Gold and Silver and Hard Assets after Trump’s Inauguration…2017MAKE YOUR PORTFOLIO GREAT AGAIN !
This thread is a continuation of several threads posted previously by the author on gold and silver and hard asset investments. I am still a believer in hard assets. I also believe we are entering a period of inflation with continued dollar devaluation, higher interest rates, and a sluggish economy with chaotic dislocations. I believe there will be a lot of uncertainty and high volatility.
PURPOSE My intent is to find and discuss good mining and commodity ideas. Gold and silver remain a focus, but I want to achieve a more balanced approach still based on tangible commodities.
STEEL and IRON ORE…I believe Trump’s programs will benefit iron ore and steel. Stocks in this sector have been beaten down terribly but are rebounding. I am long VALE, a Brazilian company which is the world’s largest iron ore producer. I have been long Arcelor Mittal but do not have a position at the moment. Anybody know anything about cement and asphalt ?
COPPER, ZINC, PGM METALS…My very best conviction stock is Ivanhoe Mines IVPAF. I am completely comfortable with a large single position in IVPAF to cover these metals. However other investors may be uncomfortable with a small cap in sub-Saharan Africa. So I think it is beneficial to introduce other names even though I myself am not interested. Rio Tinto, Freeport-McMoran, Teck, Turquoise Hill, BHP and others come to mind. Travis, our host, is long Altius Minerals, and I have been also.
URANIUM…I’m bullish but the choices seem pretty limited. My top three investment-grade choices are Cameco first, then Cameco second, or my third pick would be Cameco. After that, you are speculating on small caps, or buying ETFS or funds comprised of Cameco and some small caps. At the moment, I am long Cameco and UEC.
LITHIUM…I am considering a long position in lithium. I have nothing to recommend at the moment, although I am strongly considering Galaxy, an Australian company. And I like Neometals, also an Australian, but it is difficult to get from my broker, who hates it when I want to buy obscure 50 cent companies on small foreign exchanges. If anybody’s got a great battery play, I am interested.
POTASH/FERTILIZER…very interested but they all seem pretty expensive. There has been consolidation but I have considered Agrium, Mosaic, and there is a German company whose name I forget at the moment (K&D? K&S?).
OIL AND GAS…I would like some very good conviction picks accompanied by strong reasons and decent research. This field is so big, we could get completely lost just tossing names around. I am somewhat worried about price weakness in the energy sector but feel that it is worthwhile to develop a point of view on a few companies. I have little experience although I made very good money in the past on XOM and CVX. Currently I would be interested in pipelines, LNG, or any other sector that someone knows something about. In natgas I like OGZPY.
SOLAR and WIND…really not too interested. The results depend too much on politics, the time frames seem too long. But I am not completely closed-minded on it if you have conviction on something.
COAL…same opinion as solar and wind, but the prices are low and depressed instead of hyped and high-flying. I am still stuck with some defaulted Arch Coal bonds that my financial advisor recommended. They went to ZERO. Now they are worth a Starbucks latte and a pastry. And no espresso shot in the latte, either.
AGRICULTURE…very interested. A large sector but really not too many choices if you rule out futures, like I do. I have a few obscure favorites, but no positions at present:
WHGPY (Chinese pork processor who bought Smithfield)
LAND (Gladstone Land, California farmland)
INCPY (Input Capital, a Canadian canola, streaming model).
Open to more conventional picks like ADM and DBA.
GOLD AND SILVER…my picks have been discussed at length previously. I follow these pretty closely. I am long royalty/streamers SAND, FNV, SLW, and OR; miners PVG, MAG; developers SA, CLASF, MRDCF, BALMF, KNTNF, and LXVMF; and I own PSLV and physical bullion. I swing trade big caps ABX and NEM.
****
DISCLOSURES. I am a retired executive and an amateur investor. I like both fundamental and technical analysis. I am a medium-term to long-term position player and prefer to discuss stock investment in that context. Please no minute-by-minute reports that oil is now 52.50 down 10 cents and the Iranians may suspend Ramadan next week so you are going long until the afternoon bell.
I am not an expert in any of the commodities discussed nor am I qualified to give advice.
