10 secretos de inversión en Mineras Junior
Navegando por la red me encontré con esto y quise compartirlo, solo que está en inglés ( ??? )y francamente tengo un mal inglés si alguien lo entiende y nos pudiera ayudar a traducir se le agradece
TEN SECRETS Of INVESTING In JUNIOR MINERS & EXPLORERS
+ A Top Performing sector, but not widely followed
+ Gold Miners are a Geared Play on Gold
Makes sense, since at $500, and with $250 Cost: they are levered
+ In Exploration : Capital Gains matter not Cash Flow
Gold gets value on discovery, when still "in the ground"
Thus, discoveries add value YEARS before the gold is produced.
And markets get excited by exploration success.
But small exploration co's burn cash / Like "burning matches"
So risk management of a portfolio is critical.
Don't consider a portfolio of less than 5-6 risky juniors,
And don't start in the middle of a manic surge.
BUY: 5-10% in situ, Hold to 40%, SELL: above 40%
+ Small can be Better, in Exploration
Small Exploration companies...
- can get the job done cheaper,
- they are more nimble and adventurous,
- provide more upside, when a discovery is made,
:: and so, can attract top talent
Large Mining companies...
- have lost many of their best exploration geologists,
- have cut budgets, and JV-ed with smaller co's
- are acquiring smaller companies at the right stage
(some names: Virginia Gold, Viceroy, Nova Gold ...)
+ First $2 million : Canadian IPO's for New Mining Ventures
Costs of going Public:
- China: 2-3 years, and over us$1 million
- Hong kong: hk$10 million = us$1.25 million
- London: pds 400,000 = us$ 700,000
- Canada- venture = maybe c$ 150,000
Every dollar counts, at an early stage
Scandals of the past, have been minimised by new regulatory regime.
+ The Quickest gains are in the Drilling Phase
+ Placements are structured for Profits
In Canada, there is a four month's hold, but...
+ The shares are typically issued at a discount to market (maybe 10-20%), and
+ There are usually "Half Warrants"
Example: Stock is trading at $1.00
.......... : Placement price might be: $0.85, and
.......... : Warrants might be exercisable at: $1.25 (1 to 2 years?): half wts.
If the stock...
Rises to: Holder makes a profit of:
.. $0.85 : Breakeven
.. $1.00 : + 17.6%
.. $1.25 : + 47.5% ............. :: .......... .... ( 1.90 : 1 )
.. $1.50 : + 76.5% + 14.7% = 91.2% .... ( 1.82 : 1 )
.. $2.00 : +135.3% + 44.1% = 179.4% .. ( 1.79 : 1 )
+ Small & Risky Explorer Rule: When it Doubles, sell Half
+ There's Sizzle in Seasonality: Buy in late Summer & Christmas
+ A Dud project is not the End of the Road