The penny mining stocks we have identified have a negative correlation to the general market
SmallCapPower | June 26, 2018: Metals often act as a safe haven for investors seeking to hedge market volatility. A stock with a negative beta can accomplish this by moving in the opposite direction of the market. For example, when the market goes down, a stock with a negative beta should go up proportionately. Today, we have assembled a list of penny mining stocks with large negative beta values based on weekly averages over the past two years.
Lithium Chile Inc. (TSXV:LITH, OTCQB:LTMCF) – $0.97
Lithium
Lithium Chile is a Canada-based company engaged primarily in the acquisition and development of lithium mining properties in Chile. The Company owns 15 lithium-rich properties throughout Chile, in various stages of development. Chile is a mining-friendly jurisdiction with a streamlined permit process. Thus far, tests on Lithium Chile’s properties have shown favourable Lithium/Magnesium ratios of 2.6-7.8.
- Market Cap: $103.1 Million
- Weekly Beta, Adjusted – 2 Year: -0.9
- Weekly Beta – 2 Year: -1.8
- YTD Total Return: -16.4%
Blue Moon Zinc Corp. (TSXV:MOON, OTC:BMOOF) – $0.06
Specialty Mining & Metals
Blue Moon Zinc is a Canada-based exploration-stage mining company, focused on its 100% owned Blue Moon Zinc project. Located in Central California, the Blue Moon site has 171K tonnes of zinc Indicated and 179K tonnes of zinc Inferred, plus copper, silver, and gold byproducts. The Company plans to advance the project to the permitting and feasibility.
- Market Cap: $7.2 Million
- Weekly Beta, Adjusted – 2 Year: -2.4
- Weekly Beta – 2 Year: -4.0
- YTD Total Return: 9.1%
Dundee Sustainable Technologies Inc. (CSE:DST) – $0.06
Specialty Mining & Metals
Dundee Sustainable Technologies is a Canada-based company engaged in the development of technologies for the treatment of materials in the mining industry. Using chlorination technology, the Company extracts gold, silver, and other base metals from ores, concentrates, and tailings. The chemical process is a cyanide-free alternative to other extraction methods and limits harmful byproducts. DST also uses an arsenic stabilization by vitrification process to segregate arsenic and allow the processing of mined material otherwise considered too toxic to be exploited.
- Market Cap: $18.7 Million
- Weekly Beta, Adjusted – 2 Year: -1.1
- Weekly Beta – 2 Year: -2.1
- YTD Total Return: 50.0%
Supreme Metals Corp. (CSE:ABJ) – $0.04
Specialty Mining & Metals
Supreme Metals is an early-stage exploration and development company. Its main focus is on the development of its Mt. Thom Project in Nova Scotia. This property consists of 1,560 acres and is believed to be a strong copper-cobalt-gold prospect. The Company is involved in six other projects that are in various stages of acquisition or development.
- Market Cap: $7.1 Million
- Weekly Beta, Adjusted – 2 Year: -0.8
- Weekly Beta – 2 Year: -1.8
- YTD Total Return: 14.3%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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