Based on successful mining investment cases at home and abroad (such as Rick Rule, Zijin Mining, Vale, Ivanhoe Mines, etc.), the core of individuals or small companies successfully investing in mining and achieving high returns lies in focusing on specific tracks, controlling risks, and utilizing professional leverage. The following are four verified paths and operational guidelines: 1. Path 1: Equity investment in junior exploration companies (high-risk high return) Operation method:
Target selection
Brown field exploration (near mine exploration): Obtaining mining rights around existing mines (within 5-10 kilometers) has a success rate 10 times higher than green field exploration (Document 4).
Case: Ivanhoe discovered a high-grade extension zone around the OT copper mine in Mongolia, resulting in a 50 fold increase in project valuation.
portfolio construction
Simultaneously invest in 20-30 exploration companies to diversify the risk of a single project (Rick Rule strategy).
The investment amount for a single project shall not exceed 5% of the total capital, with an expected return rate of 10-15 times (Document 3).
exit timing
Within 6 months after the release of exploration results (stock prices usually reflect fully).
Exit when acquired by large mining companies (such as Zijin Mining's acquisition of Kamoa Copper Mine).
Key requirements:
Professional ability: able to interpret geological reports (JORC/NI 43-101 standard).
Resources: Coordinate with the geologist team (monthly consulting fee of $10000 to $20000).
2, Approach 2: Mineral Rights Transfer and Intermediary Services (Low Cost, High Commission) Operation Method:
Obtain mining rights information
Obtain information from mining rights exchanges, court auctions, and mining enterprise debt restructuring (Document 10).
Case: A Yunnan intermediary purchased a bankrupt lithium mine for 10 million yuan and sold it to Ningde Times for 150 million yuan a year later, earning a net profit of 140 million yuan.
Value enhancement operation
Apply for exploration license and complete preliminary drilling (with an investment of 500000 to 1 million).
Package JORC compliance resource report (cost 200000 to 300000).
Commission Model
Extract a commission of 3-8% based on the transaction amount (starting from 300000 yuan for projects with a commission of tens of millions).
Additional Options: Require the buyer to pay 1-2% equity options (Document 10).
Key requirements:
Government relations: Familiar with the transfer process of mining rights (especially in Africa and Latin America).
Capital network: linking mining rights buyers (listed companies, funds).
3, Approach 3: Technology service-oriented investment (with extremely low risk and stable cash flow) Operation method:
Selection of Light Asset Mode
Sales of quantum exploration data: lease quantum gravimeter to scan abandoned mining areas, and sell the data to Rio Tinto and other giants (500-2000 yuan/km2).
Tailings recycling: Contracting tailings ponds to extract valuable metals (cost 80 yuan/ton, profit 600 yuan/ton)+government subsidy 120 yuan/ton (Document 12).
operating procedure
Sign a profit sharing agreement with the mine (usually earning 30-50% of the profits).
Introduce technology partners (such as university laboratories).
Key requirements:
Technical patents: Possessing sorting/detection technology patents.
Policy dividend: Apply for circular economy subsidies (50 yuan per ton of tailings treatment in China).
4, Approach 4: Mining Fund Portfolio Investment (preferred by professional investors) Operation Method:
Fund participation method
Invest in mining ETFs (such as LIT Global Lithium Battery ETF) and mining stock portfolios (Document 1).
Purchase mining private equity funds (such as Lianchuang Yongxuan Mining Fund) with a minimum investment of 1 million yuan.
Merger arbitrage
Periodic investment: Buy mining company stocks during the low point of mineral prices (such as 40000 yuan/ton lithium price in 2020), and sell them at the high point (600000 yuan/ton in 2022).
Streaming protocol: Prepaid funds in exchange for future discounted mineral 名媛直播 (such as the Sandstorm Gold model).
Key requirements:
Cycle assessment: Track CRB metal index and China PMI data.
Diversification rule: Single project investment ≤ 20% of fund size, single country investment ≤ 50% (Document 13).
5, The Iron Law of Success: The Survival Rule for Small Investors
Never mine alone
The success rate of mining is less than 5% and requires hundreds of millions of funds (Document 7).
Leverage expertise rather than capital
Hiring a retired geological director (with an annual salary of 500000 yuan and options) is more cost-effective than blindly drilling.
Exiting is better than entering
Sign a repurchase agreement before investing (such as the right of first refusal for large mining companies).
case analysts
Rick Rule: By investing in 70 exploration companies, 26 have successfully exited, achieving an annualized return of 35%.
Zijin Mining: After acquiring undervalued projects and increasing reserves, the Kamoa copper mine's resource has increased from 28 million tons to 70 million tons, tripling its value.
Risk Control Checklist, Risk Types, Response Measures, Resource Risks, Investment Only Projects with JORC/NI 43-101 Reports, Political Risks, Priority Selection of Canadian and Australian Mineral Rights (Judicial Stability), Funding Risks, Adopting Farm in Agreement: Large Companies Bear Drilling Costs, Small Companies Retain Equity (Document 6), Technical Risks, Hiring Third Party Geological Audit (Cost 50000-100000 RMB/Project), Immediate Action Guide
Select exploration companies with a market value of less than CAD 50 million from the Canadian TSX-V and Australian ASX exchanges (Document 5).
Join mining investment associations (such as the Hong Kong International Mining Association) to obtain project resources.
Subscribe to the S&P Global Metals&Mining database (annual fee of $20000) to track project updates.
Through the above path, individuals or small companies can use a start-up capital of 1-5 million yuan to achieve a return of more than 5 times within 3-5 years, with controllable risks.
