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Five stocks in a target-rich environment

This desk has always been quick to talk down the effects of geopoliticals on metals (and commodity) prices, but the profound changes brought on by Russia’s invasion of Ukraine really do make this time different. That’s changed the playing field dramatically and, as noted in the The IKN Weekly recently, we’re now in a new target-rich environment for mining and resource stocks. It also means that the personal portfolio cannot possibly own every single interesting and prospective company in a brand new environment, which is why your humble scribe has been hard at work, trying to filter through companies not already owned in order to find live and interesting prospects.

So here’s a preliminary list of junior explorecos or developer stocks that 1) I don’t already own and 2) am now considering as purchases in our Brave New World of resources. They come with little taglines, too:

  • The new story is Meridian Mining (MNO.v): The VMS in Thick Grass Brazil looks several cuts above the average deposit. Not a cheap exploreco, but rightly so.
  • The producer spec trade is Superior Gold (SGI.v): I once owned and came a cropper, the new management has done good work and SGI now frames nicely as a “leverage to gold” trade.
  • The PM exploreco coming to fruition is Newcore Gold (NCAU.v), looks cheap compared to what it’s got underground and importantly, has a simple story. We really like simple.
  • The Future Facing (ugh) junior is Electra Battery Minerals (ELBM.v): Not cheap and its financial structure isn’t perfect, but has that look of a company skating to where the puck will be.
  • The copper junior I don’t own and perhaps should is Western Copper & Gold (WRN.to). It’s been around forever, but stars are finally aligning. The personal portfolio is already stacked with Cu names, but that’s a personal dilemma and shouldn’t subtract from WRN’s potential.

More details and thoughts on each this weekend, subbers.

17 Comments

    I’ve liked ELBM for a while (well, formerly FCC). I’m currently up over 100% and still holding on to the bulk of shares. I just hope they’re able to keep their stated timelines. But take this as you would from “just another retail sucker”.

    Reply

    But the 10 million fiat question is: when will the juniors finally start participating in the run up for metals? It’s been a looong wait.

    Reply

    What is your thought on
    Foran Mining ???
    Does it belong to this list ?

    Reply

      I have no problem with FOM, looked at it in December and wish them good fortune but you can’t cover ’em all. I’ll stick with MNO for my VMS. FOM isn’t a cheap stock at $400m mktcap which isn’t a bad thing, just a different paygrade.

      Reply

    Can’t you also do a Lithium overview? Prices for that commodity have gone through the roof.

    Reply

    Gee, and I was under the impression that these v stocks were run by them Vancouver bandits.

    Reply

      Gee, that all you got?

      Gee, you came all the way over here and felt the need to leave something negative?

      Gee, taken a look in a mirror recently?

      Gee, mining investors are boring and repetitive.

      Gee.

      Reply

    You want cheap because of geopolitics, look no further than Polymetal International. 9th biggest gold producer in the world trading at a p/e of less than 1. 10-20 bagger material here with a known loss of zero if ww3 happens. This is risk/reward at its best. And 30% of cashflows are out of Kazakhsatan to boot. Im long, very long and still buying. POYYF

    Reply

    […] March 18th we ran the post “Five stocks in a target-rich environment“, which featured five new stock ideas for our rapidly changing world. With one month now […]

    Reply

    Meridian Mining’s manganese project will NEVER ever get off the ground. It is too far away from anything logistically to make it economical. How do I know? Their previous manganese mine had the same problem

    Reply

      If it makes you feel more relaxed, not planning on holding thru to production.

      Reply

        So this is a pump and dump as in you pump it and you dump it?

        Reply

          Haters gotta hate.

          Ever seen the Lassonde curve?

          Reply

            Lassonde had a number of duds in the past
            Your best buddy Keech also seems to be pumping this stock
            “Bigger than our 930% gain on Meridian Mining”…

            You seem to think this is Twitter and banter will get you somewhere. You seem to want to pivot in order to have the last word. You seem to think this is a conversation. It’s not, and you’re now as boring as a plank of wood. Now run along laddie, there are adults in this room and it isn’t your personal playground. Run along now.

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