big bulk tonnage, low grade deposits - Rick Rule"TD:Rick, are there certain types of projects in the metals space that might go the way of the Dodo Bird whether it be the big bulk tonnage, low grade deposits or otherwise?
RR: It’s OK to buy those large low grade deposits if you get them very cheaply. You can make an absolute fortune doing that like we did with Silver Standard, like we did with Lumina, like we did with Allied Nevada, if you have an eight or ten-year time horizon.
There is near-term money to be made two different ways. One is in the 18 to 24-month timeframe with regards to the undervalued prefeasibility or feasibility stage development projects.
The other is in the context of companies which have made discoveries and nobody cares. You’re in a market right now where you don’t have to buy these stocks in anticipation of the market’s reaction to news.
You can wait until the good news comes out, study the news, and then make your decision. We’re back in a period like 2000 where good news comes out and stocks go down.
This is the best of all possible circumstances if somebody has a two-year time horizon or a three-year time horizon, and it’s actually a spectacular set of circumstances if you have a seven to ten-year time horizon. This is a lethal set of circumstances if you have a three-month time horizon."
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