Coppernut - Share appreciation“copper prices were to stay unchanged or even decline modestly.”
Thank you for your thoughtful reply. I understand your thinking on the benefits that Ivanhoe should enjoy in the future derived by improvements and additions. And the logic that these economic benefits or advantages will result in higher share prices. This last assumption results in less influence on stock prices and far more on one’s own valuation.
I remember wondering why a particular gold stock was so undervalued, and the market failed to recognize its potential. The reason was: who knew much about the stock besides retail investors like me and a few analysts at the smaller funds, but rarely was much time spent on another mid-tier operation.
It’s true. The more you know about an operation the greater the bias. It’s only natural. But here’s the thing. Real appreciation of mining stock is more often the result of speculation based on projected shortfalls in supply, but lastly my experience with appreciation occurs with bottom line results, and the only results Wall Street wants are profits.
There will be a period before these improvements are implemented and I personally don’t see you having that much. Over the years I’ve responded to the question of when will climate change happen? And my response always was “Sooner than you think.” I might have made dire predictions on the habitability of vast regions of the Earth and have pointed out the extreme weather threats to southern Africa, but that doesn’t mean you should sell tomorrow, or next week, or next year. It should mean that you need to keep an eye on the weather, etc. Mining is and always has been a high-risk enterprise and will always require that we respond to the new dangers and challenges of a changing world around us.