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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: My question is about addition of cash to the balance sheet with out dilution. I have the above mentioned company in my risk portion of my portfolio. They seem to be on to a novel way to fund their mine in the form of a stream but with the help of an security token offering. so my question is if they are successful and add say $10,000,000 to the balance sheet, what should that do to the stock price. I would appreciate your insights. And any additional observations on the company as a whole.
Read Answer Asked by Todd on May 25, 2018
Q: Any thoughts about these companies? I know these are not in your favourite Gold stocks list. But from a bounce point of view, worth taking a risk?
Especially in view of "obscene" payment to the CEO of ELD which has drained investors'' money and confidence!! If it leads to changes in the company, is it possible to expect some bounce in the stock price?
Read Answer Asked by Savalai on May 24, 2018
Q: Good Morning Team,

As you know, Nemaska Lithium announced C$280,000,000 bought deal at the price of $1.00 which was substantially lower than the SP as of yesterday, 22 May. The stock has fallen by more than 16% today.
In the news we read: Guy Bourassa, President and CEO of Nemaska Lithium, commented on these recent announcements: "Today marks a big day in the life of Nemaska Lithium, as we are announcing the last piece of financing required to start the commercial development of the Whabouchi lithium mine project. This project financing package, which covers capital expenditures of both the Whabouchi mine and Shawinigan electrochemical plant, project contingencies, working capital requirements and financing costs will ensure the future of Nemaska Lithium. This will also allow the Corporation to stay on target to initiate the commissioning of the Whabouchi mine by second half of calendar year 2019 and start commissioning the Shawinigan electrochemical plant during the first half of calendar year 2020".

My main question is how trustworthy is this management? Was Guy Bourassa once ceo of T-Rex which made three wheel fake motorcycles and had difficulty raising money because of him? I also would like to know if you accept that this financing deal really is the last piece? How typical is the way they have been raising money in the past year alone? Would you be a buyer at these levels? Would you average down if your cost was at $2.00?

I believe lithium will be a big player in a changing energy world but I have been burned by speculative mining projects before and I wonder if NMX is going to next? Would it struggle for many years well beyond 2020 and drain its investors year after year with empty promises?

Thank you for your valuable insight as always!
Read Answer Asked by Saeed on May 24, 2018
Q: Hello Gentlemen,
Is Puma ever going anywhere with now being in bed with Trevali Mining ? Trevali must have been attracted by something Puma has!
Read Answer Asked by Frank on May 22, 2018
Q: I recently added a few "commodity" stocks and they've recently had very strong runs...Would you be inclined to hold them or take some profits? None of them represent an oversized portion of my portfolio. I'm just thinking after such sizeable gains in a short term...they must be due for a pullback. What macroeconomic indicators would you use to identify a change in outlook?
Read Answer Asked by Jeff on May 14, 2018
Q: Hi, what is your current view on Trevali? Is this a good entry point? It seems so to me based on decent zinc pricing and a forward PE of only around 4(!)? Do you see strength or weakness in Zinc demand in the next year? If the commodity demand is strong, Trevali seems poised to go much higher this year, but no one seems interested right now?
Read Answer Asked by Kel on May 10, 2018
Q: stock price had a nice pop this afternoon after being down earlier in the day...
what are your thoughts on Kinross at this time?
i currently own a few thousand shares at $5.00 and was thinking of adding more considering the volatility in the recent price of gold.
(my total gold holdings at this time are about 3%)
Read Answer Asked by ed on May 09, 2018
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