/biz/ - Business & Finance

>>29249780
Hey REE anon, what do you think about investing in MP Materials?

>>28630501
I like Glencore for batteries because they have their fingers in the pie from mining all the way to partnering with battery makers. Do you own DD, not financial advice, blah blah blah.

>>28558412
First off, understand the industry (read miner pastebin and learn)
Second, understand the company (their projects, newsflow, share structure, financials, etc.)
Third, understand the value (is the stock cheap or expensive and is it a risky bet or a safe undervalued play?)
And as an extra fourth, look at the technicals (has the stock bottomed, is it climbing up, is it primed for a pump, etc.)

Ask away if you have any questions. And don't worry about seeing red anyways, remember why you invested in the first place and ask yourself what has changed.

PanMan do you know much about mines in the US? Any red flags with the mines for Uranium Energy Corporation (UAC)?

Let's have some fresh miner talk. Got a new miner for you all. This is very interesting, worth putting into a watchlist at the very least. Here's the condensed information:

Mexican Gold Mining Corp. (TSX-V: MEX) -- Mcap C$15.5M, Fully Diluted EV C$22M
>Debt-free, about C$1M cash in hand
>Las Minas gold-copper skarn project, Mexico, Veracruz
>100% owned, subject to 1.5% NSR
>excellent infrastructure
>Almost all land is privately owned: no pesky Ejidos!
>Geology: Cretaceous carbonate platform intruded by sills & dikes, up to 1,000m of the stratigraphy of the property has been exposed by the erosion of canyons -- many of these canyons show large structures within the carbonate platform
>Historic mines in MEX's claims are found over a 800m stratigraphy, indicating mineralization in the area
>El Dorado deposit fully open to the east and the west
>I&I Resource 850kt AuEq (Indicated 5.5Mt @ 1.78gpt Au, 1.25% Cu + Inferred 2.5Mt @ 1.25gpt Au, 0.94% Cu)
>FD EV/Resource = C$28/oz AuEq -- FD EV/in situ value at US$1,800/oz Au = 0.012x!
>Resource estimate increase pending -- resource expansion drilling completed at the end of 2020
>PEA in the works -- company estimates low CAPEX & OPEX and fast production startup
>Preliminary metallurgy (2015) indicates great recoveries using only flotation -- no cyanidization
>Clean tailings: mined ore has negligible refractory elements such as antimony/arsenic/etc
>Environmentally friendly, passes permitting with greater likelihood!

>Near-term catalysts: PEA, Updated MRE, further metallurgical work, LiDAR survey for planning for mine development, enviromental study for ease of permitting

>>27718097
There are many many undervalued companies in the mining space. Just look at the discussion here for example, people are legitimately confused why Blue Lagoon is down when they believe it's an easy winner. I also own some miners that I believe are very low risk and easy, high gains like Moneta Porcupine. Capitalize on market unawareness/stupidity and wait

>>27706283
I checked them out the last time you shared the company, Pacifico anon my man. I wasn't too impressed though ad their offtake agreements have prices set in stone for a few years. If I remember right, the deals are good for the company at current prices (they wouldn't turn a profit at current prices) but if uranium started climbing they could lose out in comparison to peers due to the agreements. Just my two cents based on some very light research
>>27706382
For mining companies there is a lot of things to understand. Especially if you want to get in on juniors, read the links in the miner pastebin (https://pastebin.pl/view/fddd4572).).
For stonks you should really understand some basic financial stuff. Learn to read financial reports and earnings reports and learn some basic ratios like P/E (for producers ONLY), current ratio & equity ratio.

There's always more stuff you can learn but start off with these basics and learn more at your own discretion. If any questions arise ask away, we know the answers most likely

Here's a fantastic article worth reading by every junior miner investor: https://ceo.ca/@trevtrew/what-kind-of-microcap-market-is-this

>Mental exercises, like the ones suggested above, can help us be prepared. If you know what you own and have the conviction to hold the company long-term, the next market phase will be less of a challenge. Moreover, if you have a list of companies you would like to own and have a buy list with what you consider “cheap” or “fair” valuations, you are positioning yourself for success. Being able to not act on emotions, is a position of strength. Know yourself well enough to anticipate how you might act under duress. Plan ahead.
>Conversely, if you are in that position where you are questioning your portfolio, or don’t know what you own, you’re in a position of weakness. While you might be foolishly thinking you can handle your emotions now, recognize that even the best investors can be rattled out of a position – eliminate the need to deal with emotions when investing.

DO YOUR DUE DILLIGENCE AND REAP THE BENEFITS

>>25517955
you find a company that is undervalued by the market, and then you wait and let the market figure out how valuable the company really is. News releases can be big catalysts for revaluation

>>25336405
Have you looked at the miner pastebin I wrote up about a month ago, in the OP? The links in that contain almost everything I used to begin learning. But I can walk you through my way of doing DD though, since it's rare for people to ask me how to learn. I appreciate the basic curiosity and effort anon -- most here just don't want to put in the effort for their own wealth.

I have like 200 companies I've wishlisted on ceo.ca, most of them I haven't looked at at all, they're just there as a backlog pile so that I never run out of new companies to look at. The very first thing I do is look at the NRs and the discussion. If either of these look promising or interesting, the company goes into the pile. Also if the company has projects near companies I'm aware of then into the pile you go. When I pick a company from the backlog, I first go to their site's presentation as well as their financial statement and skim those through. If I'm still interested after skimming through them, I do a proper DD by writing up a Word document. I separate the Word document into three parta: Share info (mcap, share ownership, P/B ratio, fully diluted amount, etc.), Financials (most importantly: working capital, equity, debt, other assets like shares from other companies and different ratios like current ratio and equity ratio) and finally their project protfolio.

When DD'ing projects there are some things you want to focus on. There's the area: is it greenfield (totally virginal ground with no exploration done) or brownfield (close to old or current mines) -- brownfields are usually less risky. What exploration has been done before: surface samples, trenching samples, BOT samples, diamond drilling...? How have the exploration results been -- you'll learn to read exploration results via the links in the pastebin as well as with experience but usually higher grades are coupled with short drilling intercepts, and low grades can be considered good if they have long intercepts.

>>25253715
Intrest rates son. If a bank does not make $$ off of other types of investment it does not look good for profits In the future.

>>25202509
It seems you didn't understand what I was trying to imply, let me be a little bit clearer:

Stop acting like an entitled bitch. Do your DD before investing. You wouldn't be asking a retarded question like "when will I get returns" if you had done proper research beforehand yourself.

>>25134427
If you're bullish on a company then the best thing to do is to hold or add. If you feel like you can make more money elsewhere then it makes sense to sell something else and buy the one you really want. DD and valuations are important here.