The securities of Imperial are backed by substantial asset value, notably the copper and gold deposits at the Red Chris mine in northern British Columbia. Imperial is only a few years into operating Red Chris, which has the resource depth to be a multi-generational asset. Continuous operational improvements and improving copper fundamentals provide tailwinds. Given current prices, Imperial bonds provide double digit yields with near term maturities, and we also expect a favorable return on the company’s equity over the next few years.
From Bruce Berkowitz (Trades, Portfolio)'s second quarter 2018 Fairholme Fund (Trades, Portfolio) shareholder letter.
