How To De-Risk Investing in Junior Battery Metal Exploration Companies: Infographic And Case Study
Investors love the potential upside and excitement that junior exploration companies bring to their stock portfolios — especially in the case of emerging industries, such as battery metals, where strong long-term fundamentals and a growing demand exists.
At the same time, junior exploration stocks come with their own set of built-in risks — many of which can be mitigated early in mineral discovery — but risks, nonetheless. No one wants to lose out on a potential fortune, but no one wants to lose their fortune, either.
So, how can you tap into the most upside potential with the least amount of risk?
Well, this article explains how to find that balance throughout each phase of the mineral discovery lifecycle and just how investors can capitalize with the greatest potential gains while shielding themselves from risks and downsides of investment.
We’ll take a deeper look at a real-life case study of the TSX Venture Exchange tier-2 battery metal exploration company, Fuse Cobalt Inc. (TSX.V: FUSE) (OTCQB: FUSEF) (FRA: 43W3), and what it’s doing to protect itself while seizing on some pretty unique opportunities that have come its way.
The 2 Sweet Spots of the Mineral Discovery Lifecycle
It’s important to note that there are risks that run throughout the mineral discovery lifecycle. It’s also necessary to realize that those risks are what makes it possible for junior mineral exploration companies to have potential for such an alluring upside.
After all, nothing risked, nothing gained.
The first way to de-risk investments in junior battery metal exploration is to know and understand that there are 2 sweet spots that can be found in the mineral discovery lifecycle. A visual timeline of the risks and potential is identified using the Lassonde Curve, as pictured below, along the mineral discovery lifecycle.