Junior Mining Share Investment Cycle
The ASX allows companies to list that are at the exploration stage with confirmed resource reserves.
Clear stages of progression in growth, at each stage, there is a jump in the stock price and a change in market sentiment.
At the initial exploratory drilling phase, if they find something significant, there is usually a jump in the junior mining share price (eureka effect). However, the potential commercial success of the mine is dependent on further investigations.
While monitoring the progress of the investigation, at stage 3, focus investment into companies that are going to have a significant find.
If it is a growth company, it will go through stage 2 through 6 numerous times on new mining deposit findings and each time, will see a jump in the share price.
Compared to IT and Bio growth stocks, the growth cycles are comparatively shorter and simpler.
