Prospect Generators in Mining — The Global Outsourcing Trend Continues

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American Airlines is looking for partner airlines to manage flight route out of the U.S. Oil and Gas refining companies outsource their engineering, procurement and construction. Automobile companies have gone from vertically integrated manufacturers to mere assembly plants.  Maybe they build the engine, maybe they don't.  Most components from seats to batteries are outsourced. The mining industry seems to be no different with regards to exploration.   Major mining companies used to have exploration divisions, staffed by competent geologists who scoured the planet for mining resources.  Nowadays, the flavor of the month (along with rare earth elements) seems to be companies who follow the "prospect generators" model. This … [Read more...]

Buying Uranium When It’s in the Gutter

German Stamp - Bundespost 1957

The following is a guest post by Fred Carach, a.k.a. The Riverboat Gambler. The March 2011 Japanese nuclear disaster gutted the uranium mining industry big time. Price declines in the range of 50%-80% from top to bottom were common. A bottom appears to be in but the issue at hand is can the nuclear industry recover? Popular belief about the industry’s future is that it will probably never recover. It is just too dangerous. What popular opinion is ignoring is that the nuclear industry is not a luxury that can be dispensed with, but a critical necessity. The great white hope of the general population is the renewables solar and wind. These perennial solutions have been touted since the oil crisis of the 70s. What is shocking when … [Read more...]

Centavos Portfolio Update: Blood in the Streets

December 2011

"Buy when blood is in the streets, even if the blood is your own" - Baron Rothschild, 1871 Sure is plenty of red in the return column of this blog's model portfolio.  Junior exploration stocks in general haven't fared well in the last six months, and my stocks haven't been the exception. The last update was in September, and things haven't improved since then.  Down 40 percent, even after allowing for realized gains from two trades. A bit of an ugly picture, huh? Good. That means opportunity. Operation Recovery Malaga is first up in Operation Recovery.  The original purchase was for 1000 shares at $0.24/share. The purchase of 5,000 more shares at $.108 brought the unit cost down to $0.132. Whither Malaga and … [Read more...]

GET RICH WITH PENNY MINING STOCKS!! (not really, it’s just this week’s roundup of worthwhile links)

"Half Dome Apple Orchard - Yosemite", by Ansel Adams --- what's this picture got to do with silver mining stocks?  Nothing... I just like it.

There are voices starting to rumble that another major market dip is coming soon. On Market Watch this morning, there was a column presaging doom and gloom: A Black Friday On Wall Street Looms This Year …. The European markets are open Thursday as the crisis continues to deepen. News that it’s now affecting German debt sales rattled investors worldwide Wednesday and rocked U.S. stocks for their sixth loss in as many trading days. The declines wiped out a near-term support level of 1,192 on the S&P 500 index, as it closed just under 1,162. So while a holiday miracle is always possible — perhaps the IMF steps in to bail out Europe — if it doesn’t happen, then we’ll be chasing headlines and European stocks early Friday … [Read more...]

Golden Links

Very cool, totally unrelated photograph.  Ansel Adams:  "Tractor Repair at Manzar Japanese Internment Camp"

I've been catching up on my Northern Miner reading, and reviewing the mix of topics. Seems like I'm a little overdue for some posts on mining stocks.  My model portfolio hasn't been doing so hot, as commodities have taken a tumble. As Retire by 40 writes in this post ("How Often Do You Check Your Net Worth"), we tend to check our stats and showcase our wins more often in a bull market. We're all smart and clever and good-looking when the market's churning ever on up.  In a down phase, we're hunkering down, retrenching, and reaching for the zit cream. Well, I'm going to be making a few average-down trades during next week, so probably in 10 days or so I'll have another update.  On Friday I sold my 200 shares of Hathor Exploration. In … [Read more...]

Centavos Model Portfolio: The market, it burnsssss ussss..

USA Financial Service Model Portfolio of Penny Mining Stocks - September 2011

Time for another update to the Centavos Model Portfolio of penny mining stocks.  The picture has not gotten any better from the last update (Model Portfolio Haz Sad Face) back in May.  It may strike readers as a little strange to post an update on very volatile equities strange after a hard down day like yesterday, especially as you can see from the portfolio snapshot, the return column is swimming in a sea of red.  But it’s only a paper loss, natch. (click on the spreadsheet for a larger view) A couple of notable changes since the last update: Added some more shares Coral Gold, doubling the position to 4,000 shares. Hathor Exploration is being courted for an acquisition by Cameco, one of the larger uranium mining companies out … [Read more...]

Gold Bubbles and Gold Stocks

Image via Wikipedia I'm doing my bit to reduce internet clutter, and recycling an old post that ran November last year, with only some minor editing. Waste no, want not. Gold has been on a manic up-and-down swing lately, and back in the news. It's either a hot new investment (on the uptrend) or a bubble ready to burst (on the downtrend). When the frenetic, bought-and-paid-for Jim Cramer jumps on the bandwagon starts talking about buying gold as a currency, it might be time to start thinking about the start of a bubble.  His advice was generic (as usual) and a bit dangerous: Buy physical gold Buy an ETF like GLD Buy Gold Mining stocks Well, buying gold mining stocks is easier said than done, and buying them on the dubious … [Read more...]

Centavos Model Portfolio Haz Sad Face

Model Portfolio - May 2011

It’s been a while since I posted the last update on the Centavos Model Portfolio on March 29th.  Since then, I’ve made the following additions in the uranium sector. Bought 4,000 more shares of JNR Resources, a uranium exploration company, bringing my total to 8,000 shares an average cost of $0.22.   The share price has now sunk into the mid-teens, where I’m content to let it sit without further buys. Bought 1000 shares of Denison Mines, another uranium junior, at a cost $2.26 a share.  At close of market today, the shares were up a little at $2.36. Denison is a company I purchased last year when it was a little over a dollar a share, and sold when it went over $4.  Since the crash in uranium, I figured I could buy back in.  … [Read more...]

Trade of the Week: Playfair Mining

Former Barnsley Main Colliery Head Frame

One more penny mining stock buy this week.  Continuing with the a recent theme, I’ve added another tungsten miner in Playfair Mining, joining Geodex Minerals, North American Tungsten and Malaga (I wrote about Malaga here).   Not a huge buy, just 2,000 shares at $0.20/share and not the bargain it once was at $0.13 when I entered into my watch spreadsheet, but well off its 52 week high of $0.29. This is not a short-term speculation, but (I hope) one like the current run-up in rare earths.  Tungsten is gaining attention, and will be picking up steam once the Chinese restrictions on imports are begin to be felt through the supply chain. Let’s see how it stacks up on some metrics: Share float less than 100 million (77m shares) … [Read more...]

Centavos Model Portfolio Update – February 16th, 2013

Centavos Portfolio feb 16 2011

Time for an update to the model portfolio of resource stocks.  I had an order filled for JNR Resoucers, a Canadian junior explorer of uranium properties.  I bough 2000 shares at $0.35, and it's since ticked up to $0.44.  I’m not entirely in love with this stock, but it fits several criteria like a price/book ratio of 1.28, not overlarge stock float of about 100 million shares, and active drilling operations on  drilling on 7 or 8 properties in North America.  They've teamed up with Altius Minerals, a successful and well-regarded company active in Newfoundland, on their primary Topsail project.   There’s a good discussion on JNR in the Financial Sense Newshour podcasts on uranium broadcast aired back in November (Part 1 and Part … [Read more...]