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2012
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January
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- January 31, 2012 Edition of the Stateside Report
- january 27th and 30th Edition of the Stateside Report
- January 26, 2012 Edition of the Stateside Report
- January 25, 2012 Edition of the Stateside Report
- January 24, 2012 Edition of the Stateside Report
- January 23, 2012 Edition of the Stateside Report
- January 20, 2012 Edition of the Stateside Report
- Quarterly Excalibur Report now available on the we...
- January 19, 2012 Edition of the Stateside Report
- The news a week before the news
- January 18, 2012 Edition of the Stateside Report
- January 17, 2011 Edition of the Stateside Report
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- No News From Friday - 3 Reports Sent Out
- January 12, 2011 Edition of the Stateside Report
- January 11, 2012 Edition of the Stateside Report
- January 10, 2012 Edition of the Stateside Report
- January 9th, 2012 Edition of the Stateside Report
- No News from January 6th - But a homework assignment
- January 5th, 2012 Edition of the Stateside Report
- January 4, 2012 Edition of the Stateside Report
- No news from the Canadian Junior Sector on January...
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January
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2 comments:
I had the good fortune of attending the Association for Mineral Exploration British Columbia (AME BC) conference for the first time. The conference is held once a year in Vancouver, British Columbia. It also a lead up to the mega professional geology and exploration conference in Canada, the Prospectors and Developer Association of Canada (PDAC conference.
Attending the AME BC conference is a real eye opener for me. If the record attendance of 8,000+ attendees is any indication the mining industry and exploration companies will be firing on all cylinders this year.
Even though most exploration companies have had big hits on their share prices, junior resource stocks could be in for a big rebound later in the year. The low share prices of the junior companies has created great opportunities for the growth and development of mining companies. The major and mid-term tier mining companies can go bargain hunting and snatch up an entire company with its assets for a song. The Imperials Metals (III), Thompson Creek Metals (TCM) mine development projects are two examples of major mine development projects that are on track and fully financed despite any short term shakeups in the resource stocks.
I would say that the junior exploration companies with projects near these two companies could be likely takeover targets.
Juniors are cheap, but so are producers who've gone thru all the angst (and dilution) of getting into production. Really no need to go down market with so little reward vs the risk you take. There's a slew of undervalued, near term development projects that are in progress that will see big revaluation when in production - so only execution risk for these guys (Baja, Augusta, Taseko, Chieftain, Colossus etc etc etc).
Two-bit, heavily promoted juniors simply putting drill bits in the ground using "other people's money" is a terrible investment - go up the quality chain just a teensy bit to funded mine developments and you get excellent risk-reward.
With all due respect to Vince, I think he focuses on the wrong part of the market. I'd much rather see news on the near term production plays - how's Baja progressing? When does Augusta start construction? Chieftain needs cash, but then they look very compelling - but a 2015 story. The biggest step change in valuation (after high risk exploration results) comes when companies transition from development to production. On a risk-reward basis, makes ZERO sense to throw your money at exploration juniors.
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