RE: Copper extends gains; China's energy shortage seen boosting demand27 Aug 2022 15:38
A good excerpt from Seeking alpha. Could be Greatland.
“For instance, if a company has a 1 million ounce resource and is planning to aggressively drill several known mineralized targets, the odds are good that they will increase their resources. We can make two forecasts from their drilling program: 1) They will likely increase their total resources, and 2) They will likely produce more ounces in the future. If we assume a 50% increase in both, then the upside potential can be huge. As a long-term investment, a small market cap company can have the potential to be a 10+ bagger, if they can grow their resources and make it into production.
Growth is what creates upside potential, and what creates growth (increased production and resources) is often not valued into a stock until production approaches. Currently, investors tend to ignore pipeline projects that are on the horizon. Until these projects get close to production, the production ounces and resource ounces are not valued into the stock price. Generally, there is a spike in the stock price when the final permit is granted to build a mine. Then there is another spike when financing is obtained. Finally, there is a large spike a few months before or when production begins”.
It’s the large spike that we are all waiting patiently for. What a cracking Christmas we may be having.