What predicts mining success?

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A Good Team Will Outperform a Good Asset

We’ve talked about this before.

How very few mining projects actually result in producing assets.

1 in 1,000.

I don’t know about you, but I don’t like those odds.

So, how do some investors seem to win in a market that’s setup to lose?

They rely on one thing when making a decision - leadership.

Don’t believe me? Fine, believe Rick Rule.

Transforming Assets

Patriot Battery Metals wasn’t always the powerhouse lithium explorer it is today.

They previously held the Freeman creek gold project in Idaho, but through strategic management the focus switched to the now-famous Corvette lithium project.

Leadership identified a need in the market, and an imbalance between supply and demand for lithium, which has resulted in a stock trading as high as $17.

How leadership beats the odds

Previous success

A team's track record is crucial.

Teams with a history of successful projects are more likely to repeat their success.

They’ve learned what works and what doesn’t, and they apply those learnings in every future venture.

They know a good asset when they see it

One of the most valuable skills a mining team can possess is the ability to quickly identify good and bad assets. This expertise saves time, resources, and ultimately leads to better investment decisions.

They study the asset fast. Whether that’s because they have a background in mining and exploration, or they have a team that helps with this.

Either way, they avoid spending resources on assets that aren’t worth it, because they know what to look for - and focus investor resources on top-tier assets only.

The 'Fail Fast' Approach

In the fast-paced mining industry, the ability to "fail fast" is crucial for long-term success.

If leadership drills a property and doesn’t find success, the ability to drop it and move on to another asset is a sign of confidence for investors. Not confidence in the project, but confidence in leadership.

Good leadership knows they did everything right in their approach, and if the results don’t speak for themselves, they move on.

Honesty is Everything

The mining industry is notorious for lying. See Bre-X.

Good leadership knows this, and does everything they can to be transparent.

That means updating investors as often as possible through video interviews, Q&A sessions and more.

They have nothing to hide- and why would they?

Building trust is the foundation for raising money, and you need money to run an exploration company.

Financial Backing

Arguably the most important thing in exploration is the ability for a company to be funded.

Proven leadership teams likely have a network of trusted investors that fund each of their deals.

This network has won in the past with leadership, and are willing and eager to support new deals.

This relationship puts pressure on leadership to succeed, which results in a strategic vision and a pathway to success.

The only thing worse than a bad asset is a good asset with no money - a network that trusts you is crucial.

Success is never garuanteed, but when you’re playing on a good team you have a much larger chance.

Find a team, follow them, and watch what happens.

👋 Colton, Stock Monster.

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This newsletter is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions. All content is based on public knowledge. Assume that contributors to articles own or have interest in stocks they talk about, therefore may be biased.