Category Archives: Top News

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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Gold Explorers In Right Location Will Survive

Gold Explorers In Right Location Will Survive
In ancient Greece, farmers would plant crops based on prophecies from an oracle. Today investors look to spreadsheets and minute by minute charts to try to predict the future. Trying to be a prophet is an unprofitable occupation. The secret to wealth is buying wholesale, waiting and hopefully selling it retail. We all love sales and discounts when prices drop for fast food, clothing or cars. However, when it comes to mining stocks investors look for momentum and major price rises continuing to bid up the price to overbought levels. Instead, they should look for quality assets on sale in mining friendly jurisdictions.
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Early Stage Gold and Silver Opportunity In A Mining Friendly Jurisdiction

Early Stage Gold and Silver Opportunity In A Mining Friendly Jurisdiction
Gold and silver prices are set to rise this year as the demand increases from Asia where we are witnessing an economic rebound. Right now, inflation fears may be increasing which may support a breakout for gold and silver prices after a long basing process. Look for a break of the recent 4 month downtrend as gold and silver both find support at the 200 day moving average.
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Why This Rare Earth Miner Outperformed in 2012

Why This Rare Earth Miner Outperformed in 2012
This miner was possibly the only rare earth miner which was up in 2012 while the entire sector declined. The company was up 45%, while Molycorp was down 67%. This relative strength is remarkable and may be forecasting outperformance if the sector should rebound which I expect may be occurring. We may be in the midst of powerful risk on rally.
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Why This European Uranium Miner Is Turning Higher

Why This European Uranium Miner Is Turning Higher
The long term downtrend and 200 day moving average has been broken to the upside after basing for more than 22 months. A possible long term trend change could be occurring. The technical chart reflects the fundamental changes in the company. Developing a relationship with both AREVA, the largest nuclear company and the Slovakian Government has been critical in the development of this world class, low cost uranium project. We look forward to developments in 2013.
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The Advantages of Using Seismic Data For Uranium Exploration in the Athabasca Basin

The Advantages of Using Seismic Data For Uranium Exploration in the Athabasca Basin
Recently this uranium explorer in the Athabasca Basin engaged the uranium exploration geophysical team at the University of Saskatchewan (USASK) which is led by Dr. Zoltan Hajnal. The Emeritus Professor is a leading expert in the use of seismic to discover uranium. Dr. Hajnal played a key role in the discovery of Hathor’s Roughrider Deposit and the advancement of Cameco’s McArthur River Mine, the largest high grade uranium mine in the world. Dr. Hajnal sees similarities in the seismic data at this junior's property to major uranium discoveries like McArthur River and Shea Creek.
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