Here's a recent email tout posted by a recipient on another board. NTO isn't named directly, but it owns Agua Rica 100%. FWIW.
NC
THE WORLD'S NEXT GREAT GOLD DISCOVERY
(AND HOW I KNOW WHERE IT IS...)
By Dr. Steve Sjuggerud, PhD
I know the guys who run the lowest-cost copper producer in the
world. Their names are David and Pablo.
It's a pretty important thing to be the world's low cost supplier of
copper. Especially with the Chinese buying so much copper - at
almost any price. But, to tell you the truth, I don't care that much
about their copper.
Instead, the reason I keep a constant eye on this stock, a stock
that trades for around $3.00, is because their cheap source of
copper is adjacent to one of the world's richest deposits of gold.
Combined with the copper on this site, the resource is worth an
estimated $40 billion at today's prices. In fact, the mine is so
rich in copper that the gold is produced for free - as a byproduct
of the copper mining.
If you will give me 10 minutes of your time, I will tell you what I
know about a truly extraordinary situation. This is something I
wouldn't have believed except I've seen it with my own eyes.
As I've written recently, I think the bull market in gold prices
hasn't yet begun in earnest. And, if I'm right about that, David and
Pablo's tiny $3.00 stock will likely become the single highest
returning investment in the world over the next 10 years.
You could make 10 times your money here - before any major U.S.
investor even takes notice.
I know...all of this sounds strange, coming from me. You know my
reputation: I'm Steve "Conservative" Sjuggerud. But, there are some
opportunities worth taking a risk on.
This situation certainly qualifies. For starters, there's very
little downside. Cashflow from their current operation already
totals around $55 million a year. And remember: they consider the
gold a by-product of the copper.
But I'm getting a little ahead of myself. Let me start from the
beginning.
HOW TO BUY $40 BILLION
WORTH OF GOLD AND COPPER...FOR A SONG
Nearly five years ago, in a very depressed metals market, the
world's largest mining company, BHP - an Australian firm - made a
decision to pull out of Argentina.
BHP's top executives told their Argentine manager of operations to
get out of any project that wasn't currently producing ore and
dollars. BHP decided the political and economic risks of doing
business in Argentina were simply too great to continue to develop
new projects. Many other multinational companies pulled out at the
same time. And, perhaps they were right to do so: crisis struck in
2001.
You'll recognize the name of BHP's former manager of Argentine
operations. He is one of the two men I mentioned earlier. He's my
contact in Argentina's mining sector: His name is Pablo Marcet.
Over the last two years I've been to Argentina six times, searching
for distressed assets that were safe to buy. I've found some amazing
stuff, some of which I've already written about - like Cresud. I've
also taken nearly 100 American investors to Argentina to show them -
with their own eyes - what I've seen down there, like $10 million
penthouse apartments selling for $500k. I could go on...
But, out of all the good deals I've seen, nothing compares to this
deal.
In 2001 BHP wanted out of Argentina. But there were no bidders for
its properties, one of which was Agua Rica.
Agua Rica is located adjacent to one of the largest, most productive
mines in South America. It's called Alumbrera. Over a billion
dollars has been invested in Alumbrera, in discovery and production
equipment. As a result, the surrounding area has long been a center
of mineral exploration. Since the 1970s work has been ongoing at
Aqua Rica. Over $55 million has been spent by BHP and its partners
drilling and refining the Agua Rica gold and copper deposit over the
years. Most of the work was done in the late 1990s, with modern
technology. As a result, the size of the deposit at Agua Rica is
well proven. And Agua Rica could be exploited cheaply, simply by
connecting Agua Rica to Alumbrera with a conveyor belt.
As you probably know, there are two big risks in mineral production:
discovery and feasibility. In Agua Rica both of these risks are
controlled.
Imagine what Pablo must have thought, at this point in time. Your
country is in the middle of its latest, reoccurring political
crisis. You know it will all settle down in a year or two. But your
employer, BHP, wants out. You're most likely going to lose your
job...and you know that BHP is about to unload one of the greatest
deposits of gold in the world...
What would you do?
Enter David Cohen who had worked with Pablo for a number of years as
a joint venture partner. David got on the phone, called a few
wealthy friends, and put together a deal to buy BHP's stake in Agua
Rica for only $12.6 million!
Today the company David and Pablo created is publicly traded. And it
recently garnered a three-symbol listing on a major US stock
exchange. Even though Agua Rica is still under development, the
company is well established and even has substantial cash flows.
How?
David cut such a good deal when he acquired Aqua Rica that he was
able to go out and raise over $80 million in the markets to buy out
BHP's stake in Alumbrera itself! In fact, David got such a good
price, he was able to borrow money from the second largest bank in
Germany, HVB, as part of the financing. As you know, major
commercial banks don't typically lend money to exploration mining
companies - but this is an extremely special situation.
You see, owning BHP's former stake in Alumbrera gives David and
Pablo the cash flow they need to develop Agua Rica without having to
raise a lot of additional equity. In fact, using cash provided by
Alumbrera, they've already paid back the German bank.
