Posted on 09/09/2009 12:52:50 PM PDT by h20skier66
Every so often I'm asked to describe the role of juniors in the commodities industry. And I simply reply, "They're like rabbits". Rabbits are seemingly insignificant and useless animals. But in actuality they serve a critical role in the food chain as a valuable source of nourishment for larger animals.
Like rabbits, juniors are seemingly insignificant. But their function in commodities lifecycles is indispensable. And also like rabbits, juniors are a valuable source of nourishment to their predators. One of their major roles is to feed the larger resource companies, ultimately serving to provide sustenance and longevity.
The primary purpose of junior resource companies is to explore, discover, and develop natural resources that are economically extractable and can feed the supply chain. They are in a sense responsible for finding the next generation of mines and oilfields. Without juniors, the balance of most commodities markets would be way off-kilter.
But in order for juniors to function they need their own food source, capital. The lifeblood of all junior resource companies is the almighty dollar. And since mineral and energy exploration is so capital-intensive, juniors require sizeable bankrolls to do what they do.
By definition juniors are non-producing explorationists. And since they aren't producing a product there are no sources of revenue.
(Excerpt) Read more at commoditynewscenter.com ...
What’s a “junior?”
Anyone who can’t write without such esoteric jargon is worthless as a communicator.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.