Junior and Senior Companies

Senior Companies

Senior companies normally derive their income from mining or other business ventures (they need not be mining companies) rather than from the issue of treasury shares.

Junior Companies

The following criteria define a junior company:

  1. It is neither a producing company nor the recipient of significant income from production or from some other business venture.
  2. Exploration funding does not come largely from accumulated cash flow from previous production or from the investment income from such funds.
  3. The exploration funds are not provided by a senior company that controls more than half the issued shares of the subsidiary company in question.
  4. The principal way of raising exploration funds is the issue of treasury shares.
  5. The company is not primarily an oil and gas producer, nor is it the exploration arm of a large company.
  6. It is not a government organization.

The above criteria are essentially identical to those of Kalymon et al (1978, pp. 13-14) and Freyman (1978, Appendix A, p. 2).

Note: In this article I have integrated the exact content of the original source, to be certain that this information is retained. If you would like to read this article on the website of the original publisher I recommend you to click the source link below.

Source: http://mmsd.mms.nrcan.gc.ca/stat-stat/expl-expl/menu-menu-eng.aspx


You may also want to read...

  1. Mining Companies Analysis - Learn How to Invest in Mining Stocks. To execute your own mining companies analysis, I have created a lot of (sub)pages about the relevant terminology and working methods from the mining sector.
  2. Oil and Gas Companies Analysis - How to Invest in Energy Stocks. I created different pages about the relevant terminology and working methods from the energy sector to conduct your own analysis for oil and gas companies.
  3. Understanding the Stock Market - How Do Stocks Work. To help you with understanding the stock market, I have created some articles to explain how stocks work and I also reveal my own stock market analysis in this chapter.
  4. How to Invest in Shares - Learn How to Start Investing in Stocks. In this chapter I inform you how to invest in shares - the UndervaluedEquity.com way. I also reveal which (free) resources I use to execute my due diligence.
  5. How I Invest in Stocks - My Preconditions for Selecting Undervalued Stocks. In this chapter I answer the question: how do I invest in stocks? Thus, I explain which investment rules I follow whilst selecting companies for my stock portfolio.
  6. Stock Investment Analysis - A More Detailed Elaboration on How to Buy Stocks. When a company complies with my preconditions for selecting undervalued stocks, I will elaborate my stock investment analysis to assess the quality of it's assets, management, etc.

If my articles are helpful to you, please consider supporting my work by making a small donation...

Leave a Comment