5 cornerstone concepts for every mining investor [Twitter thread unrolled]

These 5 concepts, crucial for any mining & metals investor, took me years to learn and master.

I'll teach them to you in 15 minutes:

1/6 Once a mining company reports a resource, things shift.

Basically, it all becomes more 'real'.

Work and investment bump up certainty.

And resources are great! But reserves are better…

(PS: you'll typically pay more for reserves)

Understanding the difference between mineral resources & reserves is key to investing in mining and metals.

Here's your 'Resources vs Reserves 101' to help you interpret news releases and reports:

— Paola Rojas 🐝 (@paola_rojas) June 24, 2022

2/6 Geologists go deep into deposit types because let's face it, they love geology.

Investors don't need as much detail.

But we do need to know whether a gold deposit we are researching is epithermal or sedimentary.

To start, you need a general understanding of it all

Here's your 'Mineral deposit types 101'

(plus why you, as an investor, should care):

— Paola Rojas 🐝 (@paola_rojas) July 23, 2022

3/6 Once a deposit has resources (inferred and higher) the race to put a value on the whole thing speeds up.

Enter the 'economic studies'.

Will give markets a valuation and interact with resources/reserves.

Each type has a different timeline, effect on the company and costs.

Knowing the difference between the variety of economic studies used in mining and metals is crucial to any investor.

Here's my 'Economic Studies 101', to help you predict how these could impact your investments:

— Paola Rojas 🐝 (@paola_rojas) July 9, 2022

4/6 Juniors are (almost) always drilling their projects.

(and we want them to!)

Each type of drilling has a different goal, cost and objective.

Differentiating will help you know what to expect from the results and infer what could be coming.

Drilling is the most significant exploration method in mining.

But all drilling is not created equal.

Here's your quick guide to drilling, to help you understand reports and news releases:

— Paola Rojas 🐝 (@paola_rojas) July 30, 2022

5/6 And finally, if you're still here, let's talk about the sector's life cycle.

You can enter for a lifetime or a season.

But to do so in the most effective way, you want to know where in the cycle your investment is.

This will help align with your expectations.

Mining is a multi-year endeavour. At times, decades can go by.

Understanding the process may help define your holding timeframe.

Here is the mining life cycle in a thread:

— Paola Rojas 🐝 (@paola_rojas) October 1, 2022

6/6 That's a wrap!

Getting clear on these basic concepts will help you invest more confidently. Certainly helped me!

Ask:
Resources or reserves?
Which deposit type is it?
Any economic studies?
Drilling techniques used?
Where in the lifecycle?

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If this was interesting or useful to you, please retweet the start of the thread.

Follow me @paola_rojas for commentary on metals, markets and tech.

These 5 concepts, crucial for any mining & metals investor, took me years to learn and master.

I'll teach them to you in 15 minutes:

— Paola Rojas 🐝 (@paola_rojas) December 2, 2022

Originally tweeted by Paola Rojas 🐝 (@paola_rojas) on December 2, 2022.