/biz/ - Business & Finance

>>25044223

What I recommend, in analysing mining stocks, is to view it as a process of comparison. Go through many different stocks on ceo.ca, take note of their mcaps, and compare those mcaps with one another. Then examine the relation between the stocks according to any of these different tools: P/NAV; P/CF; $/ounce; grade and depth of holes; speculation; history of property; management team; permits; assets; finances; and jurisdictional risk. You will get a sense, over time, for what is undervalued or overvalued, by constantly asking yourself what one stock has by comparison with another, in view of its current mcap. This is what will uncover opportunities. e. g. It was the permitted mill (extremely valuable asset) and 250 million speculative silver ounces, as against the $10 million mcap ($/ounce), which made me buy KS in September, because, compared with a stock like DSV ($500 million mcap for 500 million proven silver ounces) it was obviously undervalued at only 1/50th the price.

Not every tool is applicable to every situation. IPT, as I say, has a 200 square km piece of land which has produced 1 million ounces a year for the past 500 years. Common sense tells us that silver has to be everywhere, so that, even though e. g. Aya, which has an mcap 2.5x larger, has many “proven” reserves, you might conclude that IPT is better value, especially because it is already producing. Again, permits, assets, and jurisdictional risk can also change everything. As what happened to AMM shows, it doesn't matter how good your deposit is if you can't get permission to mine it. NIM has great value on the basis of having a permitted mill alone, which means that they can certainly produce. And as for jurisdictional risk, if there is political instability in a nation, you are liable to lose everything.

In sum, evaluating mining stocks is a rough science of comparison which makes use of fifty different tools, and, ultimately, your own good sense.

>>25044223

What I recommend, in analysing mining stocks, is to view it as a process of comparison. Go through many different stocks on ceo.ca, take note of their mcaps, and compare those mcaps with one another. Then examine the relation between the stocks according to any of these different tools: P/NAV; P/CF; $/ounce; grade and depth of holes; speculation; history of property; management team; permits; assets; finances; and jurisdictional risk. You will get a sense, over time, for what seems undervalued or overvalued, by constantly asking yourself what one stock has by comparison with another, in view of its current mcap. This is what will uncover opportunities. e. g. It was the permitted mill (extremely valuable asset) and 250 million speculative silver ounces, as against the $10 million mcap ($/ounce), which made me buy KS in September, because, compared with a stock like DSV ($500 million mcap for 500 million proven silver ounces) it was obviously undervalued at only 1/50th the price.
Not every tool is applicable to every situation. IPT, as I say, has a 200 square km piece of land which has produced 1 million ounces a year for the past 500 years. Common sense tells us that silver has to be everywhere, so that, even though e. g. Aya, which has an mcap 2.5x larger, has many “proven” reserves, you might conclude that IPT is better value, especially because it is already producing. Again, permits, assets, and jurisdictional risk can also change everything. As what happened to AMM shows, it doesn't matter how good your deposit is if you can't get permission to mine it. NIM has great value on the basis of having a permitted mill alone, which means that they can certainly produce. And as for jurisdictional risk, if there is political instability in a nation, you are liable to lose everything.
In sum, evaluating mining stocks is a rough science of comparison which makes use of fifty different tools, and, ultimately, your own good sense.

>>25038596
>>25038764

I was the one who brought up Klondike to /pmg/, and made the case for it at about the same as I did for Vangold. At that time, it had a $9 million mcap. I asked Pan Man about it to make sure that I wasn't imagining things, and he confirmed that "the mine was ready to run, they simply needed to be given the go ahead." I then recommended it in pretty much every thread thereafter whenever I talked about silver small caps. The value of what was in the ground, and the fact that they had a permitted mill, simply made the company impossible to ignore. At a $45 million mcap I wouldn't so much recommend it to people today. I took a part of my profits and diversified into other stocks. Would be dangerous to chase something simply because it is going up--the management team remains a ghost. Klondike was valuable because it was cheap relative to the ground, but it is now expensive. For example, KS now has the same mcap as Blue Lagoon Resources, and it is 6x higher than SSE and 3.5x higher than BHS. VGLD may also become too expensive once the stock gets unhalted on Monday.

>>25040525

Sprott still believes in Silver One. Invested an additional $5 million lately.