• Stable Suppliers investing focuses on mining companies in politically secure regions like Canada and Australia.
• These miners offer greater operational consistency, protecting investments from sudden political or regulatory changes.
• Capitalize on the growing global trend of supply chain security, boosting demand for reliable commodity sources.
• This strategy prioritizes geographic risk management, offering a more secure approach to mining sector investment.

The Quiet Case for Mining in Predictable Places

Let’s be honest, shall we? When it comes to investing, we often crave a bit of drama. The thrill of a frontier market, the allure of a ten-bagger discovery in some far-flung, politically colourful nation. It’s exciting stuff. But excitement, I’ve found, rarely pays the bills. It’s a bit like choosing a holiday destination. You could pick a country on the brink of a coup for the thrilling stories, or you could go to Spain for the reliable sunshine and lack of sudden, government-enforced curfews. When my own money is on the line, I’ll take the reliable sunshine every time.

The same logic, it seems to me, applies perfectly to the world of mining. For every story of a vast mineral wealth discovery, there’s another, less publicised tale of a government changing the rules, slapping on a windfall tax, or simply deciding that your mine is now their mine. This is why the smartest people in the room are increasingly looking not at the richness of the ore, but at the post code of the head office.

The Allure of the Unadventurous

There’s a concept called the "jurisdiction premium," which is a rather dry way of saying that investors are willing to pay more for companies that operate in boring places. And by boring, I mean wonderfully, reassuringly stable countries like Canada, Australia, and the United States. These aren't places where you have to factor a military coup into your discounted cash flow analysis. They have something far more valuable than the world’s richest copper deposit, they have predictable laws and courts that actually enforce them.

This stability allows companies to plan for the long term. They can invest billions in a project with a reasonable degree of confidence that the goalposts won't be moved halfway through the game. In today’s world, where supply chains are looking increasingly fragile, this predictability has become a strategic asset. It’s the difference between building your house on solid rock versus building it on sand that happens to be sitting on a political fault line.

Riding the Cycle Without the Whiplash

Mining is, by its nature, a cyclical beast. Commodity prices go up, and they come down. It’s the nature of the game. But companies operating in stable jurisdictions have a distinct advantage. When copper or gold prices are soaring, they can actually enjoy the ride without the government suddenly deciding it wants a much larger slice of the pie. And when prices inevitably fall, they aren’t simultaneously battling hyperinflation, labour strikes, and the risk of their operating permits being revoked on a whim.

Think of it this way. You’re removing a huge, unpredictable variable from an already volatile equation. It allows companies like Newmont or Teck Resources, who have deliberately focused their operations in North America and Australia, to concentrate on what they’re good at, which is digging things out of the ground efficiently, rather than becoming experts in geopolitical crisis management. To me, that seems like a much better use of their time and our capital.

Geography as Your Best Risk Manager

I’ve come to believe that the most important factor for a mining investment isn’t the grade of the ore or the life of the mine, it’s the flag flying over it. Political risk can wipe out shareholder value faster than any operational hiccup. It’s a simple truth that underpins entire investment strategies, like the {{ $json.output.basketName }} basket, which is built around this very principle of geographic safety.

This approach also brings other, less obvious benefits. Developed nations come with developed infrastructure. You get reliable power grids, established rail lines, and deep ports. You don’t have to build a 200-kilometre road through a jungle just to get your product to market. While it might seem less adventurous, this focus on stable, well-trodden ground could be one of the most effective risk management tools an investor has. In an uncertain world, a little bit of boring might just be the most sensible bet you can make.

Deep Dive

Market & Opportunity

• A collection of 17 mining companies operating in politically stable regions.
• Focus on operations based in Canada, Australia, and the United States.
• Provides exposure to essential commodities, including gold, copper, and zinc, without the geopolitical risk associated with unstable regions.

Key Companies

• Newmont Mining Corp. (NEM): One of the world's largest gold producers with operations concentrated in Australia, Canada, and the United States.
• Teck Resources Limited (TECK): A Canada-based company with a diversified portfolio of copper and zinc operations located in regions with a strong rule of law.
• SSR Mining Inc (SSRM): A precious metals producer with operations concentrated in North America, allowing for consistent production and long-term development projects.

Primary Risk Factors

• Political risk in unstable jurisdictions can destroy shareholder value through sudden government decrees.
• Potential for unexpected tax increases or regulatory changes in volatile regions can negatively impact profits.
• Operational disruptions in unstable areas can include production shutdowns and permit delays.
• The mining sector is volatile and subject to commodity price fluctuations that can significantly impact returns.
• All investments carry risk and you may lose money.

Growth Catalysts

• Operating in stable jurisdictions provides operational certainty, robust legal frameworks, and protection of property rights.
• A "jurisdiction premium" is created as investors increasingly value the security of companies in reliable regions amid global tensions.
• The trend toward supply chain security creates a structural advantage for miners operating in trusted, allied jurisdictions.
• Superior infrastructure in developed nations translates into lower operational costs and more reliable production schedules.
• The collection includes royalty companies, which offer commodity exposure while avoiding direct operational risks.