A big thing for me is that you have to trust the ground that resource stocks are on.
If a gold speccy has a JORC resource, that's half the battle. That resource is worth somthing no matter what. If they are still drilling with a tiny resource and talking about production and cash flow, forget it IMO. Too often it can go wrong.
Same with oil stocks. It's harder to prove up oil acerage but if you're in a known are like the cooper basin etc then that brings down the risk substantially. But they've gotta at least have the acerage.
The other big thing is having the money to get the resource out of the ground. This is overlooked a lot IMO. Without this, you're looking at slow dilution and most spec stocks won't ever get to growing.
Bottom line is resource plus money plus experienced management equals GROWTH which equals SP rise sooner or later.
