What Are the Top Junior Mining Companies to Watch in 2021?

Junior mining companies are those that are in the early stages of exploration and development of mineral resources. These companies are considered to be high-risk, high-reward investments as they often have limited operating histories, small market capitalizations, and significant exploration risks. However, they also have the potential for significant returns for investors who are willing to take on the risk. In this article, we will explore some of the topjunior mining companiesto watch in 2021.

Exploration and Production Companies

Exploration and production companies are the most common type of junior mining companies. These companies typically focus on finding and extracting mineral resources such as gold, silver, copper, and nickel. Some of the top exploration and production companies to watch in 2021 include:

1. New Found Gold Corp. (NFG.V): This Canadian-based company is focused on exploring and developing high-grade gold deposits in Newfoundland, Canada. New Found Gold has recently made significant discoveries at its Queensway project, which has led to a surge in its stock price.

2. Great Bear Resources Ltd. (GBR.V): Great Bear Resources is a Canadian-based exploration company focused on gold exploration in the Red Lake district of Ontario, Canada. The company has made significant discoveries at its Dixie project, which has led to a surge in its stock price.

3. SilverCrest Metals Inc. (SIL.TO): SilverCrest is a Canadian-based exploration and development company focused on precious metals such as silver and gold. The company's flagship project is the Las Chispas project in Mexico, which has significant high-grade silver and gold resources.

Royalty and Streaming Companies

Royalty and streaming companies are another type of junior mining company. These companies do not typically explore for or produce minerals themselves. Instead, they provide upfront financing to mining companies in exchange for a percentage of the revenue generated from the sale of minerals. Some of the top royalty and streaming companies to watch in 2021 include:

1. Wheaton Precious Metals Corp. (WPM.TO): Wheaton Precious Metals is one of the largest precious metals streaming companies in the world. The company has agreements with 19 operating mines and 9 development-stage projects, providing investors with exposure to a diversified portfolio of precious metals.

2. Franco-Nevada Corp. (FNV.TO): Franco-Nevada is a Canadian-based royalty and streaming company focused on precious metals such as gold, silver, and platinum group metals. The company has agreements with over 200 mining assets around the world, providing investors with exposure to a diversified portfolio of assets.

3. Sandstorm Gold Ltd. (SSL.TO): Sandstorm Gold is a Canadian-based royalty and streaming company focused on precious metals such as gold and silver. The company has agreements with over 200 mining assets around the world, providing investors with exposure to a diversified portfolio of assets.

Investment Strategies

Investing in junior mining companies can be a high-risk, high-reward proposition. Here are some investment strategies to consider when investing in these companies:

1. Diversification: Investing in a diversified portfolio of junior mining companies can help spread the risk and improve the chances of success.

2. Fundamental Analysis: Conductingfundamental analysison junior mining companies can help investors identify companies with strong management teams, solid financials, and promising exploration projects.

3. Technical Analysis: Conductingtechnical analysison junior mining companies can help investors identify potential entry and exit points based on historical price trends and technical indicators.

Conclusion

Junior mining companies can offer investors significant potential returns, but they also come with high risk. It is important to conduct thorough research and due diligence before investing in these companies. Some of the top junior mining companies to watch in 2021 include New Found Gold Corp., Great Bear Resources Ltd., SilverCrest Metals Inc., Wheaton Precious Metals Corp., Franco-Nevada Corp., and Sandstorm Gold Ltd. Investors should considerdiversificationand fundamental and technical analysis when investing in these companies.