Fortune Minerals Ltd T.FT

How to Value a Junior Mining Company - possible outcomes

[Allman]

Some interesting guidance from SmallCapInvestor on how to value a junior mining company and the possible outcomes - not so much interested in the first outcome, but I'm sure most here would be interested in the second or third occurring ...

The Endgame

 

In the long run, there are really only three possible outcomes for a junior mining company.

 

1. 1. Most common is a failure, which leaves a hole in everyone's pocket, including that of the banks and investors. It is often said that only 1 in 1000 junior mining companies actually goes on to become an operating, producing mine.

2. 2. The second fate occurs when a junior has enough success to justify a major paying a decent premium to gobble it up, leading to decent returns all around.

3. 3. In the third and most rare fate, a junior finds a large deposit of a mineral that the market wants a lot of – it is a magical combination of the right deposit at the right time. When this happens, juniors can return more in a few days than a major will return in years.

4. 
   https://www.smallcapinvestor.ca/post/a-beginner-s-guide-to-junior-mining-stocks