 |
|
|
 |
|
|
You are receiving this email as part of your
subscription to the TheMorganReport.com.
The distribution of this email does not
constitute a recommendation or advice of any
kind.
|
Resource Investors and
investors generally want to increase their returns without adding risk. This is
basically impossible, for example, if you own ETFs, you may have noticed that
one of their features lately has been low volatility. This is because investors
seeking to reduce fees and improve the performance of their investments have
sent a flood of new money into these products. This new money has buoyed stock
markets and in the first half of this year alone, a record $247 billion went
into ETFs, and assets under management (AUM) reached a record of $2.97 trillion.
Simply the Stock Market is too complacent at the present time.
Leverage with Meaning…
But what if you also want leverage, where a
small investment can generate outsize returns? One area to look at is
commodities. In December 2016, for example, copper dipped below $2.00/lb. and
Teck Resources Limited, a big Canadian producer of copper and zinc, struggled
well below $4.00 a share. This week, copper looks like it could break through
$3.00/lb., an increase of 50%, and Teck is approaching $24.00 a share, a
six-fold jump.
While the easy money has perhaps already been
made in the large cap stocks as copper’s fundamentals improve, another place to
look is well-financed resource junior companies whose managements have strong
records for exploration discoveries that create great shareholder returns.
One of these companies I know personally is run
by a geologist who in Mexico discovered one of the world’s largest undeveloped
silver deposits, and in Canada a very high-grade gold deposit that in seven
years has been drilled off, a 500,000 oz./year mine has been built and is now
reaching full production.
This man is Ken McNaughton and I have known him
for years. Ken and his team love copper and last year acquired a well-located,
unexplored copper property in southern Peru. When the discovery hole was
announced in April – 103 meters averaging 1.30% copper - the company’s shares
jumped from CAD$0.20 to as high as $2.23. Since then, it financed at $0.95/unit,
raised $5.0 million, and mobilized two diamond drills to the property. Drilling
will continue through the end of the year and so far six copper zones have been
identified. The objective is a monster iron oxide-copper-silver deposit.
Here are the latest results from two of those
six zones:
Selected drill highlights for the Adriana Zone include:
-
DCH-012 intersected 0.93% copper over 96.5
meters, including 2.03% copper over 19.5 meters and 5.01% copper over 4.5
meters;
-
DCH-019 intersected 0.97% copper over 42.0
meters, including 3.31% copper over 7.5 meters.
Which means not only
significant grades but significant lengths so far and of course more remains to
be determined - but these are encouraging results.
Let’s keep this introduction to
Camino Minerals
Corp. simple:
The right people are here. Ken and his
geological team of Bud Hillemeyer and Perry Durning in Mexico and the U.S., and
Ken Konkin in Canada and Peru, have a great track record with Silver Standard
Resources, Canplats Resources (sold to Goldcorp in 2010) and Pretium Resources
(from the Brucejack acquisition to operating mine in less than seven years).
The Company is financed properly. Camino in
June 2017 closed a $5.0 million financing with 5.3 million units at $0.95 per
unit. Each unit consists of one share and one warrant exercisable at $1.35 for
two years. Almost all the money is going into the Chapitos property since no one
in management is drawing a salary. Management and directors own 21.5% of the
company which includes Ken’s own position of 14.5%. The company’s shares are
currently trading at half the price of the last financing.
The Copper market it moving – UP. The
fundamentals of copper are better than they have been in years. A series of
mishaps at current mines and their expensive expansions resulted in supply
deficits starting in 2016 and carrying into 2017: cost overruns, longer than
planned teething problems and labor issues in Chile, the ban of copper
concentrate exports from Grasberg in Indonesia, and power disruptions in Zambia.
Copper demand is already being enhanced by growing demand for electric vehicles
that are estimated to use three times the copper used in internal combustion
engines. And climate change is placing more pressure on developed countries’
electrical infrastructure as summers get hotter.
The Location is excellent. Peru is the world’s
second largest producer of copper after Chile. It’s relatively underexplored
compared to Chile, the United States and Canada. Camino’s property is located
only 15 kilometers (10 miles) and road accessible from the Pan American Highway
on Peru’s coast, and power is readily available from the national grid.
Which means please pay attention to the press
releases coming through your E-Letter subscription service over the next few
months…
Visit their website:
www.caminominerals.com
Sincerely,
David Morgan
|
|
|
|
|
|
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . .
Cautionary Note Regarding
Forward-Looking Statements and Information
This article contains
"forward-looking information" and "forward looking
statements" within the meaning of applicable
Canadian and United States securities legislation.
Statements contained herein that are not based on
historical or current fact, including without
limitation statements containing the words
"anticipates," "believes," "may," "continues,"
"estimates," "expects," and "will" and words of
similar import, constitute "forward-looking
statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995.
Forward-looking information may include, but is not
limited to, information with respect to our planned
exploration activities, the adequacy of our
financial resources, the estimation of mineral
reserves and resources, the results of future
exploration and drilling. Wherever possible, words
such as "plans", "expects", "projects", "assumes",
"budget", "strategy", "scheduled", "estimates",
"forecasts", "anticipates", "believes", "intends",
"targets" and similar expressions or statements that
certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be
achieved, or the negative forms of any of these
terms and similar expressions, have been used to
identify forward-looking statements and information.
Forward-looking information is
subject to a variety of known and unknown risks,
uncertainties and other factors that could cause
actual events or results to differ from those
expressed or implied by the forward-looking
information, including, without limitation, those
risks identified in the Company's annual disclosure
materials, filed with the securities regulatory
authorities in Canada and available at www.sedar.com.
Readers are encouraged to read these materials.
Prospective investors should not place undue
reliance on forward-looking information.
Neither the TSX Venture
Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the
adequacy or accuracy of this article.
Information contained herein has been obtained from
sources believed to be reliable, but there is no
guarantee as to completeness or accuracy. Because
individual investment objectives vary, this Summary
should not be construed as advice to meet the
particular needs of the reader. Any opinions
expressed herein are statements of our judgment as
of this date and are subject to change without
notice. Any action taken as a result of reading this
independent market research is solely the
responsibility of the reader.
The Morgan Report is not and does not profess to be
a professional investment advisor, and strongly
encourages all readers to consult with their own
personal financial advisors, attorneys, and
accountants before making any investment decision.
The Morgan Report and/or independent consultants or
members of their families may have a position in the
securities mentioned. Mr. Morgan does consult on a
paid basis both with private investors and various
companies. Investing and speculation are inherently
risky and should not be undertaken without
professional advice. By your act of reading this
independent market research letter, you fully and
explicitly agree that The Morgan Report will not be
held liable or responsible for any decisions you
make regarding any information discussed herein.
|
|
|
|
|
|
|
 |
|
|