Everyone makes mistakes and I make more than my share.Sometimes I change my mind.
When I post, I express my opinions and my positions. These are just that…they are my opinions and my positions. They are not advice or recommendations, which I remind you I am unqualified to make.
Opinions and positions are subject to change at any moment. That is quite unlike the pig-headed and foolish political convictions everybody carries around adamantly, and which change only rarely for unpredictable reasons that have nothing to do with logical thought or reasoned discussion.
Because of this, political developments can be introduced on this thread only when they have a clear bearing on the commodities or companies under discussion.
You are responsible for your decisions, and I am responsible for mine. Caveat emptor.
I would like to operate in a friendly, honest, and constructive atmosphere.
As thread moderator I reserve to myself the role of referee, censor, arbiter, and Grand Poobah, subject to the over-arching authority of Travis, who owns the site and who has on occasion exercised his right to ruthlessly censor and suppress my radical blatherings.
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
ATTENTION: raisonme, re: $SAND…it is somewhat to be expected that the relative price of Sandstorm range-wise will correspond to the relative price of gold range-wise; but I think that Sandstorm will perform significantly better than the price of gold.
I believe that $SAND, as a royalty and streaming company, will have the leverage inherent to
gold royalty companies. But I also believe Sandstorm’s portfolio quality, investment assets, and superior management are not being properly considered in its stock price.
It would be a worthwhile use of your time to peruse the Sandstorm Gold website.
I have printed out the investor presentation and review it fairly regularly. This is a company in which I have a very high level of confidence.
Just to clarify from my post on the older site, I mentioned SAND, before trading today, was priced exactly between its 12 month high and low. I also mentioned that the price of gold was also approximately half way between its 12 month high and low. However this should not be confused with SAND and gold going up together at an equal ratio. I know from the time I bought it at 3 in march, to when it hit over 6 in the summer, gold had gone up about 20-25% while SAND had gone up over 100%.
SAND Actually allow me to provide the real numbers, Between 3/20/16, when gold was at 1262 and SAND was at 3.1, and 8/12/16 when SAND hit its yearly high at 6.75, and gold was at 1335. So for that 5 month period of time, gold went up less than 6%, while SAND went up 118%. At that point, the price of SAND was probably a good bit ahead of itself, and its quite a bit off from that now.
Final thought looking at these numbers, and also speaking to HNs original point here. Going back to march/16 the price of gold was higher than it is now, and SAND was priced at 3.10. So from the standpoint of the gold field, that particular purchase was well timed [I’d like to think some skill involved as opposed to raw luck], in that [as of right now], i got a 44% increase on this gold stock during a period when the price of gold has actually gone down.
Thank you very much, HN.
You are welcome. Hope we all make a lot of money.
NICKEL…forgot to mention nickel, also fair game for discussion.
GRAPHENE… forgot to mention graphene, also fair game for discussion? Graphene 3D Lab Inc OTCQB: GPHBF
I allow it … although graphene is not really a commodity, it is manufactured technological product. Although it is composed of pure carbon, it is not a commodity in the sense of being a raw or base material. However it is a subject of interest to me and has applications in areas of interest such as defence and water purification. So, Okay.
I believe $LMT Lockheed-Martin has some big plans with graphene. It has been a while since I was long LMT, I cashed out well before I got gold fever. I like LMT
even though they are the poster child of the military-industrial complex and Deep State. Prices now may be a little high.
Almost all of the “graphene” stories are pitching potential (or existing) graphite mines, since folks presume that the best source of graphene will be high-purity graphite (though since graphene is not yet something that can be commercially produced at scale and probably won’t be for a while as the science is advanced, that’s still up for debate). The challenge comes from the fact that the largest market for graphite now is steel blast furnaces, so graphite prices are determined much more by the steel industry’s health than they are on the someday future demand for graphene.
Likely graphite will feel the impact of lithium ion battery expansion long before it feels the impact of graphene demand, but it’s also not at all precious or rare and its priced by the tonne so it’s very hard to see fortunes coming from graphite because of new markets that are relatively small compared to steel (particularly graphene, whose price in the future will be almost entirely dependent on the cost to process either artificial or natural graphite into graphene, pricing won’t be based on the price of the raw commodity to even the degree that semiconductor chips are priced based on the cost of raw silicon).
