Kaiser Research Online publisher John Kaiser is well known for his outspoken views on all things related to resource exploration.
During the recent Cambridge House International investment conference in Vancouver, the California-based newsletter writer named a number of companies that he described as potential 10-baggers. Kaiser said the list includes stocks that are bound to attract capital in a rising gold market. Here is the list:
Amarc Resources Ltd. (
TSX: V.AHR,
Stock Forum) is a member of the Vancouver-based Hunter Dickenson mining group and is focused on exploration in central British Columbia.
The company has an option to acquire an 80% interest in the Ike project northwest of Gold Bridge, where assay results from an initial nine-hold (5,400-metre) diamond drill program have confirmed the presence of an important porphyry-style deposit.
Amarc shares traded this week at 8 cents, leaving a market cap of $11.3 million, based on 141.3 million shares outstanding. The 52-week range is 13 cents and 5.5 cents.
Midas Gold Corp. (
TSX: T.MAX,
Stock Forum) controls the Stibnite gold project in central Idaho, after bringing the asset under single ownership for the first time in its history.
The stock traded Monday at 55 cents, leaving a market cap of $77.9 million, based on 141.7 million shares outstanding. The 52-week range is $1.14 and 43 cents.
Last month, Midas Gold said it had filed an independent technical report on SEDAR, detailing the results of a preliminary feasibility study at Stibnite. It estimated that total capital costs would be $1.1 billion, including start-up capital costs of $970 million, sustaining capital costs of $99 million, and closure costs of $56 million.
The project is located in a past-producing area near the historical town of Stibnite, where gold, silver antimony, tungsten and mercury mineralized materials have been mined since the late 1920s.
Midas is a 10-bagger in a rising gold market, Kaiser said.
Highway 50 Gold Corp. (
TSX: V.HWY,
Stock Forum), a company that is focused on exploring for Carlin-style gold mineralization on its Golden Brew and Porter Canyon projects in northern Nevada.
The stock trades at 39.5 cents, leaving a market cap of $10.6 million, based on 26.7 million shares outstanding. The 52-week range is 51 cents and 24 cents.
Kaiser is advising investors to consider Highway 50 on the basis that there is the potential for another 300 to 400 million ounces of gold to be found in Nevada, which is already home to deposits that have sustained the likes of
Newmont Mining Corp. (
NYSE: NEM,
Stock Forum) and
Barrick Gold Corp. (
TSX: T.ABX,
Stock Forum), two of the world’s leading producers of the yellow metal.
InZinc Mining Ltd. (
TSX: V.IZN,
Stock Forum) is focused on advancing its 100%-owned West Desert project in western Utah.
The company said an independent preliminary economic assessment has concluded that the conventional mining and processing of the West Desert resource over a 15-year mine life has the potential to produce 1.6 million pounds of silver, 147 million pounds of copper, 15 million tonnes of iron (magnetite) concentrate and 566 tonnes of indium.
The stock is trading at 8.5 cents, leaving a market cap of $6.1 million, based on 72.2 million shares outstanding. The 52-week range is 23 cents and 5 cents.
“This is easily a 10-bagger,’’ Kaiser said.
A number of analysts are bullish on the outlook for zinc metal on the basis that a number of large mines are approaching the end of their lifespans and cannot be easily replaced. Kaiser said investors should also note that China’s ability to raise production is diminishing, partly because its mining operations are mainly mom and pop operations.
Eric Friedland company
Peregrine Diamonds Ltd. (
TSX: T.PGD,
Stock Forum) is engaged in diamond exploration, with a focus on the Canadian Northwest Territories and Nunavut. That includes the Chidliak project located 120 kilometres from Iqaluit, the capital of Nunavut, where 71 kimberlites have been discovered so far.
On Monday, the company reported a 15% increase in the inferred diamond resource in the CH-6 kimberlite to 8.57 million carats. It also reported significant tonnage increases for CH-6, CH-7 and CH-44 kimberlites.
Peregrine traded this week at 14 cents, leaving a market cap of $31.7 million, based on 226.2 million shares outstanding. The 52-week range is 56 cents and 13.5 cents.
“This is a five bagger and maybe eventually a 10 bagger,’’ Kaiser said.
Tsodilo Resources Ltd. (
TSX: V.TSD,
Stock Forum) is a diamond, base and precious metals exploration company with a focus on Botswana, a country in Africa that Kaiser described as a safe jurisdiction.
The stock traded this week at 90 cents, leaving a market cap of $29.2 million, based on 32.4 million shares outstanding. The 52-week range is $1.85 and 74 cents.