RE:RE:RE:Lassonde CurveNo list. I think gold miners are the worst possible business that's possible to have. I view them only as trades or rentals. 90% of them lose money, have problems, dilute shareholders, plow all cash flow back into looking for more of their constantly depleting reserves. It's a dreadful business and should never be thought of as an investment.
That being said...there are times and names that can make you a god awful amount of money in short order. 2008 -2011, 2016 and potentially now. When they're hot they're really hot but inevitably except in a few rare cases, they give it all back and then some.
You have to consider them speculations and be extremely selective and cautious.
That is why my list is only 3 names long....MOZ, ARTG and SKE
They pass the risk test and are in that sweet spot of the Lasonde Curve....except SKE which will be there soon. They are low cost, high margin, richly endowed, open pit, uncomplicated best of breed all trading at a significant discount to NAV which will get realized over time.
I don't do underground although I've traded I80 as they are a unique hybrid story. I don't do anything outside of the US or Canada. No exceptions. I don't do exploration stories. I don't do anything north of the Arctic Circle. I don't do anything without a feasibility study. I don't do small deposits. I don't do anything where I don't have access to management or a good IR person. I don't do complicated. I don't do anything where I don't have confidence in management or where there isn't a clear pathway to production......and after all that, I don't stick around all that long.
So as you can see my critera is pretty strict. If they can't pass all tests then I'm not interested. I've made very good money at least 3 times in the past number of years and never ridden it all the way up and then all the way back down. They are all rentals to me. I have no loyalty whatsoever. I've never seen a mine that simply executed their plan and returned all the spoils to shareholders...they all just keep sinking all the profits back into the ground. That is not a good business model
Catch a wave and then get off of it before everyone else does and never look back.