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Value Microcaps Junior Miners

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Last Post: 7/31/2015 12:10:00 PM - Followers: 420 - 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:


#31930 +.04 to C$.51 Bobwins 07/31/15 12:10:00 PM
#31929   Look like great deal for Romarco Shareholders. dr_airtime 07/30/15 05:40:45 PM
#31928 JustForFun7 07/30/15 03:19:22 PM
#31927   Teranga TGZ.totgcdf +.01 to C$.57 Bobwins 07/30/15 01:51:59 PM
#31926   Thanks for the correction (eom) kozuh 07/29/15 03:57:48 PM
#31925   You both got the symbol wrong; it's IRL.TO. Lone Clone 07/28/15 05:57:54 PM
#31924   MRL.TO (Minera)... I've held a bit of this MontyHigh 07/26/15 06:29:41 AM
#31923 C$.07 Bobwins 07/24/15 11:33:36 AM
#31922   ******* CENTERFOLD OF THE DAY ******* the cork 07/18/15 05:30:40 PM
#31921   Kootenay Silver's La Negra Maiden Resource Estimate and basserdan 07/17/15 11:37:06 AM
#31920   Bobwins: GMI Thanks. Reverse splits bbotcs 07/16/15 12:13:06 PM
#31919   looks like one of the van eck etf's. Bobwins 07/16/15 01:44:03 AM
#31918   Bobwins: As the result of a typo bbotcs 07/15/15 11:45:42 PM
#31917   My pick right now for best gold stock Lone Clone 07/13/15 09:04:02 PM
#31916 C$.59 Bobwins 07/08/15 07:32:46 PM
#31915   The Euro and the Yuan are ... kozuh 07/08/15 01:05:47 AM
#31914   The Euro and the Yuan are ... kozuh 07/08/15 01:05:47 AM
#31913   Better than equities anyway. the cork 07/07/15 11:32:57 PM
#31912   Deflation in the USA in 2016 means ... kozuh 07/07/15 10:23:00 PM
#31911   the dreaded summer doldrums are here. Miners Bobwins 07/07/15 01:20:30 PM
#31910   xrymd, I use TD Ameritrade. I also use daredguy 06/30/15 04:20:45 PM
#31909   GORO technicals look bad right now. The evidence huesos 06/27/15 02:21:43 PM
#31908   That is what I currently do. The liquidity xrymd 06/26/15 04:47:57 PM
#31907   Zrymd I use the pink sheet version checkmate28 06/26/15 09:32:58 AM
#31906   Sorry I missed the self directed 401K part. Bobwins 06/25/15 05:35:02 PM
#31905   Bob: I just tried interactive brokers. They don't xrymd 06/25/15 01:42:37 PM
#31904   Interactive Brokers allows direct trading in Canada in Bobwins 06/25/15 10:51:09 AM
#31903   OT Does anyone know a online trading firm that xrymd 06/25/15 10:28:14 AM
#31902   GORO Just out and main reason I included checkmate28 06/25/15 09:27:15 AM
#31901   I am accumulating about 50%+ of my new checkmate28 06/25/15 12:36:40 AM
#31900   AUMN Golden Minerals. Worth a shot here checkmate28 06/25/15 12:04:10 AM
#31899   SAS.t STADF Added a chip of St checkmate28 06/24/15 10:10:20 AM
#31898   GoWest... Thanks checkmate... MontyHigh 06/21/15 05:49:12 PM
#31897   ORV.TO - short CEO interview dr_airtime 06/20/15 12:29:10 PM
#31896   ORV.TO - top pick on BNN... dr_airtime 06/19/15 10:01:46 PM
#31895   ORV.TO - quick follow up.. dr_airtime 06/19/15 11:21:00 AM
#31894   YRI.TO - 2008 lows & 2004/5 resistance dr_airtime 06/18/15 07:56:48 PM
#31893   EDV.TO - full valuation from SA Article. dr_airtime 06/18/15 07:51:54 PM
#31892   Forum Intersects Elevated Uranium, Boron And Base Metals basserdan 06/18/15 09:12:37 AM
#31891   Monte Re Gowest GWA.V Apologies for being MIA. checkmate28 06/18/15 12:22:26 AM
#31890   FWIW, I put the last 10% of cash MontyHigh 06/17/15 09:02:55 PM
#31889   Silver Bull Identifies New Massive Sulphide Mineralization Grading basserdan 06/17/15 09:31:00 AM
#31888   I have read them all and still don't garb0 06/14/15 06:05:38 AM
#31887   Andy Home is one of the most astute Lone Clone 06/13/15 06:30:27 PM
#31886   GOWEST, what's the chance of an XStrata buyout? MontyHigh 06/13/15 04:25:26 PM
#31885   I'm expecting to buy some gold stocks Wednesday... MontyHigh 06/13/15 04:15:03 PM
#31884   Andy H seems like a guy with a garb0 06/12/15 11:30:22 AM
#31883   COLUMN - Zinc's infinitely stretchable deficit deadline: Andy Home Lone Clone 06/12/15 10:51:55 AM
#31882   EPK.v/epkmf +.02 to C$.30 Bobwins 06/11/15 11:36:19 AM
#31881   Trader Gowests CAPEX is low because they are checkmate28 06/09/15 12:22:56 PM