Boot

I have to say that I like the approach y'all are presenting. I've been grinding out the DD on many juniors over the last few years. I've been tasked to do company write-ups, and am trying to develop an unbiased, systematic approach. I think my approach has been working in the direction you've presented. It's nice to see in in one place and legible. I will take your advice and run with it. My thanks to the presenters on this string. Boot

(From the "Questions for Miners" thread, but worthwhile here too):

 

Talking to Mining, or Exploration companies, I like to ask:

 

1/ What is the market cap ?

2/ What percentage does management own, and what was their average cost?#

3/ Who are the otehr major shareholders?

4/ what was the price, size and timing of the most recent financing?

 

(The above will give you a good idea of the strength and motivation of the management and controlling interest.)

 

5/ What are the major projects? (history, work done, work planned)

6/ What is the valuation?

 

(Establishing valuation will typically mean, learning about the size of their respources and reserves.

For example, if it is gold: How many ounces? What is the grade? What is the metallurgy?

If not yet in production, will it be an open-pit or underground mine? What is the cash cost,

and, if in development, likely cost of building the mine.

 

This will help to an idea of how to slant a calculation like: Market Cap per ounce. It is usually not a

good idea to invest in a company that has a Market Cap of more than $10 million, and no resource.)

 

7/ What are the plans to develop the projects, and what will it cost?

8/ What is the timing of future news?

9/ What are the company's promotional plans?

 

10/ The background and track record of management and the directors is very important obviously.

The answers to the above questions, will help give you an idea of how to probe further.