The nature of the bulk of the junior mining companies listed on AIM (I.e. early exploration or development companies) means their analysis requires even more specialist (technical) information not typically required in analysing industrial, financial or service-based smaller UK companies. They can perhaps best be compared to IT or bio-tech companies in the sense that investors need some specialist knowledge and jargon even to be able to start asking the right questions of the management team.

The graph below shows that valuation issues in this sub-sector thus depend on where the company is in its life cycle, and that risks of mispricing can be considerable in the earliest days when data is not yet proved up.

The pool of mining-related specialist knowledge  has declined progressively over the last decade as major mining groups have cut back on exploration programmes and cut internal employee numbers to increase productivity. This book thus seeks to outline the questions that should be asked in order to understand and value a junior mining company.

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Junior Miners

Understanding Junior Miners. Now available in printable ebook format for only £30. Within the 400 full-colour pages, our five experts reveal the specialist geological, mining and financial issues facing early stage juniors, what to look for and the questions to ask. Buy Now!