Investing in Junior Mining, Energy, and Tech Stocks - Stephan Bogner
Published in August 27, 2017on
00:00:08 Hello my name is Stephan Bogner and I am the Editor of rockstone-research.com and this is my presentation.
00:00:17 I am going to show you some stock picks of Rockstone Research and I am invested in most of these companies that I am going to show you tonight.
00:00:26 Here is a disclaimer, I am highly biased, and whatever I say here in this presentation. I am not really independent. I work very closely with Zimtu capital and they will have a presentation after my presentation so make sure you are going to follow them as well to see what they are really up to. Basically, what Zimtu is doing is, they create companies themselves and they work with these companies. But they also invest in companies which is why I've got together with these guys as well.
00:01:00 I have been investing in these markets since 2002 when I started my own newsletter in Germany. Rockstone Research is since about 2010, I've been running it before then I had a couple of newsletters and right now our newsletter is about 30,00 subscribers.
00:01:21 These companies here I am following very closely with Rockstone. I am invested in most of these companies so that is what I do. I invest into companies and I like to report on them because that gets me up to date on these companies.
00:01:36 Before I go explaining each one of those companies, I show you something else before. So, when you are following the markets especially the Canadian markets and or the German markets, Zimtu and myself I was also involved in creating this app and this tool which is like a great way of following the markets and see where the action is and where is the volume and which stock are performing very well and this tool allows you to compare the Canadian and German markets at the same time. There are currently about 1400 stocks which trade on both exchanges. Take a look at this it for free and we are working on real time processes as well right now and it is for free.
00:02:32 This is how the app looks like and there is always a list where the action is. This is from this morning and the best trading stock in Germany was East Africa Metals. They had about one million shares trading in Germany today and around 140,000 in Canada that was like thirty minutes after they open in Canada.
00:02:56 What this really is doing is when a stock trades well in Germany before, normally a lot of volume gets over into the Canadian market so when a stock is really good performing in Germany you can bet on it that it is also very good performing in Canada. It will be .
00:03:18 Now you can sort this list of all those 1400 companies, you can sort these lists either you can do it for all of those companies or you can create your own watchlist and portfolio and follow those companies, then here are all the Zimtu Holdings and all the investments from them and then we have created some categories for all the Oil and Gas stocks, the Nickel stocks or all of the lithium stocks we have put in here and so you can watch and follow these markets and stocks.
00:03:55 Also we have been putting for each one of those companies we have been showing where the volume has been generated over the last three months so here is an example of Commerce Resources which has been trading at 77% only on the trade gate exchange in Germany plus another 16% in Frankfurt.
00:04:18 More than 50% of all the volume is being generated in Germany. I publish my newsletter in German and English and right now we have about 30,000 subscribers about 60% are English speaking and the rest is German speaking. The newsletter is for free so you may want to sign up and see what is going on.
00:04:43 Then on the same page of the Zimtu advantage they have a blog and Isabel is now doing a lot of interviews with these companies and we are publishing these companies. For example the last one with Lynn Mueller from International Wastewater, it is a fascinating interview and it even surprised me this interview.
00:05:06 Okay, let's go back to this list of all those stocks that I am covering right now. From all of those 23 companies I am invested in most of them. I don't get stock options from the companies, I invest my own money in them. Zimtu and myself are looking always for new companies that we invest in and then we cover them with the Rockstone research label.
00:05:33 So the first one is True Leaf. We have been following it since going public a couple of years ago and it is the best performing stock. The whole list here is sorted by best performance since the first Rockstone report so True Leaf is actually the best performing stock from since the first report from Rockstone.
00:05:54 Second best is BonTerra or let's give you a few more things about True Leaf.
00:06:01 They have been just recently, the Canadian government they tabled the cannabis act and they will be legalising cannabis in all of Canada until next year and just one week after this act has been tabled, the Health Canada came to True Leaf and said, "Okay guys you are in the review stage" right after that the stock really took off because that's the last stage before the pre-licensing stage and that's a big step for True Leaf.
00:06:33 They only have a market cap of 25 million right now and their Chairman was the Ex-Mayor of Vancouver and he was the Ex-Premier of BC and with him on board I think True Leaf definitely has very good chances of getting the cannabis license until next year. They have been applying for this license a couple of years ago and since then they haven't really been just waiting for this license but they have been starting to build a company and they are revenue generating right now.
