Trader Tools Review: Tickerscores – Redrawing The Map On Junior Mining Research

How Tickerscores Works

One of the reasons this platform could be a potential game changer for investors is that, unlike many other filtering tools, Tickerscores goes beyond providing lists of junior mining and exploration companies based on price and traditional fundamental ratios.

Instead, the platform integrates information about multiple key areas of a company’s performance, evaluates each of those components and ultimately produces a “score” out of 100 that is then applied to the company.  So far exploration, producing and development companies are being included in the analysis with each category of company receiving slightly different weightings on the components that matter when analyzing their overall ‘health’.

An example of the different levels of importance placed on the management team, market valuation, project dynamics and financials for each category of company can be seen in the table below.

Analysis CategoryExploration CompaniesProducing CompaniesDevelopment Companies
WeightDefinitionWeightDefinitionWeightDefinition
Management Team20%Which management teams have the experience and expertise that yield the best odds at making a discovery? Which teams have created wealth for shareholders in the past?12%Which management teams have the experience running a producing mine? Which teams have learned to ramp up production efficiently and control costs effectively?25%Which management teams have the experience/expertise to bring a company from the development stage into production
Which teams have created wealth for shareholders in the past?
Valuation and Performance5%Do the company fundamentals line up with current price action in the stock?10%Do the company fundamentals line up with current price action in the stock?5%Do the company fundamentals line up with current price action in the stock?
Financials50%Which companies have the funds to “weather the storm” and fund exploration?18%Which companies have the funds to pursue growth and deliver shareholder returns30%Which companies have the funds to “weather the storm” and fund development?
Project Component25%“Project Potential”
Does the project have the potential for discovery upside?
60%“Production Efficiency and Future Growth”
Is the company taking the necessary steps to bring a mine to profitability? Is production increasing steadily?
40%“Project Details”
Does the project have the potential for discovery upside?

All of the above information is condensed into an informative ‘doughnut’ which provides the numerical score on the inside and colour codes the financial health as well as the management and project scores as additional rings (see below).

How the TickerScore works

Finally the information is plotted on a graph that plots market cap against the category appropriate to the type of company. For example, for producers, market cap is graphed against previous quarters’ production (in ounces) whereas for development companies.

TickerScores Graph of Results

In addition to the plots, there are also ‘Power Rankings’ and ‘Sliders’ that can help users focus in on a quick view of the top/bottom 10 (in the case of Power Rankings) and details on management, burn rate and cash range (in the case of the sliders)

The combination of data and visuals is what makes this an interesting tool for investors and certainly changes the way research on the mining and exploration sector can be done for self-directed investors.  There is a lot of information that is being gathered, analysed, ranked and presented so Tickerscores does a lot of the heavy lifting for investors in terms of analysis.

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