Money Manager Adrian Day profiles four junior resource companies in his portfolio that he holds while he awaits new developments.
Almaden Minerals Ltd. (AMM:TSX; AAU:NYSE 1.63) continues to advance its Ixtaca project in Mexico, and is on track for a prefeasibility study (PFS) by year-end. We expect improved economics from the earlier economic studies. Drilling continues to see attractive intercepts; the company is well financed with almost $14 million in cash. A favorable PFS could start to see interest in the project as an acquisition. We are holding; the stock has jumped from under $1.30 in the last week, and there’s no need to chase it.
Almadex Minerals Inc. (AMX:TSX.V 1.01) is the exploration spin off from Almaden. It has seen exploration success recently with a good hole at the El Cobre property, a large, though low-grade deposit. It also has a strong balance sheet. The stock shot up after the drill hole referred to above was released, moving from 40 cents at the end of July; it was under 20 cents at the beginning of the year. We like the management team, the business plan, the balance sheet and the range of properties, and consider this exploration company to have as strong a shot at success as any. However, given the strong stock move and the valuation, over $40 million market cap, we are holding but not buying at this level.
Lack of strong news makes these holds
Cartier Resources Inc. (ECR:TSX.V 0.155 x 0.18) has achieved some positive property acquisitions and exploration results, but the ongoing dilution at low prices make it difficult for the stock to move. We are holding.
Reservoir Capital Corp. (REO:TSX.V 0.085 x 0.10) has replaced its president, and announced delays in completing its annual financial statements, a disturbing sign …read more