I’m excited to present to you another episode of my What Smart Mining Investors Know series. Today I talk about the people. Who's running a company and what past successes or failures they've had, what pertinent knowledge they offer, and how they treat their shareholders - these things are really important. A team has to have enough experience, knowledge and connections to cover all of a public explorer needs, from the very technical exploration and engineering side of things all the way through the capital markets.
But how can we assess this? When I'm dealing with new people, I start with a good old "tell me about your company" meeting. And when I do that, what I'm looking for is a team that outlines and emphasizes that they are guided by a clear plan to create value for shareholders. Sounds basic but if the pitch is carried by a clear and credible plan to create value then odds are much improved that the team is good.
There's no doubt the people running a company are absolutely the most important factor of that. They choose the project, determine how to advance and structure the company, raise the money to communicate with the markets, and find funds to invest, and the technical people make or break the exploration side of the story. So this week I talk about how I figure out if 'the people' are any good.
In her letter, Resource Maven explains what she is buying and selling, and why. Maven has bought into several of the markets best - performing stocks well ahead of the curve. She regularly identifies exciting new exploration opportunities and manages the inherent risk by selling some into speculative gains. And the mine builder and operator stocks that form the basis of the portfolio give strong, ongoing leverage to the rising prices of gold and silver. She has your precious metal bases covered.
Great letter this morning Gwen. I am not "all aboard" with your picks but your understanding of how best to manage a high risk portfolio is second to none. And I did buy a lot of G when you made the call and sold it about a month later for a very healthy gain. Thank you very much!
As for "shiny ponies" that are moving on anticipation and will move big on good news, you need to get on the BAY train. Just sayin’..........
I'm one of your new subscribers (by way of investing.com) and just want to belatedly thank you for the recent sell recommendation that saved me quite a bit of money. (I also follow a few other mining newsletters, and, like so many other financial analysts, they were too hesitant and biased against putting out sell alerts.) And I find your newsletters very nicely done in general.