InvestorIntelReport: Day Traders chase the Gold and Silver Bull Run just in time for PDAC 2014
InvestorIntelReport Week-in-Review: InvestorIntel Gold, Base & Precious members up +11.32%; Uranium & Nuclear Energy up +11.26%; Rare Earths & Technology Metals +2.48%; Graphite & Graphene +1.26%; and Potash & Phosphate -5.98% for the week ending on Valentine’s Day, February 14, 2014.
“Gold just posted its first string of five consecutive gains since August 2012 and you’ve got some unmistakable short-term momentum.” I pulled from Barrons on Wednesday evening. That was arguably day 6 of this new trend as the WSJ ending the week with the unmistakable ‘go flag’ with the headline ‘Gold and Silver Fever Returns’. After you finish reviewing the InvestorIntelReport for this last week, you will undoubtedly conclude that the Day Trader cavalcade was chasing the gold and silver ‘Bull Run’.
So let’s start with our Peruvian silver and zinc member Tinka Resources Ltd. TSXV: TK was up +27.42% last week. No news yet this month, but to access Tinka’s most recent zinc drill results, click here.
Carlisle Goldfields Ltd. TSX: CGJ was up +27.27 and OTCQX: CGJCF moved +20%. Carlisle Goldfields is a new InvestorIntel member and is a gold exploration company located in ‘mining friendly’ Manitoba. I enjoyed having a breakfast meeting with Abraham Drost and Nick Konkin on Thursday morning. You have to like a company that starts their morning meetings at 8AM EST because their day is fully booked. Now I am just sorting through their PowerPoint, but here was my favorite bullet point – “Demonstrated economic viability: $377 million NPV” and contrast this to their market cap of $16M and just for fun – take a look at the chart on their site on how their stock compares with their peers (click here).
Peak Resources Ltd. ASX: PEK moved +17.54% last week – Peak is in Tanzania: which is the #3 producer of gold in Africa (more information). Alessandro Bruno, our African market expert is going to give us a real update on what’s happening in Tanzania this week, and we will also be interviewing Managing Director Darren Townsend Wednesday evening. Speaking of bulls, I am bull on uranium this year, and Peak has uranium too…
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The InvestorIntel: Uranium & Nuclear Energy members were up on average +11.26% featuring – Star Minerals Resources Ltd. Star Minerals CSE: SUV was up +42.86% and for all of those with history with this site may recall that Star’s management team of Jim Engdahl and Gary Billingsley previously ran Great Western Minerals Group Ltd. We are just gathering data on Star and have them queued for a good strong introduction this week – and yes, they also have their hands in rare earths and graphite. I knew the minute I saw Gary Billingsley added to the Board that there would be action – after all, it is the ‘Star’ of this week.
So let’s talk about Graphite & Graphene for a moment since Star is also listed in this sector, and note that our members in this sector were flat — up +1.29% for the week. This said, we have another real treat for you with the addition of Discovery Africa Ltd. to the InvestorIntel membership. Discovery Africa’s ASX: DAF was up +10% for the week. Robin Bromby has been drawing my attention to their substantial Area 51 Graphite Project in Namibia, and they have graphite and lithium in Tanzania too.
Speaking of impressive, let’s take a moment to really congratulate Zenyatta Ventures (TSXV: ZEN | OTCQX: ZENYF) for being (drum roll) for 2-years running the: Top Performing Company on the TSX Venture in the Mining Industry Sector. Also allow us to congratulate Mason Graphite (TSXV: LLG | OTCQX: MGPHF) for making the top 10 mining companies on the TSX Venture list in 2013.
Moving onto Agribusiness, or specifically potash – the largest, singlehandedly best news of any our clients, was with Allana Potash Corp. While our members were down -5.98% for the week, it defies all laws of gravity that Allana would be down too this week. So impressed with their deal with ICL, we published two stories on the same day: The four winners from latest potash deal: Allana Potash, ICL, Ethiopia and Africa and ICL and Allana form a strategic alliance to take advantage of growing potash demand in Asia and Africa. Undoubtedly, as soon as the institutional investors start their buying, the retail audience will wish they knew how to recognize good news. This was a certifiable win for Ethiopia and the potash sector in general.
From fertilizer to cleantech, Environmental Waste International Inc. TSXV: EWS was up +12.50% again last week. The EWS news on how their tire recycling technology demonstrates reduced carbon emissions is explained in an interview with CEO Daniel Kaute on ‘carbon black’ – click here.
These week-in-reviews are getting longer and longer, so next week I am going to break them into 2 or 3. We do have a substantial audience of significant technology metal fans, and anyone that is following electric cars as Robin Bromby pointed out in his piece History, Technology — and Hybrids are on the side of a recovering metal market will appreciate the story I found online today titled: Apple held secret meeting with Tesla (San Francisco Chronicle).
So what happened with our Rare Earths & Technology Metals this week? The sector was up +2.98%, the REE Leaders Index was up +3.07% (closed 306.62 points) and this week belonged to Star Minerals CSE: SUV +42.86%, Geomega Resources TSXV: GMA +26.67%, and Peak Resources ASX: PEK +17.54%.
Let’s take a minute and imagine what our lives would look like if we bought $100k of Geomega in the New Year? Seriously, if I ‘had’ invested $100k on January 2nd, I would have $380k today – a 280% increase, or more simply it would be quadrupling your money in less than a month and a half. It was the news on the 15th of January that kicked it off with Breakthrough in Physical Separation of REE, and since then they have had 2 more news releases: GeoMegA Drills 830 ppm Dysprosium Oxide at Montviel and Heavy Rare Earth Zone Defined Over 350 m by 20 m by 230 m and Still Open at Depth…with no signs of slowing down…
With regards to separation techniques, I would like to draw your attention to the article Dr. Luc Duchesne wrote on how valuable selecting the right chemical processing engineer is, in a piece we published today titled: Specialized chemical engineering firm steers entrepreneurs out of trouble: keeps other engineers, vendors, investors happy.
I saw one more trend this week, and this one ‘feels’ like the warm rays of support for sustainability. Ucore Rare Metals Inc. had another good week, TSXV: UCU +8.00% and OTCQX: UURAF +6.17% and Texas Rare Earth Resources Corp. OTCQX: TRER +7.67%.
On a final note, PDAC 2014 is heating up and will be in Toronto March 2-5th. Many of our clients will be coming in from around the world to what is arguable the worst weather we have had in years. So pack the layers…and expect a lot of news flow.
Remember, if you are a member of the InvestorIntelReport, you can access the numbers I use as the basis of my commentary, social media links and ‘other’ Intel. For instance, this week Jack Lifton presented in front of the French Assembly and this week we posted the speech titled The Contribution of Rare Earth Recycling to Self-Sufficiency of Supply in China and Beyond. This is a private speech he prepared for the upcoming 2014 International Conference on NdFeB Magnets in Ningbo, China.
An accomplished entrepreneur and corporate finance professional, Tracy Weslosky is the CEO for InvestorIntel Corp. and the VP of Business Development for Bellotti Capital Partners ... <Read more about Tracy Weslosky>