Many of the gold/silver explorers in our Portfolio have had a hard couple of years, as financing remains expensive (and therefore dilutive) and the hoped-for buyouts elusive.
Here’s one whose stock is down by 35% in the past year, as the transition to producer takes more time and money than early investors hoped.
But today, with most gold miners trading down, its stock is up 10%. The reason? It just announced a new CEO who’s right out of central casting. An explorer wants someone in charge who’s “been there, done that,” which is to say turned promising deposits into viable mines and then sold them off for serious money.
This guy has done that twice — after earlier stints with big miners in the same neighborhood as his new company. So it’s reasonable to expect informed decisions from management going forward.
The company?