Investing in mining stocks is definitely a crap shoot, with 90% or more of the thousands of exploration Cos. never getting close to developing a mine. And even if a Co. is developing their property, the results can be brutal. For an investor, it is probably better that the Co. sell its property or itself to the highest bidder. I'm thinking about GBG and ANO, both of which are working towards mine start up, both of their stocks are stagnant and way off their highs. Other newbies are struggling to survive or to make any money, like KGI who has never made a profit. Of course there are exceptions, like SGR, making steady progress, even little limited GOZ.
Its hard to make money investing in the Jr. sector. The mantra was to invest in late stage development properties, but that hasn't paid either. The TSX.V meltdown has shown the vulnerability of the Jr. exploration/development sector, as they have no income other than to issue more and more shares. An ARU doesn't come around very often. I have changed my philosophy from "investing" to short term promising drill plays. Who can hold a stock to mine production, with all the pitfalls and inevitable decline in share price? That is probably why the Sr. Companies don't do exploration. They just gobble up the good ones. So many of the promising often touted Jrs. by this guru or that, have bit the dust, now broken and broke, with the shocked and confused investor holding the empty bag. |
