A few rudimentary mining questions
Posted: December 27th, 2023, 11:04 am
by plaguedbyfoibles
- Is mining cyclical?
- What do you need to know about mining stocks outside of the basics like is the deposit good, can it be mined, what extraction method is used, how likely is it to get a permit etc? A friend told me that the team matters more, i.e. has the CEO run this type of company before and how successful were they?
Re: A few rudimentary mining questions
Posted: December 27th, 2023, 11:58 am
by tjh290633
1. Yes
2. Some idea of their operations, location, minerals mined, reserves of minerals, demand for each mineral, markets, track record.
Start-ups can be dodgy. Political risk may play a part. Currently Lithium is in demand for electric vehicle batteries. The technology could change.
Some years ago I invested in Anglo-American, which promptly stopped paying dividends. The relative price movements gave me an unique change to buy BHP at a good yield.
TJH