From The Gold Report:
Investors need to know their catalysts and their potential effects – good and bad – on precious metals mining companies. Jocelyn August, senior analyst at Sagient Research, knows her catalysts from pre-exploration to production. In this Gold Report interview, she describes eight catalysts and gives examples of upcoming catalysts for seven small-cap companies.
The Gold Report: Jocelyn, your expertise lies in crunching the numbers and quantifying the catalysts that affect equity values. Generally speaking, high commodity prices benefit the companies that mine them. Are commodity prices also important to the valuation of pure exploration companies?
Jocelyn August: The difficulty in valuing a pure exploration company is the lack of revenue from actual mining operations. You have to consider commodity prices in valuation because the higher the price a company will be able to get for its commodity, the better. However, if the company's projects are several years from production, the current and near-future commodity price is not that relevant.
For pure exploration companies, catalysts – or share-moving events – are likely to be events that...
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