Haywood Securities released its Junior Exploration Report for Q3 2015, including its revised watch list of companies in the resource sector.
On Tuesday, Haywood Securities released its Junior Exploration Report for the third quarter of 2015, including its revised watch list of companies in the resource sector.
The firm states that overall, junior miners “again felt the brunt of a highly volatile mining sector” during Q3. That volatility was partially reflected in the decrease in financings during the quarter — according to Haywood Securities, they “tapered off after a standout performance in February,” when over $1.5 billion was raised.
That said, Q2 did bring a number of mergers and acquisitions in the mining sector. Those include the completion of the merger between AuRico Gold and Alamos Gold (TSX:AGI,NYSE:AGI) and the announcement of the merger between Newmarket Gold (TSXV:NGN) and Crocodile Gold (TSX:CRK). Haywood Securities believes that this activity “replicat[es] an increasing trend that was discussed in [its] last report.” In turn, that indicates that “more companies consider current market conditions to have bottomed-out” — certainly a positive sign for those involved in the space.
Beyond that, Haywood Securities notes that Q2 was dominated by headlines regarding the possibility of a Greek exit from the Eurozone. According to the firm, the mining sector has “felt the brunt of this uncertainty” — the S&P/TSX Global Mining index (INDEXTSI:TXGM) fell 9 percent during the quarter, while the S&P/TSX Composite index (INDEXTSI:OSPTX), along with the S&P/TSX Venture Composite index (INDEXTSI:JX), sank 5 percent. Positive economic data out of the US also provided headwinds for the resource space.
Nevertheless, six companies featured in Haywood Securities’ Q2 report recorded positive performances during the period, with NexGen Energy (TSXV:NXE) being the standout stock with a 44-percent gain. Meanwhile, Constantine Metal Resources (TSXV:CEM) jumped 27 percent, Vendetta Mining (TSXV:VTT) rose 17 percent, Reservoir Minerals (TSXV:RMC) increased by 14 percent and TerraX Minerals (TSXV:TXR) moved up by 1 percent.
Here’s a look at 14 companies that the firm will be watching during the third quarter of 2015 — Haywood Securities notes that they were chosen in part because they have “highly prospective projects run by reputable management teams.” Though there are a number of repeats from the previous quarter, there are also a few additions. Those include Marathon Gold (TSX:MOZ) and Tinka Resources (TSXV:TK); Plateau Uranium (TSXV:PLU) and Kennady Diamonds (TSXV:KDI) were not on the list during Q2, but have been featured in the past.
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.
- Atlantic Gold (TSX:SVU)
- Balmoral Resources (TSX:BAR)
- Calibre Mining (TSXV:CXB)
- Columbus Gold (TSXV:CGT)
- Constantine Metal Resources
- Kennady Diamonds
- Marathon Gold
- NexGen Energy
- North American Nickel (TSXV:NAN)
- Orex Minerals (TSXV:REX)
- Plateau Uranium
- Pure Gold Mining (TSXV:PGM)
- TerraX Minerals
- Tinka Resources
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
14 Junior Miners on Haywood’s Watch List for Q2 2015
15 Junior Miners on Haywood’s Watch List for Q1 2015