Junior Mining: Don't Underestimate The Importance of Cash

By: Ian Campbell | Tue, Jan 22, 2013
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If you participate in the junior exploration company space I trust you are well aware of how highly speculative a venture that is - what with continuous promotion by some operators, 'finding risks', escalating 'finding costs', and so on. To some degree, participating in that space can be argued to be 'going to Las Vegas' without getting on an airplane.

That said, intelligent review, good due diligence, and ongoing monitoring of the better junior exploration companies can result in 'hitting it big' in the junior exploration sector.

If you trade or invest in this space, in any financial market environment but particularly in the current one you need to be continuously aware of the following:

If you participate in the Junior exploration space, you owe it to yourself to read Cashless juniors! Off with their heads! This article, published yesterday, summarizes the comments made in the past few days at a Vancouver Investment Conference. The remarks of three well-known 'resource company commentators (Eric Coffin, John Kaiser and Lawrence Roulston) on the subject of 'junior explorers in the current market environment' (my words) are in part summarized in the article. I suggest you read what is reported and think hard about it.

Topical Reference: Cashless juniors! Off with their heads!, from Mineweb, Kip Keen, January 21, 2013 - reading time 4 minutes.

 


 

Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
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Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
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