Here are 8 red flags you don’t want to find while researching your next mining investment [Twitter thread unrolled]

Every successful investor excels at spotting potential risks fast.

Whether by instinct or training, it’s a crucial skill.

Here are 8 red flags you don’t want to find while researching your next mining investment:

Red flags are nothing more than *potential* dangers in the fundamentals of a company.

I’ll list them from minor to serious impact.

They do the most damage when multiple appear together.

(and even more, if combined with bonus #9)

🚩 Too many projects in portfolio


Shows a lack of focus or confidence in the flagship asset.

How to find out?

Visit the company’s website and check under projects, or operations, and then, go to the latest annual report or M&D and review their balance sheet


🚩 Unfocused leadership


When top executives have multiple executive roles -more than 2, I’d say-, priorities and time may be too stretched.

How to find out?

A simple Google Search usually does the trick, and/or just check LinkedIn.


🚩 No institutional investors


A balanced and supportive cap table needs to also include institutions that believe in the company.

How to find out?

Most presentations will highlight top shareholders. You can find out on @MarketIndexAU or @Canadianinsider


🚩 Environmental assessment takes a lot longer than average for jurisdiction


Permit delays can seriously hamper the chances of an advanced project becoming a mine.

How to find out?

Review news releases plus local news in the country of operation.


🚩 Management has little to no skin in the game


You want top execs aligned with investors and sharing at least some of the risk.

How to find out?

See red flag #3.


🚩 Declining dividends


For producers, falling earnings and/or dividend yields are a worry, if not a broad market situation. Can mean higher costs, lower grades, inefficiencies or all combined.

How to find out?

FS for full details


🚩 Negative actions by top executives


The activities and reputation of leadership are a direct reflection of the company’s potential.

How to find out?

Check social media, news in HQ/listing country, and any applicable regulatory bodies.


🚩 Management selling out fast


When management is getting out in a big way, things look bleak for the company. Who knows what is hiding?

How to find out?

Again, try @MarketIndexAU or @Canadianinsider, plus recent filings with relevant exchanges



Finding one or two may be nothing.

Now get two or more and combine them with some of these ‘red flags on steroids’…?

Extreme caution is suggested.


That’s a wrap!

Training yourself to spot red flags quickly will improve your decisions and help reduce risk.


• # projects
• No focus
• No instos
• Delays
• No skin
• Dividends down
• Shady actions
• Insiders selling
• 5 Qs

Have others to share? Comment below!

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

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

Originally tweeted by Paola Rojas 🐝 (@paola_rojas) on December 6, 2022.

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