Each stock is almost exclusively a one site production location, often in a difficult environment and hence it makes sense to own them more as a basket to attempt to mitigate some of this specific risk. Secondly, each has a varying production track record, reserve life, AISC, local tax regime and clear risk issues that must be managed day to day by management. Therefore it must be recognised by shareholders that each individual stock is cheap because of a combination of various reasons surrounding the company’s history, background and asset base.
In relation to Covid-19,