Building Assets in the Resource Sector Equals Success for Forbes & Manhattan

RareMetalBlogAfter reviewing the market today, thought I would stay positive and write about someone who is doing well in our sector and undoubtedly gobbling up opportunity – Forbes & Manhattan. A private merchant bank, they love the resource sector so much (as do we), they presently have 40 group companies, 90 resource projects with assets in 29 countries, and 7 producing assets. Forbes & Manhattan Group companies have a market capitalization of more than $8 billion, including historical successes; and the total funds raised by their companies in the last 4 years was more than $5 billion.

Had a coffee with Scott Moore last week at the International Rare Metal Summit and I congratulated him on his new role as COO. Scott, who is also the CEO for Dacha Strategic Metals Inc. (TSXV: DSM), and I were also discussing the pricing of rare earths. This is one of my favorite subjects these days as rare earth pricing makes the ‘Pin the Tail on the Donkey’ game look scientific. Dacha has an intriguing business model in that their objective is to achieve long-term capital appreciation through the buying, holding and selling of strategic metals. My point is that if anyone knows about pricing of rare earths – it's Dacha.

This morning I had my first 30 minute SKYPE call with Dacha’s Executive Vice President Alastair Neill. Alastair is also on the REE World Advisory Board and I wanted to know if he was going to the 2012 International Rare Earth Industry Summit being held on May 23-25, 2012 in Xiamen.

Alastair is of course planning on attending and I gave him a quick rundown on how the San Francisco show went. He let me know that AsianMetal is the source that the Chinese government uses for pricing when rare earths are exported from China as we are also working on an upcoming piece or two on the “art” of pricing rare earths.

Subscribe here to receive free daily InvestorIntel updates

But Forbes & Manhattan has more than Dacha Strategic Metals Inc. in the Forbes Financial Group portfolio, intriguingly they also hold potash such as Aguia Resources Ltd. (ASX: AGR) and Allana Potash Inc. (TSX: AAA) as part of the Forbes Agriculture Group. And as many of you know, we own PotashBlog.com.

So why is Stan Bharti, P. Eng. — the Founder, Executive Chairman and CEO of Forbes & Manhattan doing so well? Perhaps it’s his business model: building assets in the resource sector. I suspect it is more than this as many companies have lovely sell lines, but in his case – their team is doing it. Stan has over 30 years of experience in operations, public markets and financing and today, Forbes & Manhattan has a team of over 200 employees including engineers, geologists and legal professionals.

Again, thought I would write about a behind-the-scenes player in our sector for a change of pace in my ongoing interest in seeing which entrepreneurs are succeeding in these 'challenging' markets.

Disclaimer: Dacha Strategic Metals. Inc. is a RareMetalBlog sponsor. Aguia Resources Ltd. and Allana Potash Inc. are PotashBlog sponsors.


Copyright © 2014 ProEdge Media Corp. All rights reserved. More & Disclaimer »
This entry was posted in Rare Earth & Technology Metals Intel and tagged , , , by Tracy Weslosky. Bookmark the permalink.
Tracy Weslosky

About Tracy Weslosky

Tracy Weslosky is the Publisher and Editor-in-Chief of InvestorIntel, a leading global investment intelligence source created for the innovative and entrepreneurial minded that represents over 50 publicly listed companies globally that are listed on InvestorIntel.com. Tracy is also the Founder & CEO for ProEdge Media Corp., an online publishing and media production company since 2001; and is the Managing Partner for 724 Capital Corp., a business consulting firm that currently represents U.S. Rare Earths, Inc. Previously she has owned a boutique Investment Banking firm for 7 years that was the basis for a business reality television series called, DealFlow. Aired around the world for 3 years on CNBC World, WealthTV and many other networks globally; Tracy is a speaker, writer and an entrepreneur.
  1. Fun and fantastic life we are living.
    Yes staying with the real things of life: strategic metals, growing things
    All good choice for the next 50 years.
    Why worry?
    Why change?

  2. Hi Tracy,
    Did you know that Larry King is a member of Forbes & Manhattan’s Advisory Board? I thought that was pretty cool!

  3. Today was one ugly day in the mining resource sector unless you are sitting on a mound of cash you can use for buying what is on sale. The trouble is that down in the gutter the percentages can eat up your mound pretty quick if you move too soon. I looked at a few of the F&M companies. I’ll look some more, but so far it is not pretty.

  4. Lynas up 6 percent in Australia after SF Conference and Malaysian news.
    How about in USA?
    My screen show LYSCF up 3 percent
    Arafura up.
    Northern Minerals up
    Several Chinese REEs up, some taking a breather after a monster advance within the last90 days.

  5. An American strategic metas investor I trust sent me the possible short squeeze coming up on Lynas.
    You know the “shorts” betting against a stock.
    First ones that need to buy when there is good news!
    The old short squeeze.
    Lynas is one of those heavily shorted stocks?
    8.8 days to buy back Lynas shares?
    Could see a big sustained pop to the upside”
    Consider this info:

  6. “Here is an update on the Lynas short interest from the Australian Stock Exchange.
    Two weeks ago I looked at the number of borrowed and loaned shares of Lynas (LYC) on the Australian ASX stock exchange. They don’t report “short interest” like we do here in the US. They report loaned and borrowed share which is the same thing I believe. Two weeks ago the data reported by the ASX for the number of net borrowed and loaned shares was 98,649,812 and 71,441,351 (170,091,163 total). Today it is 106,135,605 and 68,225,792 (174,361,397). That’s an increase of 2.51%. That is 7.73 days to cover. Once Lynas gets some good news out of Malaysia, prices should move up quickly because there will likely be a be a short squeeze as all the shorts panic and begin buying shares to cover the borrowed shares they used to short with.”

  7. Thank you Gentlemen.
    Delighted to see that my piece on Stan Bharti’s team was a catalyst for a discussion on LYNAS.
    Yes, Pol did an excellent job presenting on behalf of LYNAS at the San Francisco event. It seems that after the hearing on the 21-22nd, many speculators agree that it is a ‘highly likely’ event that LYNAS will be moving forward successfully.
    If you are adding to your Facebook collection for LYNAS, go here as well:
    http://www.facebook.com/#!/StartLYNASToday
    Here’s to a better day in the North American markets. Tracy

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>