00:07:10 They have been into the Hemp business and they are selling Hemp based Cookies for Dogs and they are now in Germany, they are in Europe they are selling already all across Canada and in United States, so I think it is a great company. They are just closing our financing, three million financing and I think after that they are ready to go.
00:07:36 BonTerra is our second best performing stock. They just recently, it's high grade gold in Quebec they are right next to Osisko Windfall Lake deposits and it is even a little bit more higher grade than theirs. They are drilling right now and they recently signed Sprott involved and Kinross also took a position in them so the stock even after this heavy dilution, the stock even went up and they have an 80 million market cap, so it's a great company.
00:08:11 Another gold company we are following is Aurvista Gold. Great management, they are also in Quebec, they are more low grade gold about one grams per ton and I think this is going to be the next super pit in Quebec, maybe also the last super pit. It is very similar to what Osisko was developing and bringing into production and the Malartic deposit with the only difference that the malartic deposit has been mined over the last hundred years. The high-grade pockets have been mined but with Aurvistas deposit they are still having those high-grade pockets still in there.
00:08:53 Another company in Gold is Golden Down. I just came back from a two days trip to them. They are five hours from Vancouver, in Greenwoods, British Columbia. It is a great project, it is huge, Kinross is in the area and watch out for this company they are really doing well and they have some old historic mines there that they want to bring into production. They have multiple deposits in old mines and I think they will go into production this year or sign major deals with the majors and watch out for a nice site visit report from Rockstone over the next weeks with some nice pictures and coverage, I flew a drone over there.
00:09:41 The next ones are MGX and Voltaic. MGX is probably better known than Bultane. They are basically doing a similar thing, they are trying to get a process in for processing bryants which have been considered uneconomic for the last couple of decades, which are like low grade lithium bryants in North America.
00:10:09 They are like with high impurities of magnesium, calcium and other stuff, so it was very difficult or even impossible over the last decades to get those impurities removed and both of these companies have technologies now in the development and testing stages in order to get the lithium out, to get them more highly concentrated and product lithium.
00:10:35 Whereas MGX have a market cap of already seventy million, Voltaic has only got five million. Of course, MGX is a little bit more advance at this stage but I think Voltaic is going to do very well over the next couple of weeks and months because they are going to release some phase one results very soon and there are even going to be some cost metrics to that so we are going to see some production costs involved in that. MGX until now still has not shown any economics but it works, so I am also very looking forward to MGX economics and I think they are going to be great and they will be profitable of extracting the lithium and the same with Voltaic.
00:11:24 92 Resources are also doing lithium but they are into hard rock and near Yellow Knife in North Western territories. They are about to drill their first program this summer so I am expecting some good news flow over the next couple of weeks. Over the last couple of months, they have been coming down quite heavily so I think it's a great opportunity right now.
00:11:48 This property is really amazing, they have found pegmatites, they have been channel sampling those pegmatites and I think they are huge. They are really, very, very big. They have surface expressions and they were sampling those pegmatites over a length of 1000 meters and now they are going to drill for them and see if they are connected to each other and I think they are connected as it looks from satellite pictures but they have to prove it with drilling and if they are going to prove it I think it's going to be massive.
00:12:19 They have six of those pegmatites and it’s a whole district of lithium pegmatites. The grades from channel sampling were fantastic, they were world class, they were more than 1.5% but even if it's 1% with drilling, at least you are 1% or more than 1% and you're good.
00:12:38 Canadian Zeolite all of these prices here that you see where from this morning after the market opened but Canadian Zeolite had a big day today. They closed at 79 cents I believe and they just popped. They had good news today that they signed another distribution agreement and the stock also came down very heavily after it went from fifty cents to almost two dollars and I think that's now the start of the turnaround with Canadian Zeolite. They are into production in BC, they are signing major deals and it is a great company. The market gap with 70 million is really a joke but I think the consolidation is over - great company.
00:13:18 Emerita Gold also a very interesting company with eleven million market cap, wow. They just acquired a very good project from Glen Core in Spain and it's got zinc almost 8% and they will be developing this project and besides this project there was a public tender in Spain and because there was a big, one of the biggest zinc mines in the world and it was being mined by Boliden from Sweden and these guys kind of screwed it up.
00:13:56 There was a big tailing dam’s failure and a combination of also low zinc prices and after this tailing stems after it collapsed Boliden just left the country and just left a bit open pit there and after the Spanish government cleaned it all up, that was in the nineties.
