Interactive Brokers Advertisement
Home > Boards > Free Zone > User's Groups >

Value Microcaps Junior Miners

RSS Feed
      Hide Sticky   Hide Intro
Moderator: Bobwins Assistants: cl001
Search This Board: 
Last Post: 10/22/2017 8:41:09 PM - Followers: 419 - Board type: Free - Posts Today: 0

This board is for discussing junior miners in both base and precious metals. The commodities boom appears to be a longer term issue so these stocks should become more important as investors try to find small companies that are discovering new deposits.

The typical scenario is that the big companies have such high overhead that they can only look for huge deposits. However as commodities rise in price and all producers max out production, the larger players struggle to replace reserves. The junior miners typically fill that role by finding deposits and then selling out to the cash rich bigger players.

My normal investing strategy is to look for profitable stocks with low p/e's. That strategy is difficult with mining stocks because most are not in production or are losing money.

My alternative strategy is to look for miners with near term potential to begin production. Those are the stocks that I will attempt to focus on along with any stocks that are actually profitable.





Zinc prices have underperformed relative to other base metal prices during the commodity boom of 2010-11.  There is supposed to be a surplus in supply in the near term but significant shortages could develop over the next few years.  Several large zinc mines are slated to run out of reserves during this time period and demand is expected to continue to increase. 


  China remains the most important barometer of base metal fortunes.  If their economy continues to grow, copper usage and prices will continue to be supported at the current high levels.

Capstone Mining Corp
F.D. 82.1M, The company is buying back 10% its shares from mid 07-mid 08. Holding ~20m shares of SST.v plus warrants.
Cash cost about 40c copper net byproduct credit, going lower as smelter charges drop in 08 and lead price jumps.
Recently increased its mill output by 120% under budget. Guiding 26 M lb of copper, 11.3M lb of zinc and 4.1M lb of Lead in 08.
New resource update by sep 07.

S.O. 38.1M + 3.9M (InterMoly) + 12M (PP, fully allocated)=54M
F.D. 42.6M + 3.9M (InterMoly) + 24M (PP, fully allocated)=70.8M
2007 guidance: 125 M lb copper and 60 K oz gold
Q1 2007 production: 36.6 M lb copper and 31 K oz gold. Cost: ~$1.5/lb

Taseko Mines Ltd. (TGB)
S.O. 113.6 M
F.D. 126.4 M
2007 guidance: 60-70M lb copper and 1 M lb of moly. Cost: ~$1.5/lb
Production set to increase to 120 M lb copper and 1.4 M lb of moly in late 2008 and cost will go down to close to US$1.1/lb area.




S.O. 90.4M
F.D. 105.5M


Profitable mine in Peru has financed much of the development of their new mine in Mexico.  Producing over 2million oz of silver now, targeting 5million+ oz in 2013 when new San Jose mine should be at full production capacity.




Silver Wheaton is the biggest silver streamer.  They finance many junior miners by buying future production of silver at fixed prices.  The typical price they pay is 3.90/oz.  The miner gets needed financing to bring mines into production and SLW gets all or a percentage of their future silver production.  Silver Wheaton has financing power that many juniors lack.  Now that they have been in business for several years, their initial investment projects are coming into production and raising SLW's production levels.  Lower risk way to play silver because of diversification and lack of mining risk.  SLW is relatively low overhead. They have a small office staff of finance experts who continue to add deals to the portfolio and production without significantly adding to overhead now and in the future.  



Worldwide, there are hundreds of nuclear powerplants on the drawing board.  The current mining supply is well below current usage.  The deficit is being supplied by Russia from deactivated nuclear warheads.  That program is going to end in 2013 and Russia has indicated they will retain whatever is remaining of their inventory for their own nuclear powerplant use.  As that deadline approaches, there is more and more likelihood that uranium will increase in price.  

Strathmore Minerals STM.v
 Near term producer, with two projects being advanced towards production.  Strathmore has a JV with Sumitomo to develop Roca Honda in New Mexico and is pursuing licensing for the Gas Hills Project in Wyoming.  Strathmore has a large acreage position in the US of prospects that it intends to JV or sell to concentrate on it's core products.  These properties were acquired many years ago at very low prices.  

