Thoughts on mining (2017 edition)

Some key lessons on mining companies:

  1. They regularly withhold key information from investors.
  2. Technical reports should not be relied upon because many of them are disconnected with reality.

Without key information on a mine’s economics, these companies cannot be accurately valued.  So… mining stocks aren’t a great place to look for longs.  You might spent a lot of effort trying to value a mine and still fall short of being able to find reliable information on that mine.

On the short side, there are some opportunities.

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Iron ore miners (mainly in the Labrador trough)

So right now I am going through the miners in the Labrador trough area:

  • Alderon (Altius Minerals owns a large stake in Alderon)
  • MFC Industrial (MIL) owns a royalty on Cliffs’ Wabush mine
  • Cliffs (CLF)
  • Champion Minerals (CHM.TO)
  • Labrador Iron Ore Royalty Corporation (LIF.UN)
  • New Millennium Iron Corp (NML)
  • Adriana Resources
  • Zone Resources
  • Oceanic Iron Ore Corp.

(I am obsessed with Altius Minerals ok?  See somebody else’s writeup on VIC.) Continue reading