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

To: S. maltophilia who wrote (68893)	10/18/2021 8:42:46 AM
From: E_K_S	Read Replies (2) \| Respond to of 78778

I just started a position in VALE earlier this year and plan to do small adds if it sells off more. It complements the other natural recourse stocks I own including BHP, FCX, GOLD along w/ some jr. miners HL and CLLIF. The biggest threat to these companies is 'political' risk as they have operations around the world. Events happen like mining accidents, government changes, cyclical price swings in commodities and other unexpected (non company) events (ie wars). Many of these companies pay dividends (typically twice a year) and some even pay 'special' dividends from time to time (BHP in 2019) so it is important to look back at their dividend history. Also some trade as "ADR's" and charge a management fee and/or pay a Foreign Tax (if not part of US treaty countries). That impacts ROI. Finally, miners are a depleting asset and as minerals are mined, the value of their assets decreases. It is important to see other mines under development, the required capital & time to bring into production and their partners they work with. BHP and VALE have projects they develop together and/or have minority interests in. Another investment route is to explore a mutual fund that has a basket of these companies. I always look at Vanguard first since they have the lowest fee structure in the industry. Hope that helps