sell the rumour, buy the factI watched a video recently on...

sell the rumour, buy the fact

I watched a video recently on mining companies transitioning from junior explorer to operating miner. The timeline of the share price goes as follows

- speculators pile in on the initial find, share price rises

-- the price falls as more capital is raised and the mine is developed, speculators leave. This takes years

-- the price rises as the mine becomes operational and operates consistently. Institutional investors move in

The company isn't an explorer, nor is it an established miner. Volatility is to be expected, that's why the potential returns are so great, people are worried about commissioning hiccups.