Choosing Junior Mining Stocks on ASX

I read an article on the ASX website on the factors to consider when choosing which junior mining companies you want to put your money in. There are dozen of these companies and they seem to have lost their lustre due to the China slowdown and this dampens the commodities boom.

Here are some of the factors to look out for:

1) What are the kind of commodities the company is mining? eg. gold, uranium, copper, diamonds
2) Where are the projects? eg. Australia, in a volatile African country
3) Are the projects on a big scale?
4) Who is the managing director?
5) How much cash does the company has?

These junior mining companies do look attractive given success stories such Paladin Energy Ltd (ASX : PDN). Imagine a share worth a couple of cents going up to $10.00. But do take note that these type of successes are not that common.
 

Comments

  1. trader811 October 2013 at 22:26

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    larry williams

    ReplyDelete
  2. Uncle Ti 8816 October 2013 at 15:16

    We are not giving away the formula, this site is merely providing an overview of the index by sharing examples. Anyway we are no longer going to post anything to do with the cot proxy index anymore.

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