Enjoyed the write up. One thing I have found is the stock is not that liquid and can trade at a wide spread. I think they also have the royalty for white pine. Not sure if you ever researched altius, but the investor day a while back shared their view on how they value royalties which is a little different.
Thanks for your thoughts, Wes! Yes, the stock is quite illiquid. Our understanding is that they don’t own a royalty on White Pine. We know of Altius but haven’t read up on it. We will check it out. Thanks!
You could be correct. I saw this in the annual report and thought they might . "Between 1891 and 1995, when the White Pine copper mine ceased operations, the Company estimates receiving cumulative royalties, adjusted for inflation, exceeding $500 million."
Thank you for the very insightful writeup! Always enjoy your research and ideas. I tried to do some research on James Mai but found very little on the internet. Do you have an expectation for how James plans to allocate future capital if/when KEWL reaches a state of critical mass (positive carry)? Do you think it's likely that he invests in further mineral rights acreage, or buys back shares, or pays a dividend? Thanks
Fascinating write-up. I know approximately nothing about land investing, so forgive the stupid questions:
You say they have 439k mineral acres and only 5.6k are under lease, but leases constitute the vast majority of their revenue at present - what is going on with the remaining 433k acres (other than Copperwood)? Are they just sitting there?
Do they fully own these acres or just the rights to certain mineral resources on the land? Do you have any way of valuing the land/land rights themselves?
Matt, yes, only a small fraction of the company's acres are under lease. They have some that they've done some exploration on and are in the process of advertising to potential customers. KEWL's ownership is only mineral rights. The company sold off its surface acreage rights over the years.
Yeah great write up guys! I love the copper for us too. I studied copper a lot over the last few months and found that it’s pretty important to own it moving forward…one of the reasons I own $NEM which is growing their allocation towards copper.
Great deep dive. Interesting investment case
Thank you kindly.
Enjoyed the write up. One thing I have found is the stock is not that liquid and can trade at a wide spread. I think they also have the royalty for white pine. Not sure if you ever researched altius, but the investor day a while back shared their view on how they value royalties which is a little different.
Thanks for your thoughts, Wes! Yes, the stock is quite illiquid. Our understanding is that they don’t own a royalty on White Pine. We know of Altius but haven’t read up on it. We will check it out. Thanks!
You could be correct. I saw this in the annual report and thought they might . "Between 1891 and 1995, when the White Pine copper mine ceased operations, the Company estimates receiving cumulative royalties, adjusted for inflation, exceeding $500 million."
I owned this many years ago when the the balance sheet consisted of a stock investment portfolio. Has this changed?
Joel, we don't see evidence of such a investment portfolio anymore and haven't heard anything about it in recent company calls.
Thank you for the very insightful writeup! Always enjoy your research and ideas. I tried to do some research on James Mai but found very little on the internet. Do you have an expectation for how James plans to allocate future capital if/when KEWL reaches a state of critical mass (positive carry)? Do you think it's likely that he invests in further mineral rights acreage, or buys back shares, or pays a dividend? Thanks
I don’t know Mai well either. But the company’s track record is to buy mineral acreage and buyback shares. That’s what I expect will be their go-to.
Fascinating write-up. I know approximately nothing about land investing, so forgive the stupid questions:
You say they have 439k mineral acres and only 5.6k are under lease, but leases constitute the vast majority of their revenue at present - what is going on with the remaining 433k acres (other than Copperwood)? Are they just sitting there?
Do they fully own these acres or just the rights to certain mineral resources on the land? Do you have any way of valuing the land/land rights themselves?
Matt, yes, only a small fraction of the company's acres are under lease. They have some that they've done some exploration on and are in the process of advertising to potential customers. KEWL's ownership is only mineral rights. The company sold off its surface acreage rights over the years.
Yeah great write up guys! I love the copper for us too. I studied copper a lot over the last few months and found that it’s pretty important to own it moving forward…one of the reasons I own $NEM which is growing their allocation towards copper.
Glad you enjoyed it, Oliver. Nice. At least lately, copper's been a great trade.
Another land company you may want to dive into: AZLCZ
Drew, thank man! We’ve seen that name but never dove in. We’ll take a look now. Thanks!