Let's revisit this later in the year, but it suggests my usual opinion (and valuation) of
the average junior resource stock is hitting the mark...
In contrast, an exploration firm (with no history) might sink a few million into an exploration licence & immediately
the average junior resource stock investor awards it a 1000 % premium to book value.
You should be able to confirm / calculate the value of intangibles from other sources — like reserve reports, industry comps, superior / sustainable earnings etc. — if you can't, it's usually best to ignore these «assets «(try tell this to
your average junior resource company investor, sigh...).
GWMO's chart is pretty representative of the return from
an average junior resource stock:
Not exact matches
But so bloody what... every single
junior resource company can boast the same, yet how many ever discover a commercial
resource, let alone ever successfully develop it, let alone ever deliver an ultimate profit to the
average shareholder (who's inevitably been diluted into oblivion at that point)?!
Of course, this kind of upside potential & geographically diverse portfolio matches up perfectly with the profile of the
average Irish
junior resource company — and the
average UK / Irish
resource stock investor, it must be said..!
Mentored an
average of 10
junior analysts on analytical processes, research methodology, identifying new information
resources, and briefing techniques.