At current prices, Agua Rica contains around $40 billion worth of
minerals. But their stock is trading at only $3.00 per share, a
value that's based solely on its current copper and gold production
at Alumbrera. Without giving away too much, I can tell you that if
the stock increased in price by a factor of 10, it would probably
still be a reasonable buy, given the size of the Agua Rica reserves
and its proximity to Alumbrera's production equipment.
It's an extraordinary opportunity - no doubt. And it's probably
going to become even better...You see, I believe the bull market in
gold hasn't really begun yet.
HOW I KNOW GOLD IS STILL A "HATED" ASSET
Before you dismiss my opinion as simply another analyst who's
jumping on the gold bull market bandwagon, I suggest you look at my
track record: I've been early to almost every single important
economic trend over the last several years.
I told thousands of subscribers in January 2000 that we were
witnessing the greatest market mania in history and that stocks were
going to get crushed. Nobody believed me. Stocks, the "experts"
said, would continue to go up by 20% a year.
I told thousands of readers in August 2001 that the dollar had hit a
cyclical peak and that it was time to move away from our home
currency in order to preserve wealth. Few believed me. The dollar,
according to the "experts" was now the world's only superpower
currency.
In 2002, I told anyone who would listen that there was still A LOT
of upside left in real estate, and that according to my models,
there wasn't a bubble in prices - they would probably go much
higher. The "experts"? You know what they said, that property prices
were sure to tumble. True Wealth subscribers, meanwhile, were handed
triple digit gains in commercial property REITs, like Simon Property
group, and more than 20% a year - in dividends - by buying mortgage
REITs like Annaly.
But my most contrarian (and most hated recommendation) came in 2003
when I told my readers to buy rare gold coins. According to my
conservative estimates of average prices, if you bought the MS-65s
(St. Gauden's) that I recommended in June 2003, you've made at least
34% on your money so far...
In fact, I believed the opportunity in gold coins was so important
that I asked Porter Stansberry to help me organize a conference for
our subscribers the day before the best gold coin show of the year -
the Long Beach Coin, Stamp and Collectibles Expo - last year.
We invited the world's most experienced traders in gold - including
the top names in bullion (Burt Blumert), rare coins (Van Simmons),
portfolio diversification (Michael Checkan) and gold stocks (Frank
Holmes) to tell you their very best ideas in each category. It was
everything you needed to know about investing in gold, directly from
the people who've made an entire career out of trading in gold.
Burt, for example, opened his shop in 1959. Van invented the PCGS
grading system. Frank runs the best gold mutual funds in the world.
And Mike can tell you about helping our Vietnamese allies, who were
fleeing the communists, exchange gold for US dollars at Eglin Air
Force Base more than 25 years ago.
If you attended our meeting last year, we even arranged for you to
get your own "dealer's pass." This allowed you to go on to the floor
of the show the night before it opened - where you could buy almost
any gold coin that's ever been traded. It was your chance to buy my
recommended coins, or the recommendations of our experts, and take
immediate delivery.
If you did, chances are good that you've made between 15-30% on your
investment - in just a year. But I believe even bigger profits are
still developing - much bigger profits...
You see, at the conclusion of last year's conference, I asked Frank
Holmes, who runs what's probably the world's best gold mutual fund,
if there was only one gold stock he could buy, which one would it
be. Without a second's hesitation - without even blinking - he
said, "David and Pablo's company."
YOU HAVEN'T MISSED THE BIG GAINS...YET...
With the gains gold has made since 2002 - up from $240 an ounce to
today's $420 price - some investors undoubtedly believe that gold
has seen its day in the sun. After all, if you look back over the
last 20 years, gold doesn't go much higher than $400 for long...
But, there's one factor I think is very important...that most people
haven't noticed yet...that tells me gold is going much higher: the
price of gold in euros hasn't budged. To a European investor, gold
hasn't made a move at all - yet.
What's happened so far is the US dollar has weakened. That's sent
money out of dollars into things like oil, gold and even the
European currency. But all paper currencies are, in the long run,
doomed to fail. The euro - while it's strong right now - is already
beginning to fall apart because its member countries can't run
balanced budgets and continue to borrow more than they're allowed to
under the euro treaty. Eventually the Germans are going to get tired
of subsidizing the Italians, Spanish and Greeks...if they don't tire
of the French first, that is.
And, as we've seen with President Bush (a republican!), there's no
way America's budget is ever going to be balanced: our deficit has
grown by more than 20% in the last four years alone.
Increasingly, investors all around the world are going to return to
gold as a safe heaven. We've seen the beginnings of this move. But
wait until the Chinese decide to sell their dollar holdings...
As you know from history, price moves in gold can - and frequently
are - explosive. Gold experts like Doug Casey and Paul van Eden make
a convincing argument that the price of gold should go as high as
$3,000 per ounce in the next ten years.
I don't have a precise forecast for the future price of gold. I only
know that rare gold coins are a great store of value and I know
buying them now remains extremely contrarian. I also know that
buying gold assets like David and Pablo's gold mining company is a
smart move for almost any investor: the upside is tremendous and
some amount of gold in your portfolio provides excellent
diversification. Gold, of course, is also a hedge against
catastrophe.
