I don't know. I bought a nice Canadian silver mining stock.
I paid $0.23 ($0.26 canadian) for my shares about a year ago.
It is at $0.70 canadian now. I am up 300% in less than a year. Not bad for a $5k starting investment in 24000 shares of a penny stock. Haven't sold any yet because the company is worth in the billions just on their silver reserves alone.
How much of that profit was in the rise of the Canadian $.
Often penny stocks are just mining claims with little or no real development.
They get traded up when metal prices are high.
When prices fall, they crash hard and fast often becoming worthless.
The stocks will go up way more than the actual metal, sometimes 10x or 20x or more in an overheated market.
Does this company have any equipment or just claims?