Update (July 20, 2022): I just found a slightly different version of this teaser that pitches the same company, but instead of focussing on how phosphate is a “miracle mineral,” it centers around how this “rare resource” could be critical to “Tesla’s survival as a company.” Long story short, it’s essentially the same pitch about the same stock, just rehashed to focus on electric vehicles.
Today I’m looking into a presentation by Luke Burgess about a “Miracle Mineral” that he claims could help investors make “gains of 16,335% or more.”
According to Luke, this Miracle Mineral is “one of the most important natural resources you’ve never heard about,” and there’s “one tiny company” at the center of it all.
What is the Miracle Mineral? What company is Luke Burgess teasing? And is this a legit opportunity? Well, these are some of the questions I’m going to help answer in this post.
Unpacking Luke Burgess’ Presentation
The presentation I’ll be talking about in this post is located on the Angel Publishing website and talks about a “little-known ‘Miracle Mineral’ that could hand investors up to 16,335%.”
According to Luke, this so-called Miracle Mineral is more important than oil, lithium, coal, and gas. And without it, the electric vehicle, computer chip, pharmaceutical, and agricultural industries wouldn’t exist. He more or less says it’s vital to life as we know it.
What is the Miracle Mineral?
Later in the presentation, Luke Burgess reveals that the Miracle Mineral is phosphate.
I am not an expert on phosphate by any stretch. But according to Luke Burgess, phosphate is one of the three essential nutrients for plant life and is rare given the way it’s made.
Phosphate is rare. Its volatility means that it can only be formed under very specific conditions, over the course of millions of years.Source: https://www.angelnexus.com/o/web/360626
After providing some insight into what phosphate is and how it works, Luke talks about how the world is running out. Specifically, he says some of the biggest countries in the world could begin seeing critical shortages of this mineral from 2030:
The reserves of the United States, China, Russia, and India — some of the world’s biggest countries — are expected to face critical shortages as soon as 2030.
Luke explains that, until recently, a large percentage of all the Miracle Mineral in the world could only be found in Western Sahara and how political instability in the area is causing supply chain issues, to the point exports have dropped significantly.
As a result, he suggests that a massive supply shortage could result and cause huge problems throughout the world, including global food shortages.
Is any of this true?
I’m not an expert on the supply dynamics of phosphate, but according to an article in The Guardian, Western Sahara hosts “by far” the largest reserve of rock phosphate in the world, and scientists fear we could run out of this mineral “within a few decades.”
The article also talks about how, without phosphate, the world could only produce half the food it does. And one of the reasons for this is its use in fertilizer.
Also, according to aljazeera.com, Western Sahara is a disputed territory, and there does appear to be some sort of conflict between Morroco and the Polisario Front.
What impact this could have on the phosphate industry is yet to be seen, but the overall gist of what Luke Burgess says in the presentation seems to check out based on my research.
As in, Western Sahara does produce a considerable portion of the world’s phosphate, and shortages of this mineral could lead to major issues, including global food shortages.
From an investment standpoint, Luke Burgess says that the situation in Western Sahara could help you multiply your money many times over because a “new Miracle Mineral supplier recently stepped onto the world stage,” which he says is a “tiny company” that trades for less than $1.
It’s still a tiny company.
Its shares trade for less than $1.
But this tiny company is sitting on a deposit of Miracle Mineral so large that it could completely replace the world’s dependence on Western Sahara.
What company is he talking about?
Luke doesn’t reveal the company’s name in the presentation; he reveals it in a report titled “The Phosphate Payload: How to Get in on the Biggest Resource Squeeze of the Century.”
However, he does provide several clues about the company, which made it pretty easy to figure out. And in the next section, I’ll show you what company I believe it is and why.
What Is Luke Burgess’ Phosphate Mining Stock?
Luke Burgess provided numerous clues about the company he’s bullish on in the presentation, but it was really one main clue about where the mine is located that gave it away.
Specifically, Luke talks about how the phosphate mine this company has “acquired all the mining rights for” is an “isolated lake” located six hours and 42 minutes from Quebec City.
So I Googled “phosphate mine 6 hours from Quebec City,” and after going through a few of the results, I came across this article on im-mining.com about Arianne Phosphate Inc.
Not only is the picture of the lake on that page the same one used in the presentation, but it lines up with the other clues Luke provided. For example, the amount of phosphate in the mine, the company’s market cap, and share price. Here is a snippet from the presentation:
“As we speak, this company is hovering around a $70 million market cap…”
“And trading for less than $1.”
“But it’s sitting on 78 MILLION tons of phosphate.”
According to the company’s corporate presentation, the Lac à Paul project they’re involved with has 78 million tons of “high-grade concentrate.”
