Are Explorers Really Liars?
BlackRock funds manager Evy Hambro accused mineral explorers of widespread dishonesty at this year’s Mines and Money conference in London. Strangely, no-one seemed to care. Hambro was just one of the many money managers lamenting mining industry shortcomings at the conference last week but none voiced a more deep-seated criticism. According to Hambro, 90% of the companies he has met have been unable to validate the claims contained in the public filings of exploration companies during due diligence. Hambro tried to mask the seriousness of what he was saying by describing exploration company executives as being “economic with the truth”. Everyone knows this is a barely veiled euphemism for ‘liar’. Hambro’s depiction of the industry should be a source of considerable disquiet for its stakeholders. The alleged lack of honesty among mineral explorers raises profound questions for investors, regulators, governments and anyone interested in the survival of the mining industry. This is the thrust of my weekly Mining Journal column following the annual London Mines and Money conference. (VIEW LINK)
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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