Be Bold. Think Big.
As we head into the long weekend, I thought I’d pass along three items I thought You Should Read when you find a moment:
Lukas Lundin: tip of the hat to Peterson Capital client Eira Thomas, CEO of Lucara Mining (LUC-$0.62 Mkt Cap $281 million) for writing a very poignant and meaningful news release on Wednesday announcing Mr. Lundin’s passing away.
Eira and her team put together a testimony that highlighted Mr. Lundin’s obvious contributions to the mining industry and then went deeper into how he impacted Lucara from both a professional and personal level. They wrote about “a man was never afraid to swim against the tide once the value of an opportunity became apparent”. They noted his “commitment to innovation and willingness to take risks”, his “energy and passion for living life to its fullest”
And, the most powerful sentence, in our minds, in a very powerful tribute, came at the very end:
“We will deeply miss our intrepid and legendary leader, who will forever inspire us to be bold and think big,”
Thanks to Eira for reminding us of that lesson: Be Bold. Think Big. You can read the full news release – and you should – here: News Releases | Lucara Diamond
Mr. Lukas Lundin, Founder and Former Chairman, The Lundin Group of Companies.
Resources pullback: Our friends at Deans Knight Capital Management Ltd. in Vancouver have been investing in the resource sector since 1993. They’ve seen a few pullbacks in their time. This one is no different than the many that have preceded it over those nearly 30 years.
Deans Knight just sent out its June 30 Quarterly Report on the Deans Knight JDS Resource Fund. It’s really well written – and something you should read to give a perspective on where the resource sector is these days, with rising rates and talk of a recession causing a pullback in much of the sector. If you’d like us to send you a copy, let us know.
Here’s a passage that stands out to us:
“When we look at our portfolio, we aim to filter out the noise in the media and the market and focus on what we can control. We cannot predict the start or the end of a recession or the short-term impact it may have on global demand or spot pricing. We review our businesses and consider their readiness for a prolonged period of lower pricing or demand. Number one is to avoid permanent loss of capital by considering our companies’ cash flows and balance sheet strength. Many of the businesses we own are stronger today, by all key valuations and cash flow metrics than they were in 2,000
”Today’s pain in the stock price is tomorrow’s improved free cash flow gain.”
Kelsey Dunwoodie, Deans Knight - Portfolio Manager
Baby Boomers Exit, Stage Left: That’s what’s happening in the job market this day, and it’s causing huge staffing problems for companies across Canada, including in the securities industry.
That’s the word we’re getting from Kataneh Sherkat, our Peterson Capital Executive Search partner. She says that the pandemic has indeed cause job market problems everywhere, but what it really exaggerated is the exodus of the boomers from the workforce. Many of them have decided post-pandemic to pack it in, retire early, or cut back on the hours they’re putting in. That creates a huge number of senior job openings, with not enough younger candidates ready yet to step into those roles.
Kataneh’s worked with us for the past 18 months and has done a great job of helping our pubco clients seek out and find the perfect fit for senior-level positions, including C-Suite roles. If you know of any company looking to fill a crucial spot, please let us know. Or, if you know of a strong candidate, drop us a line as well.
In the meantime, here's a good story on what’s going on, sent to us by Kataneh. It explains what’s happening – and it all makes sense. Kataneh's site can be reached at www.kasahr.com
Have a great long weekend. Thanks for your continued interest and support.
Rick Peterson
Chair