Hi guys! Unfortunately, even at an Ivy League school you don't really get taught a lot of what is ACTUALLY going to help you in the real world (even for an Economics major). I've been reading a lot of about these Junior Miners to familiarize myself with the terminology and general process, but I was wondering if someone could please explain to me very generally the entire process they go through, the best ways to evaluate them, any other abbreviations or terminology that are used by those in the know that may be taken for granted, and any other helpful advice for a kid who is DYING to become a silverbug but besides good old Turd, doesn't have anyone else to show him the ropes? From what I read I understand these are inherently very risky propositions, but are also a great source or potential profit if you DYODD and are able to properly assess risk
Basics for Recent College Grad?
I am a recent Cum Laude Finance grad and will say I had to bite my lip many days while attending.
I read a great time-frame of investment in exploration/miners and will try to find it at Seeking Alpha.
It basically stated that there will be times to buy, then trade as the company progresses through there development from exploration to processing and then final products.
This will be good to get it compiled here!
OK I found it, from Jeff Nielson at http://www.bullionbullscanada.com/
The stages in part 1 analysis are: early exploration-> extensive drilling-> resource estimate-> economic assessment-> major financing-> construction of mine-> commercial production
And that is only part one!
This was an excerpt of a post on a Stockhouse thread; it's a very good a summation on due diligence for a junior resource stock:
"Each share holder must do their own due dilligence and not rely on others opinions: It would be wise to do due dilligence based on: (reality)
Technical ability of mgmt. Track record of mgmt. Marketing ability (not the same guy having technical ability) Target properties Property locations Continuity of target metal(s) from drill hole to drill hole Bulk tonnage potential How many properties there are with potential Cash on hand for exploration Drilling results Underlying geology of properties Experienced geologists understanding the matrix of the ore Infrastructure! Matels value in the markets Other investment factors that affect each individual investor! And others.
JR Ventures are high risk by the very nature of their enterprises. Risk is reduced by competent and aggressive due dilligence. Risk and reward go hand in hand!"
This is an excellent resources for doing DD in the PM miners space. http://goldminerpulse.com/
My favorite pick of the silver juniors is CMA.V, I own a bunch of it. Currently a screaming deal as it is trading below its 200DMA.
Milli, I've owned Cream for 7 years , I was about to dump it as I'm paring down my holdings.Any reasons why you think it is a screaming buy would be appreciated. Thanks KD