Taking Stock 

More muck-raking for investors

Mark Robinson

More muck-raking for investors

An erstwhile colleague, Matt Allan, would occasionally liken some mining executives to “stock promoters” – and you can see his point. It must take a heightened commercial sensibility to drum up support for front-loaded projects in which the estimated capital draw through to production rarely tallies with initial estimates. Investors that stay the course with junior miners are often forced to cough up additional capital or see their positions diluted. So, you can appreciate why there is often a marked disparity between the market value of mining development stocks and their estimated net present value (NPV).

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