In 2014, something very interesting happened. Despite the bear market in the junior sector, two mining companies, which I'm a shareholder of and which I spoke about numerous times in 2014, led the entire OTCQX. No. 1 was Western Lithium USA Corp. (WLC:TSX; WLCDF:OTCQX). No. 2 was NioCorp Developments Ltd. (NB:TSX). Western Lithium had a 2,566% increase in daily trading volume in 2014. NioCorp gained 394% in market cap. They were the top two of the best 50 OTCQX® companies. Picking the top 2 out of 10,000 public companies from all over the world during the worst bear market in mining history and an unprecedented stock market bubble has been a great blessing. This is why investors are attracted to the junior mining sector. If you do your homework and pick the stories that have exceptional fundamentals, you can realize exceptional gains. Two gains like that can offset a lot of losses.
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Newly Merged Uranium Producer Could Become Biggest in United States
It is exciting to see one of our long term shareholdings being acquired for a nice premium in the beaten down uranium sector which has been a feeding ground for the shorts. For years I have held Uranerz Energy (URZ) a low cost uranium producer in Wyoming.Uranerz shareholders should now see Energy Fuels shares in their account. They recently closed their transaction with Energy Fuels (UUUU) who will now have the largest NI 43-101 compliant in ground resource in the US among current producers.
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Summertime Heating Up Junior Gold Mining Sector
For weeks I have been writing to my premium subscribers about the seasonality of junior miners and gold to bottom in the summer months while many investors are away on vacation. Investors usually sell equities in May and rotate into precious metals and junior miners who are active drilling and developing top quality projects in stable jurisdictions. Even more so this summer there are increasing signs of the beginning of a major rotation from the overbought stock market into the beaten down natural resource sector. How do I sense this? Some of our featured junior gold miners have already been in an uptrend for 2015 and continue to raise impressive amounts of money to fund development and exploration. The general equity markets look quite toppy as the Dow Transports which are a leading indicator is already in a downtrend. Meanwhile, gold and the junior gold miners appear to be bottoming and on the verge of a bullish reversal. Looking at the GLD it is quite nice to see a bounce above the 50 day moving average. I look forward to a breakout into new four month highs through $117.50. Similarly with the GDXJ which has been in an uptrend for four months may breakthrough into new four month highs shortly at $27.
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Junior Gold Miner in Nevada Bounces Higher Off 200 DMA on High Volume
Despite this four year historic bear market in gold and junior mining equities, Pershing Gold (PGLC) raised $11.5 million. They are backed by some deep pocketed shareholders. Over 21 million shares of insider buying has occurred over the past six months. Recently on April 10th, 2015 one of the directors acquired over 7.69 million shares. Pershing Gold (PGLC) is bouncing off the 200 Day Moving Average on high volume indicating that this is an area of support rather than resistance as it acted in the past.
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