Mining Stock Education · Tuesday, July 28, 2026
Samuel Pelaez highlights that junior companies undertaking large projects, such as porphyry developments, face significant challenges beyond just capital costs, including the need for specific know-how and access to skilled labor. He notes that technically complex projects are often unrealistic for juniors, leading to them being acquired, often not at premium valuations unless they have a tier-one asset.
“So, for for large projects, uh, capex is only one of them. The second one is know-how, access to the pool of labor.”
“If you're going to build a porphyrry, or, you know, in the case of some deposits, they're technically so complex that the market knows that they're not realistic for the junior company to actually go ahead with it.”
“Unfortunately for those companies, uh, they do get taken out.”