Yearly Archives: 2013

Are the Uranium, Graphite and Rare Earth Miners Ready To Breakout?

Are the Uranium, Graphite and Rare Earth Miners Ready To Breakout?
I have been carefully scouring the resource markets for exceptional opportunities over the past few months and indicated numerous times about the potential rebound and breakout in uranium, graphite, PGM's and rare earth mining stocks. At the end of October, I said to watch for a rebound in uranium as major volume accumulated shares of Uranium Participation Corp which has now just broken out into new nine month highs and made a bullish golden crossover of the 50 and 200 day moving average. In addition, I highlighted a few months ago to buy NYSE graphite bellwether Graftech and some of the high quality graphite miners. All these graphite stocks mentioned above have been breaking out on major volume this week as predicted. I also told you about increased M&A in the rare earths and graphite sector. Now Molycorp has just broken out on huge volume as even this giant could be a takeout target of Molymet as it trades below book value.
Read more

U.S. Defense Department Conducting Research With Junior Rare Earth Miner

U.S. Defense Department Conducting Research With Junior Rare Earth Miner
The Pentagon just released an encouraging report that says that The West is making progress in breaking the Chinese Monopoly on heavy rare earths. The U.S. Department of Defense is hoping to build a domestic rare earth supply chain that can provide the rare earths for the military and industrial sector. Prices are basing indicating that the market believes that additional supplies of rare earths will come online. These critical rare earths are important for some of the top soaring stocks such as Apple, Tesla, Vestas, Raytheon, GM and Boeing. Closely watch the rare earth sector as the U.S. flies B-52 bombers into disputed zones with China. Escalating tensions may have major implications on the price of rare earth oxides in the West. China controls 99% of heavy rare earth production which is critical for the West’s latest military technologies. The Chinese just announced a major cut in heavy rare earth exports.
Read more

Look For Leverage To Rising Gold Prices With No Expiration

Look For Leverage To Rising Gold Prices With No Expiration
The long term trend in gold remains higher and this correction may provide opportunities for precious metals investors to gain exposure to highly leveraged vehicles to the gold price. This stock is like an option on the gold price with no decaying time value or expiration. This asset is one of the largest undeveloped deposits in the world still 100% controlled by a junior. Hundreds of millions of dollars have been spent on this asset with 792 drill holes yet investors can purchase the company for around a $40 million market cap way below its book value.
Read more

Uranium Bellwethers Outperforming S&P500 By Wide Margin in 2013 (CCJ, ARVCF, RIO)

Uranium Bellwethers Outperforming S&P500 By Wide Margin in 2013 (CCJ, ARVCF, RIO)
The recent low price in uranium which hit 8 year lows in 2013 may actually be the catalyst to look for higher grade and more economic uranium deposits in the Athabasca Basin in mining friendly Saskatchewan. Higher cost mines are being shut down or delayed, however new uranium discoveries are receiving a lot of attention especially in the Athabasca Basin which is the highest grade uranium mining district in the world. This low price in uranium is why Cameco, Rio Tinto and Denison have been buying junior uranium explorers in the Athabasca Basin trading at bargains. These assets are high grade meaning potentially lower production costs in a stable jurisdiction. Smart money knows nuclear power is here to stay as there are more reactors operating and under construction now post-Fukushima than from before the once in a millennium natural disaster.
Read more

Uranium Price Makes Fourth Quarter Comeback Surprise

Uranium Price Makes Fourth Quarter Comeback Surprise
Similar to Peyton Manning and Joe Montana, uranium is making a great fourth quarter comeback after many fans have already left the stadium. As predicted, Uranium Participation is outperforming the S&P500 in November up over 13% while the S&P500 makes a 2.5% move. Watch these three junior uranium mining stocks as we end 2013. Some are already making major breakouts. We may be watching a great fourth quarter comeback in some of these high quality junior mining shares.
Read more

Emerging Gold Producer In Nevada Outperforming Barrick and Newmont Mining For Over Two Years

