Mark Twain has been quoted as saying that "History does not repeat itself, but it does rhyme." In the case of Regency Mines (LON:RGM) we certainly get the feeling that we have been here before. Late 2008 to be precise, when sector sentiment was rock bottom as investors expected the fallout from the GFC to signal the end of the great commodities supercycle.


But of course "Bear markets are the authors of bull markets and vice versa", to quote Rick Rule and from 2009 to 2011 a brand new up leg cycle began (much to the incredulity of many investors at the time).  And now, after a long and grinding downturn through 2012, bottoming in 2013, we are positioned and waiting for the next up-leg in the cycle to kick off in earnest in 2014.

And as we wait, we are starting to build up our positions in the companies that have survived through the downturn, that are well positioned with sufficient operational scale and access to finance in order to take advantage of the plentiful opportunities such cyclical markets inevitably present. 

As investors we have a tendency look forwards on the way up and backwards on the way down. We have been buying Regency Mines lately because we think the time is coming when investors will start to become forward-looking again and proper value should therefore start to be reflected in share prices. We recently met for a chat with Andrew Bell, Chairman. The link to that interview recording is below.  We trust this will assist you in your personal research and assessment of the company.

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