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.
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Last
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Change
0.004(4.65%) |
Mkt cap ! $83.97M |
Open | High | Low | Value | Volume |
8.6¢ | 9.0¢ | 8.6¢ | $25K | 283.2K |
Buyers (Bids)
No. | Vol. | Price($) |
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1 | 5015 | 8.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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9.0¢ | 368350 | 5 |
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1 | 5015 | 0.088 |
1 | 22000 | 0.087 |
1 | 23000 | 0.086 |
1 | 100000 | 0.084 |
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Price($) | Vol. | No. |
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0.090 | 368350 | 5 |
0.091 | 332466 | 3 |
0.093 | 25692 | 1 |
0.094 | 130000 | 2 |
0.095 | 308361 | 4 |
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Change
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