THH – Musings About Best Value

#1 Physical Gold/Silver first since the whole financial system is at stake.

If one wants to own explorers I think one should primarily stick to Tier 2- Tier 1, post discovery plays in this environment.

1. Big
2. High grade (High margin)

… Where the value of exploration outpaces the negative impact of a declining metals price.

Otherwise buying cashed up proven success/Discounted sunk costs with margin of safety makes more sense…

One can buy <Tier 3 projects and lower for much less than what it would cost to reach that stage in the first place. Almost no early stage or grassroot project will become a Tier 2-Tier 1 deposit anyway.

Keeping it Simple: HODL cases

1. Preferably Margin of Safety
   • Lowers risk
2. Years of runway for growth
   • Less need for good timing
3. High insider ownership
   • They will lie awake worrying about the company more than you do
4. Competent management
   • Time is the friend of a good management team
5. Good access to capital
   • Allows for higher value creating pace and less dilution

Private Placements

Warrants from private placements will never have better Risk/Reward than when a sector is in a fire sale environment for the simple reason that warrants are risk free upside potential… And when the sector is extremely low the upside potential is extremely high.