The Canada-listed resource stocks we’ve dug up have had an average stock price return of ~45% in January
SmallCapPower | February 4, 2020: Commodities such as gold, silver, and copper have been performing well since mid-2019. Major geopolitical and economic risks driving resources juniors higher include the outbreak of the Corona Virus, which is expected to reduce China’s quarterly GDP by 1%, as well as the Hong Kong protests that officially put the city into recession and the yield curve that has flattened again. With the three-year T-bill 15 basis points below the one-year T-bill, these risks have driven investors into defensive assets such as commodities. Higher commodity prices have the effect of boosting junior resource stocks. Today we have discovered four Canada-listed resource stocks that had the best stock-price performances in January.
*Share price data as at January 31, 2020, data obtained from S&P Capital IQ
Orvana Minerals Corp. (TSX:ORV) – $0.245
Junior Mining – Gold, Silver, Copper
Orvana Minerals is a multi-mine, gold-copper-silver producer. The Company’s two properties include: 1) the El Valle and Carlés underground mines with their El Valle processing plant located in Asturias, northern Spain; 2) the Don Mario Mine Complex, which is a set of assets that includes the Cerro Felix satellite open pit, Las Tojas ore body, and the previously-mined Lower Mineralized Zone and Upper Mineralized Zone based in southeastern Bolivia. Last May, the Company entered into a purchase agreement with Compañía Minera Taguas to which Orvana agreed to acquire the Taguas property based in Argentina.
- Market Cap: $33.5M
- YTD-Return: +53.1%
- 90-Day Return: +36.1%
- 30-Day Average Trading Volume: 134,850
Mason Graphite Inc. (TSXV:LLG) – $0.305
Junior Mining – Graphite
Mason Graphite, a graphite mining and processing company, engages in the acquisition, exploration, evaluation, and development of mineral properties in Canada. It owns a 100% interest in the Lac Guéret graphite property, which consists of 215 claims covering an area of 11,630 hectares located in northeastern Quebec. In December, Mason Graphite announced that lithium-ion battery tests results using graphite from Mason Graphite confirmed the hypothesis that the fine graphite flakes extracted from the Lac Guéret deposit are a suitable material to manufacture spherical graphite for the lithium-ion anode market, particularly for electric vehicles.
- Market Cap: $41.5M
- YTD-Return: +60.0%
- 90-Day Return: +61.0%
- 30-Day Average Trading Volume: 334,730
Eastern Platinum Limited (TSX:ELR) – $0.435
Junior Mining – Platinum
Eastern Platinum is a Canada-based, platinum-group-metal (PGM) company engaged in the mining, exploration and development of PGM properties in South Africa. The Company’s properties are situated on the western and eastern limbs of the Bushveld Igneous Complex, which contains the world’s largest reserves of PGM elements. In March 2019, Eastern entered into an agreement with Union Goal Offshore Solution Limited for the construction, re-mining and processing of the tailing resource and offtake of chrome concentrate from Barplats Mines (Pty) Limited tailings facility, called the Retreatment Project, located at the Company’s Crocodile River Mine in South Africa.
- Market Cap: $40.3M
- YTD-Return: +67.3%
- 90-Day Return: +52.6%
- 30-Day Average Trading Volume: 60,440
Viscount Mining Corp. (TSXV:VML) – $0.32
Junior Mining – Gold and Silver
Viscount Mining is a junior resource exploration company focused primarily on gold properties in the western United States, including Silver Cliff in Colorado and Cherry Creek in Nevada. The Silver Cliff property lies within the historic Hardscrabble Silver District in the Wet Mountain Valley, Custer County, Colorado. The property consists of 900 hectares where high-grade silver, gold and base metals production came from numerous mines during the period 1878 to the early 1900s. The Cherry Creek property consists of 276 contiguous unpatented and 17 patented claims as well as mill rights. This 2,434 hectare property encompasses more than 20 past-producing gold and silver mines with the three largest of these historic mines being the Exchequer/New Century, the Ticup and the prolific Star Mine. In 2018, Viscount reported drill results that returned 203.9 g/t silver (6.56 oz/t) from surface to 15.5m (50.9 ft) at its Silver Cliff Property in Colorado.
- Market Cap: $17.4M
- YTD-Return: +41.7%
- 90-Day Return: +54.5%
- 30-Day Average Trading Volume: 91,350
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