Phase 2 Sorting the Wheat from the Chaff

Having short listed a number of prospective candidates, the next step is to take a closer look at the individual companies and determine which ones have the greatest potential. Here at The Global Speculator, we have developed a list of criteria that we deem important when considering junior precious metals companies to speculate in:

• Significant Insider Ownership of shares
• Options/Warrants issued
• Cash position
  
• Debt to Equity
• Enterprise value per unit of primary metal
• Mineral diversity
• Project diversity
• Gross Metal Value per Ton
• Gross Metal Value as a multiple of Market Capitalization
• Various key performance indicators
• Political Risk
  
• Hedging Commitments
• Management

Experience has taught us that by adhering to this checklist and by choosing companies that outperform in a majority of the criteria, you can potentially swing the probabilities of success substantially in your favor. Compiling this information also provides you with a better overall understanding of the companies you are considering. Please read the following article for a more detailed explanation: Mining Company Fundamentals 101. All these factors and more are presently covered or will be covered in future versions of the GoldNerds professional products.