COMMENTARY - ProspectingJournal.com – January 4, 2011 – During the late stages of October, the Prospecting Journal made its splash on the internet, providing commentaries and analysis for followers of junior mining and energy stocks in North America. Along the way, we've brought to light an informative take on the Chinese Rare Earth embargo, the rise of the precious metals and copper's surge. With each take, we've provided stocks that we felt were worth following, all of which we felt had potential to bring you the profits you seek. Our portfolio of picks to date (since late October, 2010) is up 18.27% over the course of just over two months, with a positive return success rate of 90%. As we begin our second calendar year, we present you with our greatest hits and misses since our inception.
Centric Energy [CTE – TSX.V] – October 31, 2010
Publication Price: $0.35 Current Price: $0.59
Written about in Resource World Magazine, and followed up through Claire O'Conner's write-up following the Kenya-based oil company, Centric is currently the Prospecting Journal's top performer. Outside interest from Africa Oil caused the share price to spike. On top of that, legal issues came to a positive close for the company, as the case in Kenyan court was eventually dismissed. We were thankfully aware of Centric due to previous work and interest in the development of Kenya as an oil player through the previous sale of Turkana Energy (also to Africa Oil). Timing is everything, and ours was right on the money with Centric, netting us positive attention and a front-page feature on VantageWire.com.
Marifil Mines Ltd. [MFM – TSX.V] - December 14, 2010
Price at Publication: $0.14, Current Price: $0.215
Covered in our death of the penny article, we made some penny stock picks, of which MFM was the big winner. While the investment community was still reacting to the BHP/Potash Corp. drama, our focus on potash as an investment vehicle broadened, and Marifil graced our radar. Picking up extra potash properties along the way in Argentina made this a healthy pick for internationals shooed away from Canadian potash properties, not to mention its balanced portfolio featuring other metal winners in gold, silver, copper and lithium. What was not to like? Other penny stocks covered in the same article were Cream Minerals [CMA – TSX.V] which went up 8.7% from $0.23 to $0.25, and Playfair Mining [PLY - TSX.V] which went up 33.33% from $0.18 to $0.24.
Pele Mountain Resources [GEM – TSX.V] – October 21, 2010
Price at Publication: $0.32, Current Price: $0.475
Right before the Chinese Rare Earth embargo hit its height, we picked Pele Mountain Resources due to its position in rare earth elements outside of China. This was the top performer of the picks made at the time, but all of our rare earth companies have performed great since the article was written. Along with GEM was Quest Rare Minerals [QRM – TSX.V] which has boosted 18.06% from $5.04 to $5.95, Neo Material Technologies Inc. [NEM – TSX] up 40.03% from $5.77 to $8.08 and Eastern Platinum Ltd. [ELR – TSX] up 16.88% from $1.54 to $1.80. The rare earth story may be quelled for the time being, but the development of these minerals outside of China will be heavily invested in to safeguard against any future embargoes.
Dec. 10 - Copper One Inc. [CUO – TSX.V]: Up 33.78% from $0.37 to $0.49
Dec. 10 – Los Andes Copper Ltd. [LA – TSX.V]: Up 31.58% from $0.38 to $0.50
Nov. 5 – United Mining Group [UMG – TSX]: Up 44.32% from $0.88 to $1.27
Nov. 8 – Ventana Gold Corp. [VEN – TSX]: Up 23.24% from $10.80 to $13.31
We'll gladly admit when we're wrong, and so far of all the companies we've shined a light on, we're only down on two stocks. That's a pretty good record (90% success). But, here's where we admit our shortcomings:
Goldgroup Mining Inc. [GGA – TSX] – December 7, 2010
Price at Publication: $1.32, Current Price: $1.24
It's been a while since we heard from Goldgroup, and this could be a case of no news is bad news. Their drilling results piqued our interest, and the thought was that there was still room to rise. Where we'll admit we missed on this stock is the cardinal rule of getting in high, while we currently sit low. Seeing where it's been compared to where it is now, the company still has positive drill results to fall back on, and with prices low, we're still a fan of this stock going forward.
Trelawney Mining and Exploration [TRR – TSX.V] – December 7, 2010
Price at Publication: $2.91, Current Price: $2.89
Writing that this is a miss is a bit of a joke at this point, as it really has held still since we wrote about them. The chart still looks great, and it's probably only an update away from another price bump. Trelawney's Chester Project is still a keeper, and we look forward to upgrading this stock away from the “misses” section.
Going forward into 2011, we foresee a lot of action in the mining sector. Instability in the global currency market will make the precious metals a fascinating sector going ahead, while infrastructure upgrades in world's rapidly growing economies are pushing the iron and copper markets ahead. We haven't stopped looking at REEs either, and plan to have more commentaries on this sector in the next month.
We thank our ever-growing readership for its support, and encourage you all to continue to do so over the next few months as we plan to introduce some upgrades for your liking.
G. Joel Chury
Editor in Chief
DISCLOSURE: No fee has been paid for the production and distribution of this article and as such should be viewed in the context of a commentary. The author does not currently own any shares of the companies referred to within the article.
January 4, 2010 - Hindsight 2010: Prospecting Journal's Inaugural Year and 90% Success Rate
December 21, 2010 - Silver's Manipulation: Conversion of a Non-Believer
December 16, 2010 - Taking Internet Silver Conspiracies with a Grain of Salt
December 14, 2010 - R.I.P. Canadian Penny, Long Live Canadian Penny Stocks
December 10, 2010 - The Copper Tone, Baby: Copper's Price and PJ's Mining Picks
December 7, 2010 - Bonanza!: Gold Stocks to Watch While Gold Prices Take Minor Dip
December 1, 2010 - Evolving Gold: The Post-Grandich Era
November 30, 2010 - What's Mine is Mined: Buying Gold Stocks When Bullion Prices Are Out of Your Control
November 29, 2010 - The Elephant Roars: Centric Energy Acquired in Cash-and-Share Swap by Africa Oil
November 8, 2010 - How Gold Changed the World: Record Nominal Price, Gold Standard Suggested
November 5, 2010 - Silver's Big Week and the Road Ahead
November 4, 2010 - BHP-Potash Bid's Dramatic Finale: The Aftermath
November 3, 2010 - More on the Case of Silver