Marceau

Marceau Schlumberger is an accomplished figure in the world of finance and investment, best known as the co-founder and managing partner of Coral Reef Capital. With a passion for identifying promising investment opportunities and maximizing returns, Schlumberger has made a significant impact in the field.

Having amassed a wealth of experience over the years, Marceau Schlumberger has established himself as a seasoned investor and strategic thinker. His expertise spans various sectors, including technology, healthcare, energy, and real estate. With a keen eye for emerging trends and disruptive innovations, he has successfully guided Coral Reef Capital in making shrewd investment decisions.

Schlumberger sat down with our team here at Streetwise to tell us a little bit about himself, his strategy, and what companies have him excited about in 2023.

Managing US$150 Million

Schlumberger founded Coral Reef Capital 15 years ago, investing US$15 billion into the company in various companies across a plethora of industries. 

Currently, Coral Reef is a private investment firm that specializes in lower middle market private equity investments, with a particular emphasis on the energy sector. As a dedicated investment firm, Coral Reef Capital focuses on identifying and nurturing investment opportunities in companies operating within the lower middle market segment.

The company currently has US$150 million under management. It mainly invests in private companies but has some personal accounts in public entities. 

When it comes to the companies Marceau Schlumberger is interested in, his primary focus lies in endurance and stability rather than a specific sector.

"My area of focus is longevity," he said. Rather than being constrained by industry boundaries, Schlumberger prioritizes businesses with long-term potential and sustainable growth prospects. His investment decisions are driven by a forward-looking approach, aiming to identify companies that can thrive and adapt to changing market dynamics over an extended period, regardless of the industry they operate in.

Still, certain sectors have done him well. Typically, institutions shy away from the mining industry as it is considered too volatile, but Schlumberger believes the sector is essential. 

"On the gold side, we have generated positive returns. Precious metals have been a very good investment area for us. Since we were private, we did not get hammered as the public funds did. Our stock price is way undervalued as well," Schlumberger said. 

While other institutions don't want to risk it, "When it runs, you make three to ten times a return. It’s a question of having your chips on the table when it runs," he said.

And one of the exploration companies that caught Schlumberger's eye was Western Exploration, in which he is now a director. 

Western Exploration

Western Exploration Inc. (WEX:TSX.V;WEXPF:OTC) is an exploration company that is dedicated to unlocking the potential of natural resources through responsible and strategic exploration activities. With a strong focus on the mining and energy sectors, Western Exploration actively seeks out new opportunities to discover and develop valuable mineral and energy reserves. 

Schlumberger told Streetwise that he first discovered Western Exploration when it was a private company in 2013. He was impressed by both the company's prospects and its team.

"Western Exploration started mining in the United States in 2010," he said. "Then they acquired (NAME OF MINE) that historically had 2 million ounces of gold, which is what initially got them into Nevada." One of the largest landowners in Nevada had been previous owners, and the company was being managed by Brian Kennedy. 

For over four decades, Brian Kennedy held various leadership roles, serving as a director, president, chief operating officer, and chairman in several resource management companies. These companies include Meridian Gold, FMC Gold, Argonaut LLC, and NV Energy. Throughout his extensive career, he has provided strategic guidance and played a crucial role in overseeing the operations and management of these organizations.

"We were interested as he had a producing mine in Nevada, and we knew Brian Kennedy," Schlumberger noted as to why his team liked Western Exploration before it went public.

Strong Management and a Possible Major Asset

Now that the company is public, Schlumberger is just as excited about Western Exploration's management team. "The most exciting and fun part of WEX is working with the management team. They have all been and are major successes, and they've found mines producing 20 million ounces gold so far."

He called them "Tier One professionals," saying they "have worked at the majors, and they wanted to get involved in this project because it had the highest grade results in the state of Nevada, and they saw the potential on the properties at Wex. 

Aside from the team, the companies' properties are also promising. 

"Dolby George is a beautiful asset. You can start mining and make money right away. Drill holes were all spectacular and exceeded our expectations," he told Streetwise. "We have very high-grade assays here."

Highlights of this include:

• Near Surface, Oxide Deposit Indicated: 407k ozs  at 0.98 g/t gold
• Inferred: 118k ozs at  0.73 g/t gold

"We have private land, which is very unique," Schlumberger commented. "Everything is lining up. We know we are going to grow; the question is how much."

The company has a number of catalysts planned for Dolby Geroge. A metallurgy is currently ongoing and should be completed by the end of the year, and the company will also release a technical report on the property.

"Everything points to us having a major asset in Nevada which is found only every decade or three decades," he said.

According to Reuters, about 84% of the company is owned by strategic investors, including Golkonda LLC, a syndicate of dozens of high-net-worth investors, which owns about 66% of the company, and Agnico, which owns 18%. Schlumberger has 1.91% of the stock, with 660,000 shares.

Management and directors own about 3%, and other institutions own about 6%, the company said.

The rest is retail.

Market Watch reports that Western Exploration has a market cap of CA$21.5 million and 14.83 million shares outstanding. It trades in the 52-week range between CA$0.96 and CA$2.40.

Music 

 Another sector that has piqued Schlumberger's interest is the music industry. 

"Music is part of everything today," he said. "Streaming digitally is making it available everywhere. A lot of money is going into that sector."

He also likes doing things with a more creative aspect and specifically follows artists in the electronic and hip-hop genre. 

"I used to be roommates with someone currently in the industry. He has worked with Def Jam Records, and because of this I get the lingo and lifestyle." This, he believes, is key. "You need to understand the world to transact in that world," and Schlumberger believes it is ample time to get involved in the industry, as while it is an interesting area, it lacks financial savvy."

*Possible Expand on a stock in this industry*

The Fountain of Youth

*Expand on UM study*