Environmental Risk

The lead company Ivernia was recommended as a buy in an article The Commodity Supercycle Report. With strong lead prices the stock has gone from $0.15 to a recent high of over $2. Its price has recently dropped to $1.25 because at its main lead mine in Western Australia birds turned up dead. There is debate whether the mine will be allowed to reopen. Companies have already faced problems with market prices, lawsuits and government regulations. But for some companies environmental concerns real or perceived may replace those as the greatest risk. While much of the market concentrates on the impact of sub-prime mortgages on the stock market. A much greater risk to some companies may be the policies and regulations that result from global warming debates and other environmental crusades. While some environmental concerns have merit some actions will not. And that risk being unpredictable and sometimes extreme could be a surprise to some shareholders.