@EshmunYour best bet as an investor IMO is to find the biggest,...

@Eshmun
Your best bet as an investor IMO is to find the biggest, longest life, lowest cost deposits you can find and stick with them unless you are good at chasing your own tale riding short term spikes in companies performance and share prices.

Hi Eshmun,

On that basis you should be overweight to NCM whereas it has been a bit of a dog over the preceding years and despite more recent revaluation, I still find it over-valued.

Nevertheless, I cannot agree more on your general sentiment. This is true not just for gold miners but also for miners of any mineral or oil and gas. I reached the conclusion many years ago that miners are not money producing ventures based on the continuing production of goods or services. MIners are exploiters that have to keep diverting profits into more exploration action activity.

Only when a company has shown that it is astute at identifying solid prospects and then turning them into profitable mines can they be considered worthy of a lengthy commitment.

As an investor, I have found that miners are not a good long term investment, they need to be played according to the cycle of the product price that they are producing. I have no reason to consider gold an exception to this stance, although gold has some special considerations as to safe haven and fiscal appeal but these also are opportunistic depending on international circumstances.

My view is that the best approach is to sell when the gold price is high and buy back into companies with decent prospects later. The tricky bit is to determine when high is high and low is low.

Today, the gold price is moving towards high while RSG production is moving upwards and reserves are good. That is a good combination but I need to heed the POG. Best I can establish at present is that it may increase over US1300 a bit, but is likely to move around in 2019. Time will tell.

Overall, I think RSG is worth a punt going forward but I am ready to sell out if situation pans out differently.