Dear CIGAs,
The criteria to consider for the selection of a precious metals junior is as follows:
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Management ethics, found out by checking litigation, criminal and credit records. All this information is now easily attainable.
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A property or properties with outstanding upside promise sustained supporting data.
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History of success both on the ground (properties to mines) and in the financial markets (stock performances of at least 10 to 1 value).
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Strong hands on board
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Key man insurance
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Order of succession in place.
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No anti-takeover devices written into the indenture of your certificate.
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Availability of knowledgeable person in the company to speak with.
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You retain a property-qualified geologist to perform a desk review of all exploration, development and production information at company headquarters.
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A property visit by this consultant if the position is to be of significance.
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The company has access to financing.
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The company has used financial restraint, therein having control over insider options, preferably none.
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The company has no warrants outstanding.
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A significant short position at this time is highly desirable.
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The market must be liquid so therefore some respectable listing is preferable.
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Preferably not listed on the Frankfurt Bremen Exchange.
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Key executive and board members hold a reasonable amount of shares.
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Goodly number of stockholders.
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Owned by but not primarily owned by some respected fund interest.
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Preferably not in any index.
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The company has a good Sarbanes Oxley program with financial checks and balances.
- Audited by a respectable firm with special attention to who does the subsidiary audits if offshore to the venue of incorporation and trading.