Small-cap miners are expected to outperform their large-cap counterparts in the coming years in terms of financial health, as well as share prices, as most commodity prices improve over the coming years to 2020, new analysis from BMI Research shows.
According to the firm’s newly published outlook for mining stocks, small-cap miners typically include companies with market capitalisation of less than $10-billion and generally those in the early stages of business. They are presumed to have significant growth potential, but are not as financially strong or as established as larger companies.
