junior miners

  1. 1,544 Posts.
    This is part of a post on an o/s board I snitched.

    The reason why junior exploration and development companies as a group have failed to perform is also simple. Investors have become smarter!

    Investors do not want to invest in any company that:

    a. Grants insider stock options in excess of 5% of capitalization.
    b. Re-prices insider stock options when their share price declines.
    c. Has a history of insiders selling their options, having not in many cases even held the shares for a single day.
    d. Replace insider stock options immediately after the insider sells.
    e. Has executives who are also executives of other similar companies.
    f. Has a CEO, President or CFO who are consultants.
    g. Has officers who have private mineral interests.
    h. Have properties in percentage joint ventures with majors who are known large hedgers.
    i. Who have properties in which the junior must raise funds to meet development costs
    j. Has joint venture deals specifying that the junior receives no income until the entirety of their percentage of the developments costs are repaid to the major.
    k. Are undercapitalized with a significant property that the junior wishes to develop on their own account.

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