Mineral, Oil & Gas (MOG) companies are those whose principal activities consist of exploration for or extraction of minerals, oil or gas. An investment in an MOG company will provide exposure to the underlying resource prices.
MOG companies have many unique characteristics. In many cases, MOG companies do not initially generate revenues nor profits, however, they may possess exploration & exploitation rights for a potentially profitable MOG discovery. The resource and reserve classification system is used to express the economic confidence in any particular mineral or oil & gas resource.
MOG companies may undergo long periods of time without economic realisation, and may return to the market for several rounds of fund raising for further project development.
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