The Questions Rick Rule Asks Before Buying a Mining Stock
Most investors ask the wrong questions. Rick Rule shares the exact framework he uses to uncover billion-dollar opportunities before the market catches on.
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A few years ago, Rick Rule gave me an outline for interviewing mining companies. I took it seriously, and today these are the questions I use when interviewing CEOs and management teams.
During the 2026 Rule Symposium, I asked Rick to walk us through the framework again so investors could apply it to their own research. I have added ideas from other investors I respect - a big shoutout to Adrian Day and Jordan Roy-Byrne, but the foundation of the outline comes from Rick.
This framework was a gift he gave me years ago. It has helped me ask better questions, avoid weaker companies, and better understand where the real value may be hiding.
Now I want to pass that same gift along to you for the same price Rick gave it to me - Free. My goal is for you to write this down and print this outline so you can use it the next time you talk to a junior mining company.
Pay it forward, and please share this article with anyone that you think needs to hear it.
Let’s dive in.
Start With Price and Value
We begin with three basic numbers to establish the price.
What is the market capitalization?
How much cash does the company have?
How much debt does it carry?
Investors should also ask what the company’s assets could realistically be sold for today. A junior may have a $10 million market capitalization, yet its early-stage property might only attract a fraction of that amount from an informed buyer.
The important question is not whether a stock looks cheap. It is whether there is a meaningful gap between what the company is selling for and what its assets are actually worth.
As Rick explained, most investors pay constant attention to price while giving very little attention to value.
Has Management Done This Before?
Rick has taught me that people are the most important determinant of success. Mining requires many different skills. Finding a deposit, permitting it, financing construction, building the mine, and operating it profitably are separate tasks. Success in one area does not guarantee success in another.
Investors should ask whether management has previously succeeded at a task that closely resembles the one now in front of them. The commodity, geology, jurisdiction, language, and stage of development all matter. A person who operated a gold mine in Quebec may not necessarily be qualified to explore for copper in Peru.
Experience does not remove risk, but relevant experience can reduce the likelihood of costly mistakes.
Who Owns the Company?
Building a junior mining company can take five, ten, even twenty years. Rick wants management to have a meaningful financial incentive to stay committed. Ask how much of the company management owns, whether insiders purchased their shares, and who else appears on the shareholder register.
Strategic investors can matter as much as management ownership. A respected mining entrepreneur, major producer, or experienced investor may contribute capital, technical expertise, credibility, and valuable relationships. The goal is to understand who benefits if shareholders succeed, and who has an incentive to help make that happen.
Is the Opportunity Big Enough?
Nearly everything that can go wrong with a large mine can also go wrong with a small one. The difference is that a small project has limited upside.
“Big mines make you big money; small mines make you small money.” - Rick Rule
Rick prefers large targets because resource investing often depends on a small number of major winners offsetting numerous mistakes. A 10-bagger or 20-bagger can compensate for several losing positions, but only if the original opportunity was large enough.
We should ask how big the deposit or business could become and whether success would meaningfully change the company’s value.
What Is the Biggest Unanswered Question?
Every mining company has a key unanswered question. For an explorer, it may be whether drilling can expand the deposit. For a developer, it could involve permitting, metallurgy, financing, or infrastructure. For a producer, it may concern costs or recoveries.
Rick recommends asking management: “What is the most important unanswered question facing the company today?”
Then ask how it will be answered, how much it will cost, how long it will take, and what result would prove the thesis wrong.
We also need to match our timeline with the company’s timeline. If the question will take 18 months to answer, then we need to make sure we plan to hold for 18 months as well.
What Could Go Wrong?
Rick’s grandfather taught him that if he could not identify three problems with an investment, he did not understand it well enough to write the check.
Every company has risks. A CEO who claims otherwise is either unaware of the problems or unwilling to discuss them. Ask what keeps management awake at night, what could go wrong, and what the company is doing to reduce those risks.
Finally, identify a direct company contact who can explain press releases and answer questions. Rick prefers leaders who are deeply engaged and eager to discuss the business.
The Checklist
☐ Market capitalization, cash, and debt
☐ Current asset value
☐ Relevant management experience
☐ Insider and strategic ownership
☐ Scalability of the opportunity
☐ Most important unanswered question
☐ Cost and timeline to answer it
☐ Signs the thesis has failed
☐ Three major risks
☐ Management’s risk-reduction plan
☐ A direct company contact
Final Word
Rick has always been incredibly generous with his time and knowledge. I have thanked him many times and told him that he has no idea how much of a positive effect he has had on my life and my family’s life.
I said something similar onstage at the Rule Classroom Plus meetup. When I looked out into the audience, I saw a sea of heads nodding back at me. That confirmed I was not alone. Rick has helped a lot of people, and this conversation is another example of that generosity.
He genuinely wants to teach, help people, and give back. Rick has also told me to remember that lesson, and I should do the same for the next generation. We can start paying it forward now.
The framework in this interview is the literal outline I use when speaking with mining companies. The questions are almost verbatim from the sheet of paper I have carried with me since Rick first taught them to me.
I believe this outline provides an excellent blueprint for evaluating mining investments. Anyone can take these questions to a company booth at a symposium, use them during a video call with management, or apply them while researching a potential resource stock.
The answers matter, but so does the way management responds.
As you work through the questions, you begin to get a sense of whether the people across from you are knowledgeable, prepared, honest, and authentic. The conversation follows a natural path that can help you reach a go or no-go decision.
That does not mean every box will always be checked.
Rick has also taught me that something can go horribly wrong with every project. There is no risk-free mine, company, or investment. The objective is to identify “the good, the bad, and the ugly,” and determine whether management has a credible plan to address them.
The more risks you can eliminate - or at least understand and manage - the better your probability of success.
This is a fun game! Thanks for playing it with me.
Premium Members
In the Premium conversation, I sat down with Rick Rule for a direct review of the ten companies currently held in our Premium Portfolio. Rather than speaking in broad terms, we went company by company and looked at what has changed, what still supports the investment case, and where the biggest risks now sit.
What made the conversation useful was Rick’s willingness to separate a good story from a good investment. We discussed management, financing, jurisdiction, valuation, technical challenges, and the specific catalysts that could improve or weaken each company’s outlook. Across all ten names, the focus stayed on what matters most today and what could determine the next stage of each investment.
If you would like to join us on the Premium side, we would love to have you.
In addition to bonus interviews like this one, Premium members receive access to my personal portfolio and real-time trade alerts. Whenever I buy or sell a position, I tell you first.
You will also receive my weekend charting video, where I review the Premium Portfolio using our red, yellow, and green price levels.
Watch the Premium Conversation with Rick Rule here.
Thank you for being here. My team and I are grateful for your support. Have a wonderful day and happy trading!
-Steve Barton and Team
DISCLAIMER:
I am not a financial advisor. This is not financial advice. I only express my opinion based on my experience, and your experience may be different. These newsletters are for educational and motivational purposes only. Investing of any kind involves risk. Do your own due diligence. Every investment and bet come with the risk that your capital could go to zero.
Great video. Priceless information for the serious resource speculator. Thank you both!
yes, valuable information right here!
I have my fingers crossed that Josef Schachter will return to the show.....
He's a very smart & experienced energy expert !