Picking the right mining stock
- Thread starter asu_panda
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Re: Picking the right mineral stock
http://au.finance.yahoo.com/q?s=SDL.AX&d=c&k=c1&a=v&p=s&t=my&l=off&z=m&q=b
Doesn't look real good to me I'm afraid. I could be wrong though - I did no other research on this company.
http://au.finance.yahoo.com/q?s=SDL.AX&d=c&k=c1&a=v&p=s&t=my&l=off&z=m&q=b
Doesn't look real good to me I'm afraid. I could be wrong though - I did no other research on this company.
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Re: Picking the right mineral stock
asu,
If you're after general ways of picking/evaluating a junior miner, a few things I look at are:
a. Are they producing or will they be producing soon?
The longer the timeframe until production, the greater the risk and the harder it is to determine a reasonable value.
b. Do they have enough capital to bring their project to production?
You'll need to read the last few company reports to ascertain their cashburn rate and determine whether their cash reserves are sufficient.
c. What are the expected reserves of the project & the production rate?
You need to have an idea so you can guage projected revenues p/a.
d. Is there any indication of the recovery costs per tonne, pound, ounce etc?
If you know this, you can work out how profitable the project is/will be and also whether the profit margin for the operation is fat enough for your risk profile.
e. Has management rovided a likely profit target?
Thank you VERY much MGX
By no list an exhaustive list, but if you can't answer a few basic questions about a project and the chart looks terrible than whichever stock you're looking at would not be a buy.
Good luck,
Mofra
asu,
If you're after general ways of picking/evaluating a junior miner, a few things I look at are:
a. Are they producing or will they be producing soon?
The longer the timeframe until production, the greater the risk and the harder it is to determine a reasonable value.
b. Do they have enough capital to bring their project to production?
You'll need to read the last few company reports to ascertain their cashburn rate and determine whether their cash reserves are sufficient.
c. What are the expected reserves of the project & the production rate?
You need to have an idea so you can guage projected revenues p/a.
d. Is there any indication of the recovery costs per tonne, pound, ounce etc?
If you know this, you can work out how profitable the project is/will be and also whether the profit margin for the operation is fat enough for your risk profile.
e. Has management rovided a likely profit target?
Thank you VERY much MGX
By no list an exhaustive list, but if you can't answer a few basic questions about a project and the chart looks terrible than whichever stock you're looking at would not be a buy.
Good luck,
Mofra
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Re: Picking the right mineral stock
Picking the right stock ?
How about Falcoln Resources up 552% in the last year ?
Picking the right stock ?
How about Falcoln Resources up 552% in the last year ?
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Re: Picking the right mineral stock
reefton mining..up 66%
RTM
reefton mining..up 66%
RTM