And according to Yahoo Finance, Arianne Phosphate Inc. (DRRSF) has a market cap of just over $83 million as of writing and is trading at about 43 cents per share. The company is also trading on the TSX under the ticker DAN.V.
The market cap is a little higher than Luke states in the presentation, but the stock has risen over the past six months, so it depends on when the presentation was released. Also, it could be higher due to the US dollar appreciating since this is a Canadian mining company.
In any case, I believe Arianne Phosphate is the company Luke Burgess talks about in the “Miracle Mineral” presentation. But if you want to find out for sure, you’ll have to read the report I mentioned earlier as this details his top pick and the reasons why he’s recommending it.
And the only way to access that is to sign up for a subscription to his advisory service, Junior Mining Trader, through the presentation on the Angel Publishing website.
What is Junior Mining Trader?
Recommended: Go here to see my #1 rated stock advisory of 2022
Overview of Junior Mining Trader
Junior Mining Trader is an investment advisory service edited by Luke Burgess and published by Outsider Club. However, it appears as though you can also purchase the service through the Angel Publishing website, so I’m guessing the same people run both companies.
Nevertheless, according to Luke Burgess, Junior Mining Trader is focused “solely on the tiny miners,” and the main idea is to “identify developing trends and then get ahead of them.”
Luke says he monitors around 200 positions daily and that his trades last anywhere from a few days to a few months.
And as a subscriber of the service, you receive insight, research, and specific recommendations from Luke Burgess aimed at helping you make money as a self-directed investor.
What do you get if you join?
The weekly issues of the Junior Mining Trader newsletter are at the core of the service. Each week, for 52 weeks, subscribers receive a detailed breakdown of the mining stocks Luke Burgess has been researching.
According to Luke, each issue provides the ticker symbol of the company he’s recommending, his recommended entry and exit prices, and explains things like drilling results, the geology of the mines, and other technical details.
You also get the Junior Mining Trader Monthly Recaps at the end of each month, which update you on all of the open positions Luke has recommended and provides insight into where he believes the market is heading.
And the Junior Mining Trader Profit Alerts provide you with updates via email or text whenever Luke recommends exiting an active position.
Lastly, subscribers get access to the model portfolio, interviews Luke has done with geologists, prospectors, and mining CEOs, and bonus research reports inside the member’s area.
How much does it cost to join?
Junior Mining Trader costs $1,999 to join, whether you sign up through the Angel Publishing website or the Outsider Club website. The only difference is that the Outsider Club website gives you the option to join for $599 per quarter.
And if you join through the promotion on the Angel Publishing website, you get some bonus reports, including the one I mentioned earlier called “The Phosphate Payload: How to Get in on The Biggest Resource Squeeze of the Century.”
And both sites state that they offer a three-month refund policy as of writing.
Who Is Luke Burgess?
The Outsider Club website describes Luke as a “gold bug” but with a more “levelheaded approach to precious metal investing” than traditional gold bugs (AKA gold enthusiasts).
The site says Luke first became involved with precious metals and natural resources in 2002 and that he started out writing for a financial newsletter called Secret Stock Files.
By 2011, his Outsider Club profile states that “the Secret Stock Files portfolio was sitting on dozens of triple-digits winners,” and he sold everything before gold prices started declining.
According to Luke, he has also been a featured guest on sites like Kitco, 321Gold.com, and numerous radio shows related to investing.
Other than that, I was unable to find out much more about Luke Burgess. However, he does appear to be an expert on natural resources, precious metals, and mining-related investments.
It turns out that the “Miracle Mineral” Luke Burgess talks about in the presentation is phosphate. And his thesis centers around how important phosphate is, how the world is potentially running out, and how there’s one “tiny company” sitting on a huge pile of it.
As mentioned, I’m not a phosphate mining expert. However, based on my research, what Luke says about the potential for running out of phosphate in the coming decades is true.
And as for the company he’s teasing, I believe it’s a Canadian company called Arianne Phosphate because this company matches up with the clues he provides in the presentation.
Either way, whatever the company is, there’s no guarantee you’ll make money following Luke Burgess’ advice, let alone a 16,335% return, which is true for any investment guru. So I wouldn’t join the Junior Mining Trader service expecting to get rich within a few months.
It’s also worth pointing out that, while all investments carry risk, small-cap stocks can be extremely volatile. Meaning, they can fluctuate in price (up or down) rapidly.
That said, the service could still be worthwhile. I haven’t joined it myself, but it does appear to be a legitimate, comprehensive service, and it comes with a three-month refund policy. So it may suit those looking for a service dedicated to small mining stocks.
Whatever you decide, I hope you found this post helpful, and if you’d like to share your thoughts on the service or presentation, feel free to drop a comment below.