Junior Mining Stock Crisis
Submitted by tajitj on Sat, 09/20/2008 - 06:24
"This junior crisis is serious, and has all kinds of sentimental and fundamental implications. And without exploration, the world will not have enough commodities in the future to supply ever-growing global demand. Commodities prices will skyrocket if the critical pipeline of new discoveries freezes up."
Read the rest here
http://www.safehaven.com/article-11291.htm
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http://digg.com/business_finance/Junior_Mining_Stock_Crisis
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Commodity Stocks
My issue with mining stocks is this... the cost of extraction goes up with the value of what's being mined.
Let's say it takes 5000 FRNs to obtain an ounce of gold. The probablity is that the energy and man power to extract it will also go up 5x in terms of FRNs. One barrel of oil will trade for 250 FRNs an a miner will charge 5x/hour what he/she charges today.
So yes the value of the company will go up in terms of FRNs, but will remain constant interms of tangible items, namely gold.
In conclusion, I recommend holding physical commodites be it copper, gold, silver, niobium or any other rare earth element.
I do not recommend holding physical uranium.
Thanks Tajitj! I opened up
Thanks Tajitj! I opened up a sizable stake in Sarissa. You and the folks at Ihub have me thoroughly convinced on the merits of holding a Keevil run company.
Just think, a junior miner run by a Keevil (mining royalty) and sitting on the world's second largest supply of niobium on the planet at Nemegosenda and also gold at Shining Tree. Good news abounds with this company.
At least two WORLD CLASS deposits and this thing has a market cap of only $7 million. Imagine when this thing is uplisted to a larger exchange and that NI report comes out.
A once in a generation opportunity here people!
Cheers!
RBY TRE
Something is going on with RBY, maybe a takeover soon. Has had good volume. It's overextended here.
http://finance.yahoo.com/q/ta?s=rby&t=3m&l=off&z=m&q=b&p=e10...
TRE is Jim Sinclair's company. Maybe he sells a portion to China this year?
http://finance.yahoo.com/q/ta?s=tre&t=3m&l=off&z=m&q=b&p=e10...
http://FlipFlopRomney.blogspot.com
@tajitj, I'm curious what
@tajitj,
I'm curious what has you bullish about SRSR, and I have a couple of questions. First, juniors are some of the riskiest things out there. Some are just out there to rip off investors and others go broke exploring and coming up empty handed. What about SRSR do you think makes them an exception?
Second question. What is your macroeconomic view? Do you see the recession as ending like the CNBC pundits are saying, or do you see this as a worsening depression? The reason I ask is the timing for SRSR. If we are observing signs of economic recovery, then would that not be bullish for commodities like SRSR? But, what if there is still a massive amount of ARM resets in the next two years that result in a global depression and a market that is hit worse than subprime? Then what, in terms of demand for commodities?
One I have been accumulating
and is severely depressed is Silver Eagle Mines (SEG.TO , SVEGF.PK).
http://finance.yahoo.com/q/cq?d=v1&s=seg.to+svegf.pk
SRSR
Sarissa Resources. They are sitting on a $5 billion to $20 billion Niobium property plus other Rare Earth Elements.
The process of getting NI 43-101 compliant is what these juniors dream of. My modest few thousand dollar investment may grow into 50k to 75k if they prove up their reserves.
http://www.sarissaresources.com/