Miners Still Exaggerating Values
John Robertson
PortfolioDirect
A constant theme at recent international mining industry investment conferences has been the unrealistic valuations being placed on projects by mining companies. The same is true at Mines and Money Asia currently underway in Hong Kong. Fund managers on one panel criticised use of discount rates for valuing projects as being far too low to properly reflect the risk characteristics of the industry. These comments imply that apparently low public market equity prices are closer to the mark than companies concede. This suggests significantly limited upside potential or even downside risk in some instances. It also explains why so few asset transactions are occurring and why companies are battling to source funding.
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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 strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
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John Robertson
PortfolioDirect
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...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
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...
Expertise
No areas of expertise
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