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Featured on the Korelin
Economics Report: “Analyzing a Mining Company with David Morgan, Dr.
Peter Megaw, Laurence Raulston, Brent Cook, Paul
van Eeden and Sean Rakhimov”
Recently, at San Francisco's
annual Hard Assets Investment Conference, we hosted two panel discussions
where we had the opportunity to chat with Dr. Peter Megaw,
David Morgan, Brent Cook, Laurence
Raulston,
Paul van Eeden
and Sean Rakhimov all experts in the field of mining. We asked each of them
if they had any advice to offer a first time investor looking to put some
money into mining stocks.
Peter, David and Brent comprised the first panel. Here is part of
what they had to say.
Geologist Peter Megaw recommended that
beginning investors learn as much about the industry as they can before
starting to invest because much of
the information that companies showcase is highly technical. If an
investor isn’t entirely sure how to interpret all of the technical
information that is available, he said that the sheer amount of that
information could also be a decent indicator of an exploration company's
chances for success. Peter said that a surplus of information, for example,
could indicate that a company has a valuable deposit on their hands, whereas
a lack of information could indicate exactly the opposite.
Exploration stage companies almost always make readily available the
information that they have collected from their initial work in an area:
surface signature, geophysics, structural data, geochemistry and the
like. Peter, David and Brent all agreed that this initial information
could be a good indicator of the degree of success a company could realize
with its project.
Newsletter writer and analyst David Morgan added that focusing on the
history of the drilling crew, their track records and qualifications, could
also provide insight. He went on to say that looking beyond the current
information and examining the area itself, how many times it has been
explored by different companies, previous geological reports on the evolution
of that land, studying the way it has formed, etc., could also be good
indication of an area's potential output.
Brent Cook, who is a sought-after consulting geologist, emphasized
that the work that both he and Peter do is highly technical in nature and so
new investors not familiar with the terms need to work with an advisor who is
an expert in the field. Many stockbrokers who specialize in mining stocks
have this expertise. We personally wholeheartedly agree with Brent and can
refer you to a number of experts in this field.
In our second panel, Laurence,
Sean and Paul shared their
thoughts with the audience and
Brent, and Peter joined them again.
Among other things, newsletter writer, Laurence
Raulston
brought out the fact that the geopolitical climate surrounding the land in
question is extremely important. As most of us are aware, parts of South America, for example, contain profitable deposits
but current political conditions in some of these areas are certainly not conducive
for secure investing and folks would do well to stay away until conditions
change.
Sean elaborated by saying that one of the few untapped areas of the
world in terms of mining potential is Russia and that no foreign
company has yet succeeded there.
Paul and Laurence both stressed that basic key factors
certainly include people. Is the management technically competent? Do they
have the ability to raise capital? What is their experience in the area? If
the answers to all of these questions are yes, things can be promising.
Paul went on to say that
it is critical to be able to “gauge
the level of risk in the investment”. If that cannot be accomplished
with some degree of certainty, an investor should stay away.
To listen to everything that these experts had to say on these and
other issues simply go to our website, www.kereport.com,
click on videos and then click on panels. Segments one, two and three
comprise the first panel and segment four, which is much longer, comprises
the second. Enjoy!
By :
A.B. Korelin
Editor, Korelin
Economics Report
Al Korelin
is the founder and President of A.B. Korelin and
Associates, Inc. – a company that has been providing regulatory
consulting services to public companies since 1982. He is also the co-host of
The Korelin Economics Report – a nationally
syndicated radio program, which deals with asset, based investing.For those of you who want to hear
the experts on economic issues, listen to the radio program either on the air
or by going to www.kereport.com.
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