Graphene is very cool, but to me it’s a non-factor when it comes to graphite mines.
$TLGRF np – Pure Carbon Mining thread http://www.stockgumshoe.com/2017/01/microblog-pure-carbon-mining/
CVD $ CVV is a small corporation that is into graphene production. It has been going up slowly after bottoming in July, now $10.00. I believe that Lockheed is its main customer.
A problem with it is small volume coupled with a very greedy market maker. Forget market orders and they only offer up 1 to 300 shares with a widely spread bid and ask. CEO automatically sells at $15 in the past.
But it seems like a good company with great potential.
I agree, I am more interested in the players who will get positions in big applications like water desalinization or aerospace or biotech.
Alos any companies that have good patents.
Graphene is irrelevant as a commodity.
Hn and others long SAND, IVPAF, MRDCF thanks Hn and ASX NEO Metals.
Small ASX Junior Graphene FGR price range 11/15c First Graphite is worth looking at :
Brief Overview:
– low capex & opex no need to spend $80/100m re mining & processing, plant etc one of reasons it can produce graphene at a low price,
– located in Sri Lanka with large holding 39,500 hectares with over 200 old mines.
They know where all the veins are , and using DHTEM and their own drill to confirm,
– absolute quality SL vein – basically natural graphene – FGR are just separating the platelets that’s why it is so quick and easy,
– no need to have a JORC as they’re not needing to raise big money for costly mines/processing,
– business plan with total vertical integration from mining , producing graphene and partnering manufacturers and licensing new technology solutions to have a financial interest in the final product.
As Hn and Travis both say take a look and form your own opinion, it’s your
Money and call.
Website http://www.firstgraphite.com.au
Email: info@ firstgraphite.com.au
TSX-V: GGG $0.18 OTCQB: GPHBF $0.14 Press release”Conductive Graphene Filament” now available in 3 mm http://www.graphene3dlab.com/s/home.asp
News – http://www.graphene3dlab.com/s/news.asp?ReportID=776518&_Type=News&_Title=Graphene-3D-Lab-Expands-Product-Line-of-Conductive-3D-Printing-Materials
Royalty and streaming companies…”A man’s got to know his own limitations.”
I love Clint Eastwood’s “Dirty Harry” series. Besides his character and persona, and the political point of view of the films, I can watch them over and over since I left my heart in San Francisco and have a blast identifying all the old spots and haunts.
Anyway. In the film Magnum Force, after Harry has escaped death and blown up the evil mastermind of the police conspiracy, he squints at the burning car with the incinerated
bad guy and says, “A man’s got to know his own limitations.”
What does this have to do with commodity stocks ? I’ll tell you:
We are amateurs. We look for ideas and advice and are then confronted with the investment equivalent of “talking heads”. Who can we trust ? Who knows ? Who has the best ideas ?
We are not financial guys, lawyers or geologists. We do not know what is going on in the politics of a lot of the countries where these companies have assets. We cannot predict with accuracy the future prices of the underlying commodities. But the best picks often depend on a combination of these factors, and WE HAVE OUR LIMITATIONS.
Therefore, I have found it helpful to examine very closely the composition of the deals done by the royalty and streaming companies. (Also the investments made by certain respected parties, like Rick Rule, or Eric Sprott, although of course one must be careful here.)
The royalty and streaming companies have geologists, lawyers and financial guys and look in detail at the miners. They are doing what we are trying to do, they do it for a living, and they are investing large amounts of their own money doing it.
Doing this helps to understand the strength and focus royalty company itself. It is good due diligence on the royalty company. But it also generates a lot of names, leads, and confirmations on other companies of interest, many of which you have never heard of.
One cannot follow blindly. But it is a lot more reassuring to know that Nolan Watson and Sandstorm Gold have three important deals with Yamana Gold, or that Rick Rule has a large position in Colorado Resources, than to go by the recommendation of a guy on Seeking Alpha or a paid newsletter.
