Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

This Country is Different!

Mining companies operating in a "risky" country ALWAYS minimize the political risk. You're told that you'll be feeding kitty a saucer of milk and you end up locked in a cage with an ambush of tigers that haven't been fed in a week. OUCH!

This weeks massacre comes courtesy of the equatorial country of Equador (was that redundant?). Aurelian Resources (ARU.TO), Corriente Resources (CTQ.TO) and Dynasty Metals and Mining (DMM.TO) all took big haircuts.

When Aurelian was tading at $5.04, the Financial Post reported that "Ecuador's
President is making assurances that he supports large-scale mining." Aurelian closed today at $3.71.

If you like drama, buy resource stocks where there is some "country risk". This is one subject that mining companies never exaggerate about.