Gold & silver juniors offer one of the best ways to leverage the precious metals prices. However, picking the right gold & silver juniors is not easy. The odds are stacked against you when picking the right gold & silver juniors. Allegedly just about 3 in 1000 gold & silver exploration companies make it into an actual producing mine.
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So, in this video, Dr. Quinton Hennigh is talking about the hidden secrets of gold & silver juniors.
However, Dr. Quinton Hennigh doesn’t think that gold & silver juniors have to make it from exploration to production in order for a stock market investor to make money off of them. Gold & silver juniors are often times taken over by larger gold & silver companies.
Dr. Quinton Hennigh says that there is no perfect definition for what a junior gold & silver company is.
He describes gold & silver juniors as: “Junior gold & silver companies are explorers. I call small exploration companies “juniors”. Juniors have assets that don’t yet produce cash flow. For the most part, I would call a gold & silver company a “junior” when it’s trying to create value through the process of exploration. If we look at the Lassonde curve, we find gold & silver juniors to the left side of the life-cycle. Juniors are also companies that have to go to market to obtain cash, and then use that cash to explore and create wealth for shareholders”.
Further on in this video, me and Dr. Quinton Hennigh talked about diversification. Both me and Dr. Quinton Hennigh believe that it is important to realise that there is a great many risks related to investing in gold & silver juniors. That’s why Dr. Q. believes that diversification is a good idea. He is involved in multiple projects himself, and has been in the gold & silver mining industry for over 38 years.
When picking gold & silver juniors, I believe the real “secret” is having a very well-structured strategy for research and analysis. I split my research process in 5 P’s:
– Primary metrics (market cap, EV, cash, debt, NPV, NAV, IRR, etc)
– Place
– Project
– People
– Perils (risks).
So, in this video, Dr. Quinton Hennigh walked me through some of the things that he has learned in his almost 4 decades as mining professional, in all 5 of these P’s.
To sum it up, Dr. Quinton Hennigh thinks that the hidden secrets of gold & silver juniors lie in companies that:
1. are based in good gold & silver mining jurisdictions (you can learn more about what those jurisdictions are in the annual Survey of Mining Companies, done by the Fraser Institute of Mining)
2. have good management & technical teams (that can communicate well with each other)
3. work together on creating a good discovery that will be attractive to a major gold & silver company
Of course there is more to picking the right gold & silver juniors to invest in and a couple of “hidden secrets” won’t make it so that you have a 10/10 track record with picking those companies, but this should help you at least start off.
However, do understand that nothing beats experience when it comes down to gold & silver juniors. This is not Dr. Quinton Hennigh talking here, it’s the empty-headed, uneducated, unexperienced, least-woke 25-year old, father of basements ginger – Antonio. Don’t haste this. If this is your first commodity cycle, think about gaining the experience and not only the capital.
TIMESTAMPS:
00:00 INTRODUCTION
01:20 WHAT IS A GOLD & SILVER JUNIOR?
02:20 GO ALL IN ON JUNIORS?
06:15 HOW DOES A JUNIOR SUCCEED?
09:11 WHAT IS A GOOD MINING JURISDICTION?
12:40 WHAT IS A GOOD MINING PROJECT?
19:38 HOW LONG TO DEVELOP A MINE?
22:30 WHAT IS A GOOD TEAM FOR JUNIORS?
26:00 THE RISKS OF JUNIORS
30:30 CLOSING THOUGHTS
Even though we didn’t talk about it, Dr. Quinton Hennigh has offered for his company Novo Resources to sponsor this video, for which I’m very thankful.
This is not investment advice. I’m making these videos for myself. Look at these videos as if you found a very uneducated person’s diary, and you got to read it. It’s okay to laugh at my stupid ideas, bad English and awkward look, but it’s not okay to follow anything said herein. By continuing with the video, you agree to treat this video as nothing more than an entertainment show. Read the full disclaimer in the comments below.