In this article for Mining Journal, I examine the mistaken belief that rising commodity prices automatically create leveraged gains for mining investors.

The article argues that what investors often call “leverage” in mining has frequently become anti-leverage. Rising gold and commodity prices do not necessarily translate into superior returns for mining equities, particularly when poor management, dilution, bad jurisdictions, weak projects, and capital destruction overwhelm the benefit of higher metal prices.

Read the archived article at Mining Journal via the Wayback Machine →