CNQ
🛢️ CNQ possesses unique oil sands assets with no decline, allowing for consistent production without additional costs.
💰 The company is highly efficient, generating profits even if oil prices drop below $40.
📈 Recent acquisitions, such as a mine with 60 years of operational life, further enhance its long-term prospects.
✅ CNQ operates like a royalty, benefiting from stable production and low costs.
@emeritoquintana:
“Another one that I wanted to comment on that we have, the only one in raw materials, Canadian Natural Resources. Sometimes I have explained why gold does worse, does better than gold miners, that investors say, ‘I don’t invest in gold, which is something static, that is just there, I invest in productive things. So I’m going to invest in gold miners because if it does well, well, I will do well plus whatever the gold production is, I will get an extra return.’ And it’s not like that, it’s not like that. Gold always does better. Why? Because when, if gold goes up a lot, maybe the following year with the same machines, people, and land, you manage to increase your margins. But as soon as you have to buy the next concession or the next machines, there you will suffer the rise in inflation and the rise in the price of gold and the rise in labor costs and everything. And it is a very, I tell you, cyclical market, so the margins return to their being, which are very bad. You don’t need to swallow the 13 seasons of Gold Rush to discover that it’s a bad business, it’s a bad business. You have to go case by case, obviously, but in the long term, you see that gold does better than gold miners. Then they show you a graph saying, ‘Look, this is gold and these are the miners. So now they are at minimums and it seems that there is a force, a gravity, a physical force that says this will tend to, who knows what, something will make your graph tend to the line that you have put. It’s an illusion that you’ve created yourself, it’s like that for a reason.’ But in Canadian Natural Resources, it’s not like that because they have shale oil, sands that have no decline. That is, you can produce something this year and produce the same next year without having more costs and without it being depleted. In fact, the last purchase they made is a mine they have there that they can be operating for 60 years. And they do it very well. They are very good at managing to produce more with minimal risk. The last thing they bought, those six times the cash flow, very, very cheap. And this is a raw materials company, but it’s like a royalty and that unless the price of oil drops, the world ends, and it’s below 40, they’re going to make money.”
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