak. This is the catalyst for a big move in this $3 company and that we could see its share price go exponential very quickly as a result”. 
• He also claims that “it’s no surprise Morgan Stanley, Bank of America, and hedge fund Renaissance Technologies are among the top investors in the company”.

Given the useful hints dropped during the interview, we were able to identify the company teased by Forest as EMX Royalty Corp. (TSX-V: EMX). Here is a little bit behind what lead us to this conclusion:

• First, it is currently trading for approximately $3.20 per unit. Right around the $3 price mentioned by Forest.
• It receives royalties from various gold and copper mines in Nevada, in Arizona, and even ones in Alaska, Oregon, Idaho, British Columbia, and Ontario in Canada. Making it fit with the profile of “owning stakes in dozens of copper producing properties all over the world”.
• Looking at its major unit holders, Renaissance Technologies is among them and so is a private advisor group that is owned by Bank of America. Matching two of the three names highlighted by Dave earlier.

 

Is A Copper Royalty Trust A Good Opportunity?

According to Bloomberg, the demand for copper will grow 10-fold in the next decade, with big companies like Tesla and Apple already looking for long-term partnerships with copper mines, which means this metal like a few others looks primed to boom. 

However, apart from copper, Forest also mentions “there is one other metal seeing a surge in demand – lithium”, which will probably “be the fuel of the 21st century” as it is the main metal used in manufacturing Ion batteries for smartphones, cars, tools, and appliances. The author teases a second investment opportunity in a company that extracts lithium, which we have actually covered before here.

It is often true that investing in one small copper producer or gold miner alone won’t bring you outsized returns over the short term, unless you are packing a crystal ball and are able to time your investment just right. Meanwhile holding on to the “real deal” (physical precious metals) while a good cash hedge, won't bring you any income. Therefore, a royalty trust is often the bridge, spreads the risk through stakes in dozens of producers and also provides some cashflow in the form of regularly dividends.

We definitely seen plenty of investment opportunities pitched that are much, much worse than EMX Royalty Corp. It's certainly less risky than investing in a small startup stock with little to no revenue or earnings or a single small miner rapidly burning through its cash and diluting shareholders every few months by issuing new shares to fund its admin costs. 

 

A Quick Recap & Conclusion

• In one of his latest interviews, geologist Dave Forest talks about the opportunity of investing in a royalty company whose stock is around $3 and focuses on the copper mining industry.
• He talks about the importance of copper in manufacturing everything from electrical cars to smartphones and that the industry might become ten times bigger due to the current rapid pace of tech development. 
• He mentions companies like Apple and Tesla are already looking at long-term copper suppliers in order to fulfill their expansion needs.
• To find out the company Forest teases you must subscribe to the investment newsletter Strategic Investor, part of Casey Research, for $49 per year. Included, you will receive twelve monthly issues of the report, as well as three bonus reports. After the first year, you can renew your subscription for $129. 
• We were able to identify the company teased for free as EMX Royalty Corp. (TSX-V: EMX). It’s a royalty trust that spreads its risk among 40+ copper and gold mining properties and its stock sells for around $3.20. 
• According to many sources, the coronavirus pandemic has caused a surge in technology demand and given that most tech products will require copper to be produced, we reckon investing in copper, along with other precious metals in general, isn't the worst idea in the world. 

Are you currently invested in any royalty trusts? What about precious metals? Look forward to hearing your thoughts in the comment section below.