Be aware the risksGuys for long-term holders and new investors you should be aware of the following :
Only about 10% of mining projects ever get off the ground... Especially in regards to the last point
"Is the project located in a politically stable country?"
I would say the answer to that is a strong and resounding no in the case of Romania. I also read about the risks of a company turning back to socialism. Romania has strong socialist roots and could decide at any point in time that they want their mine back.
Include this mine in your portfolio but don't bet the house on it.. please.
Before you invest, get informed.
Here are some questions to help you start your research:
- What are the stages involved in carrying the project to a successful conclusion?
- How much time and money will it take to complete these stages? How will these costs be funded?
- Do the promoters have experience and expertise in the mining industry? Have they previously carried out a mining development project successfully?
- Are the estimates (quality of the mineral reserves or resources, production volume, costs, timeframes) presented in detail in a technical report prepared by an independent, qualified person?
- What terms and conditions must be met in order for the company to keep its rights in the project? Are they difficult to meet?
- What risks might impede the execution of the project?
- Have other mining companies attempted to develop this deposit in the past, and abandoned it? Why did they abandon it? What will be different this time?
- How much money has been raised for, and spent on, this project?
- Is the project located in a politically stable country?