(MENAFN - Investors Ideas)
Is This Explorer Finding a Major Play in a Past-Producing Area? <>
We feel with this speculative stock idea, Mineral Mountain Resources (MMV.V), we have the right management group, the right geological team, the right jurisdiction, the right infrastructure, and the potential for a high-grade discovery, with district-scale size potential.
Mineral Mountain Resources has made great progress in advancing the exploration at its Rochford Gold Project, which we believe it is a largely unknown, unloved story [so were Great Bear Resources (GBR.V) and forgotten GT Gold (GTT.V); both we highlighted and published only three short months ago and both moved up greater than 150% in a matter of days when the market finally recognized what they had, in spite of both companies reporting good drilling results over the past year]. This tends to be a good indicator that we are early, as opposed to late, in this exciting story. Mineral Mountain, as I am writing this Market Awareness Report, is now commencing its longest, deepest drill hole to date using all the modern geological modeling and drilling technology available to help target a #9 Ledge style multimillion-ounce target.
Many investors buy shares after a major discovery when more is known, and there is nothing wrong with that strategy, but buying low is another way of mitigating speculative risk and get an entry price as cheap as possible. With the shares of MMV trading at close to its lows of the last five years, coupled with tax-loss selling and disappointed short-term traders selling 20 million shares in the last three months (which someone, groups, and insiders bought), the shares look like an inexpensive bet on the potential of a major high-grade gold deposit: CA$40 million in exploration and past drilling data ($20 million worth of drilling data bought for US$600,000) to work with or about CA$0.50 per share in exploration expenses, and a team of experts in the Homestake Gold District. At the current share price of CA$0.15 it seems like a good exploration play to us. We believe Mineral Mountain shares are a good speculative play up to about CA$0.40 per share (the exploration expense and past drilling data per share), with a technical target of CA$1.15.
The charts below are added for context: Junior mining shares are volatile and daily, weekly and monthly movement often do not reflect the true potential of a company out in the field doing its best work to try and bring in a project it truly believes is world class. These are the teams we look for.
An interview with Mineral Mountain Resources CEO Nelson Baker is available here .
John Newell is a portfolio manager at Fieldhouse Capital Management. He has 38 years of experience in the investment industry acting as an officer, director, portfolio manager and investment advisor with some of the largest investment firms in Canada including Scotia McLeod, CIBC Wood Gundy and Richardson Greenshields (RBC Capital Markets). Newell is a specialist in precious metal equities and related commodities, and follows a disciplined proprietary approach incorporating equity research, analytical frameworks and risk controls to evaluate and select long and short stocks primarily from the Canadian small and mid-cap coverage. Many large, midcap and junior precious metal companies use his technical charts. Newell is a registered portfolio manager in Canada (advising representative).
1) John Newell: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Mineral Mountain Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company currently has a financial relationship with the following companies mentioned in this article: Great Bear Resources. I determined which companies would be included in this article based on my research and understanding of the sector. Additional disclosures/disclaimer below.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Mineral Mountain Resources, a company mentioned in this article.
Additional Disclosures and Disclaimer from John Newell, Fieldhouse Capital Management
Legal Notice / Disclaimer:
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.
John Newell has based this document on information obtained from sources he believes to be reliable, but which has not been independently verified.
John Newell makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of John Newell only and are subject to change without notice. John Newell assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission.
Furthermore, I, John Newell, assume no liability for any direct or indirect loss or damage or for lost profit, which you may incur because of the use and existence of the information provided within this Report.
John Newell manages the Fieldhouse Global Precious Fund Class G, which does not own shares of Mineral Mountain Resources Ltd. (MMV.V).
He was not paid by Mineral Mountain to write this article.
Friends and family of John Newell hold shares of Mineral Mountain Resources Ltd. (MMV.V)
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