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An investment in a junior mining company is better understood as a claim on future potential. The risk profile of an unproven ...

Mining moves in life cycles. If exploration delivers promising results a plan can be developed for a mine. After confirming long term...

Perfect valuation is the unattainable ideal. Financial metrics for valuation are designed to model future revenue from past performa...

Analyzing price charts of different stocks should start from a basic level. Before adding indicators and adjusting parameters it wil...

When Writing this I made extensive use of the following guides: Hoover mining textbook How to Value a Mining Company: Part 1, Part 2...

" means more things can happen than will happen." -Elroy Dimson of London Business School

Publicly listed companies must choose their officers and technical people from a limited group. Shareholders demand experience, and the...

Equity financing is a delicate balance between being well capitalized enough to advance the project on a schedule, and deploying capit...

Metal prices cycle between bull and bear markets with each typically lasting a period of years. Most projects of a commodity stand to b...

An attractive land package commands attention. Before any boots hit the ground the most important detail will be justifying the proba...

Drilling is the most effective way to prove a deposit really exists. The eternal challenge for a junior mining company is drilling en...

Historical data related to the deposit or adjacent former producing mines is a good starting point. The company may draw from...

Press releases build narrative through focus on catalysts. Technical reports substantiate claims made in press releases, and co...

Technical reports are the moment of truth for a junior mining company. Confusion is avoided by having only one current repor...

Operating and Capital expenses are common to all mining companies whether they are profitable or not. Capital expenses ar...

Resource reporting standards preclude a company selectively choosing a small sample of drill holes to misrepresent a deposi...

measures the Enterprise Value as market capitalization plus debt minus total cash and cash equivalents against the deposit measured...

takes the current share price and compares it with the value of the asset over the life of the mine. The Net Asset Value is all future ca...

adds up the expenses made on a project. This figure is key to understanding the strategy of the company and underlies their valu...

finds other projects sold similar enough to the one being evaluated. What the market should pay and what it actually pa...