RMC mention in article...https://www.gurufocus.com/news/326472/the-recovery-in-uranium-prices-has-been-delayed--commodities-guru-rick-rule
Speaking of mining and exploration companies that are looking for money, does it make sense to invest in early stage exploration right now? If the stocks in proven discoveries are cheap already, why not stick to those?
The truth is that you’re taking on less commodity risk.
With regards to discovery stories, the current price of the underlying commodity is less important. A mineral discovery made today will be in production 10 or 12 years from now. An oil and gas discovery might be producing five years from now.
Discovery stories advance or decline on their own, in some ways disconnected from the market. An example would be a few years back, Reservoir Minerals Corp. and Freeport-McMoran Inc. made a discovery of high-grade copper and gold. Separate from lower copper and gold prices, the price of Reservoir Minerals advanced from its initial public offering price of $0.65 in 20113 to almost $7.50 in March 2014, in complete contradiction with the market around it, because of the attraction of the wealth created by the drill bit. The market acknowledged that when the property would be brought into production that prices might be very different.
There is a whole different set of risks in pre-discovery, the most important being the risk that you won’t discover anything. The truth is that in extractive and speculative types of stocks, the most dramatic successes come from exploration.
Investing in pre-discovery exploration has entirely to do with the pursuit of 20-1 or 30-1 returns that can occur almost irrespective of market conditions, simply because of the aggregation of wealth that occurs thanks to a discovery.
It’s like what André Gaumond said: He turned a swampy patch of land in Northern Quebec with near-zero value into a $10 billion discovery.
That’s correct.
https://sprottglobal.com/thoughts/articles/rick-rule-the-recovery-i-saw-for-uranium-has-been-postponed/