Charting, page-22

Hi. I'm not spending a lot of time following stocks at the moment because I am very busy with other projects and the value of my portfolio reflects my neglect. I'm not following SVL. I had a look at some silver stock charts on the weekend and MLX is on a tear at the moment. I'm not that interested in ADT at the moment because of the stage the project is in. Transitioning from construction to commissioning, ramp up and full operations is a risky stage. If there are set-backs the stock price can be punished. I remember getting into gold producer CAI a couple of years back as the stock skyrocketed on all the positive news of the project construction being on budget and ahead of schedule. Then came the commissioning and ramp up and it all went pair shaped.

Producing miners generating cash flow should be the first stocks to do well when a commodity enters a bull market. After that, the explorers hopefully turn up to the party because investors will turn their attention to the in-ground value of the resource. Perversely, the value of the resource of an operating mine is always diminishing as the resource gets dug up and sold and converted to cash. An explorer with a resource grows their resource until an operating miner needing to purchase more resource comes along and buys it out.