A technical outlook for 3 resource companies and 1 energy services company
Rick is back focusing on individual companies that you have all emailed to us. Today we focus on the following 3 resource companies and 1 energy services company. Obviously the resource stocks have had much better moves over the past 2 years which makes comparing the energy services company an interesting change of pace. Here are the companies with corresponding symbols.
- Great Panther Silver – TSX:GPR & GPL
- Gold Bullion Development Corp GBBFF & TSX-V:GBB
- Balmoral Resources BALMF & TSX:BAR
- Tidewater TDW
Thank you again for everyone who emailed us the companies and to all of those who we will be seeing at the Sprott Conference.
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Agreed Silverdollar. Hearing rick do TA on these individual stocks is great.
I’ll throw some other stocks it would be helpful to Rick Ackerman’s TA on some time.
These are all Prospect Generator companies:
(EMXX) Eurasian Minerals Inc.
(SMDZF) Strategic Metals Ltd.
(ATUSF) Altius Minerals Corp
(ATBYF) Abitibi Royalties Inc
Here is a second round of Prospect Generators that could be other suggestions for Rick Ackerman to review the technical outlook on, if you’re looking for more ideas down the road.
(GLBXF) Globex Mining Enterprises
(MLRKF) Millrock Resources
(ARCTF) Aurico Metals
(LRAXF) Lara Exploration
These Prospect Generators don’t have as much leverage to the upside or the downside as individual mining companies, but the business model allows for a little less volatility and less risk.
The reason they are less risky (but not without risk) is because:
1) they have a pipeline of projects scattered on different properties, and in many cases different jurisdictions
2) other companies raise the funds to do the exploration work on the P.G. properties, and the P.G. gets a Net Smelter Royalty stream out of it typically, [although sometime there are shares issued in the other company as partial consideration]. Some of the companies above already have Royalty streams paying out to bring in additional funds and reduce the need for as many capital raises or dilutive events.
3) often these companies have shares through the aforementioned share issue for earn-in rights on properties, or the P.G. companies just buy shares in exploration projects they like
4) Like the Streaming Companies, these Prospect Generators tend to be more stable with the law of averages working in their favor over multiple properties
The downside is a mirror reflection of some of the benefits. These companies are very similar to the Streaming companies where they’ve spread the risk among multiple projects, but when there are good drill results, discoveries, mine improvements, and profitability improvements on an individual property; then it doesn’t tend to move the dial quite as much as an individual explorer or producer.
Regardless, I love individual development stage and small producers best in the PMs but I thought it may be educational to have Rick review a few of these when there is time in the schedule.
Thanks guys for these segments as they get right down to the nitty gritty.
Considering Turkey’s location and the number of gas and oil pipelines that cross the country, I wonder about:
http://sputniknews.com/business/20160726/1043620484/russia-turkey-akkuyu.html
The US seems out to lunch!
That’s because we have a Pres out to lunch
Thank you Cory for including gbb.v…it shares I believe 4 properties with tkk.v which to my understanding has found 2m of 200 oz/ton silver.
Proudcanuck – Very interesting companies and thanks for the heads up.
Takara and Gold Bullion Development seem to have a good synergistic working arrangement. I thought Takara was a cobalt company, but missed the part about their acquisition of the past-producing Silver mine. It was very prudent for them to stay focused on the Cobalt mine, and bring in Gold Bullion Development as the operator on the Castle Silver Mine Property. That’s a win win for both companies, and I wish more companies would utilize JVs and synergies like this.
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This recent press release does a pretty good job of laying out the arrangement:
TAKARA ACCELERATES COBALT STRATEGY IN DEAL WITH GOLD BULLION
June 30, 2016
A few ideas from summer networking…
Worldtreecop.com has a limited partnership in Canada where you can plop $6500 down and get 500 trees planted over 5 Acres and they caretaker the trees for 10 years, on the 10th year you get 25% of 50% of the 145,000 board feet linear foot price… The wood is a special Asian tree that grows 3X faster and is 1/3 lighter than other woods used for japanese furniture.. The return has 10-12X return due to this wood fetching $3-$14 per foot in Japan. Angela Nauta is the CIO and you can find her on LinkedIn.
