Yearly Archives: 2013

Major Short Squeeze Coming In The Uranium Mining Stocks

Major Short Squeeze Coming In The Uranium Mining Stocks
Nuclear power (NYSEARCA:NLR) is the best option for clean base-load power generation, according to Gold Stock Trades editor Jeb Handwerger. As proof, he points to signs that even environmentalists are beginning to favor it. Meanwhile, uranium stocks (NYSEARCA:URA) are rising and large nuclear construction programs overseas should keep upward pressure on them. But as Handwerger explains in thisinterview with The Energy Report, the future of nuclear power generation may lie with small modular reactors, and the U.S. is leading their development.
Read more

Turning Point In Precious Metals and Miners?

Turning Point In Precious Metals and Miners?
Recent waterfall declines in gold and silver below 5 year trailing moving averages and hitting historic oversold valuations are indicative of a major once in a generation bottom. We are hitting thirty year lows in the resource arena. Eventually, the precious metals sector will turn back higher and hit new inflation adjusted highs. Look for a break above the 50 day moving average which on the GLD is right now $129.08 and on the SLV at $20.40.
Read more

Nevada’s Cortez Trend: Where Gold Mining Is Still Highly Profitable

Nevada’s Cortez Trend: Where Gold Mining Is Still Highly Profitable
Production and cash cost numbers from the mines of the Cortez trend are extraordinary. The carlin-type gold systems in the Cortez Trend are very large, relatively high grade (2-4+ grams), near surface; therefore open pit-able,oxidation is fairly deep, so processing of the ore is relatively inexpensive.  Plus the fact that Nevada generally is a great place to mine, great infrastructure; paved roads, electricity,trained work force; truck drivers to engineers to geologists,tax rates are good,  permitting, although rigorous, is straight forward.  Nevada is a great place to operate a mine profitably even at these lower gold prices.
Read more

Prepare For The Coming Clean Energy Boom In Uranium and Rare Earth Miners

Prepare For The Coming Clean Energy Boom In Uranium and Rare Earth Miners
A recently released documentary, "Pandora's Promise" explores the transformation of staunch anti nuke environmentalists into believers of the benefits of nuclear power. This is a must watch film as these activists believe that nuclear energy could really transform the world.Governments around the world including most recently President Obama have been discussing strategies to address the climate crisis. Nuclear is the only source that can provide additional supply of base load power without hurting the atmosphere. These environmentalists are seeing a major gap between fossil fuels and renewables like wind and solar. Renewables are unable to make up the gap alone. Coal, natural gas and oil demand is still growing. Being anti-nuke is a dangerous policy in light of the rising demand for fossil fuels. Do not be surprised to see more mainstream environmental organizations support the development of next generation nuclear technologies that are safer, more efficient and cleaner.
Read more

Platinum and Palladium Outperforming Gold, Silver and Copper

Platinum and Palladium Outperforming Gold, Silver and Copper
The geopolitical instability from South Africa may have a significant impact on the supply demand equation for Platinum Group Metals. These metals are crucial to reduce noxious emissions from vehicles as they are used in catalytic converter to lower tailpipe emissions. No suitable economic replacements for PGM’s have been found. Vehicle sales are increasing worldwide especially from emerging economies. Emission standards are being implemented in emerging economies. Demand for PGM’s is skyrocketing as we are seeing a rebound in the North American, Japanese and Chinese automobile sector. Supply is extremely tight from South Africa. Major strategic consumers could be actively searching for safe and secure supplies of platinum and palladium. Palladium is the only metal that is higher over the past year. Palladium is up over 14% over the past year while platinum, copper, gold then silver are still in negative territory. Palladium and platinum are showing great relative strength in this precious metals correction.
Read more

Value Investors Entering Junior Mining Sector?

Value Investors Entering Junior Mining Sector?
Turn off the negative news that is broadcasted to misdirect and confuse investors. Follow the capital to quality situations like these few examples which are building value during challenging times. It is during these difficult times in the resource sector when the greatest opportunities are discovered. Remember American Barrick Resources started off as a 16,000 ounce producer in the 80's down market in gold and grew to be Barrick Gold Corp, the largest gold producer in the world.
Read more

Insider Buying May Indicate A Comeback For Coal Stocks

Insider Buying May Indicate A Comeback For Coal Stocks
I have recently written about a potential rebound in coal. It is a hated sector by fellow analysts and the investment community as the consensus believes that coal is dead. Hardly anyone covers this sector right now, which provides astute investors with discounted situations. Incidentally, a Barron's article highlighted the insider buying in the coal sector at a time of extreme negative pessimism. This could indicate a bottom for the coal sector.
Read more

Looking For Cash Flow? Check Out This New Nevada Gold Producer

Looking For Cash Flow? Check Out This New Nevada Gold Producer
One common criteria that value investors are looking for is cash flow and which companies have the ability to increase earnings. Keep a close eye on emerging gold and silver producers in mining friendly jurisdictions looking to increase production, resource growth and of course cash flow. Over the past few months I alerted you that there are emerging producers in mining friendly jurisdictions that may be a better bet than some of the large majors who have made some very risky moves in high cost projects in questionable places. I originally highlighted one junior miner in a piece entitled "Why Cash Flow Is Crucial To Gold and Silver Mining Investors", before the company began production. In that article I wrote,"I believe the recent acquisition of shares by Gabelli and U.S. Global Investors may just be the beginning of major institutions becoming aware of this emerging Nevada producer." Now three quarters later the institutions have increased their holdings from 5 million to 14 million shares in search of value and cash flow. In addition to Gabelli and U.S. Global, Century Management a value investing fund from Texas with over 2 billion under assets bought around 4 million shares in the last quarter.
Read more

Time to Buy Junior Potash Mining Stocks?

Time to Buy Junior Potash Mining Stocks?
Potash is a fertilizer that is critical for emerging economies with rising populations that need increasing amounts of food. Most of the supply is controlled by a handful of companies such as Potash Corp. of Saskatchewan (POT) and Mosaic (MOS). These companies control pricing and some of the large consumers may want to secure more affordable long term supplies from quality juniors. If demand increases, the majors may not be able to boost mine output. The large caps may be ready to break out as prices find support at decade long trendlines and the juniors are all beginning to show signs of life.
Read more

A Junior Gold Mining Survivor In Nevada and Colombia

A Junior Gold Mining Survivor In Nevada and Colombia
There is no doubt about it. Junior gold mining companies are going through a time of testing. Gold and silver prices are basing at multi-year lows. Financing markets are tough for junior precious metal miners. Many of these companies will not succeed in these difficult times without a strong treasury and shareholder support to weather the storm. These corrections separate the quality junior miners from the weak ones as the smart management teams pick up quality assets for pennies on the dollar and actually build value during these cyclical corrections. This is the evolutionary way of the markets to weed out the weak entities. Junior mining investors especially during these trying times must constantly reevaluate and make sure their junior mining investment has the ability not only to survive this market, but to possibly thrive in this environment by picking up quality assets on the cheap. Instead of exploration capital being put into the ground, there may be opportunities in undervalued assets, if you are connected to the right technical team.
Read more