Although diversification is perceived to decrease risk it actually increases risk. This is because you run into a whole bunch of new challenges you have never run into before. This includes hiring people you don't know, learning mining processes you aren't familiar with, operating mines with no experience in them, the list goes on. It's less risky to invest in an already diversified business but it's a different story investing in one that is trying to diversify. It's an extreme example but look at how Apple wanted to move into the automotive industry and start an Apple Car. It was a disaster. They tried diversifying in a field they knew nothing about and failed epicly. You are essentially starting a new business that happens to sit in the same legal company.
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