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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@PamplonaTraderRe $EMO - using a 3% Zn cut-off, Masa Valverde is 12Mt @ 8.5% ZnEq for 2.25 Bln lbs.
Also using a 3% cut-off, $RTH Olza is 18.8Mt @ 8% ZnEq for 2.65 Bln lbs.
Calling Masa Valverde a 100Mt #zinc deposit is a bit misleading.
Having said the above, I agree with @TheGalvanizer and @HRA-Coffin, the metal itself is more important than who finds and gets it out of the ground. Glencore doing the smart thing by avoiding operating risks and securing off-takes.
Cambridge's 1.5% NSR can be bought down for roughly the amount Emerita is paying Glencore to acquire the project.
@PamplonaTraderWaterton Global just paid US$22.5m for 50% of the giant (but pitiful grade) Dumont nickel-cobalt deposit, implying a value of US$45m. Canada's RNX and Waterton are injecting another US$35m into the JV to make acquisitions. Together, the cash and implied value of Dumont should give the JV a market cap of ~US$80m. This versus ARL's fully diluted enterprise value of just US$30m. #nickel#cobalt
@Brandon@PamplonaTrader: the deal with Hudbay for TJ was done, at least on a handshake basis, in 2015. You're hearing about it just now because it was never going to be public until we were nearing our IPO. I think the Zn market was very different when we initially engaged them and I also think that they simply did not want a Zn asset that wasn't going to feed their plant in Flin Flon.
@PamplonaTrader@CriticalInvestor, hmmm. They don't seem to be opposed to royalty deals. Red Kite also likes making big royalty deals on earlier stage projects but not streaming deals which tend to be closer to production when the economics of a project are better understood. Maybe mine operators don't view zinc as a by-product and more as a co-product and reluctant to sell a stream.
@PamplonaTraderAfter thinking on earlier points made about commodity trading firms being more interested in the metal... RedKite has done some big royalty deals but most of these royalties are not payable in-kind. So why not do streams instead?
@Brandon@PamplonaTrader: my feeling is that streaming deals aren't going to be so popular in a bull market and given I'd argue we're in the early stages of a zinc bull market it could be that Glencore couldn't get a zinc stream deal at a price that made sense.
@PamplonaTrader@benduck don't think it's that either. True, most commodities getting rocked but TK has been holding up well off strong results in a supportive zinc environment. The real reason we are seeing a mini-correction is because warrants are deep in the money *and* 4 month lock up on shs expired last week. It didn't matter last week because most were anticipating a steady news flow and the buyers were stepping up... now that the market is wise to the fact that progress/results are being slowed due to the flooding in Peru, the fickle are selling and bulls are more cautious.
@PamplonaTraderThat makes sense @Brandon. But why haven't these trading houses done streaming deals in weak markets? Using RedKite as an example again, in recent years they were very actively acquiring royalties and negotiating offtakes but weren't doing any streaming deals.
@PamplonaTraderSold the shs I bought in the $4s when the resource came under my expectations. Tax losses to harvest against the tiny gains I've made on NXE since buying in the $0.30s. I get to buy again early April.
@B1984@PamplonaTrader I'm wondering if you could share why you think the RE2 came under your expectation? Is it a reflection on the amount of uranium at arrow ? Or was it more what they decided to include in it and the RPA assumptions? Or was it miscalculations? I'm trying to figure out why so many ppl including myself came out too high...although I was just guessing haha
@MiningBookGuyHi @NickZed, RE: https://ceo.ca/@miningbookguy?2be84e4cd315 -So immediately besides $MOD.AX, you can look at $MTR.L. Both up 10%+ today on no news (which is interesting), but many believe $MTR.L playing 'catch-up' with $MOD.AX right now. good links to analysis in both of those rooms.
There was a great post by @PamplonaTrader on various #copper juniors he likes, make sure to see that here: https://ceo.ca/@pamplonatrader?d3cd926ca4eb
I am researching many of these right now. If I had to choose from that list, $CDB interests me the most, and an interesting comparison to $MOD.AX / $MTR.L in terms of where they are in the discovery cycle, market cap, etc. $CDB could definitely pop further on great drill results.
And then one more that is finally getting some attention and I own a lot of: $MUN is still really small, and there are multiple copper/gold opportunities here. Even with the attention, it's VERY cheap if they discover something 'big', and they have already shown excellent progress in the last few months.
@PamplonaTraderIn my view, $TK's Ayawilca, $KAR's Aripuana and $SLR's Bongara are three of the best emerging #zinc deposits in South America and Milpo already controls 70% of Aripuana and Bongara. Milpo, Volcan and others could all make a play for $TK.
@PamplonaTrader@internalaudit I think it's pretty obvious that $TK is (by far) my favorite #zinc play. Ticks all the boxes - blue sky exploration potential, cashed up, location, etc etc. I feel $KAR is sitting on the best deposit as currently defined but they are broke and do not control Aripuana. Bongara is least advanced and in a challenging location, though $SLR / $XPL is cheap given their EV and other assets. #zinc