Article I had previously tried to postGlobal Mining Research BMO Capital Markets
No Revenue, No Worries
Building a Defensive Portfolio by Building Mines
BMO Rchesearch is highlighting a somewhat counter-intuitive defensive play in the gold equities: buy pre-revenue gold stocks.
]1. The current gold price environment has prompted the viability of gold projects and operations to be reassessed, resulting in the deferral of planned development, optimization of mine plans, and, in some cases, the impairment of reserves or shortening of mine lives.
2. Producers have generally adopted a strategy of cutting costs and focusing on generating free cash flow, partially by reducing exploration expenditures and sustaining capital. Meanwhile, developers are facing more difficulty accessing capital to conduct drilling programs or complete economic studies.
The valuation gap between producers and developers has widened. Fully funded developer stocks appear to offer an attractive investment opportunity in the current environment. 3. Weakened demand and favourable currency movements have reduced drilling costs, increased labour availability, and shortened equipment leadtimes, making it a more attractive environment for construction compared to recent years. BMO Research is suggesting that attention be paid to developers as a group.
On another note, I've looked for old mining records of Vatakoulu and Tavutu from Emperor but have had no luck. They should be out there. If anyone should find some I'd love to see them. Thx