Can you tell us about your experience in the industry and about Blue Sail Capital’s focus?
Blue Sail Capital was founded in 2016. At that time, I had two decades of experience on the buy side and the sell side (investment management and capital markets strategy). There have been many important lessons learned in our journey, the Bre-X debacle in 1997, the tech bubble of 2000, and the housing market crash of 2008. Hence, we maintain a healthy level of scepticism when approaching the deployment of capital.
What’s driving your investment focus at the minute?
We tend to think in decades versus minutes and remain overweight in companies with leverage to copper, gold, and silver. Over the last 10 years, these commodities have been up 170%, 293%, and 14% respectively. We tend to shy away from trying to play the flavour of the day and stick to traditional principles of investing in the resource space, backing management teams with a track record of delivering results, with projects in pro-mining jurisdictions that are P.F.S. (permittable, financeable, and scalable).
How are you navigating the current market dynamics? We have geopolitics playing a huge role, and the US tariffs are sure to have an impact on the metals and mining markets.
No doubt interesting times! High volatility in the markets is not making it easy to navigate. Three commodities that have come under pressure due to the tariffs are coal, alumina, and iron ore. We could see further de-stocking over the next three to six months and thus remain cautious on producers of these commodities. The beneficiaries of this volatility have been the junior miners which are outperforming the broader markets YTD. At the time of writing, the GDXJ is up +40% vs QQQ which is down more than 13%.
Are you seeing exciting projects at the moment? Where are you seeing the most investment opportunities?
While Canada and the USA remain are our preferred regions, we have been looking at South America too. Lumina Gold, founded by Ross Beatty, has been one of our long-term holdings, and we recently added to it on the back of the results of the election in Ecuador. The company has an experienced management team that has a strong track record of monetizing exploration projects. We have also been warming up to Brazil over the last three years due to its pro-mining stance and abundant opportunities. We remain constructive on gold, copper, and silver.
What are your thoughts on the coming months? What key trends will define the second half of 2025?
Looking to the second half of the year, we expect continued volatility which should bode well for gold into 2026, and we are looking at better prospects for copper. Silver is the Rodney Dangerfield of the precious metals, it just can’t any respect! It now takes 101oz of silver to buy 1oz of gold. With announcements of new tariffs, gold remains the favoured metal, but we could see the ratio lower if there is a reversal in economic uncertainty and a rise in industrial activity.
