Francis MacDonald - Exploration Risk: A case for utilizing the Project Generator business model

If you were allowed to count cards or use weighted dice at a casino, would you do it if your upside was slightly decreased?

Investing in a successful mineral exploration project has approximately 30x less chance of success than playing roulette at the casino. As such, risk management should be at the forefront of every investor’s mind in the mineral exploration space.

The project generator business model aims to hedge mineral exploration risk by having other people spend money on exploration in exchange for a majority stake in the project. This business model is elegant when operated effectively and utilized to explore large, prospective areas with partners who have an aligned goal – discovery of a new mineral deposit.

This week's coffee talk with Francis MacDonald from Kenorland Minerals Ltd. will dive into some slightly depressing statistics about success in mineral exploration and make a case that the project generation business model is an excellent way to hedge mineral exploration risk.

[GLOBALANALYST]

Excellent presentation, and thank you for putting it all together.

[reggieduquesnoy]

excellent and overwhelming for a retail investor. explains the premium rating of Franco-Nevada!

[elspethbarnes]

Very interesting talk, sorry I missed it live.

[brentcook]

Great presentation and statistics on exploration strategies. The one point I think you overlooked is that you assumed equal management competency among the 8, 000 exploration companies. It ain't.