Global Resource Investing: Mastering the Timezone Challenge

The resource sector taught me early that the best opportunities rarely conform to your preferred schedule. At Sprott, while developing what I now call the "Intrinsic Energy Principle of Investing," I found myself increasingly drawn to Australian mining companies. These weren't just interesting plays – they were companies with potentially game-changing energy cost advantages and sustainable margins. But, there was a catch that few discuss: the brutal timezone difference.

Here's what most investors miss: true resource investing isn't just about crunching numbers or reading technical reports. The real edge comes from understanding a company's energy dynamics – both literal and metaphorical. You need to gauge how management teams approach energy usage in their operations, but you also need to assess their personal energy management. Are they running their companies with the same discipline they apply to their mining operations?

What really drove me to push through the timezone challenges was recognizing a persistent valuation gap between Australian and Canadian equities. Some of my best investments came from digging deep into Australian-listed companies. The opportunity became even more compelling when we could encourage these companies to pursue dual listings in Canada or the USA. This expansion of the shareholder base often triggered significant revaluations – a pattern I saw even more amplified with South African-only listed companies. The key was identifying strong companies in these markets and helping them see the value in accessing North American capital markets.

I learned this through trial and error at Sprott. Initially, I tried the conventional approach – taking calls whenever offered, attempting to accommodate everyone's schedules. The result? My own energy was depleted, my analysis suffered, and I wasn't getting the depth of insights needed to properly evaluate these companies' advantages.

Let me be crystal clear about something: if you're going to take on this kind of global investment role, whether for a firm or as an individual investor, you need to recognize early the physical and mental toll it will take. It's not just about the occasional early morning call – it's about fundamentally restructuring your day around different time zones. You might find yourself routinely watching markets late into the night or even into the new day, which can seriously disrupt your circadian rhythm and contribute to burnout if not managed properly.

The solution I developed aligned perfectly with what would later become my core investment philosophy. Instead of fighting against natural energy cycles, I worked with them. I scheduled calls for their early mornings – typically early pre-market hours in Australia. I greatly appreciated it when CEO's were willing to offer a 7am or earlier call their time, which would be 5pm, Toronto, Canada. I'd be well prepared and able to focus post the North American market close.

This approach revealed multiple layers of insight:

1. Management's energy management became visible – their morning routines and preparation habits spoke volumes about operational discipline

2. Their willingness to engage in detailed technical discussions about energy costs and operational efficiency was notably higher

3. The quality of information about their actual mining operations and challenges was superior. They responded with more patience and offered more insights and analysis

4. Pre-market timing meant focused discussions about real operational challenges, not just investor relations talking points, rehearsed scripts, jargon and buzz words. We simply had much better real conversations

One crucial lesson I learned: develop a strong relationship with a trusted broker who understands your investment thesis and can execute trades effectively in these markets. Trying to micromanage overseas trading yourself is a recipe for exhaustion and potential mistakes. Delegate the trading execution while maintaining strategic control of your investment decisions.

For investors looking to invest globally, here's my advice: view timezone challenges as opportunities to assess both operational and human energy management. Structure your research process around peak performance times, but more importantly, use these interactions to evaluate a company's true understanding of their energy advantages.

Remember, in resource investing, the real value often lies in understanding the relationship between energy input and output – both in mining operations and in management effectiveness. Whether it's waking up at odd hours or restructuring your day, the commitment to understanding these energy dynamics separates exceptional investors from average ones.

The resource sector is inherently global, and mastering these practical challenges is just as important as understanding technical aspects. In my experience, the investors who succeed are those who recognize that energy management – whether in mining operations or in their own research process – is the key to sustainable returns. It's also the combination of many small habits that leads to sustainable performance and longer, more enjoyable careers.