Transcription
What's up ladies and gentlemen, welcome to another video with me, Alex. Thank you so much for tuning in to this video where I will be talking about how you can invest in Greenland.
As you might know, the world has turned its eyes upon Greenland, especially in terms of minerals. I suppose Warren Buffett and Bill Gates are looking for some new uranium for their new reactor, and maybe Elon Musk is looking for some more rare earth elements for his batteries. I guess you never know. I thought, why not make a video laying it out to the people on the internet if you actually can invest in Greenland, and if so, what assets or options you actually have for investing here.
Of course, this is not financial advice at all. This is only for entertainment purposes only. So if you could please hit the like button, it really helps me spread these videos to you and it forces me to make better content, giving you better videos. Okay, let's get started.
Okay, so in these times where I actually have to pay money to have money sitting in a savings account, there is no denying that investing has become more popular. Investing has become so popular in 2020 that basically everyone is talking about investing, meme stocks, cryptocurrencies, and real estate. It is definitely a good thing that people finally have started to talk more about investing. I just don't hope that everything gets invested in AMC, GameStop, and Dogecoin, but if you did, well, don't forget to hit the like button.
But can you actually invest in Greenland? That is the question I will try to answer in this video. The answer is yes, but with few options. Some are more straightforward than others. The possibilities you have for investing in Greenland will be ranked now, starting from the easiest to the most difficult, most time-consuming. First, we have stocks from Greenland, and then we have stocks with operations in Greenland but based in another country. Then we have Greenlandic real estate, as you don't have to live in Greenland in order for you to invest in the real estate. We have here buying or starting a company with operations in Greenland. Then you can also apply for a license to export ice and water, as well as you can apply for a license to export, let's say, minerals. I will try to link as much as possible down below, but if you have any questions, please feel free to drop me a comment. But now, let's try to dive deeper into the options that I have mentioned and explore which company you actually can invest in, or what you can do in order for you to get a license to export the very nice, fresh, and clean Greenlandic water.
Stocks from Greenlandic companies. Okay, so we only have one company that is listed on a public exchange, and that is the Bank of Greenland, which also has the ticker symbol GRLA. It is the largest bank in Greenland, and it has basically always made money. It pays a yearly dividend of around five dollars, and the price hovers around a hundred dollars. This bank is definitely too big to fail. So my bet is that if the Bank of Greenland is about to go down, then the Greenlandic government will step in with some nice subsidies, which is kind of what every big bank does nowadays, it seems like. Unfortunately, our main economy up here, which is basically 90% export of seafood, does not have any publicly listed companies on any exchanges. But once in a while, if you get very lucky, you might get the chance to invest in a company which does have seafood operations up here in Greenland. I know if I got the opportunity to invest in a seafood company here in Greenland, I would highly, highly consider that option. But getting such an opportunity to invest in a seafood company here is definitely more of a "if you know the right type of people" kind of scenario.
Then we have the stocks from foreign companies with operations in Greenland, and most of the ones that I'm going to be mentioning in this video will have some sort of correlation to the mining industry. No surprise. So the companies listed on different exchanges around the world are as follows: We have HaloaX, also known as AEX, which is an inactive gold mine. They have basically bought up an older Greenlandic gold mine that was active back in the days, and now they're just planning on restarting digging for gold again next year, I believe. I did have some money on AEX, but it did not go as planned, as I can say. Then we have Hudson Resources, which is an active anthracite mine in the fjord of Kangerlussuaq. We have Blue Jay Mining, which is an inactive mine but very promising because what Blue Jay actually is doing is basically going to a sandy beach and then taking excavators and digging up the sand, and then extracting the ilmenite from that sand. So it has a very low environmental impact, but there might be some problem with the logistics, as where they are digging for that ilmenite is way up north, giving it some difficulties to get it out of Greenland again, I suppose. Then we have North American Nickel, which are currently exploring for nickel, I suppose, in the Nuussuaq area. Bright Star Resources also are exploring on the island of Disko, which is basically a place where a lot of the big mining companies are exploring for something. There must be something very, very nice to be found on the island of Disko. Anglo-American Overseas Holding, which I'm assuming is the big multinational company called Anglo-American, they also have a license for exploring on the island of Disko. Well, they actually have a couple of licenses for exploring on the island of Disko. Almost at the end, we have Koanaco, which are exploring for gold and copper and all kinds of weird minerals in Greenland, mostly on the east coast. And last but not least, Black Sheep, also known as Greenland Minerals, down in the south near the town of Narsaq, where they have the mountain called Kvanefjeld. It is basically a rare earth element project with huge potential. It is, from what I have read, one of the larger reserves in the world. So a lot of people and companies and countries are very interested in what hides in the mountain of Kvanefjeld. But the main problem is that it also contains uranium. So maybe Warren Buffett and Bill Gates will turn their eyes upon Kvanefjeld and help getting it extracted. But the new Greenlandic government has said a clear no to uranium mining in Greenland. I'm not sure why.
