Central Sun Mining: When the Dust Settles, Juniors Will Shine

The previous months have been a challenging time for mining stock investors, at least for these who invest in the junior sector. Since the credit crisis stroke, junior stocks suffered a great deal.<!---->

In retrospect, there are some reasons behind this underperformance of junior mining stocks, as they had attributes which most investors were avoiding since early August 2007: big appetite for capital, high beta, comparably low trading volume, very long development time and high dependency on investors’ ability to take risks. The far more important question for now is, will the junior sector recover and is the story still the same? The answer is: yes, but the game will be different this time.