$GLFH long – Mr. Ron Barranco Joins Galenfeha’s Executive Team
MR. RON BARRANCO JOINS GALENFEHA’S EXECUTIVE TEAM, COMPANY SIGNS LETTER OF INTENT TO ACQUIRE ADDITIVE MANUFACTURING, LLC http://www.galenfeha.com/PressRelease
$BALMF – Balmoral Intersects 41.95 Metres Grading 3.24 g/t Gold Including 11.58 Metres Grading 6.30 g/t Gold, Bug South Gold Deposit, Martiniere Property,
http://www.balmoralresources.com/assets/docs/nr/nr17-02-23-01-01-bar-intersects-11-58-m-grading-6-30-m.pdf
no position
+HN, You’ll like Ivanhoe 40% more. – New drill results significantly expand Kakula Copper Discovery
at the Kamoa-Kakula Project
https://www.ivanhoemines.com/assets/docs/nr/ivanhoe-mines-kakula-drill-results-january-23,-2017.pdf
no position
Thanks, Griffin. I am long BALMF, but to raise money for some other ideas I may prune it. There is nothing wrong with it, but I do not have unlimited free capital for other sector picks and I have gold and zinc well-covered.
RE: Lithium- Own Lithium Americas as a spec stock.
Up 250% this year.
Lithium Americas Corp., formerly Western Lithium USA Corp., is a resource company. The Company is focused on development of two lithium development projects: the Cauchari-Olaroz project, which is located in Jujuy province of Argentina and the Lithium Nevada project, which is located in north-western Nevada, the United States. Its segments are Organoclay, Lithium Nevada, Cauchari-Olaroz and Corporate. Its geographical segments are Canada, the United States, Germany and Argentina. The Cauchari-Olaroz project is a lithium brine mineral project. The Lithium Nevada project is a smectite clay-based lithium project. In addition, its plant facility located in Fernley, Nevada, is constructed to manufacture specialty organoclay products (Hectatone products), derived from hectorite and other clays. Hectatone specialty organoclay products, derived from its hectorite clay and other clays, are used by oil and gas industry as specialty viscosifier additives for drilling fluids and in other sectors.
Hi Hedy1234,
I have done quite well with Electrovaya in that field tripling my modest investment (TSX: EFL and the OTC Best Market OTCQX: EFLVF). They have quite a comprehensive technology portfolio if you are interested: http://electrovaya.com/
Good job HN on the new thread!
Long $EFL
HN: Many thanks for Ivanhoe and PVG. Hanging on there with SAND.
Your due diligence and hard work is appreciated.
Just hand in there with Sandstorm. I think of it as a bank savings account. It will literally pay dividends one day and you will get ginormous capital appreciation. I am more comfortable having Sandstorm than I am having dollars. I realize this sounds extremist, but that is the way I feel about it.
No bank or financial services company gives me more confidence in managing and investing my money for a good return than Nolan Watson and his team at Sandstorm Gold does.
Lithium…Galaxy and Anthony Tse…I am not recommending Galaxy, I have no position, but I am close to pulling the trigger and would like some feedback.
First, Galaxy has both brine (South America) and hard rock (Australian) projects. Anthoiny Tse, the CEO, appears to be really bright and on top of things, and he gives a pretty persuasive and educational presentation on the industry (which you can find on youtube, google Swiss Mining Institute Anthony Tse Galaxy).
This is a new sector for me. really would like some feedback.
Well its made a big move this year up 200% to 900million market cap.
Not sure of the impact of this:
“FACTBOX-New mines, expansions in lithium
10:31 AM ET, 12/14/2016 – Reuters
LONDON, Dec 14 (Reuters) – The global lithium market is heading for a surplus as big producers gear up for more production and other miners plan new projects.
The four main lithium producers this year announced expansion projects that would add a total 43,500 tonnes of lithium hydroxide production capacity over the next two to three years, according to consultancy Roskill.
That would be equivalent to over a fifth of lithium output this year, based on Macquarie forecasts.
There are also a slew of new projects on the drawing boards. Bernstein listed 35 projects which have combined resources of 90 million tonnes.
Below are details of recent expansion plans by major lithium groups and several new projects.”
