Value Microcaps Junior Miners

[Bobwins]

mbx.to looks like a slow and steady play. Not familiar with the company but looked at annual sales for the past few years and saw 9, 10, 12, 13 million sales. Just getting to profitability. Should be a steady way to play biotech. Not sure it's going to create much excitement unless they can market new products and get the revs growing faster.

Goro is an old favorite of mine. Looks like new gold mine is kicking in with Q3 revs and eps rising. Expect market will appreciate steady approach to gold mining as well as steady dividend. Based on Q3, 2020 eps should be the low to mid .20's.

I have been playing bigger miners for the past few months. The gold rally has stalled a bit and after the train wreck of the past decade, investors aren't fully onboard yet. The trend towards etf's will retard the junior sector until gold prices attract more individual investors. The existing gold funds are definitely comprised of medium to large producers rather than junior explorers.

As you can tell from my posts, I like Sibanye Stillwater, SBGL. With the tremendous rally in palladium and rhodium over 2019, SBGL has been on fire. I expect the stock to continue to appreciate as financial results continue to improve. While both palladium and rhodium could easily reverse direction, I expect gold and platinum to take up the slack. SBGL is uniquely balanced in their production, with the four metals contributing around 1/4 each. I expect SBGL to reinstate dividends in mid 2020, which should bring another group of new investors to SBGL, including more dividend focused etf's and mutual funds.

This isn't a small junior, with a 7 billion market cap but with current metals prices, SBGL is still due for a rerating and a 10+billion market cap. If gold takes off in 2020, the stock chart should continue looking like the left side of a steep mountain.

Another biggish miner that I think will benefit from a new mine is Mag Silver. They are 44% partners with Fresnillo, the big Mexican miner in a district scale deposit near Fresnillo's big mine. The mine should come online in late 2020 and should be huge. The mine is expected to produce over 20 million silver oz a year and significant gold. Mag has over 100 million in cash on their balance sheet and no debt! The new mine will not only turn Mag into a cash cow but they have only explored 5% of the deposit so new discoveries could keep adding to Mag Silvers value over time.

My last pick would be Liberty Gold. This is an explorer of a big gold deposit. 6 million oz so far and more drilling to come. This is likely a buyout candidate fairly soon. There are so few multi million oz gold deposits in the world, much less in a safe US location.

Good luck. Bobwins