After 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.
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.