Model Limitations

Model Limitations

As with all financial models, there are some limitations:

  1. We assume that all financial statements, project studies and reports are accurate.
  2. Our models focus on primary or secondary projects. If a company has not done work on a project in over 2 years it is not included in our system.
  3. We focus on precious metal equities with market capitalizations of under $1 billion. We believe that there is already enough research available on majors.
  4. The variables within the system reflect our belief on current market conditions. The variables and their weightings can change at any point.
  5. The Tickerscores system is our belief in how companies should be valued and which metrics are required to value them correctly.
  6. High scores do not necessarily mean high returns.
  7. Using a basket approach and selecting a basket of high scoring stocks has the ability to outperform a general mining index over the long term given current constraints

We continue to work diligently to improve the model by adding in even more variables and re-weighting criteria.