Hi guys, Shaun Fox. Here in this video, we're going to be talking about the mining
industry and why that might be a prospect for you to invest in.
Okay so the mining industry seems big what are some of the big pieces that you might look at
well the mining industry when you're coming into it it's so bored it's everything you know you're
mining coal iron sand gold diamonds like it's it's unmanageably huge within there so i find it a very
interesting space it's one of my favorite places to invest myself um but very interesting okay so
that gives me a big picture how do these different parts of the mining industry all make money
well again it depends on the product that you're looking at but also the different
parts of the world where you're mining it from where you're sending it to who's buying it at
what time and what price is that worth it's a very intricate sort of dance at any particular
time within there but also quite a fun space to be looking into we've got a very big window
into gold at the moment and into sand they're the two big things that we look at the most in mining
what are there any big mining global trends that you're seeing right now we are so sand obviously
is the most in demand commodity in the world after water and it's the world's most depleting asset
so sand is a very exciting product to be in and sand has a lot of products you know it's
sandstone to construction against silica etc. one of the other big ones at the moment is gold
and you've probably seen it the price of gold is going through the roof so there are a lot of gold
mines out there at the moment and a lot of people looking to invest in actual gold lines can you
give me a sense of the numbers big picture either globally or for Australia well if you look at the
value of the mining industry look at the value of the mining industry here in Australia so we
won't look at the actual monetary value but look what it does for our economy Australia is built
off the back of mining it's where we first started and what keeps our economy afloat really and what
keeps us recession proof if you will when they use that is because we have such a huge industry
of mining here and sending that overseas so the value of mining is absolute and that's why we
look at it as an investment because that's where all the big money is being made and what would you
look for in terms of an investment prospect in the mining space it's a good idea to understand
how the mining industry works and you've got all the value chain proposition within there so you've
got the first little guy who comes across and he buys a bit of land or he does a bit of prospecting
he finds he's got some material there very gold copper or whatever that is from there he's got
to go out and he's got to get well his permits to be able to do some exploration on the site
he'll do a little bit of exploration to find out what material that he has within there
then he's got to go and get further permits to be able to do even more exploration within the site
or to be able to mine the site fully so that's one component the other component is we need to find
out what material is there so they generally drop a lot of core samples and get a report together
and that report tells you how much material's there what it's going to cost to extract and
how much profit that you'll make from it so when I'm looking at any sort of mine I've only got two
rules there's not a lot of things that i won't get involved in but with a mining site what I look for
is an active permit to be able to mine because I've seen minds that thought they were six months
away from a permit eight years later they still thought they were six months away from a permit
okay and also sometimes it's just not worth mining it if you get your mining report and it says it's
going to cost you you buy that site for 14 million dollars but it's going to cost you 100 million
before you start making money so you're really buying that site for 114 million so it's important
to be able to get those two reports and if you're looking at investing on any level through the ASX
or any space make sure those mines already have at that point and they're not pre-listed sounds like
a lot of research a lot of education along the way always research and always educate all right good
any other big picture mining industry overview for 2021 for example look at gold and sand we keep
coming back to that that's why we're focused on at the moment gold is massively in demand
through every recession you see that you know when other things dip gold goes up
so we're still seeing that and even though we are on the recovery now and as we're starting
to to come through our investing cycle gold is still up high and gold's always a pretty
solid investment and sand and sand type products we're building more things every day thank you
so much for those of you who'd like to find out more please visit Shaun online at shaunfox.net
you can also find his first work MONEY, THE BOOK available on amazon.com and amazon.com.au
alongside a brand new online training program called Anyone Can Invest. Thanks guys.