Equities has boots on the ground every year at the PDAC Conference in Toronto and the last few years have been pretty lean, but the feedback we are getting from our staff signals to us the bottom is in. This is evidenced by the optimism and funding available for the industry across the board.
The annual PDAC Convention—the world’s largest industry event—attracted investors, analysts, mining executives, prospectors, geologists, government officials and students. “The mineral exploration and mining industry is cyclical in nature and has faced a variety of economic challenges over the past several years, but optimism has always remained and it’s fantastic to see this being reflected at the PDAC Convention,” says PDAC President Glenn Mullan, referring to sold out exhibitor space, investor meetings, Short Courses, Mineral Outlook Luncheon, and Awards Gala. “There was an upbeat vibe throughout the convention—a positive sign for the sector going forward.”
PDAC, in partnership with the World Economic Forum, hosted the International Mines Ministers Summit (IMMS) for the second year, bringing together 25 Ministers responsible for mining from around the world. The event, hosted at BMO, provided an important setting for the global mining community to explore challenges and opportunities affecting the industry. This year’s Summit focused on innovation in the mining industry and the clean innovation agenda.
“PDAC is seen as the voice of responsible mineral exploration and mining, not only in Canada but also abroad,” says PDAC Executive Director Andrew Cheatle. “We must continue to build strong working relationships, both nationally and internationally, and the PDAC Convention is the best opportunity to make these connections and showcase our industry and its importance to social-economic development.”
We looked at the state of affairs a year ago and found that technically our model showed a bottom was in, and we used a simple index to track results. Lets have a look at where we were, where we are now, and where were going. But more importantly we want to come away with companies we see as important for the readers, and we found many of these for you.
Lets look back at our observations for March 2016, ” We believe this index (XME) currently trading a lowly $15.25 has at least a 100% upside from these levels, and we should see $35.00 in the next 12 months. This index real value (the XME) is in the $35 to $40 range where it spent much of its time, and if you see the big picture we see the return to true valuation after painful declines and constant exhausted exits.“
Lets look at where we are today
Stocks We Like in 2017:
White Gold (WGO.V) – The company has rolled up an extensive land package in the Yukon’s, White Gold district sending shares higher on the year. Agnico Eagle’s $14M bought deal investment into the company is a strong sign of yet again, Shawn Ryan’s almost prolific ability to pick great projects in this part of the Yukon. Up from around .20 to over $1.50 in the last 6+ months. Equities is talking to company about what the upcoming quarters look like and will keep you updated.Excelsior Mining (MIN.V) – Still undervalued but they have had a hell of a comeback year. Being a copper play, with prices where they are we should be cautious. For long term investors this is a good fit. The Gunnison Project is an $800M project and it’s feasable. Copper can turn around, and this company may be as much as 3x- 4x below where they should be. Investors may be cautious on this company now due to copper prices, but those who realize it’s value now will reap the rewards.
GoldQuest Mining Corp (GQC.V) – One of the last big deals done at the PDAC this year, GoldQuest announced the closing of their C$22,860,000 bought deal financing by Agnico Eagle. Agnico now owns approximately 15% of the issued and outstanding common shares of GoldQuest, and brings the company’s total cash to over $25M and lots of runway to build out their Romero project, and look to expand other development and exploration targets this year.
Newrange Gold (NRG) – This is a sleeper. Some of the biggest investors in the space are quietly buying shares. The excitement seems to be around their new project in Nevada recently acquires with some high grade gold samples and intercepts. Small float here can be a great proxy to adding investment in the sector as new stories rotate into portfolio manager thinking in 2017. Expect a financing at higher prices in the short term and results later this year.MGX Minerals (XMG.CN) – Shares have had an excellent run as one of the top performing stocks we follow. Jared and his team at MGX continue to grow shareholder value with a diversified portfolio of mineral assets, and an innovative approach to developing technology to support their objectives. If you missed their news last week click here, Keep your eyes on this one.
BonTerra Resources (BTR.V) – By far one of the best valued companies at these levels. Having just closed a $14M bought deal with Sprott Capital Partners, they are financed to continue to prove out both their flagship Larder Lake Project as well as the Gladiator property.
Wealth Minerals (WML.V) – Another solid company returning 500% for their shareholders in 2016 and capitalizing on what has been a very stong year for Lithium companies, Wealth Minerals is well positioned for future growth in 2017. Ranked #3 in Mining for 2017 TSX Venture 50 Awards this year, keep an eye out for more coverage on them from our team.
Stocks we are keeping our eye on for 2017: Just a few surface bullets as we learn more about these companies
MagOne (MDD.CN) – Unique Magnesium Sulphate company. Working with and in talks with car manufacturers and home building supply chain corporations for off take agreements.
Cruz Cobalt (CUZ.V) – Cobalt is just starting to warm up and is likely mis-understood, Cobalt can be the next Lithium with more Cobalt in batteries than Lithium. We are looking into these evolution plays as one of the exciting sub-sector rotation plays.
Crystal Peak Minerals (CPM.V) – Potash space. Completely undervalued and hasn’t done any marketing what’s so ever….until now. They’re cashed up.
Rosita Mining (RST.V) – PEA coming out soon. 45 days or so. Small company, but good model. Need proper money though.
Honorable Mention : Secova Minerals (SEK.V), Aurania Resources (ARU.V)
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