Category Archives: Featured Company News

Gold Stock Trades Featured Companies

Uranium Miners Are The Hottest Spot In The Resource Sector

Uranium Miners Are The Hottest Spot In The Resource Sector
For over two years now the uranium price and the uranium miners have been in a correction as the market factored in an oversupply of uranium from Japan and Germany moving away from nuclear power following the Fukushima Disaster. Long term investors realize this may provide a discounted buying opportunity as Japan and Germany now face the consequences of those knee-jerk political moves, slowing economies and rising electricity costs. The anti-nuclear Party in Japan has been relegated to a powerless minority. Could Germany make a similar move to oust Merkel this September as electricity costs and air pollution skyrocket from burning oil and dirty coal? Japan is about to turn on twelve nuclear reactors that have been idling since Fukushima. Don’t be surprised to see Germany do something similar this fall. Uranium is trading at seven year lows. Recall what Joseph told Pharoah thousands of years ago, that there would be seven fat years followed by seven lean years.
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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.
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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.
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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.
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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.
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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.
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Is The Uranium Price Forming A Potential Double Bottom Breakout?

Is The Uranium Price Forming A Potential Double Bottom Breakout?
While most of the resource market has been in red, I am witnessing one of our sectors, the uranium miners (URA), solidly in the green. They are being led by one of our long term uranium recommendations. Recently one of our long term recommendations announced good news that they were granted $20 million from the State of Wyoming to fund completion of construction at Nichols Ranch. In today’s market environment where resource capital is hard to come by, to see this form of support through non-dilutive and low interest rate loans is truly remarkable. This is a testament to the quality of the companies assets and the management team.
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Some Junior Gold Producers May Be Safer Than The Senior Miners

Some Junior Gold Producers May Be Safer Than The Senior Miners
Barrick's $8.5 billion Pascua Lama Project has been a disaster with soaring costs and jurisdictional disagreements. It is an albatross and Barrick must cut their losses. They should look to invest in Nevada where their properties especially in the Cortez Trend have some of the highest margins in the business. Over the past year, Barrick's risky moves into questionable projects and jurisdictions have hammered down its share price. Sometimes well managed juniors may actually be safer than some of the majors. Remember there are smaller but more efficient junior producers who could compete with the clumsy larger players in terms of its ability to expand their gold and silver production and at the same time reduce costs. Keep this growing junior producer with cash flow to grow.
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Increase In Resource Nationalism Boosts Demand For Additional Platinum Supply

Increase In Resource Nationalism Boosts Demand For Additional Platinum Supply
Right now, platinum may be undervalued to gold as it is 30 times more scarce and has averaged historically to be at least double the price of gold. Likewise, many of the platinum junior equities are deeply undervalued even compared to the bargain basement junior gold miners. This undervaluation may be due to the fact that currently the PGM market is much smaller than gold and lacks major institutional coverage. This may change as major investors and large platinum miners look to diversify into more stable areas such as the U.S. and Canada. Over the long term these development stage companies could be rerated as more funds enter the arena and as the public becomes more aware of the potential supply shortfall. Since high quality platinum projects are rare, once institutional and retail money comes into this sector it could cause a valuation jump in these assets.
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