Hornby Class 50
Are there Great, stockpiles New Left?
StockInterview: Let's get colder areas of the road if investors are cautioned that countries to avoid.
Lawrence Roulston: A lot of (mining) companies that went overseas in decades back are recognizing the political difficulties to deal in certain jurisdictions. These include countries like Indonesia, Columbia, and several African countries like Congo, Sudan and Eritrea. All these places where there are great geological prospects, but are more risky to deal in. I think some of that mining is back close to home, which is here in Canada.
StockInterview: So Canada is on your "favorite countries" list?
Lawrence Roulston: At the top of the list would be Canada. At this time, taking into account the geological potential, the political situation, infrastructure and all other questions, I'd be (very) rate Canada and British Columbia. They have had decades of work. But for the last decade, there has not been going very well. Companies are only to come back and pick up with what was happening. Similarly, Ontario, Quebec – tremendous geological potential – and it was sort of ignored for a long period. Canada is now the place most in the world for diamonds, which represents 50 percent on exploration spending for diamonds.
StockInterview: Is there a specific mineral or metal that makes Canada especially appealing?
Lawrence Roulston: It's the whole gambit. Canada has always been one of the producers metal top, and comes back to life. Of course, gold is at the head of the list, but also base metals and uranium. The Athabasca Basin in northern Saskatchewan is by far the most important sector to watch, geologically. He is currently the largest producer of uranium and contains the highest grade deposit. There are other areas of uranium potential in Canada who are completely new. The Thelon Basin in the Northwest Territories, northern basin Athabasca, is very similar, geologically, to the Athabasca Basin. He had a little work in the 1970s, and it was just almost ignored until very recently. Going a little further north to Hornby Basin, it is same kind of situation. In Labrador, the Mineral Belt Central is just becoming a very important place in search of uranium.
StockInterview: Do you have any favorite businesses, you follow and who have good chances?
Lawrence Roulston: NovaGold Resources (TSX: NG; AMEX: NG), for example, with the Galore Creek. This deposit billion tonnes, with huge metal content. (Editor's Note: Galore Creek has been called one of the largest and highest grade undeveloped deposits of gold-silver-copper porphyry related to North America.)
StockInterview: This is another of your areas of choice, which is passed largely undetected during this bull market?
Lawrence Roulston: Nevada would be at the head of the list from anywhere in the world of work and right behind Alaska. There is a huge potential in Alaska. Mining companies have only scratched the surface of exploration up there. Two of the largest metal deposits in the world are in Alaska. These findings are both going back decades, but work over the last two years, led them to the point where they are now recognized as one of the largest metal deposits in the world: Donlin Creek, one of more than 25 million ounces of gold deposit and the deposit of Pebble, held by Northern Dynasty (TSX: NDM). The Pebble deposit is significantly larger that, and of comparable quality, Ivanhoe (NYSE: IVN) Oyu Tolgoi (copper-gold) deposit in Mongolia. (Editor's Note: The Donlin Creek project is a joint venture between NovaGold and Barrick Or)
StockInterview: Everywhere else in the world where you can find a large, but still "new" investment opportunity resources, given the difficulty of Bull products was the rush of recent years?
Lawrence Roulston: Often the best value to maintain, or the best opportunity is to be a bit out of step with the crowd. One area offers outstanding opportunities is China. China has done a lot of geological work, over the past few decades, but in the prospect of finding, and then rapidly developing small deposits. It has been very little effort devoted to a closer look at the typical image of China. Companies have been able take a sort of picture look at China have begun to develop what I think will be rather spectacular results over time.
StockInterview: Is not it difficult, however, do business in China?
Lawrence Roulston: There is still a perception that China is a difficult place doing business. Most people walking to the west of China in the cold and try to make an agreement. It would be impossible for them. But for Western companies who are able to team up with groups that are well established within China – so they can find their way into the system there – Then there are outstanding opportunities. There are mountains of geological information – all in Chinese, of course. You must be able to work in this system and obtain information, know how to put the deals together.
StockInterview: What do you mean by "how to put the deals together?"
Lawrence Roulston: If I had to go to China and try to make an agreement for access to a coalbed methane property, I would no idea on how to begin. On the other hand, I could walk into the Petroleum Club in Calgary, and meet a half-dozen guys and talk to them. I could build on my son, and possibly one day about a case. When you go to China, unless you have someone in your team who can enter the system and deal with people, because of language problems, cultural issues and access to information and what kind of terms that they could be looking for … It is a culture different from any perspective, not least of which is another way doing business.
