Background to this Series of Posts

This is the 17th in a Series of 17 Posts that published on this Blog from September 16 to November 11. All 17 Posts can be found under the Blog Category ‘Valuation of Mining Companies’. For previously issued Posts in this Series click here. We hope you find this Post Series useful.

Required Rates of Return on Investment

As a result of the high risks inherent in mining exploration and mineral mining and production, in my view the rates of return investors should seek are much higher at the beginning of the exploration process and through to and including production than are conventional required rates of return. Required rates of return are relevant to, and hence determined at, specific points of time. They can change instantly with mineralization discoveries, enhancements, poor drilling results, quantification of NI43-101 compliant proven and probable reserves, mine permitting, material changes in commodity pricing, and so on.

In my experience conventional ‘starting point’ ‘targeted’ ‘strategic corporate acquirer’ ‘nominal’ (i.e. including consideration of prevailing inflation rates) unlevered (i.e. a pre-levered ‘return on equity’)

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On August 3 we introduced a Blogroll to this Blog. At that time we selected 4 Blogs we thought particularly useful in the context of Precious Metals, Mining, and Oil & Gas Research and Investing. We noted at the time we had reviewed over 250 ‘Economic Related’ blogs prior to selecting those first 4. Having since reviewed many more blogs and websites, in the last few days we have added 7 more to our Blog List. This Post gives a brief outline of each of them in the order they appear in our Blogroll.

1. ‘Calculated Risk‘, a blog we have labeled ‘Finance & Economics‘. This blog is written by a two people, the first claiming to be a retired public company executive with a background in investing, finance and economics, the second claiming to be a former bank officer and mortgage lending specialist. This blog covers wide-ranging economic topics. It appears to get substantial volumes of traffic, and in our view has a great deal of relevant content. New posts appear virtually every day.

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We have created a Blogroll that will grow over the next few weeks to include blogs related not only to economic commentary, but also to stock market research, stock research tools and investor tools. See the left navigation bar of this blog for our first Blogroll links.

Our intent is to operate this Blog in a highly professional manner. To this end, we are highly selective with respect to blog inclusions in our Blogroll - this in circumstances where as a practical matter the more links a Blog has typically the greater amount of traffic it attracts.

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