Two junior mining stocks with high hopes

Small-cap junior miners are among the most volatile stocks around. But if they hit a fertile seam, they can be the ultimate penny-share performers. Tom Bulford looks at two junior mining stocks that could be sitting on a fortune.

The financial models of junior mining companies are very straightforward. That's one of the reasons I like them!

You start with the amount of ore that is mined. Next you calculate how much metal can be extracted, which is a factor of the recovery rate and the grade. Then you multiply this by the price of the metal, and deduct three things:

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Tom worked as a fund manager in the City of London and in Hong Kong for over 20 years. As a director with Schroder Investment Management International he was responsible for £2 billion of foreign clients' money, and launched what became Argentina's largest mutual fund. Now working from his home in Oxfordshire, Tom Bulford helps private investors with his premium tipping newsletter, Red Hot Biotech Alert.