‘Please don’t put a stupid EV in your presentation’ - Rosseau’s Warren Irwin on critical minerals

What will it take to get generalist investors to exit their current portfolios and add some gold equities, asked Warren Irwin, president and CIO of Rosseau Asset Management. 

Last week Iriwin spoke to Kitco Mining at the 2024 Precious Metals Summit Beaver Creek in Colorado. Rosseau is a money management firm based in Toronto. 

Irwin noted the subdued atmosphere at the summit, despite gold reaching record highs. He said the lack of enthusiasm stems from capital flow challenges, as many investors are still more inclined toward safer, high-performing sectors like Vanguard ETFs, making it difficult to attract investment into mining stocks.

“The mood here is not exactly super exciting and people aren't rolling in money,” noted Irwin. “They're not all jacked about what's ahead of us.”

Irwin said the generalist investor needs a reason to be driven out of their existing investments and embrace gold. 

“Gold equities haven't moved [much], but gold has,” noted Irwin. “There's a reason to invest in gold, but we also need a reason to drive people out of the market…such as an interim market crash where people see the valuations are a bit stretched in the S&P and look at getting into something a little bit more defensive, like maybe buying some gold equities.” 

While Irwin likes gold, he doesn’t see much promise in critical minerals. He criticized the unpredictability of battery metal compositions and the lengthy process of mining development, making it hard to justify investments. 

“I think battery metals and the whole battery metals theme is possibly the stupidest thing I've ever seen in the mining sector,” said Irwin. “How on earth can you run a battery metals fund when you have no idea what metals are going to go into batteries? They're changing every three to six months.” 

“And that whole EV nonsense—any copper company I'm involved in, I say, ‘whatever you do, please don't put a stupid EV in your presentation,’” said Irwin. 

Coverage of the 2024 Precious Metals Summit Beaver Creek in Colorado is sponsored by Newcore Gold.

Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.