I have a few explorers in my portfolio.
I am not a day trader, I am holding for long term (5yrs+ as a minimum). I only buy smallish parcels of stocks I like the sound of; explorers I think that have good lease areas or future prospects.
However, will many of these explorers actually go anywhere? Will they all have the ability to reach production? It seems like there are a million explorers out there in WA alone.
So I guess I wonder, are they the right type of share for me?
Originally I bought into them thinking they when they do reach production, they will climb up the ranks like the other 'famous' producers (eg ZFX, PDN too I guess, and so on), the SP will rise and they will start paying dividends, and I will be happy I got onboard when the SP was sub $1 (for example). But now, I don't know? I look at TAM for example, which is producing but the SP is still low. Had I put that same investment into say BHP, I'd probably have had better growth thus far taking into account dividends.
I am not concerned with the risk, they are only a small part of my overall portfolio. I am buying them for long term rewards. But while their share prices go in spurts (both +ve and -ve), I wonder if overall I am not better really sticking with more bluechips and those that pay dividends, or at least companies that are doing something rather than poking holes in the ground