Doc Jones – Looking For Unseen Opportunities And Potential Red Flags Within Resource Company Economic Studies
Doc Jones, Private Investor and editor of DrJonesResourceInvestor.com, joins us to discuss some of the unseen opportunities and potential red flags when digging into resource company economic studies and their proposed plans for the early years of mine life. Starting off Doc Jones shares a critical look at a few critical minerals companies in the nickel and copper sector, contrasting his interpretation of the available public data and market assumptions on Magna Mining (TSX.V: NICU) (OTCQB: MGMNF), Canadian Nickel (TSX.V: CNC) (OTCQX: CNIKF), and Emerita Resources (TSX.V: EMO) (OTCQB: EMOTF).
The conversation then shifts more into past and present gold and copper developers and producers that had both good and poor reconciliations with their stated development strategies and economic studies as they then went into production. The conversation covers a number of examples of companies, with old names like Cardinal Resources (TSX: CDV), Exter Resource (TSX: XRC), Alexco Resources (TSX.V: AXU) (NYSE: AXU), and Pure Gold (TSX.V: PGM) (OTC: LRTNF) and also current companies reinterpreting prior producing projects like West Red Lake Gold Mines (TSX.V: WRLG) (OTCQB: WRLGF).
This is a nuanced conversation getting into metals price assumptions, the importance of co-credits in metals equivalent ounces in economic studies, the potential for grade to be higher or lower than in resource block models, the impact of currency fluctuations, and the importance of staying current with additional drilling or model interpretations from companies in concert with the macroeconomic forces in the commodities, and changes in the lending rates of capital markets. Another key takeaway is the importance of the first few years of any new producing mine in the operating team’s ability to hit stated goals for throughput, grade, having enough stopes available, having a good resource block model, the debt repayment, and getting the mine launched properly.
- In full disclosure, Doc Jones holds positions in Magna Mining, Emerita Resources, and West Red Lake Gold Mines, at the time of this recording. The views and opinions shared are not investment advice.
- In full disclosure, Shad holds a position in West Red Lake Gold mines at the time of this recording.
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Joe:
Couldn’t you at least counsel caution, do you have to play “WHACK A MOLEY”, every time you show up. It’s like the wolf at the door you keep crying disaster and the real disaster hasn’t struck yet so we can’t take your predictions with more than a grain of salt.
My advice to you is go down to the beach and have a look at some real “TOPS & BOTTOMS”, LOL! DT 😉😊👍✔ +11 an 11 is a plus ten with a liquor and beer store!
Hey Joe – C’mon man – you are a virgin
Joe tends to show up when the bottom is near. He’ll be right until he’s not, which may be a long wait. Which harkens back to Doc: always next year
It is always next year due to market intervention. As long as Central Banking is allowed to transfer wealth, there is going to be price suppression. Just because Gold is near its all time high doesn’t mean that price isn’t capped. Dollar has been walked down since 1971. Debt is at unpayable all-time high. Corruption at an all-time high. Taxation favors wealth. Deregulation at criminal levels. Political oversight non-existent. Accounting rules altered.
And down the tubes they go!!!!!
GLUG
GLUG
GLUG
PM miners being eviscerated as the Fed keeps bumping up rates, and they won’t stop this year. Another rate bump, or two, are on the menu for this year alone.
What do you think that’ll do to these money burning miners?
THEY ARE TOAST!!!
How much longer will you continue to hold these losers?
How much pain have you suffered so far this year?
How much more pain are you willing to endure?
Will you just hold on and wait until there’s nothing left?
You could have bought almost anything else this year and done better than these miners.
You have less money now than you did before.
Stop harming yourself!!! This is unhealthy!!!
Your friends and family don’t want you to suffer anymore than you already have.
Just do the one thing you know you need to do to stop the suffering….
SELL
SELL
SELL
DO IT NOW!!!!!