In this discussion with Bill Powers of Mining Stock Education at the 2018 Beaver Creek Precious Metals Summit, I discuss junior mining, project economics, commodity speculation, arbitrage opportunities, and how investors should assess mining companies.

The discussion focuses on why mining projects must be viable at current spot prices and should offer at least a 20% internal rate of return before they deserve serious consideration. It also covers jurisdictional risk, management quality, the U.S. dollar, gold, base metals, and why bear markets can offer some of the best opportunities for rational speculators.

Watch the full discussion below:

Key Takeaways:

• Why mining projects should offer at least 20% IRR at current spot prices
• Why investors must redo company assumptions rather than rely on promotional studies
• How jurisdictional risk affects the price one should pay for a mining project
• Why management quality and financial literacy are essential in junior mining
• How bear markets can create attractive value and arbitrage opportunities