As markets Detach from Reality, Focus on Stocks Producing Real Things

By James Cooper, Monday, 15 December 2025

Cheap resource companies producing real things, that’s what James Cooper and Greg Canavan discuss in this latest edition of Mining Memo.

Part Three…

Continuing from our latest discussion, Greg and I dig even further into the opportunities being presented in resource markets.

A sector that still holds value in a global market that’s increasingly disconnected from reality, like the unwavering faith in high-flying US tech stocks.

Here’s the thing…

Capital expenditure in the resource market yields tangible outcomes, like increased output for a particular metal.

Yet, who are the customers that can justify the historic spending on AI development?

Maybe they are there, or perhaps they’re not. Who knows.

But mining development has no mystery on the other side… This is a sector with real customers who can justify capital expenditure for development.

If you have a sense that this market is full of hubris, then maybe now’s the time to get real and focus on stocks producing real things.

That’s just a taste of what Greg and I discuss in our final chat.

Click below to hear our latest discussion.

YouTube player

Regards,

James Cooper,
Mining: Phase One and Diggers and Drillers

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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James Cooper has been a working geologist in mines across Australia, Canada, and Africa since the early 2000s. He’s led the operations of tiny explorers through to huge producer outfits. He’s seen booms and busts firsthand and he also understands the cyclical nature of individual commodities. For example, James was right there when Barrick Gold launched an enormous $7.5 billion takeover bid for Equinox. That was the peak of the last cycle.

With his background as a geo and finance professional, he brings a unique insight and experience to Fat Tail Investment Research. He writes the broader resource-focused investing letter Diggers and Drillers and the ultra-speculative explorer-focused trading service Mining: Phase One.

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.