Understanding what we have.....8 Dec 2020 16:19
Even though junior mining stocks have strong profit potential, they entail higher risk than more established mining companies, for a number of reasons.
For one, the odds that the companies behind junior mining stocks will find an “anomaly,” or a geological formation that might attract a prospector’s interest, are slim. One rule of thumb is that you have to look at 1,000 anomalies to find one prospect. And fewer than one prospect in a thousand turns into a mine. In other words, finding a mine is a million-to-one shot.
Another reason is that it’s much easier to launch and promote one of these stocks than it is to build a profitable business. So junior mining stocks attract more than their share of unscrupulous operators and stock promoters.
https://www.tsinetwork.ca/daily-advice/mining-stocks/need-know-invest-profitably-junior-mining-stocks/