Mining is a risky business, in which an industry leader can become a cautionary tale with a single press release. Mines can underperform, local governments can nationalize or close projects, and accidents can happen, any of which can halve a mining stock’s price before investors have a chance to react.
But there’s a bright side to this uncertainty. Sometimes, a problem that has impacted a stock’s price gets fixed, and the stock retraces some of its previous losses. This presents an opportunity for those paying attention.
One of our Portfolio companies has that potential, as a mine that closed last year might be coming back online.