Copper has hit a sweet spot where better-than-expected demand from China and supply disruptions have materialized simultaneously, boosting the velocity of the rally, asserts resource sector specialist Gerardo Del Real, editor of the Resource Stock Digest Premium.
The combination of a higher copper price and copper exploration success by companies with solid share structures will lead to much higher share prices.
As we come out of the summer doldrums and liquidity picks back up, there is one company which deserves your attention now before the rest of the herd catches on.
Almadex Minerals (AMZ:CA) recently announced its best hole yet at the El Cobre project in Veracruz, Mexico.
The project benefits from excellent infrastructure and a neighbor — the Caballo Blanco project — which is going through the permitting process and recently attracted the attention of Agnico Eagle (AEM).
I expect the El Norte Zone to continue to grow. Skeptics of the project who argued against the grade or size of the El Norte zone will be buying in at higher prices.
Drilling has started at the Raya Tembrillo zone while a rig keeps turning at El Norte. Despite the recent run-up, shares are still cheap.
I had an opportunity to speak with CEO Morgan Poliquin about the excellent results and what to expect.
I expect the company is considering isolating the El Cobre project as a standalone entity and spinning out the remainder of the portfolio into another company. Stay tuned.
Copper has broken out and gold will follow suit soon — even though I expect one last leg down before the real breakout.
Whether I’m right or wrong about my precious metals forecast the one thing I’ll continue to be right about is that Almadex will keep delivering at El Cobre.
It’s well cashed up, it has a great share structure, it owns its own drills, and has one of the best geologists in the business. There are two drills turning, one at the Norte Zone and one at a new target — Raya Tembrillo — that has never been drilled but has high-grade outcrop several kilometers away.
The Norte Zone will grow and the potential for new discoveries is high. Almadex also owns several royalties and joint ventures on other highly prospective projects.
One will see drilling soon and also has a high probability of early success. I don’t believe the market cap of $57 million (Canadian) will last.
Gerardo Del Real is editor of the Resource Stock Digest Premium.
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