This is a story about deciphering corporate speak and finding the nuggets of truth in a river of fancy press releases.
So, there I was, a bright-eyed newbie mining stock investor, thinking that company press releases were my trusty map to treasure. Spoiler alert: they’re more like those colorful brochures that try to sell you timeshares in Florida. Every press release is a sales pitch, folks! And I learned this the hard way.
Now, grab some popcorn, because I’m about to take you through a real-life example with Silvercrest Metals. Picture this: a reputable name in the junior mining space, but even they can’t resist the charm of a good old ‘press release makeover’.
They come out with this announcement, right? And it’s classic. They start with the good stuff – strong NPV, debt-free status, all the bells and whistles. But then, bam! Hidden in the middle is the horrible news – a 13% reduction in their ineral reserves. Yep, those pesky veins were narrower and more scattered than they thought. Talk about a plot twist!
And here’s the kicker: they sandwich this bitter pill between layers of tasty, positive updates. Improved recoveries, a simpler production plan – the works. It’s like finding a pickle in your chocolate cake. Unexpected and a bit jarring.
But the real fun begins when you start decoding the lingo. ‘Robust production profile’? ‘Healthy balance sheet’? That’s press release speak for ‘Please don’t sell our stock just yet’. And the CEO’s quote? A masterpiece of optimism, massaging the horrible news into the most palatable phrasing he can muster.
So, what did I learn after reading thousands of these things? First, press releases are like those magic eye pictures; you’ve got to squint a bit to see the real image. And second, a healthy dose of skepticism goes a long way in the mining stock game.
In the end, it’s a bit like being an explorer. You’ve got to cut through the jungle of jargon to find the hidden temple of truth. And let me tell you, it’s a thrilling expedition, full of twists, turns, and the occasional misleading map. But hey, that’s what makes it an adventure, right?
Never make any investment decisions based on my videos. This sector is very risky and this should not be considered investment advice. Always do a lot of your own research before investing your hard earned money.
#mining #miningstocks #investing
1 Comment
Important point is you're not investing in mining stocks but you are speculating. The company puts out these updates that are very regulated as to what they can and can't say. Your suggestion that they should change how they write releases is noble but will never happen. You're audience likely don't understand the technicals anyway so it's moot to think they are going to be making an educated decision. Anyone can open a trading account with their bank, and the banks love collecting fees on trades, but unless you are using a qualified, experienced and succesful broker trading in the mining space you're just gambling with your money.