Production is up, its true, but it is not going up as fast as battery useage. Tse’s presentation has some very interesting data on demand growth in lithium, and demand growth is way ahead of supply growth.
And I agree on Galaxy’s recent move up, we are not bottom fishing on this one now. I just hit 50 cents but fell back and the dip got me interested. Galaxy seems to be a pretty solid pick as far a junior lithium producers go.They have actual production and sales and so on. We are not speculating on rocks in the ground.
Tse is not an appealing character like Friedland but he seems awfully sharp.
$BALMF…I should have checked today’s price action on $BALMF before being so indifferent. I guess the news on the link by Griffin got some people excited. Still may sell, I need cash.
Today…a giant step in MAKING MY PORTFOLIO GREAT AGAIN…
Ivanhoe closed at $3.00. Mariana Resources was up 10%. And some nice moves on a few others. When Ivanhoe and biotech Arch Therapeutics make moves like they did today, the rest of my portfolio can take the day off.
Today was not a great day in the stock market, or even in the gold sector. But it was my single biggest daily increase ever, on account of my outsized positions in Ivanhoe Mines, Mariana Resources, and Arch Therapeutics.
After the euphoria a super day, I looked at the action in various stocks and I think it confirms my suspicion that we are at the beginning of a secular bull market in the mining commodities. My observations are not conclusive but there are a few things about today’s action that are a noticeable:
First, gold and silver were up but not dramatically…it almost looked like a normal “good” up-day, if you just look at the action of the spot prices.
Traditional gold and silver vehicles like NEM and AEM and ABX were also up, but again the jumps were not dramatic…except, there was a slight increase in the leverage ratios. Last year I got used to seeing a 3:1 leverage in the gold spot movement compared to the big cap miner movement.
Today is seemed closer to 4:1.
And the jump in some explorers and developers was really dramatic. Some of them, Like Mariana, were up 8% to 10%; and Balmoral was up way more than that.
Moving out of precious metals to copper and zinc, we already know what happened to Ivanhoe. Big-time increase. And note Balmoral also has a large zinc value.
We also saw a good move in VALE, a proxy for steel and iron ore. Uranium also seemed strong. PGM’s were moving last week. And even my obscure cobalt speculation CleanTeq seemed to awaken from its coma.
Big party with lots of guests. Now I admit, oil and gas are missing from the party, and as I say the price action in gold and silver was only modest. But my feeling is that the spot prices of gold and silver are being suppressed. This would account for larger increases in more speculative explorer/developer types, and also explain nicely the somewhat higher but not “screaming bull” increases in big caps and royalty companies.
Bottom line is I think that today’s action confirms the speculation of my opening thread: That we are entering a secular bull in commodities, with dollar value erosion and inflation soon to follow.
Long all companies mentioned
I’m contemplating increasing my positions in mining stocks. I have about 30% of my portfolio in cash so it may be time to increase my positions in mining stocks. I’m in SAND, IVPAF, PVG, Mariana, TECK, Osinko Royalties, and a few others. I was in SLW but was in the hole for so long I bailed. I’m still thinking about SA and MAG, and maybe increasing my stake in Ivanhoe.
Ironically I am thinking of lightening up a little around the edges on gold because I am ridiculously overweight there.
There is still a chance of deflation, I want to diversify, and I have come to the conclusion that the gold prices are highly manipulated. But as I say my allocation in gold is probably far above most people.
I also probably have different objectives from most people in my stock and metal investments. I am looking primarily for nominal asset value protection, and outsized capital gains on my positions.
A potential return of a double is not terribly exciting for me.
These are somewhat contradictory goals but I have harmonized them by buying solid “speculative” stocks that I think are close to
their current intrinsic value.
We have very similar portfolios except I am overweight NDM my biggest position
Had a position in Mariana earlier on and made good $ overweight Arth and Ivanhoe
Considering taking another position in Mariana. Should be an easy double
from here.
I like the fact that Hot Maden is also a copper play. It’s a very rich deposit, and the Turkish partner is a muscleman (true that Lidya is a strong company but that’s a pun…Musselman is archaic for Muslim).
