Legendary Resource Investor Jeff Phillips on Why Almadex Minerals Checks Every Box for Speculators Betting Big on US-Based Discoveries

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is a gentleman who really needs no introduction — one of the most level-headed and successful investors in the resource space. I’m talking about none other than Mr. Jeff Phillips.

Jeff, great to have you back on. I know you just returned from the Rick Rule Symposium — and I also happen to know you’re a bit under the weather — so thank you for making the time today. How are you?

Jeff Phillips: My pleasure, Gerardo. I'm doing well. How are you?

Gerardo Del Real: I'm excellent, thank you. It seems like the world changes every 20 minutes in the resource space since you and I last spoke — and that was just recently. 

Now we’ve got Donald Trump imposing a 99.5% tariff on all battery materials coming from China. So whether it's copper, rare earths, or gold and silver on the precious metals side — whether for battery demand or central bank reserves — it feels like metals are catching a bid from all directions.

This market took a long time to set up. You taught me early on that in this space, you might only get two great years out of every ten — but the money made in those two years can make up for the other eight. The key is to be positioned and to know when to be aggressive.

That brings me to Almadex Minerals (TSX-V: DEX)(OTC: AAMMF). I know you've supported the company for some time. I’ve visited a few of their projects, I know CEO Morgan Poliquin well, and I recently interviewed him. Frankly, I haven’t heard him this excited in quite a while — and like you, he’s not someone who gets excited easily.

So I wanted to get your take on Almadex. I think it's a heck of a speculation right now, especially with some real near-term catalysts. Are you still involved, and what’s your outlook?

Jeff Phillips: Yes, happy to get into that. But first, on the tariffs — it’s interesting to see Trump impose these on battery metals. That sounds great in theory, but the reality is we don’t actually produce much of those materials here in the U.S. So how exactly are we going to keep our battery plants running if we slap heavy tariffs on the materials we still need to import?

You saw it just last week — Mountain Pass [MP Materials (NYSE: MP)] got funding from the U.S. government and from Apple, I believe, to make battery magnets.

Gerardo Del Real: That’s correct.

Jeff Phillips: The thing is, Mountain Pass is a light rare earth deposit. They don’t have much in the way of the heavier rare earths that go into those magnets. I’ve been trying to raise this issue for 15 years. We’re still not quite getting it right. But anyway — let’s shift to Almadex. That’s what you really wanted to talk about, right?

Gerardo Del Real: Absolutely. It looks like we’re in a precious metals bull market. Gold is now closer to $3,400 than $3,300. Silver recently broke through $38. And nearly everyone I talk to — people far more plugged in and intelligent than I am — seems to agree it’s still early for both metals and that they’re going much higher.

I'd love your take on that trend — and then I’d love to dig into Almadex, which has meaningful exposure to gold, silver, and copper right here in the U.S.

Jeff Phillips: Yes, you nailed it. You said it has potential — and that’s the key word. Yes, I think gold and silver are heading much higher. Copper, over the next decade, is going to face serious supply issues because we simply haven’t been building enough mines globally to power this so-called green transition.

So I’m bullish on metals — medium to long term. In the short term, I do think we could see a broader market correction that temporarily impacts liquidity. But we’re absolutely heading into an epic bull market for natural resources — and I think gold and silver have already started their move.

That said, investors need to remember that most juniors in this space don’t actually have any economic metals yet. If they do have them, they haven’t proven they’re economic. Many are still searching. So you want to focus on companies with tight structures and teams that have a history of finding and developing real assets.

Almadex checks all those boxes. Does that make sense?

Gerardo Del Real: Absolutely — makes perfect sense. And when you say it checks the boxes, I know structure is where you start. So when I look at a company trading near cash value, that owns six drills, has highly prospective copper, gold, and silver projects in the U.S., and a top-tier technical team that loves to prove value with the drill bit — I’ve got to believe that checks the “structure” box for you.

I'd love your take on the value and speculative potential you see in Almadex right now, especially in this kind of market.

Jeff Phillips: Yes, let me walk you through it. Morgan Poliquin is a top-tier geologist — a PhD with a remarkable track record. Over a ten-year span, I was fortunate to be involved as he made multiple grassroots discoveries, each totaling several million ounces of gold in Mexico. Unfortunately, the political landscape shifted down there, but we’re still going to make money on those projects.