Uranerz Energy URZ





MontyHigh's blog, quite informative:

A Good web site for juniors:


Interactive Brokers Advertisement
#33827   $PPPMF Primero Provides an Operations and Corporate Update MazelTov 10/22/17 08:41:09 PM
#33826   Northern Empire Resources, NM.v/NOEEE C$.94 Bobwins 10/22/17 02:01:00 PM
#33825   checkmte28: EXN bbotcs 10/21/17 06:34:10 PM
#33824   CPTMatt Re DNI.C DMNKF + GWA.V The checkmate28 10/21/17 10:38:18 AM
#33823   bbotcs Re EXN EXLLF Excellon. They caught me checkmate28 10/21/17 10:16:52 AM
#33822   Karmin files Aripuanã PEA and Examines Strategic Alternatives MWM 10/19/17 03:21:20 PM
#33821   checkmate28: EXN Good, good stuff. bbotcs 10/19/17 03:06:51 PM
#33820   DNI/DMNKF - Given how close you are to CPTMatt 10/19/17 02:26:26 PM
#33819   CPTMatt: Yes, long heroin, and hairspray. Think POTUS! bbotcs 10/17/17 05:12:38 PM
#33818   So... long heroin? CPTMatt 10/17/17 03:20:04 PM
#33817   So... long heroin? CPTMatt 10/17/17 03:20:02 PM
#33816   dr airtime: and Mexican politics bbotcs 10/17/17 10:59:53 AM
#33815   USA.TO - Sinaloa state.... dr_airtime 10/17/17 01:17:12 AM
#33814   Excellon EXN EXLLF I rode this out checkmate28 10/16/17 04:10:05 PM
#33813   Excellon Q3 production results checkmate28 10/16/17 02:47:11 PM
#33812   $PPPMF Primero Provides an Operations and Corporate Update MazelTov 10/16/17 09:54:17 AM
#33811   Northern Empire Resources, NM.v/NOEEE C$.97 Bobwins 10/14/17 05:48:35 PM
#33810   dr airtime: bbotcs 10/13/17 04:13:20 PM
#33809   PPPMF GOLD JUNIOR MazelTov 10/13/17 10:46:12 AM
#33808   Frank Holmes Fund Owns Gold Junior dj4321 10/13/17 08:53:57 AM
#33807   Silver Bull Intersects 294g/t Silver and 0.96% Copper basserdan 10/12/17 09:13:04 AM
#33806   MND.TO - SA case for doubke dr_airtime 10/10/17 11:23:56 PM
#33805   Huesos RE DNI Metals IMO, someone on the checkmate28 10/10/17 03:17:49 PM
#33804   USA.TO/USAS - I think $7 possible by December dr_airtime 10/10/17 10:06:06 AM
#33803   The Mammoth Resources’ (MTH.V) Tenoriba property consists of dj4321 10/10/17 05:22:12 AM
#33802   Since the market does not seem to care Lone Clone 10/06/17 07:36:40 PM
#33801   Who is actually behind this latest smear campaign huesos 10/06/17 04:58:33 PM
#33800   Dr. A - Timely call on Tinka which CPTMatt 10/06/17 02:31:45 PM
#33799   DNI.CN Checkmate I saw the article too. Great rrten 10/05/17 11:36:56 PM
#33798   DNI.CN As Wyatt Earp said "IT ALL STARTS checkmate28 10/05/17 10:32:21 PM
#33797   Updates on two new(ish) zinc explorers... dr_airtime 10/05/17 12:13:07 PM
#33795   All the Silver in the world. MazelTov 10/04/17 09:11:05 PM
#33794   Proven Gold Reserves in China Rise to 12,100 Tons MazelTov 10/04/17 09:10:16 PM
#33793   3 Key Reasons Central Banks Continue to Buy MazelTov 10/04/17 09:09:51 PM
#33792   Silver is Now Rarer than Gold MazelTov 10/04/17 09:09:25 PM
#33791   How Rare And Undervalued Are Physical Gold and MazelTov 10/04/17 09:08:32 PM
#33790   Silver, More Rare Than the Market Understands MazelTov 10/04/17 09:08:10 PM
#33789   Metals, She Wrote: How Rare is Silver? MazelTov 10/04/17 09:07:52 PM
#33788   Zacks: Brokerages Set $0.28 Price Target for Primero MazelTov 10/04/17 09:07:14 PM
#33787   Gold Is A Currency, Even the Fed Thinks MazelTov 10/04/17 09:06:31 PM
#33786   Daniela Corsini, analyst Intesa Sanpaolo bank, said silver MazelTov 10/04/17 09:05:38 PM
#33785   Long Zinc Miners? Teck's slides **must read!** dr_airtime 10/04/17 07:12:44 PM
#33784   KOOTENAY SILVER REPORTS THAT AZTEC MINERALS TRENCHES 0.52% basserdan 10/04/17 12:26:38 PM
#33783   The Angry Geologist looks at REG's latest NR, Lone Clone 10/04/17 11:53:13 AM
#33782   Yep in Louisville. Got a real job and MWM 10/04/17 10:02:57 AM
#33781   Wow what a blast from the past. I CPTMatt 10/04/17 09:54:00 AM
#33780   You guys ever take a look at Karmin? MWM 10/04/17 09:48:51 AM
#33779   MND.TO - $CAD 150 MC here is Denver Summary: dr_airtime 10/03/17 12:27:43 PM
#33778   USA.TO/USAS - nice update on San Rafael dr_airtime 10/03/17 11:37:54 AM