To my knowledge, there is no index in existence today that measures junior mining companies focused on industrial metals. I have decided to construct my own called the Industrial Minefinder™ Junior Index (IMJI™). I launched a webpage for it today to establish my intellectual property rights to this concept.
The Industrial Minefinder™ Junior Index (IMJI™) is an index that tracks junior mining companies engaged in the exploration and development of industrial metals. In general, it does not include companies that are in production.
The IMJI™ will initially target 60% of its holdings towards juniors focused on the primary base metals — copper, zinc, nickel, and lead. The remaining 40% of holdings will target juniors focused on other major industrial metals, such as aluminum, graphite, iron, silver, lithium, manganese, molybdenum, platinum group metals, rare earths, scandium, tin, titanium, uranium, and vanadium.
The following chart shows the initial constituent categories of the IMJI™:
These categories will be periodically reviewed and adjusted in the future to reflect ongoing market dynamics. Please note the following concerning these categories:
Lithium, silver, and uranium initially have their own designated categories. This reflects the fact that each of these metals has a significant group of active junior miners and are a common focus of resource investors.
Although the markets for aluminum and iron are both about the size of the copper market, these do not have their own designated categories because they tend to be dominated by a few very large producers and there is less of a junior market.
I will periodically publish updated holdings on the IMJI™ page on this website.
The IMJI™ is not an index that holds every single junior miner involved in industrial metals, but rather focuses on a more select group of companies that are engaged in developing quality deposits across the spectrum of industrial metals. Preference is generally given to companies with:
established 43-101 or JORC Resources
larger market capitalizations
This helps ensure that the index:
reflects actual deposits of industrial metals that reflect potential development opportunites
represents a more liquid set of potential opportunities for investors looking to gain exposure to the sector
The IMJI™ has a total of 50 holdings.
I expect the IMJI™ to be a useful tool for analyzing certain aspects of the junior mining industry and the broader industrial metals sector in general with insights ultimately providing a distinct advantage for Industrial Minefinder™ subscribers.
I envision analysis initially focusing on the following:
Performance tracking of the broader index and the underlying metal categories. This will provide an interesting benchmark for myself and other industry participants.
Merger & acquisition activity within each metal category. I suspect that the tracking of this index will help signal when surges of deal flows are coming.
Size, grade, type, and jurisdictions of deposits. I anticipate that the comparison of these variables to performance will provide unique insights.
Open to Collaboration
Finally, I am open to collaboration with individuals and/or industry participants who are interested in providing:
(1) sophisticated technological assistance for tracking the index and publishing it on this website
and / or
(2) financial contributions that can be used to hire sophisticated technological assistance and/or generally promote the index to support capital investment into the junior mining sector.
I welcome your comments and suggestions below.
Joshua Hall, ChFC