Money manager Adrian Day discusses three stocks in his portfolio that he sees as buys.
Midland Exploration Inc. (MD:TSX.V, 1.06 x 1.07) continues to explore aggressively on its joint-venture projects and (judiciously) on its own land. In all, for this year, the company plans 25,000 feet of drilling with a budget over $6 million. This includes a program just commenced on drilling close to Balmoral’s Bug Lake discovery with its partner Soquem, and a major program, to include drilling, on its 100%-owned La Peltrie, near the high-grade Lower Detour zone. Undertaking some low-cost but well-defined exploration work on its own properties can improve the chances of finding a partner and obtaining more favorable terms. Midland has also reactivated its base metals projects, given the renewed interested in such properties.
Midland has strong partners and continues to attract new partnerships, including most recently a joint venture with Altius in the James Bay region. Midland continues to be well funded, with $14.5 million cash, which enables it to advance properties to a point where more attractive options are possible.
Favorite exploration company, with management, money and properties
Midland remains a favorite exploration company for the breadth of projects, strong partners, solid balance sheet and disciplined management. Warrants at $1.15 put a lid on the share price for now, absent a significant development or discovery. Midland, with its extensive, well-located property package and aggressive program, is in as good a position as any to achieve a discovery. If exercised, the warrants would bring in another CA$23 million to the treasury, which would put the company in an unassailable position. So we would continue to build positions without aggressively paying up. This is a good price.
Well funded and advancing project
Vista Gold Corp. (VGZ:NYSE.MKT; VGZ:TSX, NY …read more