Stealing Value

One can throw a dart and hit a cheap junior mining company right now. Sure, sentiment is bad and metals have corrected since August 2020, but that also means the next leg higher is getting closer and closer. Besides, if one can pick up juniors that are pricing in $1,300 gold then one has a huge margin of safety to work with. Volatility is not really risk. Permanent loss is risk.

Today I bought some Dolly Varden, Golden Tag, TriStar Gold and Magna Gold. All have advanced assets and Magna even has a producing mine. I think we are back to the good ole times when banked success was selling for pennies on the dollar. The combined EV of all four is less then US$200 M and for that you get like over 250 Moz of silver and 4 Moz of gold. The cost, risk and time to get to where those companies are today is a lot more than what one is paying for today. If those companies aren’t cheap then all grassroot explorers should pretty much have an EV of $2 M or something. Don’t get me wrong, the whole sector is cheap but the advanced plays have probably become brain dead cheap X 2 lately. The companies mentioned are certainly not the only ones that are cheap right now but they simply are some of the many companies that have gotten increasingly cheap in just the last few days.

Honestly it’s almost boring how hard it is to make a mistake today (overpaying for something). Good for our future returns but bad if one wants a challenge.

This sector is simply brain dead and even a monkey could buy something today that is very likely to pay off in the future.

/Rant over

Note: This is not investment advice.