Investing in Mining Companies: Price, Location and Red Flags? Amanda van Dyke: Mining Analyst and Fund Manager comments.
How important is location and jurisdiction? If I’m rewarded for taking a bigger risk with a lower price, then I will probably invest in a higher risk country. There must be some red flags when looking at companies. Management is incredibly important – from finding something to developing it and pouring your first metal… Proven management is key so the track record is incredibly important. Mining is a team effort.
Very informative video. Especially liked the portion where she discusses the 4 legs that support a good investment vehicle. It is important for investors to understand those areas.
Also, it was interesting to hear (and it does make sense) how the retail investors are the ones that actually drive the short term price of a mining stock. Institutions and large investors really cannot get out in size easily, and the longer term investor has a longer time horizon…but the short term traders, flippers, and swing traders really drive the share price more than the fundamentals of the companies operation and assets at least in the short term.