What are your thoughts on mining stocks?

sabretoothtigger

ANything new on BEM I should be reading particularly. Its been long enough now to flatline and possibly go overlooked and I presume just thats its summer means more action possible


FXPO done terribly, they held up so well this time last year.
HER also I think much lower on a lower silver price but the company itself has been progressing.

There is diverging prospects between stock and company; presuming commodity prices remain stronger then currency which seems a no brainer

Glen_Clark

Problem with mines is they have high fixed costs. If commodity prices drop they cannot reduce production economically - it tends to be extremely expensive to close a mine - especially a deep mine.
They must envy oil companies because when the price of oil drops opec can just slow the pumps down to reduce capacity and keep the price up.

cloud_dog

sabretoothtigger wrote: »

ANything new on BEM I should be reading particularly. Its been long enough now to flatline and possibly go overlooked and I presume just thats its summer means more action possible

They received confirmation in May that they would not be prosecuted for their exploration activities in their Kallak nr1 permit area and they are filing a new work plan shortly for Parkijaure nr2 permit area.

Drilling re-commenced at Kallak nr1 on 29th May

The objection to work plans for Nautijaur nr1 by the local Saami community has (apparently) been rejected according to a poster on iii (I've not been able to substantiate this).

I am considering another purchase of BEM at these prices. Having said that I'm considering adding to a lot of my existing holdings at these prices