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Joe Mazumdar takes a look at gold, silver, zinc, copper and uranium

June 8, 2016

Brent Cook’s partner at Exploration Insights Joe Mazumdar provides his insights into a number of different commodities markets. We touch on gold, silver, zinc, copper and uranium in terms of fundamental outlook and potential investments in each sector. Joe will also be on this week’s weekend show talking about the difference between quality companies and companies that offer more leverage in the resource space.

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Discussion
13 Comments
    Jun 08, 2016 08:08 AM

    Thank you very much for the interview. Joe is a very thoughtful guy and has a lot of hands–on experience which is good to learn from. And thank you for discussing uranium; do you have access to more experts in the uranium field? It could be very interesting to learn more about the dynamics in this field.

      Jun 08, 2016 08:50 PM

      There have been about 5-6 interviews on Palisade Radio this year that have featured speakers and pundits in the Uranium Sector. I’d recommend checking out those interviews.

      Tommy Humphrey’s site ceo.ca has a number of interviews and editorials worth reviewing.

      Marin Katusa has research on his website with a few thoughts on Uranium, but he is very opinionated about anybody mining at present (and neglects to mention that these companies are mining and processing ore because they have long term contracts in place that are $20-$25 above the spot price). He is a big time fan of UEC (almost at the exclusion of everyone else).

      Mickey Fulp has offered different thoughts on his website for years on Uranium. Again, he is biased in his coverage based on who has been sponsors on his show, but he does have decades of experience evaluating Nuclear Energy.

      Jeb Handwerger has been covering the Uranium space for about a decade, so I occasionally check in with him for insights or company ideas.

      Cecil Musgraves is another analyst that covers the Uranium space sometimes.

      John Kaiser has a few different companies he follows in the Uranium space and does a better job covering the spectrum of companies without worrying about placating sponsors.

      Gwen Preston has talked quite often about Uranium and I posted a video of hers yesterday on KER where she covered it at the end of the talk. She’s a big fan of NexGen. One of her partners in the Metals Investment Forum, Eric Coffin, has some very grounded thoughts on the Uranium space, and he is a big fan of Energy Fuels.

      Rick Rule is a big fan of Uranium and believes in the mid-term bullish set up and the validity of nuclear energy as part of the overall base-load power and he likes the optionality of Fission, and usually mentions the insane returns he made riding up Paladin from pennies to dollars making over 1000% returns in the last cycle.

      Honestly, I find very few resources that cover the overall spectrum of all the Uranium producers and explorers, and normally a speaker has 1 or maybe 2 pet projects (with Fission and Nexgen being the most popular due to their high grade).

      Personally, I spend quite a bit of time just going to the company websites, reviewing corporate presentations (often full of macro fundamental data), reading their press releases over the last year or two, and looking for YouTube videos where the CEOs of these companies unpack their opportunities with a video presentation. There are investment shows going on year round where people interview different companies and they’re all available to view online if you want to spend the time. Sometimes it helps to see the visual slide presentations IMO.

      * The primary industry wide website for Uranium knowledge it trade tech (like the Kitco of Uranium) and their site is uranium.com

      ** There is a steady stream of news coming out of the Junior Mining Network which has timely press releases and many times the early bird gets the worm by acting before the news has been absorbed for short-duration trades.

      ** I often frequent the INN site because they have steady news flow on the Uranium sector. Since it is difficult to post multiple links in one message on KER I’ve saved my link for this one:

      http://investingnews.com/category/daily/resource-investing/energy-investing/uranium-investing/

      Cheers!

        Jun 08, 2016 08:32 PM

        Here is the watch-list of Uranium companies I follow, but I’m only invested in 10-12 at any one time with the emphasis in the producers and near-term producers, and top of class exploration companies.

