“Pure Coal Plays Trading at HUGE Discount to Inherent Values” says Analyst Jayant Bhandari

“The pure coal plays are trading at a huge, huge discount to inherent values. The price to earnings tends to be about 1.5 to 2 for these companies, which means you are getting as much as 50% of the share price in cash and after-tax earnings every year” explains analyst Jayant Bhandari. In this interview Jayant gives his view on the mining sector’s current M&A landscape, security of supply, geopolitical risk, cash allocation in a portfolio, his top picks and much more.

Jayant Bhandari of Anarcho Capital, is constantly traveling the world to look for investment opportunities, particularly in the natural resource sector. He advises institutional investors about his finds. He was a Director on the board of Gold Canyon, a publicly-listed Canadian company, until its merger with another entity. Earlier, he worked for six years with US Global Investors (San Antonio, Texas), a boutique natural resource investment firm, and for one year with Casey Research. Before emigrating from India, he started and ran Indian subsidiary operations of two European companies.  Jayant runs a yearly philosophy seminar in Vancouver entitled, “Capitalism & Morality.”

Interview conducted by Brian Leni of JuniorStockReview.com

0:00 Introduction

0:44 Company Valuations are low, why isn’t there more M&A?

3:18 Pure coal plays trading at discount to inherent value

4:20 M&A discussion

10:03 Which companies are most likely to be acquired?

11:46 Security of Supply – Critical Minerals

16:31 Geopolitical risk

22:28 U.S. Bank Failures

25:00 Are known risks less risky?

26:58 Is the end of the USD imminent?

32:53 Equity valuation lag in relation to metal prices

35:00 Confirmation Bias

37:01 Valuation discrepancy between developers and explorers

41:11 Top Picks

43:25 Capitalism and Morality Conference