Wednesday, July 13, 2016

After a year's hiatus but still actively picking away at select juniors - the market decidedly is back on its feet.

Several 5X and 10X gains later - my portfolio is back at a reasonable level.

Lithium is the new gold Q1 2016, with lithium index plays outperforming most other commodities.

Few long time favorites.

1) International Lithium Corp (ILC:TSXV) is up 10X from December lows of $0.02 CDN.
Backed by one of the largest lithium battery companies in China (GF Lithium) a $5B USD market cap trading group and boasting one of the better salars in Argentina, ILC has promised a multimillion exploration program in 2016 after years of waiting.

So far, it's Ireland project (hard rock) is also showing some promises. 

Buy on drilling programs, sell on news.


2) Energold Drilling Group (EGD:TSXV)
The shovels and picks play - should rebound nicely with mining sector life coming back and financing (DRILLING!) starting again for juniors.

Last few years it's been in perennial decline (no surprise) with revenues dropping from $103M mining down to under $35M last year, a steep 70% revenue drop in that one sector.

Valuation wise - asset value and net working capital stands at more than $70M.
December's market was at $0.25/share is irrationally depressed at under $12M. 

With the strong rebound back over $1.4 in Q1 2016, Energold took some money from market finally at $1.00 a unit. Well done IMO - despite what investors may complain about dilution. Company is nicely positioned at just over 50 million shares out. 

Stock has done well last ten years, hitting $5/share nearly three times. 

Still a bargain at $1.00/share and around 50M shares out. Revenues expecting to grow and no significant debts on books ($13.5M debenture can be renewed with insiders).


3) First Majestic Silver (FR.TO) 

Lead by one of the best mining promoters in Vancouver, certainly one with some of the best exits (First Quantum), FR.TO is a longtime favorite trades around December to March, with strong per ounces results quarter over quarter. 

With the recent spike in silver to over $22/oz during Brexit - FR climbed back to nearly 2011 highs. 

A bit steep lately, considering stock was $4/share in December. We've made our gains and will be lightening up through August.


4) IMPACT Silver (IPT:TSXV) 

Since our last update - early 2016 this small cap Mexican silver producer celebrated 10 years of production in country. Impressive feat - even more so when you consider they never took on construction or streaming debt! 

Market rewarded good behavior - stock is easily up 10X from December's $0.10 lows.