Rick Rule In Context
Orvana fits Rick Rules definition of a good buy not only because EVBC has an IRR of 48% and Copperwood an IRR of 27.9% ($3.35 Cu. & $25.00 Ag.) but also because it is a company in production with two mines, its main producer EVBC is on track to access higher gold grades and has Copperwood fully permitted and ready for development. Here is what Rick Rule says about gold development assets:
“This is the first time since 1992 that I’ve seen high-quality gold development assets reasonably and cheaply available in the market, and by ‘cheaply,’ I mean after tax IRRs above 25% and hopefully above 30% using current prices,’ he said. “We aren’t seeing large companies acquire smaller ones because the seniors are busy digesting the mistakes they’ve made over the last 10 years. They will definitely need to begin acquiring. Because in the mining sector, where your business is in constant liquidation, if you’re not exploring, which they’re not, or acquiring, you are six or seven years from extinction.”
https://ceo.ca/rick-rule/