Thinking About Risk and Sutter's Mill

As anyone who reads my Twitter feed or these blog posts knows I have a significant investment in Generation Mining.

On the surface, development mines are a highly risky game. There are many thousands of proverbial "gold rush" hustlers, out "panning" in rivers and streams, with big dreams of wealth and riches. How many of these outdoor scavengers (I say that with respect) actually come up with gold that they can monetize? Not many, unless, of course you are a John Sutter, whose sawmill was the launching pad for the California Gold Rush that began with the discovery of a nugget on January 24, 1848!

If you happen to be ole John's buddy, cousin, handyman, or neighbor, chances are you had one heck of a leg up staking a claim. But if you are the average dude somewhere in America with visions of panning for gold by heading out into the random wilderness to seek your fortune standing in wild rivers for hours on end, it's a different story. As they said decades ago in New York City during the Mantle, Maris, Howard, Yogi Berra, & Whitey Ford era, "good luck to you and the Red Sox!" 

Many investors today in that random development mine and even in high quality stocks experiencing PE compression as a function of higher discount rates, are more like the scavengers with a pick and shovel and pan heading out into the hills and streams to make their speculative fortune. 

But if you own Generation Mining, a company with a fantastic resource and land package, infrastructure, jurisdiction, financing, management and sponsorship, at today's pricing you are as good as John Sutter's buddy, cousin, handyman or neighbor. What seems like a risky business at first blush, actually has layers of gold, and in Generation Mining's case, palladium and copper, directly under the surface!