Critiques we’ve put forth of various resource companies–especially with respect to critical materials–have largely focused on management’s failure to communicate a viable business plan to the market. Often times this is the result of the fact that management has a promotional agenda: its goal is to focus investor attention particular favorable attribute (or concocted attribute) of the company’s material, location, technology…etc. rather than on operating a viable, cash-flowing business. However this may be the result of a broader issue, namely the difficulty of building, operating, and maintaining a cash-flow positive mining operation. This difficulty will always be present, but there are ways in which we, as investors, can mitigate the risk that it poses. We cite three: Bet on the best projects being developed by the best teams. Briefly, this means that we should only bet on companies with projects that have low-risk projects with high IRRs at current resource prices that
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