Junior explorers have no revenue, so they fund themselves by issuing shares. That single fact drives most of the vocabulary here: private placements, flow-through shares, warrants and the dilution they create are the mechanics of how these companies stay alive between discoveries, and how existing shareholders get diluted along the way.
The rest of the list covers how a project gets valued once it is advanced enough to model — NPV, IRR, payback period, and the all-in sustaining cost that determines whether a producer makes money at a given metal price. Understanding a warrant's strike price and expiry tells you where future selling pressure sits long before it arrives.
16 terms in this section.
An investor who meets specific income or net worth requirements and is permitted to participate in certain private investment opportunities, including flow-through share financings. Requirements vary by jurisdiction but generally involve annual income over $200,000 or net worth over $1 million.
A comprehensive measure of the total cost to produce an ounce of gold, including mining, processing, administrative costs, sustaining capital, and exploration. AISC is the industry standard metric for comparing mining company costs.
The upfront costs required to build a mine, including equipment, infrastructure, and construction. CapEx is distinguished from operating costs (OpEx) and is a critical factor in project economics and financing requirements.
The discount rate at which the net present value of a project equals zero. Higher IRRs indicate better project economics. IRR is used alongside NPV to evaluate mining project attractiveness to investors.
An exploration or development-stage mining company focused on discovering and developing new mineral deposits. Junior miners typically have market capitalizations under $500 million, limited production or revenue, and rely on equity financing for exploration programs. They carry higher risk but offer significant upside potential.
The present value of future cash flows from a mining project, discounted at a specified rate (typically 5% for NPV5). Positive NPV indicates a project is economically viable. NPV is a key metric in feasibility studies.
The ongoing costs to operate a mine, including labor, energy, consumables, and maintenance. OpEx is typically expressed per tonne of ore processed or per ounce of metal produced and directly affects mine profitability.
The time required for a mining project to recover its initial capital investment from net cash flows. Shorter payback periods indicate lower risk and are preferred by investors. Typical payback periods for mining projects range from 2-5 years.
A portfolio or investment approach that includes multiple precious metals (gold, silver, platinum, palladium) to diversify risk and capture different market dynamics. Silver often exhibits higher volatility and industrial demand compared to gold's safe-haven characteristics.
A capital raising method where securities are sold directly to a small number of investors rather than through a public offering. Junior mining companies frequently use private placements to fund exploration and development activities.
A retail investor is an individual who buys and sells securities (such as stocks, bonds, mutual funds, or ETFs) for their own personal account rather than on behalf of an organization or institution. Key characteristics: They typically invest smaller amounts of money compared to institutional investors (like pension funds, hedge funds, or banks) They trade through brokerage accounts, retirement accounts (like 401(k)s or IRAs), or investment apps They generally have less access to sophisticated research, trading tools, and preferential pricing than institutional investors Their trades are usually executed at publicly available market prices Retail investors are sometimes called "individual investors" or "small investors," and collectively they make up a significant portion of trading activity in financial markets.
A financing arrangement where a mining company receives upfront capital in exchange for the right to purchase a percentage of future silver production at a predetermined, below-market price. Streaming provides alternative financing while allowing companies to retain project ownership.
The number of ounces of silver required to purchase one ounce of gold. This ratio is used by investors to assess the relative value between silver and gold markets. Historically averages around 60:1 but can vary significantly based on market conditions.
The TSX Venture Exchange is Canada's premier public venture capital marketplace for emerging companies. It is the primary listing exchange for junior mining companies in Canada, providing access to capital for exploration and development projects. Many junior gold mining companies are listed on TSXV.
A security that gives the holder the right to purchase shares at a specified price (strike price) within a certain time period. Warrants are often issued as part of private placement financings in junior mining companies.