HOW TO GET ON BOARD NOW -
BEFORE THE BIG MOVE IN GOLD HAPPENS
Today not many investors know as much as they should about gold. And
that's why we're going to host the Gold Summit again this year -
Gold Summit II.
Once again our best contacts will be on hand - Burt Blumert
(bullion), Van Simmons (rare coins), Frank Holmes (gold stocks) and
Michael Checkan (asset diversification) to tell you what they know
about buying gold. You can expect specific advice from these
experts - that's what they do, everyday, year round.
And, once again, if you attend our Gold Summit II, you will receive
a "dealer pass" to the Long Beach Coin, Stamp and Collectibles Expo,
which will take place the following day. The pass grants you early
access to the floor the night before the show, where you should be
able to buy any coin (and almost any gold collectible). You can take
delivery immediately and be sure that what you're seeing is what
you're buying. Plus, you can ask our experts for help to make sure
you're buying the right coin, in the right grade, at the right price.
If you're new to gold or if you've only bought gold stocks, this is
the perfect opportunity to get "your degree" in gold. Our all-day
conference will cover all of the important ways to invest in gold
and will show you exactly what to buy now for value and safety.
BURT'S TOP RECOMMENDED COIN...
As an added incentive to join us, Porter has agreed to do something
I can hardly believe: he's going to buy you a top quality GOLD coin.
So, if you're totally new to gold, your collection can start by
simply attending our Gold Summit II.
Of course, we both know that most of the things you get for free
aren't worth very much. But Porter was very clear about this gift:
it's not a gimmick. We asked Burt Blummert - our most experienced
contact - which gold coin today offered the most value. That's the
coin Porter has agreed to purchase for you. I can't tell you which
coin it is (or the prices would be bid up all around us prior to
this event), but I can tell you that it is a gold coin you will be
very proud to own and shocked to be given as a gift.
ALL THE DETAILS YOU NEED:
Our Gold Summit II will commence at 8:30 AM (complimentary gourmet
breakfast to begin at 7:30 AM) at the Long Beach Convention Center
in Long Beach California on February 23rd, which is a Wednesday. The
Long Beach Coin, Stamp and Collectibles Expo will take place the
following day.
As an attendee to the S&A Investment Research Gold Summit II, you
will receive a floor pass to the Coin Expo, which grants you
admission to the show and early access to the floor the night
before. You'll also get - for free - Burt Blummert's top recommended
gold coin. For obvious reasons, you must be in attendance to receive
this gift. And we'll be serving top shelf food - breakfast and
lunch, plus snacks and coffee during the day. This event - like our
S&A Alliance Conference - will be first class all the way.
In addition to learning what you need to know today to invest in
gold from our top five experts, I'll be there in person to talk
about what's happening in gold - and what's going on across the True
Wealth Portfolio. I'll also tell you about my top five "family &
friends" investment recommendations. These are opportunities I've
found from around the world that are too small for inclusion in my
newsletter - like David and Pablo's company, for example.
And finally, direct from an Argentina visit, David Cohen will be in
attendance to tell you, personally, all about the gold mine he was
able to salvage from Argentina's political crisis. You'll be able to
judge for yourself why I think this could be the number one top
performing stock of the next ten years.
We've reserved these speakers, our gold coin gift and a special
presentation from my friend David for you. All you have to do is
join us...
Last year we charged $1,000 for this package - without giving away a
nice gold coin and without David's presentation on Agua Rica - and
we sold out in about two weeks. I feel confident that we could raise
the price substantially this year and still sell out in a few days.
There's no other place and no other way, at any reasonable cost,
where you could meet these men, learn what they know about buying
gold and have the opportunity to invest and take immediate delivery.
Never mind the gift we're giving away this year has a substantial
value - the coin and the dealer pass is probably worth what we're
charging for the conference.
And, this year, David's coming to tell you, in person, about a stock
that could be your "once in a lifetime" opportunity. You'll know
more about it than anyone else.
But, it's Porter's show. And he's insisting that we keep the price
at $1,000. As a result, I suspect we will sell out within a few
days...
The best way to reserve your seat is to act immediately. Click here
and order now.
But, if you have questions about this conference, feel free to call
our sales team at 866-411-7859. Call between 9 am and 5 pm Eastern
Standard Time and ask for Mike or Brad.
I hope you'll join us this year. I'd love for you to be one of the
many readers who've learned to jump on the "hated" recommendations I
make in True Wealth.
Click here and order now.
Best regards,
Steve Sjuggerud
P.S. One favor: if we do sell out, please do not try and contact
me...I really can't do anything about it. Our conferences are
organized in the Baltimore office, by Kristen Kossuth. She does a
fantastic job, as anyone who has been to our events knows. The last
thing I want to do is make her job harder by pestering for yet
another "exception." If you want to come, please do. But don't
expect to be able to join us at the last minute.
stansberryresearch.com
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