“Location, location, location” is a well-worn real estate mantra, but it’s the mantra we live by at Equities Club – especially when it comes to mining investments.
In mining, you can stumble upon the most promising mineral deposit in the world, but if it’s stuck in a region with shaky politics or unreliable infrastructure, you might as well have invested in a pet rock.
While the success of mining investments depends on several other key pieces: the asset, the management, and the commodity market, perhaps the most important is the location.
That’s why last week, we made our first investment in Lanthanein Resources (LNR), a lithium explorer located in Western Australia, one of the most mining-friendly jurisdictions on the planet. Our investment in Australia gives us peace of mind, knowing it is a well-established mining region with a supportive government.
To help you avoid similar pitfalls, we’ve delved into the latest Fraser Institute of Mining survey and extracted the top 20 locations globally for mining investment.
We’ll cover the best locations and provide a list of all the companies we’ve recently written about that are located in the world’s best mining spots.
Where to Mine for Success: The Fraser Institute’s 2023 Rankings
The Fraser Institute’s annual survey of mining companies is like a compass for investors, pointing towards the most attractive mining jurisdictions worldwide.
The survey just released involved 293 mining companies, providing a comprehensive overview of 86 jurisdictions. By understanding the best locations for mining investments, everyday investors can make informed decisions, potentially maximising their returns while minimising risks.
The USA, Canada, and Australia dominated the top 13 spots and 16 out of the top 20. This impressive showing is a testament to the strong policies and frameworks these countries have in place, making them fertile ground for mining investments.
Investors are naturally drawn to jurisdictions with lower political and social risks.
Mining investments in regions with a stable political climate and good governance are less likely to face disruptions from civil unrest, strikes, or nationalisation of assets.
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Finding a tier-1 asset in one of the locations shown above is usually the ticket to significant gains as an investor. Very few are discovered regularly, but when they are, their share price rockets.
Case in point: We covered the WA1 discovery in Western Australia last month. It’s the perfect example of a tier-1 asset in a tier-1 location, and the share price reflects this, going from 20c to $22.00 in less than two years.
Our Favourite Companies in Tier-1 Locations
At Equities Club, we’re all about uncovering hidden small-cap gems in tier-1 locations. We’re seasoned investors on a mission to find those companies with enormous potential. You get one or two of them in your life, and when they land, they are life-changing.
Since the USA, Canada, and Australia dominated the Fraser Institute’s top 20 list, we’ve decided to spotlight some of our favourite companies operating in these prime locations below. You can dive deeper into our articles on each company here.
It’s no surprise that the USA, Canada, and Australia dominate the rankings. Their stable governments and supportive mining policies will always attract investment. It’s a simple equation: a stable government plus a thriving mining industry equals a recipe for success.
Remember, investing in small-cap companies always carries a degree of risk. Still, by focusing on companies in politically stable and mining-friendly jurisdictions, you can significantly reduce your exposure and increase your chances of finding that life-changing investment.
Disclosure: Equities Club owns 4,560,000 LNR shares at the time of publishing this article and has been engaged by LNR to provide commentary.