        ___________________________________________________________________________

        Uranium Stocks Symbol

        A-CAP RESOURCES ACB.AX
        ALX URANIUM CORP ALXEF
        ANFIELD RESOURCES INC ANLDF
        ALDRIN RESOURCE CORPORATION AOUFF
        AREVA SOCIETE DES PARTICIPATIONS DU COMM ARVCF
        ATOM ENERGY INC ATURF
        AURA ENERGY LTD AUEEF
        AZINCOURT URANIUM INC AZURF
        CANEX ENERGY CORP BDRCF
        BERKELEY ENERGY LTD BKLRF
        BLUE SKY URANIUM CORPORATION BKUCF
        BANNERMAN RESOURCES LTD BNNLF
        BOSS RESOURCES LTD BOE.AX
        EROS RESOURCES CORPORATION BPUZF
        BRAZIL RESOURCES INC BRIZF
        BAYSWATER URANIUM CORPORATION BYSWF
        CAMECO CORPORATION CCJ
        CANALASKA URANIUM LTD CVVUF
        DENISON MINES CORPORATION DNN
        DEEP YELLOW LTD DYLLF
        ENERGY RESOURCES OF AUSTRALIA LTD EGRAF
        FISSION URANIUM CORPORATION FCUUF
        FORUM URANIUM CORPORATION FDCFF
        FISSION 3.0 CORP FISOF
        FORSYS METALS CORPORATION FOSYF
        KHAN RESOURCES INC KHRIF
        KIVALLIQ ENERGY CORPORATION KVLQF
        LIBERTY STAR URANIUM & METALS CORPORATION LBSR
        CENTRUS ENERGY CORP LEU
        LARAMIDE RESOURCES LTD LMRXF
        MEGA URANIUM LTD MGAFF
        MESA EXPLORATION COR MSAJF
        MAWSON RESOURCES LTD MWSNF
        VANECK VECTORS URANIUM & NUCLEAR ENERGY NLR
        NEXGEN ENERGY LTD NXGEF
        NX URANIUM INC NXUR
        PALADIN ENERGY LTD PALAF
        PACIFIC BAY MINERALS LTD PBMFF
        PENINSULA ENERGY LTD PENMF
        PLATEAU URANIUM INC PLUUF
        PANCONTINENTAL URANIUM CORPORATION PUCCF
        PUREPOINT URANIUM GROUP INC PUMGF
        AZARGA URANIUM CORP PWURF
        STRATECO RESOURCES INC SRSIF
        SKYHARBOUR RESOURCES LTD SYHBF
        TORO ENERGY LIMITED TOEYF
        URANIUM ENERGY CORPORATION UEC
        UEX CORPORATION UEXCF
        GLOBAL X URANIUM ETF URA
        UR-ENERGY INC URG
        URANIUM PARTICIPATION CORPORATION URPTF
        URANIUM RESOURCES INCORPORATED URRE
        URAVAN MINERALS INC URVNF
        ENERGY FUELS INC UUUU
        WESTERN URANIUM CORP WSTRF
        ATHABASCA NUCLEAR CORP YWRLF

          Jun 08, 2016 08:35 PM

          Sorry, I should have alphabetized that list by company name, but it is sorted by ticker. The tickers are all US, except for 2 that only have Australian tickers.

          At least it is a good list of companies to start doing some research on if you are so inclined.

            Jun 08, 2016 08:42 PM

            I always get a kick out of people discussing the Uranium marketplace and stating there are only about 3-5 stocks to invest in. Clearly they have not done their homework, but as discussed above, it is difficult to find regular coverage of this sector.

    Jun 08, 2016 08:56 PM

    Cory – Thanks for having Joe on the show. He is always interesting to listen to and it will be interesting to hear what you guys get into for the weekend show.

    Jun 08, 2016 08:51 PM

    excelsior. what is your educated opinion on American lithium. one letter writer is saying to buy up on this one before it goes to the moon. I checked the website & can’t find out how much lithium brine it has (lbs). just that it secured 20.000 + acres of brine in Nevada close to the tesla site! it’s starting to come back down off it’s initial pop now.

      Jun 09, 2016 09:43 AM

      One can never be sure which exploration companies may lock into something, but there are about a dozen companies in Nevada that claim they’ll be supplying Tesla. I’m skeptical of most of those claims and most Lithium companies as marketing fluff. I can’t speak to in-depth knowledge of American Lithium, but it seems very unlikely in my opinion that they can catch up to Lithium Americas Corp, Pure Energy Minerals, or Lithium X.
      _________________________________________________________________________

      (1) The company with exposure to Nevada that I am most heavily invested in is Lithium Americas corp. (previously Western Lithium). US ticker (LACDF).

      They’ve been at this for years [when it wasn’t cool or hip to be a Lithium company] and they are a legitimate LI company like Orocobre or Galaxy Resources or Neometals. Lithium Americas corp has 2 main regions {Nevada & Argentina} and a winning strategy in both areas.

