AnalysisCommoditiesBest Junior Miners to Own in Gold Bull Market

Best Junior Miners to Own in Gold Bull Market

Gold is inches away from its biggest breakout in 50 years and the start of a new secular bull market. It may have already happened by the time you read this.

Gold is also beginning a new cyclical bull market with strong potential to soar to $4000-$5000 over the next several years.

Any average Gold or Silver is poised to perform well but our goal is to uncover the companies with potential for some of the biggest gains.

This does not entail buying low-quality companies that are highly leveraged to the bull market. Moreover, it entails buying quality companies with strong potential to add value that will be magnified by the bull market.

There are certain types of companies we should look for, as well as certain types to avoid.

I will begin with the types of companies to avoid.

This revolves around a particular stage of a junior miner’s life cycle.

Brent Cook’s image shows a typical life cycle for a junior company that decides to build the mine. Otherwise, the company could be acquired or never make it to the development stage.

The best stage to buy is at the beginning of discovery or the months before initial production.

We want to generally avoid development companies that are too far from production or stuck in the development stage because their projects are of low quality.

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With that out of the way, let’s focus on these two types of companies.
First, I favor small companies with production growth potential. These companies have the asset or assets from which they can grow production. The market always loves growth and pays a premium.
Within this group, we want to find companies that can grow without destroying their capital structure and diluting their shareholders. Look for companies doing a phased approach or those able to fund growth with limited dilution. 
The second type of company is exploration companies that are early in the discovery stage. I try to find explorers that have a discovery or something with defined value (a backstop) that has the potential to grow much larger and more valuable.
This is a more difficult task than finding growth-oriented producers because there are far more of these companies, and exploration outcomes are much less predictable. 
The key here is finding the projects that have significant upside potential. Too many projects have minimal upside potential. 
What I deem as “The Holy Grail” is when a junior producer encounters significant exploration success. Some of the biggest winners in recent years (i.e. Kirkland Lake) were producers who made a significant discovery.
Producers have the cash flow to fund exploration, and they already have the infrastructure which can facilitate immediate production growth after a discovery. 
In short, look for the junior producers who are trying to make a significant discovery. 
Companies with production growth potential and material exploration and discovery potential are poised to be the leaders over the coming years. 

Jordan-Roy-Byrne-CMT23
Jordan-Roy-Byrne-CMT23
I’m Jordan Roy-Byrne, CMT, MFTA the editor and publisher of TheDailyGold.com and TheDailyGold Premium, our premium publication which emphasizes market timing and stock selection for precious metals investors. I’m a Chartered Market Technician and Master of Financial Technical Analysis. My Masters Thesis, which earned me the MFTA designation was published in the International Federation of Technical Analysis Journal. I earned a degree in General Studies from the University of Washington with a concentration in International Economic Development. In my spare time I enjoy weightlifting, following sports, National Parks, classic mob movies and traveling with my outdoors enthusiast wife. TheDailyGold I started TheDailyGold.com in 2009 although the genesis was in 2005 when I started a free newsletter covering commodities with an emphasis on Gold & Silver. We offer quite a bit of free content here and can help you whether you are a seasoned investor or this is your first time stumbling upon Gold and the junior mining world. First, go here to obtain a copy of our 2019 Book The Coming New Bull Market in Gold: Why Precious Metals Investments Will Flourish in the 2020s and 2030s. From there, we will also send you our weekly newsletter, which includes our latest content and thoughts on Gold and gold stocks. The book contains all of our best research on Gold and lays out what you can expect from the economy, capital markets and precious metals over the next 10 to 15 years. It is very important to me to educate people and help them profit immensely and avoid losing real wealth, which will deteriorate if you hold US-based assets over the next 10 to 15 years. Next, be sure to subscribe to our YouTube Channel as well as our podcasts: TheDailyGold Podcast and the new, 10-Bagger Podcast. Contact I can be reached at Jordan @ The Daily Gold . com (spaces removed to prevent spam). I try to answer every email but emails from subscribers are paramount. We currently are not interested in any advertising and we do not accept any guest posts or sponsored posts.
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