Guidance and tips on Researching

[stargazer]

Hi all

Looking to do some research and see how i go for mining companies. Have put together a bit of a plan in terms of what to look for but in some cases i am not sure where i find the info. Will i need to look in different areas or does the Annual report contain most of it.

1. Management to have a successful track record. SOME NAMES ARE UNKNOWN SO I TAKE IT ONE WOULD NEED TO LOOK FURTHER ANY SUGGESTIONS HERE.

2. How much does the compnay own if in JVs etc. NOT SURE WHERE TO LOOK FOR THIS INFO

3. What projects the company is involved in. ANNUAL REPORT WOULD TELL ME THIS.

4. Do the management team own shares that they have bought themselves in the company. Not just hand out options etc. NOT SURE WHERE IT TELLS ME THIS

5. Financial status of company. BALANCE SHEET SHOULD TELL ME THIS

6. Companies with huge potential if discoveries are made. NOT SURE HOW TO GAUGE THIS.

I feel that there are some junior companies that are going to rise dramatically in price due to the Resources sector and demand in the future. So feel its a good time to start researching now.


Any suggestions or add anything further would be well received.

Cheers
SG

 

[happyjack]

If an internal link does not work try a different company, The company you are checking may be defunct.


Company info

http://www.asx.com.au/research/companies/index.htm

http://bureau.panopticsearch.com/search/search.cgi?query=qgc&collection=asx&form=simple&num_ranks=10

http://www.fido.gov.au/fido/fido.nsf/byHeadline/Checking up on a company

metals and mining

http://www.infomine.com/investment/metalprices/

http://www.juniorminers.com/asx_a.html

http://metalsplace.com/

http://www.miningnews.net/sectionstory.asp?sourceid=c8

Energy

http://en.in-en.com/article/News/

http://www.oilvoice.com/Description/Abraxas_Petroleum/9654916b.aspx

Directors

http://www.plugger.com.au/boardroom_connections/

Dividends

http://www.brr.com.au/partner/asx/calendar/2008/4

Check the companies own website

 

[Spaghetti]

6. Companies with huge potential if discoveries are made. NOT SURE HOW TO GAUGE THIS.

I feel that there are some junior companies that are going to rise dramatically in price due to the Resources sector and demand in the future. So feel its a good time to start researching now.

Cheers
SG

Not sure this is easy as it once was. Best to read up on different sectors and choose one you think will be booming in a few years. Be it oil, gas, copper, zinc etc Become an expert on it as best you can.

You need to understand cost of operations as a small miner would have trouble raising capital for something not that great. So need expected operating costs, capital costs and life of mine. I find as many companies in a particular sector and put as much info as I can into spreadsheet and usually some sort of picture emerges. Mines with short lives get over looked very often so I prefer potential to be 10-20 years. The geology is the hardest part to understand so ask questions on the geologist thread. Soon you will know more than you knew before even though expert status maybe unreachable.

So capital costs, operating costs, grades, processing, continuity of deposit, transport, demand, supply and sentiment all need to be understood to a degree.

The one thing I have learned the hard way is never ever be convinced you have made the right decision. Question your holding every week and listen to those on forums that may disagree, you may not end up agreeing but you should always protect your money by hearing all sides. I loved TMR once and was convinced it would go to .60c now it is .05c! Glad I got out when I did but wish I had been more critical and also listened to critics. Smaller explorers/miners seem to have very short time in the sun.

Just hard to know next big thing atm.

 

[bvbfan]

Will i need to look in different areas or does the Annual report contain most of it.
SG

1 - Company websites might list all other current and previous positions on boards. Time consuming but you can look at those listed.

2 - Quarterly activities reports should include any new JV's or changes to JV's. From there you can try to find the announcement in that quarter.
Annual reports will list them also but a bit slow to update obviously

3 - Annual report, quarterly activities report

4 - To find directors buying/selling you'd need to find the change in directors interest notices, they have to be filled with days of a change. The annual report would only list what they have and what they may have been issued in the year.

5 - Yes, annual report + quarterly cashflow statement

6 - This is hard, need to research activities reports, also any company presentations they may release about drilling programs/results. Watch for any announcements about commencing drilling programs

I think before you look at companies you need to look at the macro situation. Find what areas in mining might be in demand now or next.

Eg. I like the strategic minerals field right now.
Some minerals are only in certain countries or with certain other minerals. If one country needs these minerals and doesn't have a ready supply and the country that current supplies the minerals decides to stop exporting, demand can easily cause prices to sky rocket.