InvestorsHub Logo
Followers 5
Posts 131
Boards Moderated 0
Alias Born 08/18/2015

Re: None

Tuesday, 09/01/2015 4:46:13 PM

Tuesday, September 01, 2015 4:46:13 PM

Post# of 54921
Metal mining stocks are and always will be much more "feast or famine" or unreliable/unpredictable ones.

Take coal for instance where whole mountains of the stuff lays there and all you have to do is remove the mountain to the crusher and ship out on railcars or barges. This is a much simplified explanation but bear me out.

Now take a look at an open pit metal mine specifly gold and silver.
They occur more in patchs or veins or corridors than say copper iron and other common metals.

When you look at this mine [or any hill or peice of property] you will see many different colored dirts [ores if you will] and each has its own content AND method of extraction.

One stock I know has "brought" in mining experts, mined 20% less ore and silver prices fell 18% in this quarter and still made 25% more profit!

SCAMMMMMMMMMMMM , the silver and gold ratio is all wrong! Where did that gold come from all of the sudden????? BSSSSSSSSS etc.

No.. they did it basically because they quit using pine oil in their flotation and used another agent. [simplified version]
Suddenly they were floating more silver and more gold from less ore... The tailings [waste] were now more clean of value than before and more was staying in the company coffers.

The ore they had reached looked the same as the previous layers and maybe thru complacency or whatever they never improved on their method until silver took a huge dip and stock holders were abandoning ship.

So in come the experts and wow. what do you know....... Bingo they in the drivers seat and learned a lesson forced on them but not easily forgotten.

Also mines do play out......... That is why they are sold off and traded and re-opened when prices are higher or maybe a new method of extraction.

Do your DD.........