TMX: BEE is a unique bee vectoring technology, they have an organic powder that is placed in a proprietary tray, the bees brush up against this powder when exiting the trays on their way to pollinate fruit trees or flowers. the crop yields are up 25-30% and the plant leaf size are increasing, adding to faster photosynthesis as well. the company says by mid 2017 it will have vendors and sales in 3 continents and ramp up production in 2017. This is bad news for DuPont, and for Monsanto as it eliminates the cost nor the need for expensive and harmful pesticides or herbicides.
Evin
Thanks for taking time to post these GREAT investment ideas. I really appreciate it.
Brian
PMI Resources Ltd. is trading below cash value… Symbol PMI, the company recently (June 14) renamed itself PMI Resources Ltd. after spinning out the Albanian assets of it’s 3 country portfolio to Shell Oil for $45MM, however $5MM of that cash is in escrow until Sept 27th, 2016 or so, $5,000,000 USD is going to hit the books in the fall, the shares went through a 70:1 reverse split June 14 making the share count shrink to 9.9MM from 693MM so $5,000,000 USD x 1.30CDN/USD exch rate / 9,900,000 Shares makes the value = nearer to $0.70 CDN and yet the summer doldrums have them trading as low as $0.50CDN/Share
The -0.20 cent discount is interesting as the company in in the hands of a financier from Vancouver, billionaire Frank Guistra. Which direction he take the new entity will likely be better known in the fall, but the markets are asleep so you can nibble away at a discount before the next chapter unfolds, if you like the story. (in USA it trades as PENYF).
Wow! You all see how tight those bollies are on the daily on Silver (SLV)!?
Jason – what BB parameters are you using in (SLV)?
I actually see the BB’s widening on (SLV) as I just did a quick chart. Maybe I’m not looking at the same parameters that you are though. Just curious.
Here’s a chart for (SLV):
http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=1&mn=0&dy=0&id=p82220444243
The BBs were the most narrow from Dec 2015 – Feb 2016, before the breakout in Silver.
I am looking at the bollies on a shorter range chart. I know they are less accurate the shorter the range. I am just looking for a quick flip on the daily. I am still holding my core shares in ASM and USLV.
Good stuff. I finally saw what you meant and tried to post a generic Scottrade chart below, but it has to be manually tweaked.
Yes I still believe Avino (ASM) to be one of the best run smaller Silver producers out there, with a great deal of upside. I trimmed it back in May, June, and July and just hold a core position in it at present, but longer term I’ll likely hold a larger position again.
Interesting chart including the volume and the bb
I am using the 10 day on Scottrade broken down by single days. Bollinger Bands® (20, 2). Wish I could screenshot this but the bands look like the receptacle on the end of a condom. Not trying to be a wise guy but that is what it looks like. Now the question is is she going to break out or down?
Yes, I see it now. I couldn’t get anything useful to work with Stockcharts on a the 10 day, but I logged into to scottrade and see what you mean.
Jason, hopefully this will paste with the parameters so everyone can see:
[If it doesn’t work then people may need to manually select “Timerange”: 10 days, the 1 hour version, and then set the “upper indicators” tab as bollinger bands]
https://research.scottrade.com/qnr/Public/ETFs/Charts?symbol=SLV
Yep, it didn’t post with the parameters, but if you just input the data as mentioned above it will work fine.
Cheers!
If you input the 10 day timerange with the 30 minute setup, and then add the BBs on the “upper indicator” selection, then the BBs are even more narrow.
It does look like a short term move of some magnitude is about to happen out of that complacency.
Thanks again Jason.
Shad, shoot me an e-mail at RAWIRON1@YAHOO.COM and I can send you a screen shot.
Major mining assets change hands after commodity rout A rundown of mining companies’ main sales so far and what assets are on offer.
Freya Berry, Barbara Lewis and Sonali Paul (Reuters) | 25 July 2016
Thanks again
Right on Contrarian’s Contrarian Frank.
Thanks Al, Cory and Rick for the analysis of these companies today. Enjoy the conference and I’m looking forward to your comments about the interest levels you perceive in the PM sector and where we may be going in the near future.