Screens

How names get in — and stay out

Maximum Alpha is Paul Hart's actively managed take on the Don Durrett playbook: buy gold and silver miners with honest share structures, real assets, and a discount to what the rocks are worth. The two books are equal-weight, capped at 100 names, and rebalanced every quarter.

1. 01

   U.S. listed, including OTC

   NYSE, Nasdaq, NYSE American, OTCQX, OTCQB, and OTC Pink. No share-price floor — a fifty-cent developer is eligible if the rest of the screen holds.

2. 02

   Fully diluted share count ≤ 1 billion

   Names above 1.0B FD shares are cut, even the household majors. Newmont, Barrick, Kinross, and B2Gold fail this screen today. Tight structure is non-negotiable.

3. 03

   Developers at 0.50× NPV or less

   Both books only take development-stage companies when the current market value is half of NPV or cheaper. Producers are allowed a higher P/NAV if cash flow is growing.

4. 04

   No unpayable debt

   Leverage is allowed only with a credible paydown plan funded by mine cash flow or a staged project financing — not hope. Distressed balance sheets are out.

5. 05

   Majors: streamers, dividend payers, growing mid-tier

   Streaming and royalty companies sit in Alpha Major. Any producer that pays a dividend and clears the other screens is auto-included. Mid-tier names enter only if cash flow is growing.

6. 06

   Juniors: near-term gold and silver developers

   Alpha Junior is the developer book — Hycroft, 1911 Gold, Silver Tiger, GoGold, Denarius and the rest of the near-term pipeline. Explorers with no path to a study stay off the sheet.

7. 07

   Equal weight, 100-name cap, live drift

   Each name starts at an equal weight (1% at a full 100-stock book, or 1/N if the screened universe is smaller). As prices move, live weights are allowed to drift. The book is rebalanced quarterly.