      Under their subsidiary, Lithium Nevada Corp, they have most of the permitting done, have their pilot plant built, and are already Producing organo-clay products on-site to supply the drilling additives & agricultural marketplace and have a growing revenue stream from that. They have years of experience in this sector, have one of the largest Lithium resources in N. America, according to Roskill Information Services, and they have much of the build out & staff already in place due to the Organoclay plant being up and running for over a year. This puts them years ahead of almost any other company operating in Nevada.

      In addition SQM has partnered with them 50/50 on their Argentina assets which they acquired when they were Western Lithium from Lithium Americas. This Argentina project will be an even larger deposit and SQM is one of the BIG 3 chemical conglomerates that produce most of the Lithium on the planet. I am very positive that SQM did the due diligence on Lithium Americas before partnering up, and again this speaks volumes on their credibility compared to new “Johnny come lately” Lithium start ups.

      2) Pure Energy Minerals is much farther along in advancing their properties and assets and in getting the necessary permits to get Lithium mining going in Nevada, and they already have an off-take agreement with Tesla. To me that is far more solid that a company staking ground in Nevada and hoping they get in on the Tesla battery action.

      3) Lithium X has been over-hyped because it is a Frank Giustra backed company, trying to blow and go in Nevada to supply the Tesla Giga-factory, but they are actually far behind Lithium America Corp or Pure Energy Minerals in advancing their projects, so for now it is their ability to have raised money & awareness, Frank’s past successes, and the fact that they have purchases some great prospective land that has put them on the map. They may push forward to be a big player, but like some many times in mining, it is the more quiet companies without as much fanfare that are putting their heads down making real progress.

      I just don’t see how other new companies like American Lithium will have a chance, other than as an acquisition takeover target if one of the 3 companies mentioned above wants to buy more resources.

      In addition to Lithium Americas Corp, Pure Energy Minerals, and Lithium X, I’d point any investor to (4) Galaxy Resources (GALXF) and (5) Orocobre (OROCF). Both companies are ALREADY IN PRODUCTION! They are 2 REAL companies that survived the last boom/bust cycle, moved their project forward, and they are the 2 best success stories in the Lithium space, but they haven’t received nearly the hype of a lot of the ground staking fluff companies. I’m sticking with companies that know what they are doing, have a revenue stream, and will be around after the bubble.

      (6) Neometals (RRSSF) is another company ramping up into commercial production at present that I hold and they are a real company in Australia that you can sink your teeth into.

      Neometals will produce spodumene concentrate from mid-2016 from its Mt Marion Lithium Project with partners Mineral Resources Ltd and Jiangxi Ganfeng Lithium Co., Ltd. (these are the 4th biggest Lithium producers that bought out Talison)

      Neometals is developing its patented ELi Process with the aim of producing high purity battery grade lithium hydroxide and lithium carbonate. Neometals is evaluating the recovery of titanium, iron and vanadium from its Barrambie project via a licenced proprietary hydrometallurgical process.

      (7) Nemaka Lithium (NMKEF) operating in Quebec is one more really solid development company with some infrastructure already in place, a well-defined asset, and they are making good progress towards development into production.

      As for the rest of the 40+ other companies…….. Who knows? Most of the rest are BS, but a few may make a legitimate discovery and get taken out. For me, Lithium is a very risky market with those kind of wildcat exploration plays, and I feel better with the 7 producers / near-term producers outlined above.

        Jun 09, 2016 09:44 AM

        excelsior, thanks for your valuable time. I am sorry for putting you to task, many people on this site ask for your’s & matthew’s advice and you guys always help. I am grateful for all that you guys do. dwj

          Jun 09, 2016 09:32 PM

          It’s fun for me to review things once in a while, and many times it forces me to look at the lay of the land in a sector or evaluate new companies.

          Ever upward!

    Jun 09, 2016 09:35 AM

    Eclipse (a tiny micro ASX miner) apparently today signed a JV farm in with a yet unnamed major multi national miner on their Uranium prospect.
    …..or so I was told.
    Cheers.

      Jun 09, 2016 09:36 AM

      ASX.EPM is their handle.

        Jun 09, 2016 09:46 AM

        Thanks Skeeta. I haven’t heard of Eclipse Metals before, but it looks like they only have an Australian ticker. I’ve got a whole list of companies ready to rock for when I finally start trading directly in Australia.

        Cheers!