RE:RE:RE:Checking in on UEX analogHi, Pamplona
Yes, I am acquainted with the 'Lifecycle' chart. But again, it is a template and not an exact roadmap.
The past couple of years being a good illustration of that... you've had some mining companies that have been able to continue along that life-cycle -- further de-risking their projects -- yet their share prices have not made progress because of the general tone in the resource space.
If we go back into a bull market for the underlying metals, you could enter a phase in which the stocks produce robust gains (regardless of where they find themselves on the project lifecycle).
In fact, you could have a period in which the 'junk' within the sector performs even better than companies with economic projects, because of the leverage they have to the higher metals price.
Not unexpectedly, the bears on the various discussion boards are holding sway for now, because the downdraft in the sector has been so profound. There is something of a recency bias.
The beta in the resource space, though, cuts both ways. The next bull market in the space will bring on an entirely new dynamic.