StockInterview: In your April issue, you recommended a company that has overcome these obstacles, responds to your criteria and has a lot of coalbed methane in China.
Lawrence Roulston: Pacific Asia China Energy (TSX: PCE) established connections in China. They can leverage their contacts and their network. They can get the right people see where they can talk seriously about agreements, and have a huge leg up for someone who walked in cold and tried to establish and build contacts and put a lot together. I think it is a truly remarkable opportunity they seized on.
StockInterview: There are many opportunities for methane coal in Alberta. Why look to China?
Lawrence Roulston: One of the things that makes China interesting is the cost of entry to enter into a coal methane (CBM) play in China is relatively modest. For example, to go to Alberta, or anywhere in the United States, and access Rights to exploration or exploitation rights, is extremely expensive. In China, they walked in and for a relatively modest commitment advance, got a checkpoint in a CBM prospect.
StockInterview: How Asia-Pacific Property China Energy CBM in Guizhou, the rate of coalbed methane in China against the other parts?
Lawrence Roulston: I think it's a great opportunity. Chinese government agencies have done a great job with the delineation of coal. To step into this amount of data as a starting point to build their CBM resource? The result is that they are not out there looking for coal. They know exactly where the material is, and they are able to quickly start defining the issues as the valuation. They are drilling to establish the parameters physical basis of flow rate and content in coal. I think that companies are able to effectively exploit the CBM technology in China will be the pioneers in this field.
StockInterview: To Americans, any company in China that may appear as a "pioneer" because most still think of China as a Third World country.
Lawrence Roulston: I've been to China many times and I been to parts of China where most people, as tourists, would never get anywhere near, because I'm going there to watch Mineral exploration projects and mining projects. I went to all corners of the country and major cities. What I see happening everywhere I go is a pace development that I've never seen anywhere else in my life, anywhere in the world. It's 1.3 billion people move from an economy essentially rural farm to a modern industrial economy at a pace that has never been designed.
StockInterview: How can you quantify?
Lawrence Roulston: It's a number that most people do not get, and you will not get until you've been there and have seen. There are 300 million people in China who are already well into the middle class. By middle class, I compare (the Chinese middle class) the same absolute level that we would apply to Canada or the United States in terms of dollars into your bank account, the value of your home and your car, and everything else. There are 300 million people who have already achieved this status, which is more than the people of this status in North America. There are still 1 billion people who are busting their butts to get to this level.
StockInterview: But this is not the rest of the world rural population as industrious and ambitious?
Lawrence Roulston: I've been in Africa, the Middle East, Asia and Latin America. If you go to one of these areas and you walk in small towns, many people are sitting around drinking coffee, crying the blues and complaining about how life is terrible. Go to a similar zone in China, and the people are working in the fields. In the middle of winter, they are fixing their fences, dams and terraces, and clearing rocks, removing trees and stuff like that. It is a high level industry I have never seen in any other part of the world. So it goes from that ground level to the entrepreneurs, and the guys who build the high condominium complex in Shanghai.
StockInterview: How long will it take before American investors realize the China's impact on the global economy?
Lawrence Roulston: It will happen in a phased manner. I think those that keep their heads buried in the sand will be left for the world to pull ahead. I would suggest any investor in a company raises the question of society: "Is the company involved somehow in China? "There are many U.S. companies that have a very significant presence in China in terms of do business there, to get established, the sale of products or manufacturing products in China.
StockInterview: Why is so important with China regarding this bull market products, and there are still opportunities to invest?
Lawrence Roulston: There are a lot of potential geological and there is the perception that it is difficult. Therefore, it is not yet a big crowd of people out there chasing deals. The flip side of this is that China and its neighbors in Southeast Asia, representing 3 billion people, pass through the process of modern industrialization. This will continue to create massive demand for metals, I think, a decade or perhaps even twenty years in the future.
StockInterview: And most likely, the American investor will be left behind or the last in the pond?
Lawrence Roulston: The key is that Americans tend to be more active concentrate. The other night I was dining with a Texas oil man who spent much time in China. He had seen China first hand and was very optimistic. I asked him: "How many of your countrymen do you really understand China?" And he replied, "Oh, about five." Then he said: "The Congress does not get it, investors do not get it and the man Street does not understand. "Americans do not understand what is going on there yet.
