121 in Review & Weekly Thoughts

G’day mining friends!

We’re coming to the end of the European conference season and still amazed by the amount of money on the table from investors and, this week, by the decreasing age gap of attendees.

I’ve finally recovered from the h̶a̶n̶g̶o̶v̶e̶r̶ professional fatigue of the last night at the 121 conference in London. The crowd were shattered by the end, 15-20 meetings/day for most investors and companies is a big ask, an intense commitment to give/receive that many pitches, in that short a time… But it was worth it.

London’s big funds were all represented and flashing their mining cash, with a lot more interest in the TSXv than usual (sadly, because its so cheap right now…). We saw companies filling up placements quickly and most impressively, that funds and companies had brought younger geos, investors and junior analysts to sit in on meetings and learn the trade. Half of our new subscribers this week (from a visual check!) are under 30 and were representing major funds and family offices with confidence and knowledge.

Our top tips for the week:

  • Element 29 Resources Inc. (E29) have some substantial copper projects in Peru that look very tasty and are due IPO for around $15m to fund a 43-101 and resource development later this year. We’ll be following that one closely.
  • Nevada Exploration have an interesting thing going on… Exploring the downthrown blocks of Nevada’s major gold districts. An absolute no brainer to follow fault offsets for continuing mineralisation, so simple that I’m amazed nobody has done it before. My fear is that, *unofficially* Barrick or Newmont must have thrown a few holes in to see what was down there, It’s silly to assume its brand new exploration when it’s right next to some of the world’s most prolific mines surrounded by companies with plenty of spare $$$, who also own their own rigs. Some of the old boys in the mine will know the answers if you can force enough bourbon into them.
  • Juggernaut Exploration had a rammed schedule and brought their chief geological team along, a sensible move to bring some more technical info to a room of finance faces. They are planning a PP to raise $2m at the moment and with their Hunter dickinson connections and 100% ownership on ‘Gold Standard’ they should do well next year back in season. (in any regular market anyhow!). They’ll also be at Mines & Money next week, make sure to catch up with them for an update, even if just for their superb engaging presentations…!
  • Mundoro have just seeled a JV with Vale in Serbia and their ongoing partnerships with JOGMEC and Freeport make them a serious group to follow… Still hiding in the junior space, but potentially on top of the single most likely projects to come to production and development of anybody on the TSXv at the moment. If they carry on this way, they’ll be making some serious $ soon. Teo and the team have done an awesome job with their projects and interestingly, they’ve done it without being noticed by a lot of the crowd, their name is still somewhat unknown in mining circles. Their price went up $0.04 while everybody else was crashing last month… at 0.16 with genuine production potential… can’t be a bad punt. We’ve been on site with their team in Bor and they definitely seemed to know what they were doing!
  • Riverside are doing great stuff in their partnership with BHP. they are pretty secure financially, but still on the conference route meeting existing investors and sharing news… That’s what we like to see, not just grabbing cash and running, but forming long-term investor relationships. Good stuff!

In the wider world:

  1. Crystal Lake Mining have closed off $1.8m in a placement, These guys have had a rotten year as a business which has sadly clouded the fact they’ve made a major new nickel-cobalt discovery and significantly expanded a historic gold resource up in BC. Trading down at 0.11 with 7 targets and a huge land package, they still sit as one of my favourites.
  2. Petra diamonds hit a $15m diamond and had a brief flurry of interest on the markets, overall still suffering for the global diamond demand crash and to be honest $15m doesn’t even make a dent in their overall needs… We think diamonds will join hydrocarbons on the steady decline for the foreseeable.
  3. Lithium prices aren’t moving, despite major German manufacturers flexing their muscles and signing agreements, most will be external and provided from China. It is a huge shame, that in our electrical revolution, these companies aren’t developing European industry and production. Europe has most of the resources to supply our own manufacturing and continuing to import vast volumes of product from poorly regulated countries completely negates the benefits of going electric in the ‘green’ space.
  4. Some big stuff coming up from Romania and Namibia for next week, stay tuned!

Cheers all, see you at Mines & Money next week!
Liam Hardy
Spotlight Mining

The Spotlight Mining team will be attending these awesome shows: