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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: I currently have about 5%- 7% of my portfolio in materials - SJ and MX specifically. If you accept the thesis that worldwide economic growth is improving would it be wise to also have some metals representation in my holdings or would you expect all materials to grow at the same time - i.e. a rising tide lifts all ships. I was thinking of Teck.B for this purpose if you think it is warranted. I do realize that 3 stocks are usually better than two for diversification but I only want to add (or switch) if you think I would be missing out on an important sector.

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on July 13, 2017
Q: Please suggest some names in the industrial metal space (copper, aluminum and zinc) given that we are seeing a pull back in the $US and bottoming of the Bloomberg Commodity Index - Thank you.
Read Answer Asked by Aubrey on July 13, 2017
Q: Hi Team, Perhaps this is a clarifying question....? Below is my question about MGX and 5iR's response. My question on your answer is you are saying that there are other companies who posses the technology to extract lithium from oil and gas waste water. If so could you name them for me? Clearly the key for me is the Li extraction technology and patent. Thanks team. Chris
Hi Team, I would appreciate your thoughts on MGX Minerals. It appears this Canadian company has patented a filtration system and recently successfully tested it for the removal of Li from oil and gas waste water. In addition purified water is a by product. I have been following the Li story and own shares in ORL and ALB. However, it seems this process is cheaper, faster and more efficient than the current solar and hard rock mining methods and we have lots of O&G. MGX can also apply their technology to recover magnesium and boron. Quite frankly the technology that MGX has tested seems to me like a HUGE discovery and breakthrough. Thanks Team Chris

Answer:
The stock is certainly attracting interest, up 414% in a year and 94% YTD. Market cap is now $65M. Insiders own 35%. But there is no revenue, little cash and negative cash flow. It has some patents for metals recovery but there are other companies in this business, and we do like to see revenue and third-party confirmation of the robustness of the technology. It is still early stages here.


Read Answer Asked by Chris on July 13, 2017
Q: Which 2 of these silver miners do you perfer? Would it be better just to buy CEF.A or SVR and forget about the miners?
Read Answer Asked by Charles on July 12, 2017
Q: Electric Cars. With Volvo announcing they will only produce Electric Cars in the future and China making statements they will only allow Electric Cars in the future ( a great idea with their pollution ) . What are best plays towards these moves towards electric cars. Lithium, battery manufacturers, Silver what other commodities. How do you make money in the future if all auto manufacturer move more to electric cards as demand builds ? RAK
Read Answer Asked by bob on July 10, 2017
Q: Could you comment on the suspension of the license at the Guatemala mine? I listened to part of the conference call. The basis for the suspension seems weak, but you never know what the real politics are. There was not too much more info than in the press release, but to summarize:
- balance sheet is strong at approx. $165 Mm
- $150 MM line of credit is being re-worked to provide flexibility in the short term
- other to projects in development (Bell Creek, Shahuindo) will continue without interruption
- current month's dividend will be paid; dividends are a board decision, so management could not comment on future months
I have a 1% position at $10.80. Would you buy a bit more if the share price plummets on open?
Read Answer Asked by David on July 06, 2017
Q: Red Eagle Mining announced a Rights Offering today. In response to one of their mines and a change in approach regarding how to best get at the gold. What are you thoughts? I purchased 6000 shares as a flyer a few months back. Cost was 70 cents. Trading at 30 cents today. Should I just walk away.
Read Answer Asked by Randy on June 27, 2017
Q: Hi!

Small position in Red Eagle. How would you deal with the 'new' situation unfolding at their mine and also the rights offering? Clearly market didn't like it too much!

Thx,
Read Answer Asked by Dominic on June 27, 2017
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