Mali: Altus Strategies Announces Increase In Resources For The Diba Gold Project

Gold resources from the Diba project in Mali have increased, now totaling more than 400,000 ounces in the indicated and inferred categories. This is what Altus Strategies, the asset holder, said on Monday, adding that these figures will soon be improved thanks to new drilling.

In Mali, the mining company Altus Strategies released a new resource estimate for the Diba gold project on Monday. Made by the engineering company Mining Plus as part of the prefeasibility study for the project, this update indicates a 637% increase in resources classified as "inferred".

The latter went from 32,500 ounces of gold to 5.4 million tonnes of resources grading 1.06 g / t of gold, or 187,000 ounces. At the same time, resources classified in the "indicated" category are now 4.8 million tonnes grading 1.39 g / t gold, or 217,000 ounces.

"There is significant exploration potential for new discoveries at Diba, with seven priority prospects still to be systematically tested by drilli…

The dividend is not a lifeline | Canada

Retail investors (and even some more sophisticated institutional investors) have always been attracted to dividend yields. The higher they are, the greater the appeal. This trend has been particularly exacerbated in a world where interest rates are very low and bonds yield almost nothing. But the value of a security has always been and will always be the present value of cash flow for the life of the business, not its dividend. There are many companies that create a lot of value by keeping their profits rather than paying them in dividends. That being said, the focus on dividends is understandable, as it is a simple metric. On the other hand, to estimate the value of a company, you have to take into account many factors, such as the dynamics of the industry up to specific problems of the company.

The dividend is not a lifeline

During this difficult time we are currently experiencing, many companies have announced that dividends will be cut or stopped altogether. Investors are realizing that focusing on dividends instead of other important factors in a company may not be the best idea. Let's take a look at an industry that has seen a general decrease in dividends.

With the Western Canadian Select now around $ 10 a barrel, many Canadian oil players have had to either reduce or completely cut their dividend. Some examples such as Crescent Point Energy, Inter Pipeline Ltd, WhiteCap Resources reduced their dividends by 75%, 72% and 50% respectively. While no one could have predicted what we are going through now, it was also impossible to have a high degree of confidence in the industry's biggest variable, the price of oil. Knowing that, should the dividend yield have been a primary objective when looking to invest in the oil sector? Probably not.

The holy grail of investing in dividend securities has always been Canadian banks. The five largest banks have paid dividends for more than a century, a record they most certainly intend to keep, as the CEO of CIBC reassured investors of their dividend in a recent interview. To protect themselves, retail investors should instead focus on different metrics such as leverage, underwriting and profitability, not just the dividend.

To conclude, we encourage investors to consider dividends as one of many variables in their analysis process during this period. You might get something that might not be there when the crisis is over.