Research

Within this menu I have collected several subjects that I feel are important when one starts his or her own due diligence on (junior) mining stocks, or even begins to read about analyzing mining stocks. Speaking for myself, I started out less structured as I had to find out a lot by myself, so maybe these subjects will help you getting underway a bit faster in the right direction. I suggest you start reading the first five chapters of My Guide as an introduction, and after that just take a look at the other submenus to get an idea. The Mining Basics submenu gives you a good idea of a lot of definitions you will undoubtedly encounter when reading news releases, presentations, reports or analysis.

The Articles might contain some advanced topics, but I found them to be very accessible, also for a novice, just try it. The submenus on Resource estimates, Economic Studies, NI43-101 and SEDAR  are developing/under construction. Keep in mind that resource estimates and economic studies are actually the most important subjects to determine the economic potential and value of projects. The best way to get a thorough understanding of these two subjects is actually read, compare and understand many reports on resource estimates and economic studies, in various stages of development. This way you will get an understanding of the most important aspects of these reports.

Especially useful are actually projects that went bust despite  "good" reports, as these projects provide good cases for analysis what went wrong and why. You will see that you don't need to go through all the geological data and charts, as that is often the scientific backup of statements. A geologist will probably disagree with me as even all this data can provide clues on future success or failure, but usually the issues are located elsewhere in the reports.

Very helpful in many cases is talking about such reports with company management, and just ask dumb questions. I still do it after 5 years of analyzing juniors, and I am still learning. Important lesson for me always has been not to be satisfied too early when doing due diligence, as often flaws or value are hidden beneath several layers of facts and interpretations.