MOON.v - 2 low-risk commodities play 2021 | +500%Here are my two stock picks. These are the only two stocks I have in my portfolio, thus biased, yet very excited and bullish on these two stocks. I am expecting nothing short than 500% increase given each of the two stocks will have upside corporate activities.
Both companies will enjoy the commodity bull market expected in 2021, and both have drilling surprises to the upside with low risk. Both plays have an inferred resource, and the drilling will increase the size and category of the resource.
$moon.v - Blue Moon Zinc. - Silver/Zinc play
$9m Market Cap, +600% from March lows to ending the year at 52-week highs
In 2021 they will likely raise the the money required for drilling and expand the current inferred resource to indicated in California. At the same time, growing the resource to potentially 2x-3x the current size. The last 2 drill holes by JV Partner Plantina resulted in significant mineralization. A $4m total fund raising can get the company through drilling, PEA and pre-feasibility. These 3 components are the big milestones, in addition to drill results. The risk of getting a dud drill result is quite low, in my opinion. There is a resource there and previous drills show there is much more upside. I am expecting positive surprises in Q1/Q2. Once California Moon produces the growth in market cap that I expect will occur, the second monster property Yava is the big potential. Next to Hackett Lake with 7 billion lbs of zinc and 300 million oz of silver, 700 million lbs copper, this is the next big super growth for the stock. It's going to be a positive 2021 and beyond!
$baru.v - Baru Gold - Junior gold producer
$30m market cap, +700% off March lows, golden cross to the upside is within reach
Previously East Asia Minerals, lots of doubts about the story, but throughout the year the company raised funds, got the AMDAL completed and now into construction. While still waiting for the production permit to be formally issued, construction of the leach pad, land acquisition, hiring of people, purchasing of supplies/materials are ongoing. Based on these events, there is no delay due to the production permit issuance, and there is a high trust factor that the permit issuance is not an "if" but "when" scenario. The company is building 2 leach pads, focusing on 1000 oz of gold production per month at start, and up to 4000 oz of gold per month. At 1000 oz per month production, and at $1900/oz spot and $700/oz cost, that's $1.2m revenue per month for the company or $14.4m per year. At 177m shares OS, that's $0.08/share gross profit. Trading at $0.16 is 2x that factor. As the company ups to 4000 oz/month, that's $0.32/share gross profit. If we kept the current market valuation of 2x, that's $0.64/share gross profit. On top as with $moon.v, there is a second property call Miwah with 3.14m oz gold and 10m oz silver. These are not in the books yet and when they are, it's an instant value to the upside for BARU shareholders. Note, both the current and Miwah property is 10% drilled. The company will drill both properties with the free cash flow. Thus $0.64/share is super conservative, yet +300% already.