Gerardo Del Real: This is Gerardo Del Real with The Outsider Club. Joining me today is chairman and founder of GoldMining Inc. (TSX-V: GOLD)(OTC: GLDLF), Mr. Amir Adnani. Amir is an entrepreneur and a mining executive. He is the founding CEO and the director of Uranium Energy Corp., an NYSE-listed uranium mining and exploration company. Under his leadership, UEC moved from concept to initial production in the U.S. in just five years, and he's developed a pipeline of low-cost near-term production projects. Amir is a frequent speaker at prominent conferences around the world. He holds a Bachelor of Science degree from the University of British Columbia and is a director of the university's alumni association. Amir, thank you for joining me today.
Amir Adnani: Hi, Gerardo. Nice to connect with you and catch up.
Gerardo Del Real: I appreciate your time. Now the last time we spoke, GoldMining Inc. had made its first entrance into Colombia by acquiring the Titiribi Project. Now just a few weeks ago you announced your second major transaction in Colombia, an important one: The buyout of Bellhaven Copper & Gold, which is a transaction that significantly expands your land package in Colombia in the very prolific Mid Cauca Belt. I'd love to go over the details and why this is an important transaction for GoldMining Inc., but first, I'd love your take on the current state of the gold market. We talked a bit off the record about the market. I'd love to hear your thoughts on it.
Amir Adnani: I'm somewhat bipolar when it comes to the gold price and how it makes me feel when I look at it on a day-to-day basis in the sense that longer term, I'm really a very strong believer of the fact that we're going to see gold prices — at the very least — retrace their steps higher to their levels from 2012 and the highs that we got to in that $1,900 range. I think everything from the amount of monetary easing that's been going on in the world, the inflationary pressures that are going to ultimately kick in and drive real interest rates into deeper negative territory, to geopolitical issues and tensions all around us. I think there are enough factors developing out there that are real that will eventually get us there.
As much as I'm a believer in higher gold prices and believe in gold as the ultimate storer of value and as the ultimate way to preserve and create wealth. As someone who is building a business today purely geared towards making acquisitions at the bottom of the cycle and making accretive acquisitions, I love these pullbacks that we see in the gold price. It just continues to give me a prolonged window - it gives GoldMining and our team and our company a longer window to do deals like we just did in Colombia with this Bellhaven acquisition that you alluded to.
In the near term, this is perfect for us, and I think this is a great way for us to continue doing what we've done for six years now as a public company, seven years since the company was founded, and to really demonstrate that this acquisition model of ours executed the way GoldMining has been executing, has been a phenomenal way to create value. If you look at our performance since IPO, our company's shares have outperformed our various benchmarks, including the S&P 500. You look at that performance, and I think it's a great validation of the acquisition strategy as executed by us, and these pullbacks in the market I think are just fantastic for us to keep getting bigger.
Longer term, Gerardo, how can we not recognize, how can we be blind to the fact that the policies of the Trump administration are inflationary? These are going to drive real interest rates deeper into negative territory, as I mentioned. There are various geopolitical issues out there from North Korea to the humanitarian crisis in Syria. All of these are just going to create more geopolitical tension and crisis out there that will be positive for gold. But at the same time, these are also real issues that need to be addressed that we're facing in the world. Let's see how the rest of this year pans out. I think also, you and I are speaking today as of the end of April. These first-quarter GDP numbers also didn't look too good.
Gerardo Del Real: Correct.
Amir Adnani: You just look at that and start to think about what kind of rationale the Fed's going to have to be able to raise rates here. You've got the president of the U.S. talking the U.S. dollar down. It's just a bizarre, bizarre situation in my opinion.
Gerardo Del Real: Let me ask you this, Amir. You mentioned the retracement of the gold price back from the $1,900 level. Obviously, GoldMining Inc. is positioned for a sustainable gold bull market. Do you believe that once we retrace back to those levels that we go past that and that we do that on a very sustainable level for years, the way that I believe the gold market would develop?
Amir Adnani: I believe we do, and I think we will see that. When you look at just again how much we've seen in terms of expansion of the balance sheet of the world's top four central banks, you look at the U.S, you look at Europe, China, Japan. Just the balance sheet expansion of these top four central banks alone should correlate to a gold price closer to $1,800.
Gerardo Del Real: Correct.
Amir Adnani: That's based on some published research by the good folks over at Deutsche Bank, for example, that did that analysis, and it's quite compelling when you look at that. There's a sustainable case based on the amount of monetary easing and cheap money and basically next-to-nothing cost of capital that we've been printing and printing and printing since 2008, and at some point, that has to reconcile with a long-term sustainable higher price in gold to basically factor in for what we've done on the monetary side. I absolutely believe this is more about a longer-term higher price of gold, which will be very much supported as being a sustainable higher price.
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