Hello MTWALLET
I think previous posters have summed up these two firms quite well. For what its worth, if I may, I'll add my two cents.
So far there has not been a hint of an economic pipe in Alberta, which in my mind suggests that until there is, no new find will skyrocket without some promotion machine blowing hot air into it. Diamond exploration investors have become quite a bit more astute than they were five years ago, and they need to see the word pipe(s), grade, carats/tonne, $/carat, G-10%, etc, etc, before they start piling into a junior.
The hey day of "any piece of moose pasture will do" is over!
In today's junior markets, you want to be in a diamond junior play that the market is following and that has "legitimacy". Participation of a major lends this in some cases while the fact that pipes are being successfully mined else where in a country, (Territory), next door, certainly helps.
If investors are worried that a company may not be able to operate a mine for its life without political upheaval potentially risking the investment, then they won't flock in, stay, or drive share prices to Barrick multiples (+40 x earnings as compared to 12 or 2).
There are junior plays like Archangle Diamonds or SUF (Angola) that have completely legitimate world class assets, but the market doesn't care. If you might not be able to get them out of the ground or country, it does not want to award much speculative value.
Once in production, earning may drive values but that is down the road.
Alberta, Ontario even Brazil are certainly stable business environments, but then the market does not yet believe economic pipes exist there. If one is found, then Spider, Canabrava, Montechello, Ashton, Pure Gold, et all will be legitimized but until then, I would caution you against betting your $$ where the market is not prepared to believe.
Where will it support a find?
For diamond plays, politically, the NWT, Alberta, Saskatchewan, Ontario, South Africa (for the time being) Botswanna, Namibia, Tanzania, Colorado, Zambia, North Australia, Greenland, Finland, Brazil, Uraguay, etc.
Economically, the NWT, Siberia, South Africa (for the time being) Botswanna, Namibia, Tanzania, Uganda & Zambia - possibly. (Colorado and North Australia only have one pipe each and both are marginally economic).
There are other countries, and I may have missed a few, but if I am not mistaken, their deposit economics appear to be marginal or unproven, Sierra Leone, Zimbabwa, Venezuela, Mauratania, etc..
Other countries/states/provinces may well prove to have economic pipes and may well become politically stable, but only time will tell and the market wants legitimacy (proof).
Right now there are only a few juniors in the NWT who have legitimacy due to participation by majors and proven/probable assets.
The market will support SUF and its partners on any find. It will support ABZ and its partners, and of course BHP and its partner Dia Met. It will probably support any diamond play with a find (apparently economic pipe)near to them as well.
Beyond that, I would personally avoid speculation elsewhere until there is more evidence of real potential.
You could probably apply these investment guidelines to base metal junior plays as well.
Golds?...well...like I said, the market wants legitimacy......
Just my thoughts on exploration juniors.
Regards |
