Financial Statements

Operating and Capital expenses are common to all mining companies whether they are profitable or not. Capital expenses are those related to securing financing and listing on an exchange, and operating expenses are the work performed on site.

Despite the challenges during this critical stage some companies will fare much better than others. Deposits of equal value can be compared on how effective management meets targets and whether the burn rate is reasonable.

Data assembled from company reports illustrates what they have built and how they intend to deliver future results. A detailed comparison with the market becomes possible with a valuation model, discussed in the next section.