Sorry for the delay with this week’s piece, I have been travelling.
But our Summer of Gold continues today with what is, for me and many readers, our biggest position: Metals Exploration (MTL.L). It has also been one of our biggest winners.
However, this year the shares have gone nowhere. Today they trade in the 13-14p range, having touched 19p earlier in the year. They came down as the fizz came out of gold and silver more generally.
Its Runruno mine in the Philippines, the company’s main cash cow, is near depletion, just as construction of the company’s new La India mine in Nicaragua nears completion, with first gold pour expected later this year.
New mines are hard to make work. Sometimes they never do. Plenty reach first gold only to disappoint investors for months afterwards, even years. Taking advantage of the excitement that often precedes production is frequently the right move. Is that the case here? Is it time to sell Metals Exploration?
Or is it time to buy more?
