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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: CITIC metals has agreed to take a 21% interest in IVN making this company the largest stock holder. Robert Friedland holds a similar position. What is the likely outcome of this investment in light of the DRC's contemplated legislation around increase in mining royalties. Will China's increasing influence in Africa have an impact?
Read Answer Asked by Patrick on June 22, 2018
Q: The above stocks and 1 ETF comprise my base metal holdings. Performance of several ( LLG, NMX, ALB, TV) has been dismal since purchase. I bought thinking that it was a good time in the business cycle to own commodities, with a slant towards lithium as you can see. The dollars invested in total are less than 3% of my portfolio. I am prepared to hold if the companies are performing adequately, but would appreciate whether you would consider any of the above sells or “not necessary to own” as you have coined in the past. Would it be preferable to sell all and buy Teck Resources? Thank you kindly for your consideration of this question and please deduct as many points as appropriate for such a lengthy list.
Read Answer Asked by Joanne on June 21, 2018
Q: Please let me know your opinion about these companies. What would be your first picks if any. I am looking for 5 years down the road, no rush to sell. I don't understand the value of gold, but given Trump's policies, bad things could happen....
Thank you
Read Answer Asked by Calin on June 20, 2018
Q: Do you see the trade spat with China and USA having a large negative effect on copper and zinc prices, or small hiccup?
Would you favor HBM here for exposure to copper and zinc for the next 4-6 quarters, or spread money in a basket approach in the four names I mentioned? I know TK is small right now and TV has lots of shares.
Read Answer Asked by Randy on June 20, 2018
Q: Peter and His Wonder Team
I want to start playing a little defence. I do have a well diversified portfolio which I am pleased with. However I do believe in the Boy Scouts motto of being prepared. Prepared for the unexpected or next recession which many analysts say is 12-18 months down the road. So I am thinking of getting some gold which has been flat for a considerable time which may be a plus when considering timing. So please give me a couple of gold stocks that are currently under valued and one can be a contrarian play as I will add several to my holdings. Also do you think I might be too early and should wait for pull backs? Thanks for your consistent excellence!
Read Answer Asked by Ernest on June 19, 2018
Q: It appears that MUX is turning the corner and production will increase significantly in 2018 and 2019. There is about 50 million shares short . MUX also raised $50 million in a private transaction without having to go the marked to issue more shares.
How will this play out for the shorts?
Thanks,
George
Read Answer Asked by George on June 18, 2018
Q: Hi, I would like to increase my exposure to materials companies as I think they will over perform the market in the next 12 months. Could you please rank the following in each category as to your expectations for capital gains?
1. Silver: FR, USA, SSRM, PAAS, SIL
2. Gold: BTO, KL, GUY, WPM, WDO
3. Others: TV, MX, CMMC, ECS, LGO
Or any others in the small cap category that you'd put ahead?
Read Answer Asked by Kel on June 18, 2018
Q: Many moons ago I had bought Azarga Uranium's predecessor before it tanked and became Azarga! I had hoped it would have been taken over by a Big player like Cameco. This didn't happen. This is before Fukushima disaster I think. It is now worth 18-35 cents a share. (52 week range)
They announced their ? merger with URZ an energy company. Worth buying AZZ or URZ? I am fully aware that this is completely a speculative buy!
Taking a small position is NOT going to impact on my overall portfolio positions and my retirement. I am fully aware that this is not a strategy that you generally recommend! However I pose this question b/c "out west" ( aka Vancouver exchange) ) some of the companies seem to go through sudden surges when they assume new identity! I had witnessed this during dot com bubble!!
Many thanks.
Read Answer Asked by Savalai on June 08, 2018
Q: You last reviewed these two uranium companies in 2017. MGA owns a reasonable portion of NXE. Both currently ticking upwards a little Can you please update and suggest where these may be going in next year or even several years? I have made some money on these as small investments, so I am OK to continue holding and can live with volatility. Thank you.
Tulio
Read Answer Asked by Tulio on June 07, 2018
Q: The company notes in it's presser that it will consider all available strategic and financial options to secure the required capital (to get the mine operational). Generally speaking the longer AQA can develop (and hold on too) a good mineable asset the better it will be for AQA and its shareholders. I suppose AQA have about 50 million still to spend from Osisko and they are going to need roughly an additional 250 million to get operational.
One option is dilution - sell shares to the public and retain 100% ownership. All things being equal the market cap would go up to 300 million and make a AQA a takeover target if the mine looked to be successful. All the new share holders will be looking to make a quick buck for sure.
Another option is a bank loan combined with dilution. However I don't see a bank loan unless the feasibility study indicates a high-grade zone near surface which could be mined quickly and be highly profitable. Even then I suspect the banks will hesitate to make a loan.
The last option would be to take on a larger mining company as a joint venture partner. This would leave AQA as part owner with cash flow which would be used to fund exploration at their two other sites. Once Osisko's money is all spent they will be pressing AQA to get operational as soon as possible. I think Osisko has a relationship with AEM who might be in turn be interested but maybe would want to see more gold ounces.
So AQA will spend most of the money it has left drilling the ore body looking for good grades especially good gold grades.
Do you think AEM would have any interest in the Back Forty deposit?
Last question on AQA for a while - I promise!
Thanks,
Jim
Read Answer Asked by James on June 06, 2018
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