How quickly can management build a mine? - Alex Black on long investment horizons

Management, deposit and social license are all key when considering a resource investment, said Alex Black, executive chairman of Rio2, but time to production plays an important role, too. Black spoke to Kitco Mining on Monday. Rio2 (TSXV: RIO) is advancing its Fenix gold project in Chile. In April, the company announced a $23 million financing. The company also advanced some of its environmental permits. The company says that its Fenix is the largest undeveloped gold heap leach project in the Americas. The company anticipates production by 2025. When assessing a resource company, Black said that the resource, management and social license are all fundamental. Time to develop also has to be weighed. "How quickly can [management] develop a project? When you see projects in Nevada and Arizona, it takes five to seven years to get off the ground because of the permitting process. It's not a social issue, but you need to take that into consideration. "When you buy into a company...that's not a producer, you've got to say to yourself 'Well, I'm not buying it for now. I'm buying it for what it's going to look like in six or seven years.' [There are] potential takeout takeouts. It depends on the asset."Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.