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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: Peter and His Wonder Team
I want to start playing a little defence. I do have a well diversified portfolio which I am pleased with. However I do believe in the Boy Scouts motto of being prepared. Prepared for the unexpected or next recession which many analysts say is 12-18 months down the road. So I am thinking of getting some gold which has been flat for a considerable time which may be a plus when considering timing. So please give me a couple of gold stocks that are currently under valued and one can be a contrarian play as I will add several to my holdings. Also do you think I might be too early and should wait for pull backs? Thanks for your consistent excellence!
Read Answer Asked by Ernest on June 19, 2018
Q: It appears that MUX is turning the corner and production will increase significantly in 2018 and 2019. There is about 50 million shares short . MUX also raised $50 million in a private transaction without having to go the marked to issue more shares.
How will this play out for the shorts?
Thanks,
George
Read Answer Asked by George on June 18, 2018
Q: Hi, I would like to increase my exposure to materials companies as I think they will over perform the market in the next 12 months. Could you please rank the following in each category as to your expectations for capital gains?
1. Silver: FR, USA, SSRM, PAAS, SIL
2. Gold: BTO, KL, GUY, WPM, WDO
3. Others: TV, MX, CMMC, ECS, LGO
Or any others in the small cap category that you'd put ahead?
Read Answer Asked by Kel on June 18, 2018
Q: Many moons ago I had bought Azarga Uranium's predecessor before it tanked and became Azarga! I had hoped it would have been taken over by a Big player like Cameco. This didn't happen. This is before Fukushima disaster I think. It is now worth 18-35 cents a share. (52 week range)
They announced their ? merger with URZ an energy company. Worth buying AZZ or URZ? I am fully aware that this is completely a speculative buy!
Taking a small position is NOT going to impact on my overall portfolio positions and my retirement. I am fully aware that this is not a strategy that you generally recommend! However I pose this question b/c "out west" ( aka Vancouver exchange) ) some of the companies seem to go through sudden surges when they assume new identity! I had witnessed this during dot com bubble!!
Many thanks.
Read Answer Asked by Savalai on June 08, 2018
Q: You last reviewed these two uranium companies in 2017. MGA owns a reasonable portion of NXE. Both currently ticking upwards a little Can you please update and suggest where these may be going in next year or even several years? I have made some money on these as small investments, so I am OK to continue holding and can live with volatility. Thank you.
Tulio
Read Answer Asked by Tulio on June 07, 2018
Q: The company notes in it's presser that it will consider all available strategic and financial options to secure the required capital (to get the mine operational). Generally speaking the longer AQA can develop (and hold on too) a good mineable asset the better it will be for AQA and its shareholders. I suppose AQA have about 50 million still to spend from Osisko and they are going to need roughly an additional 250 million to get operational.
One option is dilution - sell shares to the public and retain 100% ownership. All things being equal the market cap would go up to 300 million and make a AQA a takeover target if the mine looked to be successful. All the new share holders will be looking to make a quick buck for sure.
Another option is a bank loan combined with dilution. However I don't see a bank loan unless the feasibility study indicates a high-grade zone near surface which could be mined quickly and be highly profitable. Even then I suspect the banks will hesitate to make a loan.
The last option would be to take on a larger mining company as a joint venture partner. This would leave AQA as part owner with cash flow which would be used to fund exploration at their two other sites. Once Osisko's money is all spent they will be pressing AQA to get operational as soon as possible. I think Osisko has a relationship with AEM who might be in turn be interested but maybe would want to see more gold ounces.
So AQA will spend most of the money it has left drilling the ore body looking for good grades especially good gold grades.
Do you think AEM would have any interest in the Back Forty deposit?
Last question on AQA for a while - I promise!
Thanks,
Jim
Read Answer Asked by James on June 06, 2018
Q: Thank you for your prompt response to my question. I checked the stock at 4:30 PM and l saw a news feed that the company had received the final government permit to operate the back fourty mineral deposit. (We will call it a mine if it ever gets into production). It appears possibly some people or maybe even many people knew the permit was going to be granted before the general public knew. Would this concern you?
Market capitalization has now passed 100 million. A Feasability Study is next up in the not too distant future. I am pretty sure management already knows the study will be positive - otherwise they wouldn’t be spending all this time and money getting permitted. There may news leakage out of the head office but I don’t think this company is a promotion and dump operation. Would you consider the company investable now or is it still highly speculative?
Thank you,
Jim
Read Answer Asked by James on June 05, 2018
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