Mineral Resource Stocks - Junior vs. Senior Mining Companies
Mineral resource stocks which have their shares listed for trading on a stock exchange, are often broken down
into two categories: junior and senior mining companies.
The senior mining companies are the larger, more experienced companies which generate cashflow
from their operations.
The junior mining companies focus their time, efforts and money on the discovery of new
economic natural resource projects. The juniors derive their income from the issue of new
The Following Criteria Define a Junior Mining Company1:
It is neither a producing company nor the recipient of significant income from production or from some
other business venture;
Exploration funding does not come largely from accumulated cash flow from previous production or from the
investment income from such funds;
The exploration funds are not provided by a senior company that controls more than half the issued shares
of the subsidiary company in question;
The principal way of raising exploration funds is the issue of treasury shares;
The company is not primarily an oil and gas producer, nor is it the exploration arm of a large
It is not a government organization.
Not only the mineral resource stocks in general can be broken down into categories. The gold mining shares and the mineral exploration companies can be broken down into categories too. Please click on the
links provided to find out more about these categories in detail.
Every investor in the resource sector must of course determine for themselves in which category they find
themselves most comfortable investing in. Generally, an investor in the junior mining companies is exposed
to more risks compared to investors in the senior mining stocks. To find out in which type of resource
stocks I find myself comfortable investing in, I refer you to the note at the bottom of this page.
If you would like to be the first to be informed when I add new content to
UndervaluedEquity.com, please leave your details in the name grab form on theSupportpage!
You can also support me directly by clicking on the advertisements that appeal to
you,or by making a voluntarily donation with Paypal.
Your support helps me to speed up the process of adding great, free content to
Note: For the junior mining companies, I limit
myself to the undervalued junior mining companies with mineral projects which already have
reported a National Instrument 43-101 (NI43-101) or to undervalued junior companies with
oil and/or gas projects which already have reported a National Instrument 51-101
(NI51-101). Next to investing in these type of undervalued junior mining stocks, I will also invest in
undervalued senior mining stocks.
What Type of Content Can You Expect to Find on UndervaluedEquity.com
Today's News Related to the Global Energy and Mining Stocks.On
this page a RSS feed is displayed with stock market news related to the energy and mining sectors.
You can subscribe to this free RSS feed too!
How I Conduct My Stock's Due Diligence Investigation Process.If
you want to know what I learned while I was conducting my due diligence, I recommend you to read
all the chapters of the investigation process.
Are These the Best Stocks to Buy Today.In my stock watchlist you
find stocks who offer great potential, but at the time I analysed these stocks they didn't comply
with all my guidelines from my due diligence chapters.
Are These the Best Shares to Buy Now.As the year 2015 has just started, I
believe it's about time that I share my stock portfolio with you. Therefore, you will find my
updated stock portfolio on this page.
Jeroen Snoeks is the founder of UndervaluedEquity.com, a website for
investors passionate about investing in undervalued stocks. ThroughUndervaluedEquity.com, he shares his
experience and knowledge and will soon reveal his personal stock portfolio.