And now we come to a little more down-to-earth investment type, which is investing in Greenlandic real estate, which I really like because first, you don't have to pay property taxes, and second, you don't really have to live in Greenland in order for you to own real estate here. But the only caveat for investing in real estate in Greenland is that you should probably bet your money on either Ilulissat or Nuuk, as those are the two main towns that have most growth potential, and they're also having built international airports in those two towns right now. I plan on investing more in real estate here in Nuuk, hopefully that process will get faster pretty soon. Please stay tuned for some real estate in Nuuk if you're interested in that stuff.
Buying or starting a company in Greenland. If you believe in the future for Greenland, you might be interested in getting a company here. Although the company tax is 25%, making it rather high, I do have to mention that the competition for almost any sector here in Greenland are rather low, so that's the trade-off you're making. Another thing to consider in order for you to start a company here is that the customer base is rather low. So if you want to make lots of money, you should probably stick to the sectors which has lots of financing and lots of public financing, such as the construction sector. Lately here, a local big company called Permagreen was bought up by a Danish construction company, basically meaning that more multinational companies are coming into Greenland and trying to start up operations here. And I mean, it could be a good idea because of right now, Greenland, and especially Nuuk, has a lot of huge, huge construction projects in the pipeline. And there might also be some more Danish military moving in, and we all know with those military budgets, they simply have no bottom, they can just continue paying money. It's nice at the moment, the Danish military is planning on moving more into Greenland, and they actually have 250 million US dollars ready to be invested in defense technology in the Arctic areas. So that's not a little sum of money, that's quite a lot of money. And all of that would definitely be positive economic inputs into the Greenlandic economy, which is pretty small.
Apply for water or ice export. Once in a while, the Greenlandic government gives out licenses for companies to export some of the fresh and clean water from Greenland. You can basically fill in an application saying that you would like to export water or ice from Greenland, and then you'll be considered in the next drawing round of giving out areas or permits for the water export. There are actually areas being sort of given out that has already been surveyed by a geological institution, so it should be fairly easy to calculate the export and the metrics if you actually know how much it costs to put up a water treating facility. And what Greenland wants in return is basically a royalty on each liter or each thousand liter of water exported, I believe. I'm not sure about the percentages, but I'm sure it's not that bad.
Mineral exploration. Just like water, you can also fill in an application basically granting you the rights to explore for minerals in a certain area for X amount of years. I believe it's up to five or ten years that you get for that specific area to explore for the minerals. And if you in those years find enough and sufficient quantities, you can later on apply to get an extraction permit, so you actually can extract the stuff from the ground and put it out in the economy of the world. Down below, I have linked a map showing you a map of Greenland and then put into small squares each company that has applied for mining in each area. And the companies range from publicly traded companies, as I mentioned earlier in this video, to basically small-scale miners.
So what do you think? Is it worth to invest in Greenland, or would you rather seek other opportunities to invest your hard-earned money? Please let me know down in the comments. And thank you so much for watching. Please don't forget to give this video a like, subscribe if you haven't already, and see you in the next one. Okay, bye.