Ron,
Being educated as a geologist only means I understand the words and
the terminology but I'm still learning "the game". Everywhere on SI
you hear people say "do your own DD" (due diligence). My guess is
alot people don't even know what this means or don't realize whats involved.
I'm not saying I do, but i know enough to know there is alot more I need
or would like to know about a company before I invest. Alot of this
no doubt comes from experience and that is why I enjoy talking to people
such as yourself.
This medium also helps immensely to educate people, especially
when investors with various backgrounds can come and ask questions
and have discussions. Also, when an exploration company pres. decides
to make himself available for questions it gets even better (i.e. MGR).
Anyways, here are but a few things that I feel are worth finding out
before one invests. Ron, I'm sure you'll be able to add to the list.
1.Management (reputation, backgrounds, track record)
2.Company structure and direction (strategy, financings, cash/debt,
cash burn rate, property diversity, promoters, insider trading)
3.Geological setting (mineralization, geologic model, nearby deposits)
4.Grades (what the soil and rock results mean for gold, silver,copper etc.
4.Economics (feasibility, site access, facilities)
5.Political risks (tax structure, corruption, civil unrest, native lands)
6.Environmental concerns (applies to USA and Canada mainly)
7.Trends (seasonal valuations, hot explorations plays or areas)
8.Stage of development (exploration, mining)
9.Long term price trend (gold vs. base metals etc)
Regards
RonS |
