The Truth About Junior Mining
posted on
Mar 19, 2021 12:17PM
Resource projects cover more than 1,713 km2 in three provinces at various stages, including the following: hematite magnetite iron formations, titaniferous magnetite & hematite, nickel/copper/PGM, chromite, Volcanogenic Massive and gold.
The truth is that if I was looking for a sure thing I sure as hell wouldn't buy a junior mining stock.
The truth is that if I was looking for an investment with a probable degree of success I wouldn't buy a junior mining stock.
The truth is that most of the companies in the junior mining sector either fail miserably or wallow in mediocrity while burning through shareholder capital.
The truth is that the longer shareholders wait for assays, the more likely that those assay results will be disappointing.
The truth is that about once every ten years the junior mining sector will endure a long cold winter and share prices will drop 90%+ across the board.
The truth is that there is no rush like a gold rush and the gains during a bull market run in the junior mining sector can be life changing for those who are well positioned.
The truth is that if you can pick 1 out of 5 winners in junior mining you're a pretty damn good stock picker. Hopefully you're also good at cutting losses on the 4 losers, while making a 10-bagger on the winner. That part is as much luck as it is skill. (and don't kick yourself too hard if one of those 'losers' becomes a big winner later after you've sold your shares)
The truth is that the best promoters are the ones who can instill in you a vision of what things would look like if things went well, while leaving out all that could go wrong.
The truth is that the best junior mining CEOs are the ones who can paint an attractive picture of what they are trying to create, while also being honest about the reality of the situation as it is now, and the risks that are always present.
The truth is that junior mining is a team sport, and the best CEOs are skilled at assembling strong teams and then leading them effectively. No new discovery is ever a result of just one person.
The truth is that he who buys at the lowest prices stands to risk the least, and potentially make the most.
The truth is that if you like money you want to buy low and sell high. Not the other way around.
The truth is that most of us in this sector love the thrill of a new discovery and we aren't afraid to dream big while taking a lot of risk in the process.
The truth is that not every drill intercept needs to be reported in silver-equivalent grades.
The truth is that i'm not changing my handle to @Silverfinger
DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.