Haywood Securities has released its Junior Exploration Report for the fourth quarter of 2015, including its revised watch list of junior miners.
Last Tuesday, Haywood Securities released its Junior Exploration Report for the fourth quarter of 2015, including its revised watch list of junior miners.
As usual, the list was dominated by gold mining companies, with companies from the space taking no less than seven spots. Five companies focused on base metals (mainly copper, nickel and zinc) made the cut, while one diamond explorer and one company from the uranium space also made the list.
Looking back at the third quarter, the firm states that tough times continued for the junior mining sector. The gold price dropped below $1,100 per ounce during July (though it’s since recovered to $1,170) while the platinum price suffered as a result of the Volkswagen (ETR:VOW3) emissions scandal.
Meanwhile, things were not much better for the industrial and base metals sectors, with the latest Purchasing Managers’ Index figures from China indicating continued contraction, adding weight to the economic downturn in the country. Haywood’s report notes that copper, nickel, lead and zinc all fell to multi-year lows during the quarter, losing 3 percent, 5 percent, 2 percent and a whopping 14 percent, respectively.
On a brighter note, the uranium sector saw some good news with the first nuclear reactor restart in Japan since the Fukushima disaster in 2010. That said, Haywood states that “the short- to medium-term outlook for uranium prices is unclear, as the restart of additional reactors has been hampered by legal challenges and tougher safety standards.” Another nuclear reactor has since been restarted.
Taking a broader look at the market, Haywood Securities notes that “[j]unior mining equities remain under pressure as available capital continues to diminish, and the prospect of raising more becomes increasingly difficult.” However, the firm does see some miners taking creative approaches. As examples, it cites First Mining Finance’s (TSXV:FF) acquisition of PC Gold (TSX:PKL) and Gold Canyon Resources (TSXV:GCU) in an all-share transaction, as well as Calibre Mining (TSXV:CXB) and Midland Exploration’s (TSXV:MD) successful uses of the prospect generator model.
More importantly, the firm points to increased M&A in the sector. While it admits that the rise in M&A hasn’t yet translated into a turnaround in market sentiment, it still sees the change as “a positive sign” and a factor that has been “long regarded as a leading indicator for improved market sentiment.”
Here’s a look at 14 junior miners that Haywood Securities will be watching over the coming quarter. New additions to watch for Q4 include Barsele Minerals (TSXV:BME), Gold Standard Ventures (TSXV:GSV), NGex Resources (TSX:NGQ) and Reservoir Minerals (TSXV:RMC). Atlantic Gold (TSX:SVU), Constantine Metal Resources (TSXV:CEM), NexGen Energy (TSXV:NXE) and Pure Gold Mining (TSXV:PGM) appeared in Haywood Securities’ Q3 report, but were not featured for Q4.
Note: In addition to the above criteria, Haywood prepared this list in part based on whether it expects companies to deliver news during the next quarter. The list is updated regularly.
- Balmoral Resources (TSX:BAR)
- Barsele Minerals (TSXV:BME)
- Calibre Mining (TSXV:CXB)
- Columbus Gold (TSXV:CGT)
- Gold Standard Ventures (TSXV:GSV)
- Kennady Diamonds (TSXV:KDI)
- Marathon Gold (TSX:MOZ)
- NGex Resources (TSXV:NXE)
- North American Nickel (TSXV:NAN)
- Orex Minerals (TSXV:REX)
- Plateau Uranium (TSXV:PLU)
- Reservoir Minerals (TSXV:RMC)
- TerraX Minerals (TSXV:TXR)
- Tinka Resources (TSXV:TK)
Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Calibre Mining and Plateau Uranium are clients of the Investing News Network. This article is not paid for content.
14 Junior Miners on Haywood Securities’ Watch List for Q3 2015
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