What Markets Look Like When They Bottom

Steve Kanaval |

If you look at a 5 year time horizon and use a widely followed index Metals and Mining (XME), it tells a story of an 87% decline. Half of that move happened in 2012. The other half of the decline manifested itself in a deteriorating slow drip, grinding its way to the current depths. This leaves any investor in the sector frustrated and forlorn asking, why would you want to do anything here except be short until the slide shows that it can reverse? I think many turns in markets happen when few are watching and this market is set to slip through the cracks in 2016, which is why I was anxious to come and spend time in Vancouver and Canada, and meet with CEO's and learn about the companies on the front line, so I could get a feel for what they are going through.


A Few selected companies we are looking at going into the upcoming VRIC Conference are as follows:

Hecla Mining (HL) 600m Valuation $1.58 Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, produces, and markets precious and base metal deposits worldwide. The company offers unrefined gold and silver bullion bars to precious metals traders; and lead, zinc, and bulk concentrates to custom smelters and brokers. It owns 100% interests in the Greens Creek mine located on Admiralty Island in Southeast Alaska; the Lucky Friday unit located in the Coeur d’Alene mining district in northern Idaho; and the Casa Berardi mine located in the Abitibi region of north-western Quebec, Canada. The company was founded in 1891 and is based in Coeur d'Alene, Idaho.

Travali Mining (TV.TO) 116M Valuation .36 cents Trevali Mining Corporation, a natural resource company, engages in the acquisition, exploration, and development of mineral properties in Peru and Canada. It primarily explores for zinc, lead, silver, copper, and gold deposits. The company holds interests in the Santander zinc, lead, and silver property, which covers an area of approximately 4,454.7 hectares in the province of De Huaral Deparmento de Lima, Peru; Caribou property covering an area of approximately 3,105.7 hectares located in the province of New Brunswick; and Halfmile Lake property that covers an area of approximately 1104.8 hectares, as well as Stratmat property covering an area of approximately 828.6 hectares located in Northumberland County of northeast New Brunswick, Canada. It also owns interest in the Ruttan copper-zinc massive sulphide deposit covering an area of approximately 1,994 hectares located in Manitoba; and has an option to acquire the Huampar silver mine in Peru. The company was formerly known as Trevali Resources Corp. and changed its name to Trevali Mining Corporation in April 2011. Trevali Mining Corporation was incorporated in 1964 and is headquartered in Vancouver, Canada.

Niogold Mining (NOX.V) 46M Valuation .36 cents Niogold Mining Corp. engages in the acquisition, exploration, and evaluation of mineral resource properties in the province of Québec, Canada. It primarily explores for gold. The Company’s projects are located in the Québec’s prolific Abitibi gold mining district. Its flagship property include Marban block project comprising 42 claims and 3 mining concessions covering 9.8 square kilometers located to the west of the town of Val-d’Or in the Abitibi region of Québec, Canada. The company was formerly known as Moreno Ventures Inc. and changed its name to Niogold Mining Corporation in September 2003. Niogold Mining Corporation was incorporated in 1988 and is based in Vancouver, Canada.

Copper Mountain Mining (CUM.TO) 47M Valuation .40 cents Copper Mountain Mining Corporation engages in the acquisition, exploration, evaluation, project development, and operation of mineral properties in Canada. The company primarily explores for copper, gold, and silver deposits. Its flagship asset is the 75% interest in the Copper Mountain mine with 135 crown grants, 176 mineral claims, and 14 mining leases covering an area of 18,000 acres located to the south of Princeton, British Columbia. The company has a strategic alliance with Mitsubishi Materials Corporation. Copper Mountain Mining Corporation was founded in 2006 and is headquartered in Vancouver, Canada.

Diamcor Mining (DMI.V) 32m Valuation .75 cents Diamcor Mining Inc., a junior mining and exploration company, engages in the identification, acquisition, exploration, evaluation, operation, and development of diamond based resource properties in South Africa. The company holds interests in the Krone-Endora at Venetia project that consists of Krone 104MS and Endora 66MS farms covering a combined surface area of approximately 5,888 hectares at Venetia. It has a strategic alliance with Tiffany & Co. Diamcor Mining Inc. is based in Kelowna, Canada.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. 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: http://www.equities.com/disclaimer


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