Monthly Archives: July 2014

Why Nickel is The Leading Base Metal in Performance in 2014

Why Nickel is The Leading Base Metal in Performance in 2014
Remember the price spike in palladium (PALL) in 1999? Or the run up in uranium prices (URA) in 2007? Even more recently the move in silver (SLV) and gold (GLD) in 2011? Commodities and the mining stocks have a tendency to breakout into price spikes and frenzies. In late 2013 I told you that nickel was about to rebound.I am excited by the fantastic move this year in nickel from the low $6 range to above $9 making over a 50% move in 2014. It has pulled back for the past three months and may be on the verge of making a second leg higher.
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Could This Be The Next Major Gold Producer In Colombia?

Could This Be The Next Major Gold Producer In Colombia?
Red Eagle is only weeks away from publishing a Bankable Feasibility Study on a project which I believe will come into production in the next 18 months. The 320 sq. km Santa Rosa Gold Project in Antioquia has already produced a Preliminary Economic Assessment (PEA) that shows the potential for production of around 50k ounces per year with low cash costs around $620 an ounce. This means that possibly within 18 months Red Eagle has the ability to cash flow over $60 million of profit if gold stays around $1300 an ounce. Red Eagle flies above the others as the project has one of the best economic profiles in the junior mining business.
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Could Wellgreen Platinum be the Next Stillwater Mining?

Could Wellgreen Platinum be the Next Stillwater Mining?
Since the second half of 2012, I have been bullish on platinum and palladium (PGM). I have focussed on a North American producer Stillwater Mining (SWC) and a junior developer Wellgreen Platinum (WGPLF) in the Yukon. Labor strikes in South Africa combined with economic sanctions on Russia could spark a renewed interest in North American PGM production. Remember South Africa, Russia and Zimbabwe are the world's largest supplier of this valuable metal and all these jurisdictions are extremely volatile right now. South Africa is the leading platinum producer and Russia is the world’s leading palladium exporter. Both these metals are outperforming in 2014 and the rally could just be beginning because demand for these metals are rising annually. PGM's are both a monetary metal as well as an industrial metal used in catalytic converters to reduce noxious emissions. Palladium is outperforming platinum and gold breaking through the $850 mark and platinum is also breaing. Watch nickel which exploded from the $6 area to over $9.50. The three reasons nickel is soaring in price is because Indonesia the largest nickel producer announced an export ban, Russia a large nickel producer has economic sanctions against it and existing producers such as Vale are announcing production problems. We have already seen nice gains in Royal Nickel (RNX) and Stillwater Mining (SWC) which have already made doubles and triples. The breakout move in nickel, palladium and platinum is just beginning and incredibly Wellgreen Platinum (WGPLF), which is highly leveraged to all three of these metals is sitting with a market cap below $50 million. Wellgreen has not yet participated with the rally in nickel and palladium, but that could change soon as they just announced a new resource estimate which shows the massive size of this deposit.
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This Lithium Asset in Nevada Could Supply Tesla’s Gigafactory

This Lithium Asset in Nevada Could Supply Tesla’s Gigafactory
One metal where demand is soaring is lithium which is used in rechargeable batteries for smartphones, Ipads and electric vehicles. A game changing event occurred this past week when Albemarle (ALB) paid over $6.2 billion to buy the world's largest publicly traded lithium producer Rockwood Holdings (ROC). This is one of the largest chemical deals and the lithium industries biggest M&A transaction in history. Demand has doubled in the past decade as lithium ion battery use has grown in mobile technology. Growth in the lithium sector has been far outpacing other sectors. Some experts believe demand could even grow faster over the next decade especially as electric vehicles gain market share. The key for investors is finding potential sources of the raw material in North America.
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Japanese Nuclear Restart Sparking Uranium Sector Rebound

Japanese Nuclear Restart Sparking Uranium Sector Rebound
Last week I was interviewed about uranium by The Energy Report and I told them to get ready for doubles and triples in uranium and that we may see a powerful bounce off the bottom in the near term. Remember this was at a time that the large miners and the banks were bearish forecasting lower price targets. See the article and charts by clicking here… Less than one week after that interview was published Japan announces that two reactors are approved to be safe and are able to be turned back on. This is a psychological game changer as the uranium priced has slid for more than three years over 60% as Japan idled their reactors after the 2011 Fukushima Disaster. Here is a list of some of my favorite junior miners which I own and are sponsors on my website.
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Five Ways To Profit In Coming Clean Energy Boom

Five Ways To Profit In Coming Clean Energy Boom
Please note I just returned from Medellin, Colombia and toured what I believe will be the first modern gold mining operation approved for mining by the Colombian government. They have an immense amount of local support and the project appears to have the best chance of being the first to get into production due to the high grade and underground mining. It could be beginning production in possibly the next 18 months. Currently the company has a market cap of around $20 million, but in 18 months time could produce $60 million a year of profit if gold remains at $1300 per ounce. The management team is top notch with the COO building more than ten mines all over the world. The stock is currently trading at a discount to its last financing and less than their major shareholders who have invested $55 million in this project. Its important to note there are no warrants and the IPO was more than 6 times than what it is now. I intend to publish a full report of my findings of the mine site visit to my premium subscribers.
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