RE:RE:RE:Finding Gold In Alaska – The Daily Dive feat Ian Klassen of Historically gold and silver mining shares have always been volatile markets. This is due not only to the peaks and valleys in investor sentiment, but share prices also reflect the leverage that exists between metal prices and earnings. A small increase in golds price can result in a much larger increase to company profits. That is a basic fundamental which does drive share prices.
Another is the number of outstanding shares.
When looking at pure explorers the drivers are movement in the price of gold, the quality and size of the physical asset, and very significantly, the size of the OS. Dilution can be a price killer no matter how well the company is performing. One must know when free shares are to be released before buying.
And there are times when an explorer transitions to a producer. This can also effect the stock price as investors revalue the company based on earnings expectations.
IMO Whether one is a trader or a buy and hold investor, volatility is an important factor when making initial purchase decisions. Even more so with very low priced shares.