March 06, 2017: Brent Cook & Joe Mazumdar on BNN Market Call
$NDM Northern Dynasty
• Bent envisions an $8B - $12B Capex at least for this mega project
• Need at least another $100M just for project assessment
• Not worth the risk at this time
$DNA Dalradian
• Owned it in 2016 & sold it due to high dilution on head grade (possible problem going forward)
• Not re-buying because Brent & Joe are not into development plays right now
$SMF Semafo
• Not looking at it because it’s a multiple mine operator. Brent thinks its tough enough to operate one mine efficiently, let alone multiple mines
• Better plays out there given the point of the mining cycle we are in now
$AU Aurion
• Good exploration team
• Good restructuring completed and re focused the company
• Brent loves Finland and is so excited about what Aurion found that he is NOT selling any shares just yet
• Owns it since $0.25 private placement
$FCU Fission
• Both don’t like the uranium space right now – too much inventory exists in uranium; uranium is a dead market in the short term & recommend to stay away; new contracts will be signed at very depressed U308 prices
• If you really want to own a uranium play, then buy an explorer instead of a producer
$SSO Silver Standard
• More of a gold producer now than a silver producer
• Positive that they are in good geopolitical regions
• Not owners and don’t plan to hold it
$WRN Western Copper & Gold
• Joe visited it recently
• Fairly low grade deposit, making it more of a leverage play and thus not a foreseeable takeout target at these current metals prices
• Joe & Brent not liking any marginal plays right now because the majors can easily bring on their existing marginal ounces if need be
• Majors DO NOT want marginal assets – Only high marginal accretive assets will be bought out
$CGP Cornerstone Capital
• Ecuador is still a fairly tough place to work
• Impressive discovery but too expensive to buya at these levels
$WG Wellgreen Platinum
• Great group of long term institutional investors
• New CEO is the former CEO of Romarco (Dianne Garrett)
• Metallurgy is the most important possible problem going forward. Watch out for this
$PG Premier Gold
• Previously held it and sold it at a 30% gain
• Bottom line is that there are NO FATAL FLAWS visible
• Interesting play at high grades
• Buy it when/if it gets whacked for some reason
• Brent is a buyer at $2 level and a strong buyer at $1.50 level
$ TK Tinka
• Just visited it 1 week ago and they liked it
• Great management team
• Found a deposit with decent zinc grades
• Bought it this morning based on large step out drilling news release; this deposit could get bigger still
$ME Moneta Porcupine
• Large but low grade deposit
• Mineralization is spotty which implys too much waste
• Don’t own it because its currently not an economic deposit
$OGC Oceana
• Don’t own it because it’s a multi asset producer, not into buying producers now
• Lots of geopolitical risk in the Philippines
• Company is very active in jr mining placements
$NCA Newcastle Gold
• Ex Detour gold CEO took over
• Problem water issues going forward; the grade going forward is lower than the grade up until now; close to a new conservation area/national park
• Do not own it and don’t plan to
$PVG Pretium
• 15g/t head grade is really and unknown due to nuggetty effect
• Could be lower than 15g/t and that’s why majors are staying away for now
$KNT K92
• Exploration potential is good
• Before buying K92, they must show competence mining high grade veins and making money doing so
• Lots of previous promotion and price got ahead of itself (always check who the promoters are)
PAST PICKS – Total return = + 188.5%
$MRZ Mirasol +43%
• Very high on Steve Nano and his team
• Solid company doing solid exploration with a solid (non dilutive) business model
• Will find something big one day because of their scientific approach
$KAM Kaminak +270%
• Taken out by Goldcorp because of high quality/margin reserves with potential for growth (district scale)
• Fit the M&A criteria exactly as to what Joe & Brent identify as an M&A target
$IVN Ivanhoe +550%
• Sold out their position completely because of the strong gain and wanted to decrease geopolitical risk (Congo)
• Kakula changed the game for the entire Kamoa asset
TOP PICKS
$MRZ Mirasol
• Brent originally bought at $0.15 private placement & bought more at higher prices
• Worth accumulating but there is no rush to get in immediately
• Great business model with low dilution and primed for success
$CDB Cordoba
• Exited Ivanhoe and re-upped with Friedland in this play
• CDB is funded until feasibility
• In a very supportive mining jurisdiction of northern Colombia
$NHK Nighthawk
• Safe jurisdiction
• Cashed up
• Massive potential
