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LUNAR MININGAn Exclusive Guide toExploiting a QuadrillionDollar OpportunityALTUCHER’SINVESTMENT NETWORK
LUNAR MININGAn Exclusive Guide to Exploiting aQuadrillion-Dollar OpportunityIn the 1840s, hundreds of thousands of Americans packed their belongings and headed west in search of fortune. The “California Gold Rush”as it came to be known would become legend in American history.Vast fortunes were made, although the biggest gains were primarilymade by the earliest miners. Many of the miners broke even or cameup empty handed. In fact, the merchants who were selling supplies tothe miners — such as tools, newspapers, and blue jeans — were alsothe biggest winners.With the race to the moon, one company is poised to be an early miningwinner AND a merchant to other miners. But more on that in a minute.Science Fiction or Near Future?Lunar colonization has been a dream of mankind for centuries.When the first person landed on the moon in the late ’60s, it seemed itwouldn’t be long before the moon was swarmed with people.And yet, the moon’s surface is still as lonely as ever.It all came to an end in 1970, just six months after Apollo 11 landedman on the moon.The US would go on to put astronauts on the lunar surface five moretimes before Americans lost interest, and the government decided toprioritize spending on the space shuttle and near-Earth orbit.In recent years though, the return to the moon has been an area ofrapid acceleration.In March of 2019, US Vice President Mike Pence announced the US’intention to return astronauts to the moon by 2024. The program,2
ALTU C HE R’S I N V EST M EN T N E T WO R Kdubbed “Artemis,” will integrate the following components: The SLS heavy rocket The Lunar Gateway space station, which will orbit themoon and serve as an orbital research lab, rest stop, storagefacility for lunar and deep-space missions Commercial Lunar Payload Services (CLPS), a NASA program for transportation to and from the moon’s surface The Orion space capsule The Human Landing SystemNot to be outdone, the Chinese are simultaneously working on theirown program to assemble a lunar habitat within the next decade.In preparation for this habitat, the Chinese have been conducting robotic research and exploration missions to the moon for years.In December 2020, China’s Chang’e 5 became the first mission ever toretrieve soil samples from the moon’s northwestern region, suggestingChina may have lunar mining ambitions of its own.This accomplishment, along with China’s goal of establishing a lunarhabitat within the next decade, all but guarantees that the US is headed for a ‘60s-style space race, suggesting big bucks for early movers.Houston, Aerojet is Cleared for LandingIf we’ve learned anything from the California goldrush, it’s that bothmerchants and miners can make money from the discovery of resources. There is one company poised to do just that: Aerojet Rocketdyne(NYSE: AJRD).One of the original firms to pioneer space tech, AJRD has been in thespace game since the company’s engines powered the Saturn V rocketto first put man on the moon.Now, 51 years later, the company is still going strong.3
ALT UC HE R’S I N V EST M EN T N E TWO R KThe keyword to know in the space industry is “backlog.” Rocket engines take years to develop and build, and as a result, companies canreceive contracts that span years. But these contracts don’t allow thecompany to capture the revenue until the product is built.Since Q3 2018, Aerojet has been able to grow its backlog by an impressive 83% — from 3.7 billion to 6.8 billion in Q2. In the same timeframe, the company’s stock has only gone up 17%. This can only meanone thing: AJRD is cheap.Despite being in a red-hot industry with growing sales, the company’sstock has been overlooked by investors chasing yesterday’s opportunities.Remember, in a gold rush, the earliest movers are the winners.Speaking of early movers, AJRD’s long history of working with NASAand the defense department has put it in a leading position for manyof NASA’s most coveted opportunities.In fact, AJRD’s rocket-tech will be an integral part of virtually every element of Mike Pence’s Artemis program mentioned above — includingthe SLS heavy rocket, the Lunar Gateway space station, CommercialLunar Payload Services (CLPS), and the Orion space capsule.This cushy position means that AJRD is set up to be a leading merchant in the new lunar-mining rush.But that’s just the cherry on top, because its likely that Aerojet will alsohave a hand in mining itself.On October 22, 2019, the company announced a strategic partnershipwith a company called Firefly Aerospace to collaborate on rocket propulsion for Firefly’s forthcoming lunar lander.The lander, known as genesis, is a robotic device capable of collectingsamples and returning them to Earth.As part of the partnership, AJRD will be providing the propulsiontechnologies to ferry the lander devices and lunar materials betweenEarth and the moon.4
ALTU C HE R’S I N V EST M EN T N E T WO R KBetter yet, the engine powering the SLS rocket uses a combination ofliquid hydrogen and liquid oxygen to propel it into space. This reliance on the constituent elements of water for fuel makes it likely thatAJRD will have a hand in the development of tools for convertingLunar ice into rocket fuel.Shockingly, despite all the enthusiasm around space investment, AJRDremains one of the best value investments around.However, this opportunity will not last forever.Opportunity on the HorizonIn December, Lockheed Martin announced its intention to acquireAerojet Rocketdyne for 56 per share. That price includes a special 5 “pre-closing” dividend from Aerojet, paid out to shareholders onrecord as of March 10.However, as with all mergers, there’s no guarantee the deal will close.Lockheed Martin must first receive government regulator approval andshareholder approval.In a best-case scenario, the deal is expected to close in the second halfof 2021. However, if regulators or shareholders object, the companymay be on the market for an even higher price.With shares currently trading under 56, investors could take home aneasy profit should the deal proceed without any hiccups.Now, given the fact that AJRD will be acquired, we will not be addingit to the portfolio at this time. But the fact that Lockheed made thismove, it’s clear that the sector is heating up big time.With lunar exploration just years away, we’ll continue to see increasedaction in the sector going forward. And we’ll be sure to alert Altucher’sInvestment Network subscribers to any opportunities along the way.5
ALT UC HE R’S I N V EST M EN T N E TWO R KWe welcome comments, suggestions, and customer service inquiries at feedback@threefounderspublishing.com.You can also call (844)-449-6520. Please note: The law prohibits us from giving personalized financial advice. 2020 Choose Yourself Media. All rights reserved. Any reproduction, copying, or redistribution of this report, inwhole or in part, is strictly prohibited without written permission from Choose Yourself Media. Choose YourselfMedia forbids its writers from having a financial interest in any security they recommend. All employees of ChooseYourself Media, other than writers, must wait 24 hours after a recommendation is published before acting on thatrecommendation.Choose Yourself Media does not recommend or endorse any brokers, dealers, or advisors. This work is based onSEC filings, current events, interviews, corporate press releases, and our own personal networks. It may containerrors, and you shouldn’t make any financial decisions based solely on what you read here.6
Lunar Payload Services (CLPS), and the Orion space capsule. This cushy position means that AJRD is set up to be a leading mer-chant in the new lunar-mining rush. But that's just the cherry on top, because its likely that Aerojet will also have a hand in mining itself. On October 22, 2019, the company announced a strategic partnership
