Three years ago I started to dip my toes into the small cap junior and exploration mining stock space, as I saw it as a great way to go for big gains with a portion of my account in an emerging metals bull market. Back then gold was trading under $1300 an ounce and today it is over $1900 an ounce, with all the looks of it gunning for over $2000 before Labor Day. Silver and copper have gone up even more.
It has been an overall fun ride, but two years ago in June of 2019 I got into a true ground floor situation and it became my biggest stock winner. Today, I believe I finally have a new stock pick in a similar situation as that one was in two years ago when I first bought it.
The new stock pick I am talking about is Full Metal Minerals, which trades as FLMTF on the US OTC and as FMM on the Canadian Venture Exchange. The stock only started to trade actively on April 30, after the TSXV lifted a trading halt on the stock. The company had been halted for months as it was completing a corporation acquisition merger, which would mean the end of its stock being a simple shell company and its transformation into an emerging player in the metals exploration space. So, it has only been trading for a few weeks and very few people have taken notice of it at all, as you can see from this chart.
Three years ago most small cap exploration stocks were trading under ten cents. Now many of them are near or above $1.00.
The stock I bought two years ago that I think FLMTF is in a similar spot as that one was in back then is Aftermath Silver. I still own it, but I got into it way back in June of 2019 when it was under ten cents a share. I made it one of my top stock picks that August.
Aftermath Silver ran up from ten cents to fifty cents for a 5X gain by the end of 2019. It dumped back down to 10 cents when the stock market crashed and everything collapsed in April of 2020, but then rebounded and charged up to over $1.50. It’s volatile and has come back down to 50 cents, probably with some worries over the June Peru Presidential election, where its main exploration projects are located. There are other companies focused on Peru whose stocks have also been pulling back, but it looks like it is trying to put in a new low here.
The important point, though, is that in June of 2019, Aftermath Silver was essentially starting the transformation from being a shell company to a real exploration player. After its first rally, billionaire Eric Sprott got involved as a big investor and then the company completed several acquisitions by the end of that year. That June and August to me represented incredible sweet spots for a true ground floor opportunity.
Some of the same people that were behind putting together Aftermath Silver are also involved in Full Metal Minerals and it only started to trade on the TSXV a few weeks ago. So, it is also now starting out as a ground floor stock and I’m hopeful that it can take its investors on a similar journey as Aftermath Silver did once it began its corporate operations. I own shares of the stock.
Full Metal Minerals is just now starting its operations. That’s why getting in the stock now I believe is essentially a ground floor situation. On April 29 it issued a press release announcing the combination of the closing of several debt transactions, private placements to fund it, and the resumption of share trading by the TSXV on April 30. The press release also made note of the company’s first acquisition, a 60% interest in the Olivine Mountain Property in the Similkameen Mining Division of British Columbia. This property had been owned 100% by GSP Resource Corp, until it came to Full Metal Minerals to exchange a 60% interest in it for funding to help drill it and fund its corporate operations. GSP will continue to do the drilling on the property, so Full Metal Minerals is essentially a partner in this project.
Last year, GSP announced positive drill results for the Olivine Mountain Property. Simon Dyakowski, President & CEO of GSP, said that his team was “encouraged by the results of the 2018 field and 2019 drill programs. This early-stage project now has three unique areas of interest defined in the Asp 14 zone, the South Palladium-in-soil anomaly, and the untested Hop showings. The Olivine Mountain project, together with the recently announced letter of intent to acquire the Alwin Mine, provides GSP with an asset base of exploration and development projects concentrated in Southwestern, BC. We look forward to advancing both projects over the course of 2020 as we progress towards our goal of establishing GSP as a Southwestern-BC focused exploration and development company.”
You can read the full 43-101 independent technical report for the Olivine Mountain Property titled “Technical Report on the Olivine Mountain Property” with an effective date of July 27, 2020 under the Company’s profile on SEDAR at sedar.com.
This should just be the start for Full Metal Minerals, because I am expecting the company to make more property deals, which will help to generate more news flow and notice for the company. The CEO and President of the company, Peter Voulgaris, stated that “We are currently evaluating several opportunities in low risk jurisdictions, including Australia, with the goal of making Full Metal a leading junior development company.”
Those are big plans.
Buying now gets you in ahead of any new deals the company may make and I believe before the masses start to notice what is essentially a completely new small cap exploration that has only been trading for a few weeks, with very few shareholders at the moment.
-Mike
Disclosure: Mike Swanson owns shares of Aftermath Silver and Full Metal Minerals. Because both are small cap stocks with a market cap of less than $100 million USD he has put himself in a trading blackout on each stock and will not buy or sell a share of either of them for at least 30-days from the date of this post (06/01/2021). Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Full Metal Minerals. This third party paid Timingwallstreet Inc., $20,000 USD to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns for 30-days from the date of this post (6/01/2021). This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here.
CORRECTION 11:18 AM EST, 06/01/2021: The above disclaimer has been edited. When it was originally posted the morning of 6/1/2021 it had a mistake of naming Aftermath Silver instead of Full Metals Minerals as being the company of which the investor awareness campaign is being done for. The mistaken line stated “Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Aftermath Silver.” The correction reads Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Full Metal Minerals..