An experienced natural resources executive based in British Columbia, Michael McPhie is a specialist in the base and precious metals industry. Michael McPhie has a deep understanding of the natural resource field, especially in the areas of project development, financing, and capital markets. He’s a founding member of Falkirk Environmental Consultants Ltd. where he provides, among other things, investor due diligence consulting.
Investing in mining stocks can be quite profitable, but they shouldn’t make up an investor’s entire portfolio. A good number to shoot for is around 20-30 percent of total investments. The resource sector tends to be somewhat volatile, so it’s best to be prudent.
A best practice for investing in mining stocks is to focus on stable political regions. One of the potential dangers is mining operations in countries where property rights or the rule of law might be unstable.
When investing in a specific geographic area, look at the reserves. Invest based on the longevity of the estimated reserves, not based on exploration efforts.
Ultimately, it often pays to follow the crowd to an extent. Stocks in mining companies that are well-financed and won’t need to sell shares to raise capital are a good choice, as they won’t dilute your investment.
Michael McPhie 