1 hour long. From the basic building blocks. Maybe click link rather than watch here? http://www.youtube.com/watch?v=chc5dowD9H8 [youtube]http://www.youtube.com/watch?v=chc5dowD9H8[/youtube]
ive watched half and he hasnt helped me understand that question i keep asking you when you quote this system Is the resource of a mining company included in the value of the company, or is it just present cash flow, equity etc and it sounds like it is basically just positive cash flow. I dont see how this method (although great for other things) is a good fair way of valuating mining stocks. Ill watch the rest later
No, the resource of a company is not used in his valuation of a company. The book value (equity) is. That is - the share subscriptions of shareholders + the retained profits - the accumulated losses. This is one of the reasons that juniour resource companies are worth very little or zero. He has said that many of these companies are worth zero to him because he can't value them. I haven't said otherwise I believe; where I've brought his valuations up is in relation to mining companies that can be valued - because they have substantial book value, and past and future near term predictable earnings: Kingsgate, Troy, Kingrose, Silverlake. He relies on analysts for future earnings estimates and the analyst would have to take account of near term mineable reserves. But your sort of calculations, where you might calculate how much gold/silver in the resources you are getting for the share price - no, he's not interested in that. He's not interested in your resources because experience has told him they more often than not amount to a large cavity in the shareholders' wealth and lots of years of 6 and 7 figure salaries to its management.
Agree with a lot of what he says but it's really just Benjamin Graham rehashed in the end. Nothing particularly new. Suggest reading Ben Graham's 'The Intelligent Investor' if you haven't already. I'd suggest being careful about putting total blind faith in any one system or any one guru - know what you are really dealing with. You might like to research why Roger Montgomery is no longer running Clime Capital and what happened with Clime's single biggest investment (Credit Corp CCP) during the GFC in 2008.
