ONE TO AVOID

Finweek English Edition - - INVESTMENT -

African Ea­gle Re­sources shows just how tough be­ing a ju­nior min­ing and/ or ex­plo­ration com­pany can be. It had a great as­set in the Dutwa nickel de­posit and for a while things looked re­ally rosy. But things went against it, as of­ten hap­pens to small min­ing com­pa­nies, and it’s left with pretty much noth­ing. In­vestors are at­tracted to the idea of ju­nior min­ing com­pa­nies, and if these ven­tures are suc­cess­ful, then the re­wards can be im­pres­sive. But the re­al­ity is that the time­lines are in­cred­i­bly long and this of­ten re­sults in the big­ger pic­ture (such as de­mand for

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