Wow @brianchu82 the work you have undertaken on this is mammoth. Thanks. Of course, it is up to us to glean from it what we may as the ultimate responsibility of how we invest rests on our very own shoulders. I have a few of the companies in your Report. I’ve been investing in gold shares from way back, don’t profess to know that much really despite studying it as much as I can, but, having learned from past mistakes, there is one area that really does deserve a form of weighting. I think someone else has already mentioned this above; however, it is crucial to the risks we take. ‘Sovereign risk’ cannot be understated in any analysis. Companies operating in foreign countries carry extra risks as we all know. Some of these countries can end up with dictatorial-style leaders who can make erratic decisions that can have a high impact on not just the bottom line but the whole project. Mining licences can be revoked or suspended without notice impacting brutally on the share price often for a very long period. Then of course there are mining projects in countries where disease (Bird Flu, Ebola for example) can be a real threat to projects ... mining operations halted in efforts to halt deaths and the spread of such illnesses amongst workers and the population. In addition, many countries where mining is prevalent are vulnerable to human rights and environmental issues, often due to toxicity (such as cyanide used in gold mining).
Risks are prevalent in mining anywhere ... deep mines are riskier than shallow extraction ... ‘political risk’ can appear with changes of governments.
Thanks again @brianchu82 ... much appreciated ... this post is in no way criticism ... just putting a case forward for including ‘sovereign risk’ in your analysis.
Cheers ...
Cazzex
(This post was prepared last night but not posted .
Apologies for any duplication as I am attempting to post
This before checking the thread ).
