I have been following junior gold mining companies since the beginning of last year and found that they've suffered a fair bit over the last few months. But recently, the trend is beginning to change as a rebound is in the works, most particularly in the companies that ARE producing gold bricks, not just drilling and exploring for them. So here's a piece of advice if you want to invest in junior gold companies and make a killing: find the junior gold PRODUCERS, not the explorers.
Canada has a fair share of explorers and only a handful of junior producers. And, my pick would be a small company in Quebec called Alexis Minerals. This little company is a fireball. Recently, it's stock price bottomed out at 24 cents early this year. But ever since they went from being an explorer to becoming a PROFITABLE producer, the stock price shot up to 56 cents today. I got in at 32 cents with a hefty chunk of dough, and I'm keeping this one for a while. Why? Because this company is thinking BIG and have the plans and the means to get there. It's not a matter of funding anymore. They are profitable. It's a matter of time now. They've indicated a huge amount of gold reserves and are continuing to find even more.
Just as recently as this past Wednesday, Alexis Minerals has released a report indicating that they've discovered more EXTRACTABLE gold in their properties.
This is great news, because it shows that they are exploring while they are producing, and that they can pay for exploration costs with their profits. This demonstrates not only a sustainable company, but a company that will grow. It is ripe for the picking, especially at this time.
There are other success stories like Alexis Minerals out there, it's just a matter of finding them. And as the perfect storm hits us, it is the junior gold producers who will become the champions of the gold mining industry.
