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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: WIND FALL who wrote (68532)	9/2/2021 1:40:14 PM
From: FIFO_kid2	3 Recommendations Recommended By E_K_S Spekulatius The_Commodore Respond to of 78778

Windfall (For producing firms only) if gold prices rise the firms who have a higher cost structure and those who can bring more ounces into production usually do best. So the dogs outperform. In a flat to down market the lowest cost and those who can bring profitable production growth into play usually do best assuming there is no share dilution. I can say the sector has piqued my interest again given the persistent weakness but I still feel the companies are still vulnerable to year end tax selling due to their dismal relative performance and I do not own any producing gold companies which is a rarity for me. Usually it takes about a decade to get a good exploration project from initial discovery into production and the sector has grossly underinvested into exploration for decades. If you want to learn about mining investing I would recommend that you follow Rick Rule on youtube. He is a very good mentor in the space. From my experience this sector works very well if you take the Ben Graham approach to investing. As for AISCs I find them almost meaningless. I would prefer to know what the firms all in costs which includes the capex to build the mine. All AISCs show is their breakeven operating cost that includes sustaining capital and regional exploration to expand reserves to keep the operation going. As an investor who wants to stand a chance to make money on an investment in this sector you really need to find mines that returns 30% or greater after all in costs provided you pay a decent enough discount to its NPV. Mines are very similar to bonds given at some point they have an expiration date.