The key point is this: Morgan has proven he can find major deposits from scratch. That’s rare. With Almadex, he’s pivoted smartly. The structure is excellent. I personally know four or five shareholders who collectively hold about 30% of the company. 

And because it was spun out from a prior success — where Morgan made one of those multi-million-ounce discoveries — the shareholder base is diverse and supportive. It’s not like there are any large, loose hands looking to dump shares.

Now, you touched on this earlier: once they finalize the gold loan — which should be this week or next — they’ll have around C$20 to C$21 million in the bank. The market cap is roughly the same. So you're buying a company at cash value.

Quietly, over the past two years, Morgan has been applying the same discovery logic that worked for him in Mexico — but this time to a trend he’s identified here in the U.S. It’s based on his PhD work involving lithocaps — a geological feature that’s been explored in South America and Mexico, but largely overlooked in the U.S.

So what did he do? He went out and staked a dozen or more of these targets across Nevada, Utah, Colorado, and Arizona. He kept it under the radar, and now he’s getting ready to do what he does best: explore with the drill bit. He owns his own rigs, he has the cash, and he knows how to find things.

I can tell you there are a few well-known names in the resource space — names you’d recognize instantly — who’ve told me flat-out: “If Almadex ever does a financing, I’ll write a check on the spot.” That says something.

You're looking at a company trading at cash value, with a proven discoverer at the helm, deploying a thesis across underexplored terrain in the U.S. And whether it’s copper or gold — I’d be happy with either — the upside is real.

Does that make sense, Gerardo?

Gerardo Del Real: It makes perfect sense. As you know — and most of our audience knows — I’m a major bull on precious metals. But I’m also a massive copper bull. I think structural deficits and protectionist policies like tariffs are going to be with us for years. So any significant discovery — especially in a jurisdiction like North America — is going to be worth a premium.

Jeff Phillips: Absolutely. And we’re really just talking about the new project pipeline here. There are probably more than a dozen targets — maybe even more at this point — because Morgan is still staking ground. He’s trying to keep it quiet for now, because he doesn’t want others catching on to what he’s found with this lithocap trend.

But don’t forget — Almadex also holds a suite of royalties on gold deposits in Canada and Mexico. One of those royalties alone could be worth two or three times the company’s current market cap. They’re in an ongoing legal dispute with Mexico on that front, but the underlying assets are real and valuable.

So yes — it’s high risk, as is everything in this sector. But if I’m going to speculate, I want it to be on something like this. You're essentially buying a portfolio of 20-plus exploration properties, six owned drill rigs, a handful of quality royalties, and a proven discovery team — all at or near cash value.

Morgan can drill efficiently, test targets quickly, and move on if something doesn’t pan out. You’re not relying on a third-party drill contractor that requires a massive program. That kind of flexibility is rare in a junior explorer.

Gerardo Del Real: You know one of my favorite phrases — that’s a lot of shots on goal. And it’s worth emphasizing: most of these projects are 100%-owned. So any discovery offers full upside. And if he ends up making multiple discoveries — which he’s done before — the return potential is exceptional.

Anything else to add, Jeff?

Jeff Phillips: Just one thing. As you know, we spoke recently about the Rick Rule Symposium. I just got back from that. Almadex was invited — Rick is a big believer in Morgan and his father. They couldn’t attend this year due to scheduling conflicts, but Rick knows the story well.

For anyone listening: go to Almadex’s website. Do your own due diligence. There are plenty of interviews and technical overviews from Morgan online. In fact, a lot of senior players in this space have had him give geology tutorials — that’s how respected he is.

At the end of the day, this is about people, structure — and in this case, cash. You’re paying nothing for a whole lot of upside.

Gerardo Del Real: Jeff, always a pleasure. Thanks again — especially for making the time while you’re still under the weather. Let’s do it again soon. I get the feeling this market is just getting started. Could be a very fun and profitable couple of years ahead.

Jeff Phillips: I think we’re heading into the best bull market I’ve seen in 30 years. I’m excited.

Gerardo Del Real: That’s music to my ears — and a great note to end on. Thanks again, Jeff.

Jeff Phillips: Thanks, Gerardo.

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