The Discovery Pop
When a junior miner first drills a hole and finds high-grade rare earths, the stock price explodes. This is the “Discovery Phase.” Excitement drives valuation.
The Orphan Period
Then comes the hard part: Permitting, Environmental Assessments, and Feasibility Studies. This takes 5-10 years and costs millions without producing any revenue. Interest fades, and the stock price collapses. This long valley is known as the “Orphan Period.”
The Construction Rebound
Only the strongest companies survive the Orphan Period to reach the “Construction Phase,” where value returns as the mine nears production. Smart investors look for projects exiting the Orphan Period, not just entering it.