I like to comment on a few model portfolio companies and Grandich clients.
Please note I will not response to every comment somewhere in Cyberspace about any and all companies of mine. The amount of false, half-truths and misinformation comments provided by people with personal agendas is not something I give any mind to. I notice as this blog becomes more popular, there’s an element that is using it for agendas not in the best interests of most. Just know if there’s really a need to comment on a matter, yours truly will. Until then, don’t let these folks disrupt you.
Northern Dynasty Minerals – I’ve truly lost count on the number of actions those opposed to the Pebble Deposit have taken. To my knowledge none have succeeded and I believe this latest salvo shall meet the same result. It’s critically important for anyone who speculates in the mining and exploration industry to understand that environmental opposition is a way of life for some and will always be present. The environmentalists need media attention as it helps fund their causes.
Make no mistake about it I believe the environment is a critical issue in all mining and exploration manners. In this case, it’s important to understand this is not a lawsuit against NDM, its partner or the deposit.
It’s this group against the State of Alaska. I not only believe the case is without merit, but I anticipate a variety of people, groups, etc., to come out against this action as it goes to the heart of Alaska’s constitution. I’m no attorney (thank God) but I would not be surprise to learn that one or more groups enact an “intervener status” in this case.
I fully expect this latest action to end up where all other Pebble-related actions have gone – nowhere. At $6 U.S. or under the stock is a compelling speculation.
Nevsun Resources – Earlier today was an example of “super-overreaction” of a news story and some comments in cyberspace that led to some making an uninformed decision. The United States and Eritrea have been at odds for quite some time. A comment by Hillary Clinton that really was nothing new caused some emailers to state they sold on the news. That’s fine if they want to think this somehow has ratcheted up things but these sellers sold because they weren’t even aware this was already well known item and almost certainly discounted by the market. Once again emotional decisions are almost always poor ones. Yes, the situation could turn for the worse but so can I get hit by a car crossing the street. The thought process should have been is this news (no), and does it change the reasons for owning the stock (no)? Will there be some distracters burning the midnight oil hoping this situation does explode? Based on this blog-yes. But at this point it would be like sitting on your bed and not moving knowing sooner or later you’re going to hurt yourself somehow.
I would add to positions if we get a pullback under $1.50 U.S.
Continental Resources – Yet another no-new-news situation. Back in June at the Vancouver Resource show, three young adults stood outside the Convention Center with a bed sheet sign calling for no mining in Tibet. There were a couple reporters covering the “event”. Do these people have a right to express their opinion? Absolutely. Do they present a serious obstacle now? Absolutely not. Again, distracters will use any and all news to try and impact the uninformed. In this case, China is just too darn big and powerful for anybody or country to oppose it on major matters, let alone mining. Continental management has gone very tight-lipped and just says all systems are a go. Knowing Hunter-Dickinson as I do, I take them at their word.
Taseko Mines – The train has indeed left the station. Where it is on the tracks will be discussed in a conference call next Wednesday. I’ll be the one with the caboose hat on.
Grandich Client Companies
Apella Resources – Following up to my report earlier this week, again a naysayer with obvious lack of real understanding expresses a counter view in cyberspace and my email/phone lights up. This badly informed person tried to assert that the world was full of Vanadium and especially Australia.
What that anonymous party failed to mention is the fact that Windimurra was the only Vanadium project of real merit in Australia…though there may be other small ones that I’m unaware of. Windimurra has a proven 45-50 million tonnes, whereas Lac Dore alone contains a proven 102 million tonnes at higher average grades. Lac Dore is actually the second biggest V deposit in the world, ranking only behind Highveld in South Africa. Apella Resources expects Iron-T and Lac Dore North to be significantly larger than the Lac Dore. It is particularly important to note that as of recently, Windimurra went bankrupt due to separation issues with their ore(though I would want to do some digging to find out exactly what the issues were).. One more important point is that though China has significant Vanadium supplies, theirs are large low grade deposits and with growing demand they are now slowing exportation of Vanadium, and increasing import of additional supplies. When looking at all of these deposits, one of the most compelling points for Apella, is that all of our projects are surface or near surface mineralization making them open-pitiable. Any time you are looking at an underground operation for Vanadium, your grades must be very high to make it economic.
ATW Gold – Move over Donner Resources, ATW Gold is now the Rodney Dangerfield of juniors. Actually it had lots of respect but that has been called into question of late by some investors, justifiably or not. Deservingly or not, management needs to restore confidence and they can do so by delivering on their plans. I have every reason to believe they can and would use any further weakness as an opportunity to be part of an emerging gold producer.
A former client who I still follow is Eastmain Resources. I spoke about them on www.kereport.com Listen here.
And finally, what’s a penny really worth these days?