From what I have seen they are charging ahead pretty fast to build a mine. This is a deposit that will see a mine on it in record time.
$IVPAF Ivanhoe Mines…an excellent post by secretsquirrel on the old thread. It is a diagram of the Kamoa/Kakula deposit.
http://www.marketwired.com/press-release/new-drill-results-significantly-expand-kakula-copper-discovery-kamoa-kakula-project-tsx-ivn-2190109.htm
Thanks hn
Regards TSE:IVN, I trimmed most of my positions in gold/silver stocks a few weeks back and jumped both feet into more Ivanhoe, which is now 70% of my total holdings X physical gold. Top heavy I know but so far very happy with the results as this should (and I hate to count my eggs before that hatch) be a $C10+ stock in the not to distant future and from there who knows?
Although a pullback is possible it would take a brave man to trade or take profits with the way it’s been running up, each to their own though, me I’m just watching it unfold. Sods law says now I’m in deep it’s bound to correct, still we will see, anyway the fundementials are very sound and Friedland is at the helm.
The other positions I’ve held onto are Erdene Resources, Colorado Resources and Clean TeQ.
Wow, I thought my position of Ivanhoe on 20% of portfolio was way too big, but 70% is huge 😉
Yes “Yuge”, guess that makes me an aggressive investor or a fool or a genius, time will tell but just seemed to stand out from the crowd. Sure some political risk, but the 3 projects are all world class, show me another?
Once in a lifetime opportunity imo even at today’s price of just north of $C4.
Buy, hold, watch unfold…..
$IVPAF….20% is way too big… and I have over 20% also.
Haha…I love your answer, HN! I’m just waiting for a dip (if it will ever come) to buy more IVN.
I like to quote Jim Rogers who says diversification is the biggest enemy if you want to get rich. You just have to make sure that you have all the right eggs in the right basket 😉 For me this is why I spend around 6-7 hours per day looking at the market and following the stocks very closely. Since I’m taking on a bigger risk than normal investors do I need to pay attention to my picks.
I have found that you can pay less attention with fewer picks, if the picks are good and they move in the right direction early.
That’s very true, and I should have fewer stocks in my portfolio. It’s not that easy for me, though…since I have faith in too many stocks 🙂
I really like Jim Rogers…an attractive personality, humble, and humorous. Very self-deprecating, not at all too impressed with himself and not afraid to admit what he doesn’t know or when he is wrong.
SSquirrel: You must have bought $IVPAF when the price was in the 30s & 40s (cents) not so very long ago. Good for you!
Penny (alas not long $IVPAF)
No certainly not at those low prices! Been adding all the way through as the news momentum built and the size/quality of the finds just got better. I only see the current position as a starting point price wise and see no real point in adding any further shares.
All said and done very bullish about Ivanhoe but accept that things can and do happen beyond all our control. Question of risk appetite, but certainly not trading or selling any. Just sitting tight and as said watching it all unfold.
As hn commented recently silver and more so gold are so manipulated and got a good amount of physical plus the other stocks I previously mentioned.
I sold all my sliver bullion to buy more Ivanhoe a while back….
I trimmed gold to buy more Ivan. My silver position is too small, a target for increase.
In my sick and demented worldview, adding silver, copper, steel, and uranium is diversification.
hn – your line of thinking is right there with my significant other’s.
Penny
Tree Rat Enigma…Gotta tell you, I wish I had the courage to have a bigger position in Ivan. I think you will be happy with it.
To help control myself I have my Ivanhoe holdings spread around in different accounts. In total, with the recent jump, it is now a little over 20% of my holdings and I am completely comfortable.
$IVPAF
Hey guys, I’m late to the party in this one. You think there is still lots of room to grow on this one?
Hi lf75,
My question too. Or would we be participating in some sort of Beanie-Baby-like mass mania situation? (Or is the man in the street not yet wanting to get in on the action?)
Inquiring minds want to know.
(Signed) Anonymous
Short answer, Yes. Long answer posted separately, but please do read it.
Not sure if this has been touched on, but any thoughts on this hn?
