What's Holding MIN Back?What’s Holding MIN Back?
As a long-time holder of MIN (2015) I wanted to offer some thoughts on why the market is not recognizing what a lot of us perceive to be MIN’s true value.
- The on-going trade issues between the U.S. and China.
- The fear of a recession.
- Copper prices.
These three issues are related for sure. When the trade issues are worked out, I think recession fears will recede and copper prices will recover.
- MIN is still perceived and is being priced as a penny stock exploration company.
Although there is some investor interest in the U.S. in MIN (EXMGF) by and large the trading activity is mostly coming from Canada. One thing I’ve noticed about the Canadian stock market is that it’s flooded with thousands of junior mining companies. A lot of these companies, I’ve noticed, appear to be pump and dumps working over the same mining claims that others have explored in the past. If there was no significant mineralization there the first time, chances are they’ll be nothing there this time too. But their stories and websites look great!
MIN’s difference is that it’s a real company – fully permitted, fully financed, and will be producing copper this year.
- It’s currently easier to make a buck from weed stocks and gold and silver stocks. No one seems to want to invest in base metals right now.
- Uncertainty about in-situ recovery.
My personal opinion is that in-situ will work for copper. It’s been demonstrated elsewhere that it works. No one, as far as I can tell, has put forth any engineering, technical, or geologic reasons backed up with hard data that in-situ recovery won’t work. The big money in MIN doesn’t appear to be concerned about in-situ recovery. If the rock is fractured, in-situ recovery will work. Thousands of drill holes say it is.
- Traders vs. Investors.
As I’ve noted above, I’m an investor, not a day trader. I bought my first MIN shares in 2015 and a month doesn’t go by that I haven’t added to my position. Why take this approach? Because MIN, as I’ve said above, is a real company that will be producing hundreds of millions of pounds of copper over twenty plus years. The price of copper today is irrelevant. A copper shortage is looming.
In summary, MIN is trading at less than 20% of its NPV. We will see one of two things soon – either the stock will go up once production starts and the skeptics will see that in-situ recovery works, or a larger mining company will come along and buy us out.