Altius thrives by providing capital to mining projects during industry downturns when financing is expensive or unavailable. They then benefit as the cycle turns, projects get developed with others' capital, and commodity prices rise, amplifying their royalty returns.

Altius doesn't just buy royalties; its geology team proactively identifies and stakes mineral claims. It then structures a royalty into the claim and sells the project to an operator, retaining the royalty and often an equity stake. This creates proprietary deal flow and massive returns.

Companies like Tesla and AWS are investing in lithium and copper refining to control their supply chains, a new phase of vertical integration driven by AI's massive industrial needs for data centers and batteries.

The most lucrative exit for a startup is often not an IPO, but an M&A deal within an oligopolistic industry. When 3-4 major players exist, they can be forced into an irrational bidding war driven by the fear of a competitor acquiring the asset, leading to outcomes that are even better than going public.

To combat China's dominance in critical minerals, the Department of Energy is proactively funding dormant US resource companies. It provides a 'startup package' including an equity check, an expedited permit, and a guaranteed offtake agreement with a floor price to de-risk and fast-track projects.

Small, independent oil producers operate a distinct business model: acquiring undercapitalized conventional wells that are too small for large shale companies to focus on. They then work to "squeeze a little bit more juice" out of these assets the giants consider rounding errors.

Driven by AI and EV demand, tech giants like Tesla and AWS are moving beyond software to control their supply chains at the source. They are now investing in and operating mines and refineries for critical minerals like lithium and copper, marking a new era of deep vertical integration.

The current M&A landscape is defined by a valuation disparity where smaller companies trade at a discount to larger ones. This creates a clear strategic incentive for large corporations to drive growth by acquiring smaller, more affordable competitors.

Significant change doesn't come from the established core of an industry but from the margins. This is where smaller, private companies and overlooked founders operate, making private markets a crucial hunting ground for the most disruptive investment opportunities.