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How Rick Rule’s Investment into Paladin Energy Made Him $200 Million Profit

NIA Market Insight: TiO2 & Vanadium

Around year 2000, Rick Rule invested in Paladin Energy (ASX: PDN) at a pre-split $0.10/share when uranium was completely out of favor… it fell to $0.01/share, then by 2007 rose to $10/share, netting him a $200 million profit.

He says there is nothing out of favor today like uranium was back then… but we would argue Titanium (TiO2) is out of favor in a similar way: 90% of all TiO2 produced goes to the pigment market, driven largely by new home construction, and the world’s largest real estate market, China, has been declining for 17 straight quarters.

Temas Resources (CSE: TMAS) is the only stock we have ever seen trading at approximately 1/10th of 1% of the after-tax Net Present Value (NPV) of their project, La Blache.

The main reason we made Saga Metals (TSXV: SAGA) our new #1 favorite overall stock suggestion (and not TMAS) is that SAGA has made a brand-new, rapidly-growing massive TiO2 discovery and Empire Metals (LSE: EEE) has proven that even a completely out-of-favor industry can produce massive gains on a new discovery, rising 4,000%+ since 2023.

SAGA’s average drill hole is significantly better than EEE’s because SAGA’s holes also contain vanadium: priced 6x higher than TiO2.

TMAS has vanadium too, but EEE does not.

Vanadium prices are also very depressed:

China 72.4% of global production
Russia 18.5% of global production

Outside of China/Russia, vanadium mines are cutting production and shutting down… meaning supply is tightening, and at some point the price of vanadium will boom.

SAGA is weeks away from launching drilling at the Wolverine Heavy Rare Earth project in Labrador. Despite REE stocks declining sharply in recent weeks, demand for REE plays remains much higher than TiO2/vanadium and we expect SAGA’s drilling launch at Wolverine to be its biggest catalyst in history.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA has received compensation from SAGA of US$100,000 cash for a twelve-month marketing contract. NIA has received compensation from TMAS of US$75,000 cash for a six-month marketing contract. This message is for informational and educational purposes only and does not provide investment advice.

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