Rick Rule, a prominent figure in the resource investment industry, has been vocal about **general and administrative (G&A) expenses** within mining companies. Let's delve into his perspective:1. **Historical Precedence**: Rick Rule has expressed concern about the **excessive levels of G&A** in the resource industry. He stated that he has **never seen corporate compensation** as a percentage of assets or total expenditures come close to the current levels, which he finds **deplorable**¹. Specifically, he believes that the severance payments associated with changes in control have hindered industry consolidation, which is necessary for survival¹.2. **Statistics**: A study conducted by Sprott, focusing on **sub-$10 million market cap junior mining companies**, revealed that **57-58% of the capital raised** over a 5-year period went toward G&A expenses. In contrast, major mining companies like Teck Resources typically allocate only **12-15% of project expenditures** to G&A².3. **Industry Transformation**: Rick Rule advocates for trimming the **G&A fat** from the industry. His stance is that reducing excessive administrative costs will lead to **fewer but more solvent players**. He even humorously suggests that companies should be sent to "company heaven" rather than receiving additional funding¹.In summary, Rick Rule emphasizes the need to **curtail G&A expenses** and create a leaner, more efficient mining sector. His insights highlight the importance of financial discipline and prudent resource allocation.Source: Conversation with Bingso the question Anthony is whether AAR squanders money needlessly or unwisely.
Dissecting financial reports isn't my forte but I don't think we're badly placed compared to some other lifestyle outfits.
just a conversation starter.
gltah.
- Forums
- ASX - By Stock
- Ann: Kamperman RC Drilling Delivers 35 metres grading 3.81g/t Au
Rick Rule, a prominent figure in the resource investment...
-
- There are more pages in this discussion • 3 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AAR (ASX) to my watchlist
|
|||||
Last
8.3¢ |
Change
0.000(0.00%) |
Mkt cap ! $77.62M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 355 | 8.3¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
8.5¢ | 21316 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 355 | 0.083 |
1 | 12000 | 0.077 |
1 | 65800 | 0.076 |
1 | 25000 | 0.074 |
1 | 10000 | 0.072 |
Price($) | Vol. | No. |
---|---|---|
0.085 | 21316 | 2 |
0.088 | 83788 | 1 |
0.089 | 206500 | 1 |
0.090 | 107200 | 2 |
0.091 | 31265 | 2 |
Last trade - 16.12pm 28/06/2024 (20 minute delay) ? |
Featured News
AAR (ASX) Chart |
Day chart unavailable
The Watchlist
I88
INFINI RESOURCES LIMITED
Charles Armstrong, CEO
Charles Armstrong
CEO
Previous Video
Next Video
SPONSORED BY The Market Online