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Over the last years, we have actively speculated in #exploration sector.
Our approach has changed over time.
One of our strategies is to participate early on in discoveries.
🧵👇Tips on how to do it below.
Our approach has changed over time.
One of our strategies is to participate early on in discoveries.
🧵👇Tips on how to do it below.
Step #1: Stay up to date with exploration results announcements EVERY day.
For us #ASX and #TSX takes 10-20 min per day.
Success here comes down to:
• Know what you look for e.g. 20m @ 3% Cu
• Do not get distracted by noise
• You get faster over time
• Automate 😍
For us #ASX and #TSX takes 10-20 min per day.
Success here comes down to:
• Know what you look for e.g. 20m @ 3% Cu
• Do not get distracted by noise
• You get faster over time
• Automate 😍
Step #1 cont.: Why EVERY day?
We missed the good announcements before. Most of the days nothing happens, but you do not want to miss the 200% move.
How to read announcements faster: equivest.capital/post/over-the-…
We missed the good announcements before. Most of the days nothing happens, but you do not want to miss the 200% move.
How to read announcements faster: equivest.capital/post/over-the-…
1/6 Most of the new #discovery announcements and good first holes ends up as a minor discovery.
How to spot significant discoveries as an investor?
How to spot significant discoveries as an investor?
2/6 Three steps to follow🪜:
1) Study significant discoveries
2) Study the failed discoveries
2) Learn the essentials of geology
Let's dig in.
1) Study significant discoveries
2) Study the failed discoveries
2) Learn the essentials of geology
Let's dig in.
1/x Commonly asked question. What is a significant #mining #discovery? 🧵
In our book it is upper Tier 2, Tier 1 discovery.
Okay, how do these tiers actually work?
In our book it is upper Tier 2, Tier 1 discovery.
Okay, how do these tiers actually work?
2/x
Tier 1 deposits have NPV greater than 1 Bln USD. Typical discount rate used is 8% i.e. NPV8
They are rare to find! See the graph below from BHP showing frequency distribution of copper discoveries between 1985-2003.
Tier 1 deposits have NPV greater than 1 Bln USD. Typical discount rate used is 8% i.e. NPV8
They are rare to find! See the graph below from BHP showing frequency distribution of copper discoveries between 1985-2003.
3/x
Tier 2 deposits have NPV of 200-1000 Mln USD.
They are also considered significant by many definitions.
Tier 2 deposits have NPV of 200-1000 Mln USD.
They are also considered significant by many definitions.
