Friday's tape of the gainers on the Toronto Stock Exchange showed a turn in the prospects of junior miners and oil companies and may signal the bottom of an uptrend which has been expected by a number of analysts over the past 6-12 months.
|San Gold Corp (SGRCF.PK)||1.66||+13.70%|
|Petrobakken Energy Ltd (PBKEF.PK)||16.40||+9.04%|
|Petrobank Energy And Resources Ltd (PBEGF.PK)||15.37||+8.78%|
|Banro Corp (BAA)||5.15||+6.63%|
|China Gold International Resources Corp Ltd (JINFF.PK)||3.64||+5.81%|
|Superior Plus Corp (SUUIF.PK)||7.47||+5.66%|
|Lake Shore Gold Corp (LSGGF.PK)||1.38||+5.34%|
|Aecon Group Inc (AEGXF.PK)||12.95||+5.20%|
|Romarco Minerals Inc (RTRAF.PK)||1.03||+5.10%|
|Taseko Mines Ltd (TGB)||3.73||+4.78%|
Of course, this is only a small sample of the juniors on the Toronto Stock Exchange, which number in the hundreds.
Investing in juniors is not for everyone. You must be vigilant in picking stocks in the junior mining and exploration sectors, and you should expect more volatility than you would get from larger players.
Look for good management, with past performance in the industry, companies with at least one or two producing mines, increasing production, a limit of say $750 per oz production cost, and exploration that is discovering new prospects even as the company is continues to produce ore. Average rates should be a minimum of 3-5 grams per ton ore (GPT)
San Gold is one of my top picks, having come close this week to its 52 week lows after getting a $15 Million dollar bought deal financing to raise cash for production and exploration (sold in 10 minutes at $2.10 per share).
Our second pick is Brigus Gold, (BRD) currently trading at its 52 week low of .85c per share, as it also just finished a bought deal financing to bolster its operating cash base as it expands production at its Black Fox project near Timmons Ont, where they will produce, for the first time this year, 100,000 oz of gold and where they expect to double production in 36 months. They are also developing a great new property near Uranium City, Saskatchewan.
I also like Alberta Oil Sands (AOSDF.PK) as a junior oil play. They have a solid management team, with vast experience with majors and mid tiers in the oil sands. Based in Calgary, they own large sections of oil sands leases, are producing oil in an area where the big dogs are digging in the sands, and are positioned for M and A as oil spikes once again. At only .16c per share today, it is a junior you can put in your pocket and forget about for awhile. When they come, spikes in the share price will be fast and furious. Hang on for the ride. It will be worth it!
Do your own homework before investing in juniors, but don't ignore this dynamic type of investment that has the propensity to bring you double and triple digit returns over the next few months.