The Trump Administration is ironing out terms with the Democratic Republic of Congo to secure American mineral rights in the region.
If you’ve heard of the DRC, you probably know it’s famous for two things:
- Massive mineral reserves of everything from gold to lithium, copper, cobalt, oil and more.
- War.
The area has been war-torn and beset by rebels and competing armed groups ever since the First Congo War in the mid-90s. A 2nd war killed over 5 million people.
Today, over 100 different armed groups vie for power and influence – spurred by the massive amount of mineral wealth. And over 80% of the country’s mineral exports have until now been sent to China.
But DRC’s President Felix Tshisekedi recently agreed to a deal that would favor American influence in the region and help shore up Tshisekedi’s government in the face of Chinese influence and internal instability.
In short, the DRC government would get American help in setting up secure trade and markets for its substantial mineral output, and America would get favorable terms to lockdown supply access to some of the most vital industrial and monetary metals.
At the center of this new mineral deal is a Golden Portfolio IV company…
It’s a tiny gold miner with a massive gold reserve in the DRC.
Right now, it’s deeply undervalued, trading for only $85 mil enterprise value holding about $10 mil cash versus potential gold resource worth $1.6 bil. It’s like buying $100 for $1 at this kind of valuation and could be an obvious takeover candidate for majors like Barrick that already operate in the region.
Drilling this massive resource is still underway – but the real impediment to investor interest in this company has been the very same instability plaguing the DRC government.
With a new, robust trading partnership (and the security that would go along with it) there’s massive promise to unlock shareholder value and interest in DRC in general, and in this GPIV holding in particular.
And of course, there’s still pessimism about the DRC’s future… but an official deal between Trump and Tshisekedi could turn things around quickly.
To your wealth,
Garrett Goggin, CFA, CMT
Chief Analyst and Founder, Golden Portfolio
P.S. This undervalued miner is currently trading for about $0.40 per share… And, based on my market analysis, has the potential to generate a 25X return. Click the video below for more details.
