Podcast: Cayucos Capital on Valterra Platinum

On this episode of the Stock Spin-off Investing Podcast, I interview Dom St. George of Cayucos Capital. Dom has 15 years of experience investing in emerging markets. Today he shares his investment case on recent spin-off, Valterra Platinum.

You can follow Dom on ⁠X here ⁠and subscribe to his ⁠substack here⁠.

Here’s what we covered:
1:05 – Dom’s Background
2:05 – How Dom decided on the name Cayucos Capital
3:05 – How Dom finds his investment ideas
7:00 – How Dom approaches investing in spin-offs
9:30 – The opportunity in emerging market stocks vs. developed markets
11:59 – Why is Valterra Platinum an interesting opportunity
14:55 – Why do mining companies have a poor track record of timing their own cycles?
16:05 – Why have platinum prices been strong recently?
20:15 – What is the main use for platinum?
21:20 – Why Dom is confident in the long-term outlook for platinum despite the rise of EVs
25:45 – The use of catalytic converters in hybrids
27:15 – The competitive landscape for platinum group metals
30:45 – Why has Valterra’s stock price lagged its public competitors in the last 6 months
33:05 – Timing of when Anglo America could sell its remaining 19.9% stake in Valterra
33:20 – How Dom thinks about Valterra’s valuation
36:00 – Capital allocation for Valterra
38:45 – Valterra’s hedging policy
40:10 – How to get in touch with Dom

You can watch the episode on YouTube or listen on Spotify or Apple.

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