Cordoba Minerals (TSX-V: CDB) CEO Mario Stifano on a Very Robust Initial Resource, Robert Friedland’s Involvement, and the Potential Massive Upside Ahead
Hi, I think I posted my impressions on the old thread. As I recall, Friedland’s involvement is not direct, and the project is inferior to Kamoa/Kakula.
The great deposit is the enemy of the good.
I’ve been digging into the details when it comes to shareholders and Robert Friedland’s son is a shareholder in CDB (he also runs a uranium-company in Niger btw).
$FFMGF – First Mining Commences In-Fill And Resource Expansion Drilling At Goldlund Project And Announces Acquisition Of Claims In Ontario And Quebec
https://www.firstminingfinance.com/news-room/first-mining-commences-in-fill-and-resource-expansion-drilling-at-goldlund-project-and-announces-acquisition-of-claims-in-ontario-and-quebec
FFMGF long
I am not big into mining stocks which is why the only precious metals stocks I own are streaming giants $SLW & $GG. I do have two other speculative stocks which one being a local junior miner call Robex (TSX: $RBX) but I am so far underwater that even Kevin Costner in the Guardian could not rescue me… My only other player is based on the concept that the only people that made money during the Gold rush were those selling picks and shovels! Therefore, I have some mad money invested into a penny stock company name Nippon Dragon Resources Inc (TSX: $NIP). They are a Hybrid Mining & Technology Company. The Chinese have invested heavily in them in the last 2 years and they are slowly but surely securing contracts worldwide and getting gold “royalty” from their mining operations as well. An excerpt from the website below:
“Nippon Dragon Resources Inc. is without a doubt one of the most innovative junior mining companies operating today. The Company’s patented “thermal fragmentation” process is ideal for high grade precious/base metal vein deposits. The exploitation of high-grade precious/base metal veins with its exclusive thermal fragmentation process coupled with conventional mining methods will lead the Company in becoming a mid-size gold producer”. Thermal fragmentationIt is a mining method that uses heat in order to shatter/spall the high-grade veins greatly reducing the use of explosives. They call it Swiss Cheese mining which is the art of making openings of different sizes economically and safely.
What I like of this company is that $NIP gets revenues from selling its new method of mining gold and receiving physical gold or royalties in addition. For the last year, the stock’s price has oscillated between $0.05 and $0.11 CND due primarily to several private placements by the Chinese at $0.07.
The stock is up today about 7% at $0.075 as there is new about them optimizing exploration of its Rocmec 1 and Denain properties: http://web.tmxmoney.com/article.php?newsid=7149072033498791&qm_symbol=NIP
Corporate presentation: http://www.nippondragon.com/index.php/en/about-us/corporate-presentation
Long $NIP with a starter position
Miners suck. I have only a few, I am proportionately heavier in small caps, royalty/streamers, exploration/developers, and physical. I am light in big cap miners
Not that my strategy is good for everyone.
https://www.miningindaba.com/ehome/index.php?eventid=174097
The Cape Town mining Indaba Feb 6th to Feb 9th.
Friedland and Rule are both there. Analysts will I expect be invited to fly up visit Ivanhoe after this event before probably increasing their respective price targets.
For those interested:
Canaccord Genuity Raises Ivanhoe Mines Ltd (IVN) Price Target to C$6.00 January 24th, 2017
http://www.financial-market-news.com/canaccord-genuity-raises-ivanhoe-mines-ltd-ivn-price-target-to-c6-00/1276634/
Say no more…..
Price: US$/lb
Copper January 24,12:59
Bid/Ask 2.6773 – 2.6779
Change +0.0671 +2.57%
Low/High 2.6114 – 2.6809
Charts
Nickel January 24,12:57
Bid/Ask 4.4233 – 4.4255
Change +0.0423 +0.97%
Low/High 4.3779 – 4.4686
Charts
Aluminum January 24,12:59
Bid/Ask 0.8483 – 0.8485
Change +0.0061 +0.72%
Low/High 0.8352 – 0.8576
Charts
Zinc January 24,12:59
Bid/Ask 1.2726 – 1.2733
Change +0.0120 +0.95%
Low/High 1.2551 – 1.2750
Charts