Replace gold with commodities and its same principle.This is...

Replace gold with commodities and its same principle.
This is what we are waiting for and it's coming.

Myrmikan_Research_2025_01_14.pdf


"Junior gold mining companies are a special case. Their assets are rarely world class,
management can be suboptimal, access to capital is often tenuous and expensive; when
money comes rushing suddenly into the sector, there are no ETFs funneling money
into their stocks, making them lag sharp moves. It’s a tough sector to navigate.


BUT, they do excel at one thing: leverage. Not financial leverage—for they rarely
carry debt—but operational leverage.

When the gold price increases, the net present values of their projects rise the fastest; and in bull markets, the tiny multiples applied to their cash flows and NPVs converge toward the majors’ (the valuation multiples of which also increase substantially), applying multiple leverage on top of operational
leverage.

They generally move last and then the most.

This is the reason why 2024 was such a frustrating year for the juniors. The macro
economics evolved as we anticipated: high interest rates led to higher gold prices (not
lower, as bank analysts predicted); and commodities fell in terms of gold to a new 212-
year low, which should lead to higher real margins for gold mining over time."