When it comes to investing in juniors, there are many opportunities to hit one out of the ballpark. You can wait for a company to make a discovery or wait for a company to be bought out.
But at the end of the day, you just have to hit a sweet spot - the perfect combination of the right projects, the right people, and the right timing. If all of these ingredients come together, investors who act quickly can make fortunes on the right company.
That's why in the past few months, I have been looking specifically for an early stage company that I believe has the right ingredients to move their projects forward.
Before I introduce this company and their management, let me share a quick story.
Back in 2006, a new mine in Africa and a steady rise in the price of gold lifted a company called Red Back Mining from obscurity in 2006.
Led by Rick Clark, Red Back went from virtually no revenue in 2005 to $45 million just a year later - on the strength of a new and promising mine in Ghana, the Chirano mine. The Chirano mine achieved commercial production in October 2005 and is the start of what propelled Red Back Mining into new territories.
Six years ago, shares of Red Back Mining were trading at less than $2. Over the next five years, Red Back continued to reward its shareholders with tremendous returns, closing at nearly $35 before it was finally sold to Kinross Gold for nearly $7.2 billion.
If you were a Red Back Mining shareholder five years before its takeover and invested $10,000 at $2 per share, you could have made $165,000. That's a gain of 1650%.
That's why getting involved with companies before they ramp up can return investors with big rewards. I love getting involved with companies at an early stage.
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