Emerging Gold Producer In Nevada Outperforming Barrick and Newmont Mining For Over Two Years
If it was not for Barrick's and Newmont's Nevada mines they would probably be bankrupt by now. The infrastructure, stability and experienced local labor force in Nevada makes it just too appealing for investors than other places in the World like South America and West Africa where there are too many geopolitical risks. There is no doubt we have been in one of the toughest mining bear markets in modern history. Any one can pick stocks in a rising bull market. It is the analysts and fund managers who can predict the winners that are outperforming in a bear market and the coming turnaround that should be followed. For a long time, I told you to watch this junior gold miners as it was coming into production and could gain market share from the big gold mining giants such as Barrick and Newmont who made stupid moves with high cost projects in risky jurisdictions. This stock has significantly outperformed over the past two years for the following reasons.
Read more

This Junior Gold Miner Is Under Buying Accumulation Over Second Half

This Junior Gold Miner Is Under Buying Accumulation Over Second Half
Some high quality, junior gold miners are already turning higher as investors believe there should be increasing merger and acquisition activity in 2014. The majors have written down billions of uneconomic gold and silver mines. They have cashed up and are actively looking for the low cost, high grade and economic assets in stable jurisdictions. Investors should prepare by buying some attractive takeout targets with new discoveries that can be put into production with less capital expenditures. Despite the bearish sentiment on the junior gold miners some of our featured companies have been under major accumulation. They may be the next targets.
Read more

Dollar Breaking New Lows While These Junior Miners Are Breaking Out

Dollar Breaking New Lows While These Junior Miners Are Breaking Out
The high volume breakout in the uranium sector may have occurred this past Friday when the uranium mining ETF soared over 6% on more than five times average volume.Keep a close eye on the junior uranium miners which could see incredible growth over the long term. We may be witnessing a short term uranium glut from the shutdown reactors in Germany and Japan, but over the longer term we will enter a supply deficit as there are more reactors being built now than from before the Japanese Nuclear Accident in March of 2011. As 2013 ends, so does the Russian uranium supply agreement which provided around 25 million pounds of yellowcake to the U.S. annually. In addition to uranium, don't forget gold. It is important to remember that some junior gold miners are so undervalued with minuscule market caps that are only fractions of what they spent on advancing the project. This junior gold miner with a resource of over 20 million ounces of gold sports a market cap of less than $50 million and has invested over $250 million advancing this project through feasibility.
Read more

Rare Opportunity In This Heavy Rare Earth Miner Making a High Volume Bullish Move

Rare Opportunity In This Heavy Rare Earth Miner Making a High Volume Bullish Move
No doubt over the long term commodities is the place to be as the world continues to develop and modernize. Demand for traditional commodities such as copper, oil and iron ore will continue to grow. However, strategic metals that are controlled by the Chinese such as rare earths, graphite, and tungsten could soar exponentially over the nearer term as supply shortfalls are quite risky in the near term. Although these metals are not traded like precious metals, copper and oil their role is vital for the new technologically driven global economy. Everything from wind turbines to smart phones use these strategic metals. Apple, Ford, GM, GE, Vestas and First Solar require these metals to produce their high end products. We all use these critical metals daily, yet many of us have little to no investment exposure for these vital materials. End users such as the companies mentioned above may look to invest in the junior miners to diversify away from China which uses its dominance of this sector as a negotiating tool.
Read more

Is U.S. Dollar Decline Going To Spike Gold and Silver Prices?

Is U.S. Dollar Decline Going To Spike Gold and Silver Prices?
Be prepared for a "V" shape reversal in gold, silver and the junior miners which have been basing for close to three years and are very oversold. Investors may be a little early in claiming good times are here again. The global economy and debt situation remains challenging. Gold and silver appear to have found support and may be on the verge of a major reversal higher. Look for a reversal above $1300 to break the recent seven week consolidation. I like silver even more than gold as demand is increasing for this white metal as an alternative to fiat currency and for its rising industrial applications. A breakout could occur past $22. Silver is in a three month uptrend which has stayed intact.
Read more