Senior precious metals producers have hit a sweet spot where costs are going down and higher precious metals prices are going up, creating strong margins, but the question is what should companies be doing with that money?
Rick Rule, president of Sprott U.S. Holding, told Kitco News on the sidelines of the Silver and Gold Summit that management companies should do what they do best. “There are some management teams that are good at adding value at the drill bit, at exploration. If they are good at exploration, I’d sort of prefer that they do exploration. There are other management teams that are good at taking over underperforming assets and tuning them up. I prefer that they do that. There other management teams who are superb capital market operators and I would prefer they would do that,” he said.