In the article on why pennies should be included in your portfolio , we have mentioned that junior mining companies are a very important category, although most of the junior mining companies’ stocks are in a state of low trading and price all the year round, but grasp At several specific points in time, investing in junior mining companies can still quickly achieve ultra-high returns, which is unmatched by other types of stocks.
In the current trend of resource market, many companies are expected to rise, especially as gold prices are optimistic, gold mining stocks are worth looking forward to.
Recently, Toronto-based gold primary exploration company AXMIN (TSXV: AXM ) stocks are amazing (with photos), doubling the gains in four trading days, bringing investors a gratifying return.
Stock price trend (January 22, 2019 - February 19, 2019)
AXMIN is principally engaged in the exploration and development of gold projects located in Africa. In fact, in the past 2018, the company's share price has been launched from the bottom, and the stock price has nearly doubled in the whole year. That is to say, if an investor holds AXMIN stock in early 2018, its assets have been turned over. Ten times, this is an impossible income for ordinary stock investment.
Moreover, all of this happened when the company's news was relatively calm, indicating that the source of the increase was not the company's public relations hype, but the changes in the relevant environment and the improvement of the company's own cash flow.
In the interview, David Weill, the company's chief financial officer, mentioned three main factors driving the stock price increase: First, benefit from the flow of royalties generated by the company's Gora deposit jointly developed by Teranga Gold (TSX:TGZ) in Senegal, the company's The cash flow is excellent and the profit of the accounting accounts is realized. The company also has 17 potential deposits developed with Teranga that are expected to generate more revenue for the company.
The second factor is that the geopolitical situation in the Central African Republic is improving. AXMIN's main asset is the Passendro Gold Project, located in the Central African Republic, where AXMIN acquired a 25-year mining permit area (355 square kilometers) in August 2010. At the same time, the company also obtained two three-year, renewable exploration licenses: Bambari 1 and 2 (1,240 square kilometers), which surround the mining permit area and cover a 90-kilometer trend along the vast expanse of the Bambari Greenstone Belt. With ..... [unfinished]
For the wonderful original content, please click "Read the original"