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thereslifeafter87-1....That approach is fine for a small portion of your portfolio, but investing in explorers is inherently risky. You still need to know the basics of financial statement analysis in order to determine whether the company has enough funding to continue its exploration program, or will need to go back to the market cap in hand, thus diluting your interest and your returns.
2....There are plenty of companies on the ASX with under $100m market cap, that make profits and are growing quite quickly. You need financial analysis here to avoid the dogs - companies that manipulate earnings, include one-off transactions in earnings, capitalise R&D, and have other issues with their business model that require some digging to uncover (eg: BCF).
mr 87,