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Value Microcaps Junior Miners

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Last Post: 11/29/2015 5:41:12 PM - Followers: 416 - 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:


#32042   DPM.TO - just keeps descending... dr_airtime 11/29/15 05:41:12 PM
#32041 C$.60 Bobwins 11/29/15 02:38:48 AM
#32040   Trader, I dont have a sure answer to checkmate28 11/23/15 08:22:39 PM
#32039   You think there will be financing as long Traderfan 11/23/15 07:56:00 PM
#32038   Traderfan GWA.v Gowest 52 week high. Could be checkmate28 11/23/15 07:53:17 PM
#32037   CPTMatt re SAS.t I agree with your comment checkmate28 11/23/15 07:42:25 PM
#32036   Checkmate, regarding Gowest Traderfan 11/23/15 02:15:27 PM
#32035   SAS St. Andrew Goldfield. First of all CPTMatt 11/19/15 06:19:38 AM
#32034   SAS.t Up nice today on offer from Kirkland checkmate28 11/17/15 10:25:31 AM
#32033   I owned some Aurcana warrants for a short Lone Clone 11/16/15 12:23:36 PM
#32032   New post on Claude Cormier's free blog -- Lone Clone 11/15/15 12:06:07 PM
#32031   Dr Air Orvana ORV.T I was going checkmate28 11/13/15 12:10:41 PM
#32030   Attention ladies ... kozuh 11/12/15 07:55:50 PM
#32029   Excellon Reports Third Quarter 2015 Financial Results checkmate28 11/12/15 10:52:58 AM
#32028   Yup I live in Nazilonia cartonet 11/12/15 09:56:04 AM
#32027   Good to hear from you !!! kozuh 11/12/15 09:54:14 AM
#32026   kozuh !!!! cartonet 11/12/15 06:09:28 AM
#32025 +.02 to C$.485 Bobwins 11/11/15 12:13:34 PM
#32024 +.035 to C$.44 Bobwins 11/09/15 11:53:37 AM
#32023   I like the crony capitalism ... !!!! kozuh 11/06/15 12:20:41 AM
#32022   TMR.TO - Highlights of TMAC's PR from Today... dr_airtime 11/05/15 08:23:50 PM
#32021   $OOIL myopinion 11/05/15 12:47:18 PM
#32020   NMI.TO - More thoughts from Denver Webcast. dr_airtime 11/05/15 12:40:02 PM
#32019 +.08 to C$.43 Bobwins 11/05/15 11:11:06 AM
#32018   SAS.t News! Best value in class. For 121M checkmate28 11/05/15 10:30:06 AM
#32017   DPM.TO - Put this one high on your dr_airtime 11/02/15 05:36:26 PM
#32016   EXN.T Excellon Resources. Trading at $17MC. I would checkmate28 11/02/15 11:57:54 AM
#32015   NMI.TO - **Link back to my last post dr_airtime 10/29/15 12:21:17 PM
#32014 unchanged C$.55 Bobwins 10/29/15 09:42:14 AM
#32013   a ... "golden oldie" ... (eom) kozuh 10/28/15 05:35:15 PM
#32012 +.04 to C$.76 Bobwins 10/28/15 12:41:57 PM
#32011   I am glad, though not surprised, that you Lone Clone 10/28/15 11:35:27 AM
#32010   TMR.TO – TMAC Resources dr_airtime 10/27/15 02:43:44 PM
#32009   Where Is All The Gold Going? basserdan 10/26/15 02:01:30 PM
#32008   Now all they (Crocodile Gold) need to do nsomniyak 10/20/15 09:50:47 PM
#32007   That's good stuff. Still waiting patiently on Gowest Traderfan 10/20/15 07:46:42 AM
#32006   NMI.TO - Newmarket is new Crocodile Gold dr_airtime 10/18/15 09:04:04 PM
#32005   Everyone should invest in Gold ... kozuh 10/16/15 02:05:22 PM
#32004   thanks. Yes I like Brent cooks commentaries. JustForFun7 10/16/15 11:26:35 AM
#32003 Bobwins 10/16/15 11:25:16 AM
#32002   Here's a real geologist weighing in on RMX. Lone Clone 10/16/15 10:42:51 AM
#32001   Carlisle Alamos Gowest checkmate28 10/15/15 11:29:22 AM
#32000 +.03 to C$.60 Bobwins 10/14/15 12:08:26 PM
#31999 +.01 to C$.64 Bobwins 10/14/15 11:51:59 AM
#31998 becomes part of URRE Bobwins 10/11/15 03:01:18 PM
#31997   Trevali ( +0,245 to C$.67 (+59,04 %) garb0 10/09/15 04:01:42 PM
#31996   Glencore cuts annual zinc production by 500 000 garb0 10/09/15 02:08:27 AM
#31995   thanks for the info...I think I will get JustForFun7 10/08/15 11:24:17 AM
#31994 - from MexicoMike blog: thedivot 10/07/15 09:32:33 PM
#31993 / RBY JustForFun7 10/07/15 04:41:55 PM