A banned government agency, Donald Trump, and one $10 stock.
According to Keith Kohl, all are related to an “American Miner Breaking China's Metals Monopoly.”
The Teaser
In the mid-1990s, President Clinton made a decision that left the U.S. dangerously reliant on foreign powers like China.
But first, a quick word about Keith Kohl, who is the Energy Investment Director at Angel Publishing, and a 20-year veteran of the energy industry.
We have previously reviewed his “Horseshoe Well” Company and “#1 Oil Stock of the Decade” teasers, which produced some decent picks. Let's hope this one does the same.
The Clinton-era decision Keith refers to is the ill-fated closure of the U.S. Bureau of Mines, in favor of outsourcing minerals production, which was deemed more cost-effective.
This was true, but also extremely short-sighted.
Today, the end result of that decision is that America produces virtually none of the critical minerals required to fuel its economy and military.
A Matter of National Security and Economic Stability
China is a major producer of graphite, lithium, copper, and some 50 other critical minerals.
It is a leading producer for more than half of these resources, including three lesser-known minerals that are critical to America’s military, defense technologies, and industrial base.
Antimony, gallium, and germanium are commonly used in everything from telecommunications equipment to semiconductors, munitions, missiles, and beyond.
China has a stranglehold on these materials, producing 98% of the world's gallium, 80% of antimony, and 60% of germanium, respectively.
The news gets even worse, as these minerals have been banned from export as part of the ongoing U.S./China trade war.
However, it's not all trade barriers and doom, as some of these resources are still making their way to the U.S. via trade agreements with third-party countries. Although it's only a matter of time until China cracks down on these in-direct routes.
This would leave America in a more precarious position than a rock climber hanging off the side of a cliff.
The U.S. could exhaust its ammunition supplies in just 3–4 weeks if a hypothetical war with China were to break out.
In most cases, there are no readily available substitutes for these minerals and America has no domestic production of antimony or gallium, while producing only a negligible amount of germanium, just two metric tons between 2018 and 2022.
Keith believes all hope is not lost, as one American mining company holds the solution to the shortage.
The Pitch
The name of the company strategically positioned to capitalize on the current global dynamics is revealed only in a comprehensive report called “The American Miner Breaking
China's Metals Monopoly.”
It is included in a subscription to the Energy Investor research service, which costs $99 for the first year, and comes with a 6-month money-back guarantee.
The Push for Mineral Independence
Within every setback lies the seed of an equivalent or greater benefit.
I didn't come up with that, it's an old Napoleon Hill quote, but I included it because when it comes to investing, within every crisis lies an equivalent or greater investment opportunity. I did come up with that one.
It appears that is what is happening in this instance, as Federal policies are finally addressing America’s critical minerals blindspot.
The second item on President Trump's priority list, after making America safe again, is making America affordable and energy dominant again.
It started with The “Unleashing America's Energy” executive order, which Trump signed on day one.
This was supposed to overturn a 20-year mining ban in northern Minnesota, among other things, but details are still being wrangled over by lawmakers.
Despite this, billions in federal funding and strategic partnerships are now actively working toward expanding domestic resource production.
The shift from openly hostile policies to ones that are energy-positive are already being felt on the ground, and in the market, with energy indexes now modestly positive for the year.
The National Strategic Rare Earth Inventory
One American mining company has perfectly positioned itself to reap the benefits of this shift in energy policy.
It controls land containing an absolute treasure trove of 19 of the 50 minerals identified by the U.S. government as essential to economic and national security.
The company's reserves are so valuable, that the federal government has added them to the National Strategic Rare Earth Inventory.
Let's find what this critical miner is.
Revealing Keith Kohl's “American Miner Breaking China's Metals Monopoly
Keith parted ways with several key pieces of data about the mining concern coming to America's rescue:
- It is located in the central Idaho belt, where it's properties host three of the top ten rare earth elements prospects in the U.S.
- The company also owns a gold mine containing over $1.2 Billion worth of gold.
- The U.S. Geological Survey and Department of Energy have recognized it's deposits as critical for national security.
Based on this information, Keith's All-American miner is Idaho Strategic Resources Inc. (NYSE: IDR).
- IDR is an Idaho-based gold producer which also owns the largest rare earth elements land package in the United States.
- It's 100%-owned Golden Chest Mine is the state's largest, and
- Some of the rare earth elements IDR produces are on the U.S. Geological Survey's list of 50 commodities critical to the economy and national security.
Turn every $10,000 into $360,000?
The catalyst is that America's relationship with China, the world's largest rare earth mineral producer, is more strained than ever.
There is truth in this.
This, combined with wars in Europe and the Middle East are making countries scramble to secure strategic stockpiles of resources and stable supply chains.
As for Keith's 3,500% profit claim, it's based on past successes, like Texas Mineral Resources Corp., which saw it's stock go from $0.25 to $9 during the 2010 rare earth crisis.
Can Idaho Strategic replicate such success?
Maybe.
It's not going to produce enough rare earths to breakup China's monopoly anytime soon, but IDR's balance sheet is pristine, with less than $3 million in debt, and just over $9 million in cash.
The miner's gold mines are revenue and income producing, generating $25 million in revenue last year. A figure which has already been exceeded through the first two quarters of this year.
Management has also been effective at allocating the business' capital, with a 25% Return on Equity (ROE).
All of this puts IDR in a position to invest in the exploration side of its business, which it is now doing, adding a copper project to it's portfolio last year and starting next phase asset exploration on it's rare earth targets.
Above-average growth could follow.
Normally, paying around 32x current earnings is too much for a commodity business. But IDR's micro-cap status combined with it's strong financial position, make it an asymmetric risk, with more upside than downside.
Quick Recap & Conclusion
- China has a near-monopoly on rare earth minerals, which is a major threat to U.S. national security. But, according to Keith Kohl, one “American Miner is Breaking China's Metals Monopoly.”
- The U.S., under President Trump, is making energy dominance a top priority, right after making America safe again, and one domestic resource producer is perfectly positioned to reap the benefits of this policy.
- The name of the company is revealed only in a comprehensive report called “The American Miner Breaking China's Metals Monopoly.” It is included in a subscription to the Energy Investor research service, which costs $99 for the first year.
- Some key pieces of data in the teaser allowed us to reveal Keith's pick right here, for free, as Idaho Strategic Resources Inc. (NYSE: IDR).
- IDR is a strategically positioned, profitable, small-cap miner, with above-average growth. It's valuation isn't the lowest, but the overall upside is greater than the downside.
Will America ever be energy dominant again? Leave your thoughts in the comments.