About the Author
James Finch contributes to StockInterview.com and other publications. Read the rest of this interview and sign up for your free subscription to articles by James Finch by visiting
StockInterview.com
Hornby Class 50 035 ArkRoyal
|
|
Hornby Class 50 Electric Motor £15.00 |
|
|
Hornby Class 50 Drive Unit. £10.00 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.49 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.49 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.49 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.49 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
Hornby Class 50 Thunderer R3054 £51.00 |
|
|
AWESOME HORNBY CLASS 50 SOUND DECODER £84.99 |
|
|
TMC Hornby R2901XS Class 50 Illustrious 50037 Weathered DCC Sound £199.50 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
Hornby R3054 Class 50 BR Blue Thunderer 50008 New Boxed £99.99 |
|
|
HORNBY CLASS 50 LOCOMOTIVE 50004 ST VINCENT BR BLUE LARGE LOGO LIVERY £75.00 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
CLASS 50 REPLACEMENT BUFFER STEPS TO FIT HORNBY £2.45 |
|
|
TMC Hornby Class 50 Thunderer 50008 Weathered DCC Sound £199.50 |
|
|
TRIANG/HORNBY R.50/53 OO GAUGE CLASS 7P LOCOMOTIVE ‘PRINCESS ELIZABETH’ £10.00 |
|
|
Boxed Hornby BR Blue Class 50 006 Neptune DCC Ready *PRO WEATHERED RENUMBER LOOK £94.99 |
|
|
HORNBY R2438 BR CO-CO DIESEL ELECTRIC CLASS 50 (RESOLUTION) £0.99 |
|
|
Boxed Hornby BR Blue Class 50 035 Ark Royal DCC Ready *PRO WEATHERED LOOK* R2349 £84.99 |
|
|
Hornby British Rail class 50 loco 50037 Illustrious Weathered £0.99 |
|
|
HORNBY (CHINA) R2349: SUPER DETAIL CLASS 50 ‘ARK ROYAL’ LOCOMOTIVE – BR BLUE VGC £36.00 |
|
|
HORNBY CLASS 50 ACCESSORY BAG ( X5043 ) BRAND NEW £4.00 |
|
|
HORNBY OO R2349 CLASS 50 035 ‘ARK ROYAL’ BR BLUE LOCO £52.00 |
|
|
Tri-ang Hornby R.50 CLASS 8P Locomotive 4-6-2 ‘Princess Victoria’ OO Gauge 46205 £0.99 |
|
|
HORNBY X9232 CLASS 50 GEARED DRIVE BOGIE COMPLETE NEW SPARES £13.20 |
|
|
HORNBY R2428 CLASS 50 037 ‘ILLUSTRIOUS’ BR BLUE LOCO £0.99 |
|
|
Hornby Class 50 50018 BR Blue £0.99 |
|
|
Hornby Class 50 50045 NSE £0.99 |
|
|
TMC Hornby Class 50 NSE 50028 Tiger Weathered £142.50 |
|
|
Hornby Cam Coupling Holder X9233 Class 50 £3.00 |
|
|
HORNBY CLASS 50 DETAIL / COUPLING PACK X5043 NEW SPARES £3.99 |
|
|
Hornby R2474 BR Co-Co Diesel Electric class 50 Loco ‘D421′ NEW £89.99 |
|
|
New & Boxed Hornby 00 – R2428 Class 50 ‘Illustrious’ £89.60 |
|
|
HORNBY R2428 CLASS 50 DIESEL LOCOMOTIVE ILLUSTRIOUS DCC READY BOXED £69.50 |
|
|
HORNBY R2348 BR CO-CO DIESEL ELECTRIC CLASS 50 LOCOMOTIVE (RESOLTION) BOXED £54.75 |
|
|
HORNBY R2438 BR CO-CO DIESEL ELECTRIC CLASS 50 (RESOLUTION) 4 X STEPS MISSING £56.75 |
|
|
HORNBY R2429 NSE C0-C0 DIESEL ELECTRIC CLASS 50 ‘SUPERB’ WEATHERED DCC READY £95.00 |
|
|
TMC Hornby NSE Class 50 Lion 50027 Weathered £122.50 |
|
|
Hornby R2802XS 00 Gauge Br Co-Co Diesel Electric Class 50 Sound Digital (DCC) Locomotive with Sound Diesel £209.99 Suitable for the following scale(s): OO Scale… |
|
|
Hornby R2793 00 Gauge NSE Class 50 Dauntless Diesel Locomotive £94.99 Suitable for the following scale(s): OO Scale2nd Quarter 2008 Release… |
|
|
HORNBY LOCO R3054 DIESEL ELECTRIC THUNDERER CLASS 50 £105.60 Hornby 00 Gauge BR CO-CO Diesel Electric Class 50 Locomotive 50008 Thunderer # R3054 DCC Ready, Minimum Radius 438mm…. |