Mining Companies Analysis – Learn How to Invest in Mining Stocks

Mining Companies Analysis - Learn How to Invest in Mining Stocks

In order to be able to analyze mining companies it is necessary to have at least a basic understanding of the terminology used in the mining sector. It is also very convenient to be aware of the working methods relevant for analyzing mining companies. Therefore I have created the following (sub)pages so that you are able to execute your own mining companies analysis:

  1. Mining Industry StandardsHow Bre-X Changed the International Reporting Standards for Mineral Resources. Read this article to find out how Bre-X shook public confidence and why there was then an urgent need for determining specific mining industry standards.
  2. CIM Definition StandardsCanadian Institute of Mining’s Most Common Terms Explained. Although all the CIM Definition Standards can be found in the reports section, this page displays a selection of the most common definitions.
  3. Mineral Resource StocksJunior vs. Senior Mining Companies. Mineral resource stocks are often broken down into two categories: junior and senior mining companies. Continue reading to learn what distinguishes them from each other.
    • Gold Mining Shares4 Special Gold Mining Stocks Categories Described. Gold mining shares can be broken down into four categories: majors, mid-tiers and junior gold producers and the gold exploration companies.
    • Mineral Exploration CompaniesGreenfield Exploration vs. Brownfield Exploration. Mineral exploration companies are broken down into two categories: greenfield and brownfield exploration stocks. On this page both categories are specified.
  1. Drilling RigsWhat Distinguishes Auger Drilling from RAB Drilling, RC Drilling and Diamond Drilling. Depending on the geological structure of the Earth’s crust, mining companies can choose between different drilling rigs, which are described on this page.
  2. Drilling ProgramStep Out Drilling vs. Infill Drilling. On this page I explain the terminology used when mining companies announce a drilling program to confirm the shape and continuity of the minerals found.
  3. Drilling ResultsHow Can You Determine if a Mining Company’s Drill Results are of Low, Medium or High Grade. After interpreting various drilling results to distinguish low-, medium- and high grade ore, I have summarized my findings in the table on this page.
  4. Metal Equivalent CalculationHow to Calculate the Mineral Equivalents in Polymetallic Deposits. I explain the metal equivalent calculation and inform you what to pay attention to when mining companies are reporting in a mineral equivalent value.
  5. Metal Recovery RateHow to Interpreted the Mineral Recovery Percentage. On this short page I explain all you need to know about the metal recovery rate, including information about where to find the mineral recovery percentage.
  6. Mining CostsCAPEX vs. OPEX. On this page I explain the difference between the CAPEX and OPEX and where you can find the details regarding these mining costs.
  7. Break Even AnalysisHow to Calculate the Cut Off Grade. On this page I exemplify how you can calculate the mineral’s cut off grade, which is my method to conduct a mineral project’s break even analysis.
  8. Metal Value per TonneHow You Can Determine the Mineral Value per Tonne. To get an insight into the viability of bringing a mineral project into production, I included some examples for calculating the metal value on this page.
  9. Mineral Deposit ValueHow to Calculate the Potential Value of a Mining Project. Before you can calculate the potential mineral deposit value, you first need to gather some specific data, which I explain on this page.
  10. Mine Life CycleHow Accurate are the Resources Reported in Each Project Phase. If you would like to know how I valuate the resources reported in the different phases of the mine life cycle you should read this page now.

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