IKN

a plague o both your houses

Element 29 (ECU.v), C3 Metals (CCCM.v) and a few thoughts about exposure to Peru juniors

From IKN630, dated last Sunday June 20th. I don’t own any ECU (and wouldn’t touch CCCM with a barge pole, life’s too short to suffer the Pickmanns of this world more than once), but note ECU had a strong week, up over 10% with a good burst of volume yesterday Thursday. Have a read:

Element 29 (ECU.v) and C3 Metals (CCCM.v): Although I’d sleep better at night knowing each and every reader of The IKN Weekly had no Peru junior mining exposure in their portfolio, there’s no accounting for taste and I know some are bargain-hunting in the Peru junior space. So for those brave enough to buy Peru, the best spot for exposure today would be a small exploreco that is cashed up and permitted to advance its project. They are the companies least affected by tax hikes and if they have the funds to cover the initial rough and uncertain period, they will be fine. Examples include C3 Metals (CCCM.v) and Element 29 (ECU.v) and while the former is more of a Vancouver promotional vehicle, ECU.v today ticks the boxes for cash, permits and experience as well as being able to benefit from true long-term CSR practices at its Elida project.

However, once you start travelling from the perfect triumvirate of “Exploreco, Cashed-Up, Permitted” Peru gets unattractive quickly. The main problem will be market perception, as fewer people expose their portfolios to its new Left wing politics, so Peru juniors with a need to raise cash either now or in the near future are in a position of weakness. We’ll also get to find out the truth about some of the Community Relations around certain projects, the level of emancipation running through provincial and upland Peru could bring revelations of wrongdoings that locals were previously nervous to talk about (e.g. Fortuna Silver at Caylloma, which fortunately for them is a minor part of the company’s overall asset mix these days). Another example would be Hannan Metals in the North, as only the naïve could think that company could control that much concession bloc without raising hackles in a zone notorious for its antipathy toward natural resource industries.

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