Resource Stocks Look to Reverse Grind Lower

Steve Kanaval |

If we are to look at the price action in resource stocks over a 5 year period we would find a market which has lost more than 50% (using the SPDR Global Natural Resource (GNR) ETF), and over the final drive lower (since summer 2014). It has been on an elongated slide with moments where it looked like things were turning.

Specifically last year in October, when this suffering sector started hinting that it may have found a bottom only to be lambasted by a face planting and another 20% drubbing. These kind of moves are meant to exhaust investors and shake out everyone who enters the Thunderdome, we call the global resource sector. Stocks in this sector are in their most critical year and signs of turning are in the eye of the beholder. I believe it is an important time to be meeting with companies in this sector and look forward to meeting a few over the next quarter. Below is a group we are focusing on:

Pretium Resources (PVG.TO) 871M Valuation $6.01 Pretium Resources Inc. acquires, explores, and develops precious metal resource properties in the Americas. Its mineral interests consist of gold/copper/silver exploration projects. The company primarily holds a 100% interest in the Brucejack project, which consists of approximately 11 mineral claims covering an area of 3,199.28 hectares located in Northwestern British Colombia. It also holds a 100% interest in the Snowfield project that comprises one mineral claim with an area of approximately 1,267.43 hectares. Pretium Resources Inc. was incorporated in 2010 and is headquartered in Vancouver, Canada

Alterra Power (AXY.TO) 210M Valuation .45 cents Alterra Power Corp., together with its subsidiaries, owns, acquires, develops, and operates renewable power projects. The company operates power plants totaling 553 MW of capacity, including 2 geothermal facilities in Iceland; a 235 MW run-of-river hydro facility; and a 144 MW wind facility in British Columbia. It was formerly known as Magma Energy Corp. and changed its name to Alterra Power Corp. in May 2011. The company was incorporated in 2008 and is headquartered in Vancouver, Canada.

Balmoral Resources (BAR.TO) 41M Valuation .35 cents Balmoral Resources Ltd., an exploration stage company, acquires, explores, and develops mineral properties in Canada. It primarily explores for gold metal deposits. The company holds interests in various properties in Quebec and Ontario, Canada. Its principal project is Detour Trend nickel and gold project Located in Quebec, Canada. The company was formerly known as Great Southern Enterprises Corp. and changed its name to Balmoral Resources Ltd. in March 2010. Balmoral Resources Ltd. was incorporated in 1983 and is headquartered in Vancouver, Canada.

Mirasol Resources (MRZ.V) 37M Valuation .84 cents Mirasol Resources Ltd., an exploration stage company, engages in acquiring and exploring mineral properties primarily in Chile and Argentina. It primarily explores for gold, silver, and copper deposits. The company owns a 100% interest in the Rubi property covering approximately 13,000 hectares located in northern Chile. It also owns 100% interests in the Gorbea projects comprising nine claim blocks covering approximately 20,700 hectares located in the Miocene age mineral belt of northern Chile; and interests in a portfolio of 15 claim blocks covering approximately 22,400 hectares located within the Miocene Volcanic Arc in northern Chile. In addition, the company holds 100% interests in the Claudia, La Curva, Santa Rita, and Virginia properties located in the Santa Cruz province of Argentina. Further, it holds interests in various early-stage exploration properties located in southern Argentina and northern Chile. Mirasol Resources Ltd. was founded in 2003 and is based in Vancouver, Canada

Alexco Resources (AXR.TO) 36M Valuation .47 cents Alexco Resource Corp. engages in the exploration and development of mineral properties in Canada. It explores for silver, lead, and zinc deposits. The company owns interests in the Keno Hill Silver District project in Yukon Territory and maintains an area that covers 239.016 square kilometers. It also provides mine-related environmental services, such as consulting, remediation solutions, and project management services in respect of environmental permitting, and compliance and site remediation in Canada and the United States. Alexco Resource Corp. was incorporated in 2004 and is headquartered in Vancouver, Canada.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


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