00:14:18 A few years ago they made a public tender for new mining companies to get in there and Emerita was one of those companies which applied for this tender. But all by surprise a different company won this tender and shortly thereafter it was found out that there was corruption involved with this tender and now this other company they didn't get it and now there are some court proceedings going on but the law in Spain is if there were criminals involved in the first public tender process then the next qualified bidder would get this project and the next best qualified bidder was Emerita. Who knows when they are going to get this project officially by the government but I think it's going to be rather fast and another couple of years, I think they are going to get it this year.
00:15:14 The government also is kind of embarrassed by all this corruption going on so they want to get it off the table so I think if they are going to get this project. Wow! It's one of the biggest Zinc mines, it was in the world, it is high grade and in contrast to Boliden when they had a big open pit, they want to go underground because that's where even higher grade zinc is. They want to go underground, they've proposed it already. It's a great mine plan, they don't need really tailings, so it's safer and they're going to go mining, this is going to be a mining company I believe and it's going to start in this year and they've only got a market cap of eleven million so watch out for this company.
00:15:57 Another company in the lithium spaces, Far Resources. Great company, I am heavily invested in this company. They somehow got out of favour those lithium stocks but look out for Far Resources. They have been drilling this property since late 2016 with great results and who else is actually right now drilling lithium, hard draw lithium I don't know if any junior is doing that.
00:16:20 They only have a market cap of eleven million or six million right now. Come on, it is a no brainer. They have been drilling these dykes in Manitoba, it is very mining friendly. They have infrastructure nearby they have everything they need.
00:16:35 They have already identified six pegmatites, very good grades. They have drilled it and released some assays in January, good grades and now they have been doing a Phase Two drilling program and we are expecting the assays any day now.
00:16:54 There are probably going to be good, they are already, when they drilled this property a couple of weeks ago after they drilled those holes, two of those they reported "Hey, we hit like fifty meters of very good spodumene and we can tell it's spodumene." So, I am expecting assays of a least 50 meters of 1%, 1.2% lithium and the other one was the other holding they reported on and gave some indication is that they really found big crystals of spodumene. Like 15cm big crystals so this is an indication that the assays are going to be high grade. So, watch out for this company any day we are expecting the assays and after that I hope it goes up more. Six million? Come on.
00:17:41 Pistol Bay they are in Confederation Lake in Ontario they have been using the last couple of years to consolidate this whole area. They now control a huge VMS district and besides it's good grades of zinc there are some old zinc mines on those properties and nearby.
00:18:01 They are getting ready to drill it and besides the zinc properties that they have in Ontario they also had a very good uranium property in the Athabasca Basin which they sold to Rio Tinto but they are still having, they are getting a couple of millions of dollars over the next years and so they will use this money wisely to invest it into the zinc property so that they don't really have to dilute much more with forty thousand, forty million shares right now so and the good thing about the uranium property is that Rio Tinto is really drilling this property right now and they really, they believe in this property and it is right next to the other ones, to big ones and in Pistol Bay they have like a 5% net profit of carried interest in this property so if it goes into production Pistol Bay is going to be rich.
00:18:58 The other one is Kings Bay they are more into cobalt in New Foundland. I am a big fan of cobalt and this is really a great cobalt company. Their first project that they acquired was in Newfoundland and there was like a big highway in Northern Newfoundland which the government built and shortly thereafter they found out from a pit or quarry they found that there was high grade cobalt and it's almost 1% cobalt and plus very good copper grades and I think it's they are on a flight, they've just flew it with geophysics right now and they are going to drill it and I think it could be very well a very good deposit.
00:19:44 NRG Metals they mine lithium in Argentina soon they will be drilling they are just waiting for the permits.
00:19:50 Commerce Resource, wow! One of my favourite companies. I think this year is going to be the year for Commerce. Another Belment, they are drilling we are waiting for assays for Belment and they have been drilling very close to the Clayton valley in the Valley basin so we are expecting there as well.
00:20:05 Kapuskasing is into cobalt as well. International Waste Water -great technology company. Rockcliff copper - very high-grade copper and zinc.
00:20:16 And the rest - Zimtu Capital, watch the presentation they are coming up. Very adventurous. Polish in Thailand they are building new mines there. They are right next to it, it is a joke with two million dollars.
00:20:26 Nickel one they do Nickel among both the last two companies I have not yet covered but these are the companies that I will be covering and watch out I really love both of these companies. Very low market caps especially Castle Silver with cobalt projects. Thank you very much. All the best.