Which mining stocks do experts like David Morgan, Brent Cook and John Kaiser like? Find out here.
Which mining stocks do experts like David Morgan, Brent Cook and John Kaiser like right now? Investors who attended this past weekend’s International Metal Writers Conference got to find out.
In an early morning panel moderated by Rick Rule of Sprott US Holdings, Morgan, Cook and Kaiser, along with Nick Hodge and Jason Hamlin, were asked to name at least two companies they like right now, with at least one ideally being present at the show.
While most companies are juniors focused on precious metals, there are a few interesting outliers. Read on to find out which companies these top experts like the best (and why), and stay tuned for our video interviews from the show. You can also read overviews of day one and day two by clicking here and here.
David Morgan, The Morgan Report
- Silvercorp Metals (TSX:SVM,NYSEMKT:SVM) — “They just reported earnings of $0.26 a share. China based, one of the richest silver mines out there,” said Morgan. “Silvercorp’s a great company with great earnings. Take a look at them.”
- Minaurum Gold (TSXV:MGG) — “It’s a silver company, this is brand new,” Morgan said, adding that Peter Megaw, who he views as one of the best geologists out there, is involved.
Brent Cook, Exploration Insights
Cook emphasized that both his picks are prospect generators. “The key to making money in this sector — one key — is to get as many kicks to the can as you can for the same dollars,” he explained. “[These companies] have managed to keep their share dilution down and have run through a number of projects and are still around, still looking.”
- Riverside Resources (TSXV:RRI) — “They’ve got a market cap of about $20 million, they’ve got $6 million in the bank. They break even, they’re not losing money,” said Cook.
- Eurasian Minerals (TSXV:EMX,NYSEMKT:EMX) — “They’ve been around 13 years with 79 million shares out … your dilution is really minimized here. They’ve got dozens of projects scattered across the world, they’ve got dozens of royalties,” Cook noted. “They should break even this year, more or less.”
Nick Hodge, The Outsider Club
- Midas Gold (TSX:MAX) — “They have a really big deposit in Idaho, which is a very safe mining jurisdiction,” Hodge said, adding, “if it went into production today it would be the fourth-highest-grade open-pit project.” He sees an upswing in the company’s share price coming as it works through the permitting process.
- Skyharbour Resources (TSXV:SKY) — Uranium-focused Skyharbour Resources is run by Jordan Trimble, and Hodge said he’s “been able to bring in some highly strategic investors over the past year.” He sees more catalysts for the company coming throughout 2017.
Jason Hamlin, Gold Stock Bull
- Integra Gold (TSXV:ICG) — Hamlin said Integra Gold, which was just acquired by Eldorado Gold (TSX:ELD,NYSE:EGO), has been his top pick for the last couple of years. “As an investor we like to see [acquisitions],” he said.
- Alexandria Minerals (TSXV:AZX) — “If you like the story of Integra … just across the border from Integra’s property is Alexandria Minerals,” Hamlin said. The company has grown its resource by four times in the last seven years, and Hamlin also said that management has skin in the game.
John Kaiser, Kaiser Research
- Midas Gold — Like Hodge, Kaiser is a fan of Midas Gold. “It is the best optionality gold play out there,” he said. “Four million ounces of gold production eventually over a 12-year period, but also 100 million pounds of antimony, a strategic metal of which China produces the most.” He noted that at $1,600 gold, “it turns into a $4 to $8 stock.”
- Arizona Silver Exploration (TSXV:AZS) — “I’ve done an outcome visualization … and this could be worth US$400 million if everything falls into place,” Kaiser said. “You can see the five-, 10-bagger upside.”
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Arizona Silver Exploration and Silvercorp Metals are clients of the Investing News Network. This article is not paid-for content.
International Metal Writers Conference 2017, Day 1: Notes from the Floor
International Metal Writers Conference 2017, Day 2: Notes from the Floor