Rahemtulla’s “Gold This Pure Isn’t Supposed to Exist” Teaser

Sniffing out another pick from Oil & Energy Confidential

A couple weeks ago I covered the first teaser from Karim Rahemtulla’s newly launched Oil & Energy Confidential trading service — that was a pitch about natural gas offshore Cyprus, claiming that as the “only western civilian to cross the Strait of Hormuz” he had inside connections and contacts about the developments in the region (though Cyprus is, of course, a ways away from the Strait).

The pick he touted then, Noble Energy (NBL), is up 10-15% since we covered it (the broader market is also up, though slightly less — about 5-10%) … apparently that was enough for him to slap a “hold” on the pick despite his $300 price target, so he’s now getting us riled up about another stock, this one a little sub-$2 gold and copper company.

I think the artificial deadline has actually run out on his offer to sell you this idea as part of your subscription to his new newsletter, but, well, that needn’t stop us from digging in and seeing if we can name it for you.

His basic pitch is that he knows the company and put his “boots on the ground” at one of their properties … but, more importantly, that this is a stock with a high “beta” to the price of gold and copper (it has gone up more than the metal price during the bull run — presumably it’s also gone down more in recent weeks, though he didn’t mention that), and he expects gold and copper to “not go to zero” (I didn’t catch a price target in the presentation), and he thinks this is a hard asset “historic buying opportunity” as the miners recover.

We don’t get a lot of clues specifically about this company, other than that they have some assets that are in big gold and copper regions and surrounded by major mines, that they have more than 150 projects, and that the shares trade for less than two dollars.

So what is it?

Well, with those clues and the massive number of exploration and mining companies out there we can’t expect a 100% certain answer from the Thinkolator, but I did feed in those few clues, check up on the answers…

… and confirm that he’s very likely teasing Eurasian Minerals (EMXX in NY, EMX in Canada).

Eurasian minerals is one of the more successful examples of a breed of stocks that I generally like: Prospect and royalty generators, companies who turn some geologic insight or early staking and exploration and deal-making into viable mining prospects that they can then partner with a deep-pocketed mining firm, holding on to either a junior stake, or royalties on the project, or both.

And yes, they are traded under $2 a share — right around $1.70 at the moment. They do have “150+” properties in their portfolio, and, according to recent presentations, 69 that are advanced enough to be called “exploration projects.” They are not producing anything, but they do have a couple producing revenues that are generating some cash flow — and a dozen or so other royalties that may eventually be worth something.

To further add to the speculation that this is the pick Rahemtulla is flogging, it’s noteworthy that the stock is up about 20% over the last three or four weeks since his newsletter laun