Most Disadvantageous Lottery in the World

Aug 01, 2017
IanRunge
0
Batteries, Central Banks, China, Coal, Commodity Prices, Copper, GFC, Iron Ore, Money Supply, Oil Shale, Reserves, Resources, Technology

Noosa Mining and Exploration Conference, 2017. According to Adam Smith – the father of Economics, and obviously no fan of mining – the search after new mines is “perhaps the most disadvantageous lottery in the world.” (from “The Wealth of Nations” 1776). If you treat the business of investing in this industry just like a lottery it probably will turn out to be a disadvantageous one. This presentation adds mining knowledge, technology, and economics to tilt the playing field away from a pure lottery-type strategy to one that has a greater chance of making money. It examines some common errors and misconceptions in mining, it looks at commodity price cycles from a mining investment perspective, and where we are in the general business cycle and commodity price cycle. It looks at some of the key characteristics of mining investment decisions today to be aware of and to establish priorities for mining project investment and development.

Download a PDF file of the paper: Noosa_Paper_2017e