₪ David Pescod's Late Edition June 12, 2007
ANGLO MINERALS (V-ALM) $2.15 -0.25
DYNASTY METALS (V-DMM) $5.40 -0.04
UCORE URANIUM (V-UCU) $0.99 -0.06
MARCH RESOURCES (V-MCF) $0.69 -0.01
In today’s busy market place with so many thousands of junior resource companies, all trying to get your attention, the role of the IR person is suddenly becoming ever more important. The investor relations guy is the one that organizes presentations, puts together tours, makes sure clients are at the right financial shows, and does whatever it takes to get that client front and centre so investors can take a peek.
A few years ago it was suggested that there was a dozen or maybe a few more uranium companies. Today, by some people’s estimations (on all the North American Exchanges) there’s almost 600 companies. That gives you just one idea of how tough it might be to get your message out or make it stand out from the multitude. We take in so many presentations ourselves, we get to meet a lot of IR people and like in every business, there are some that are very good and many that….well, aren't!
The one thing about being in this IR position is that through the airplane trips and the financial shows around the world and so forth, they also get to hear a lot of interesting stories and you can count on many of them being stock pickers and players themselves.
That’s why we touch base with Scott Koyich of DSK Consulting from time to time, because he has turned out to be a decent stock picker as well as IR person. The chart of Anglo Minerals shows you that of one of his former picks as the company is involved in a joint venture with BHP to develop the Saturn potash project in Saskatchewan near Lanigan and continues to attract ever more attention.
The company is run by Todd Montgomery, the man that also founded and served as president of SynEnco Energy, an oil sands development company. Despite already doubling from when he gave it to us and we published it here, if you see Scott you might ask him what his target is on this company. But it was time for us to go back and ask him what other stories in his travels, he would suggest a person be looking at now.
One pick currently being affected by some politics is Dynasty Metals, a future gold producer that’s located in Ecuador. Koyich writes, “Dynasty Metals trades at a discount to its peers because of the political perception of the Country.” He suggests that “Management has vast experience in Ecuador and is extremely confident in the potential, which has arisen in not one, but three highly prolific gold properties.” He points out they “have recently been granted the first development permit by the Government on their Zaruma project which will allow production to commence in approximately Q1 of 2008” and points out that the company “based on existing reserve reports, trades at approximately US$22 an oz in the ground” a steep discount.
A second pick and one we find interesting is Ucore Uranium which in March of 2007 acquired the Bokan Mountain property which was a former uranium producer located in Alaska. Koyich suggests, “Bokan produced approximately 1.3 million pounds of .76% U308 in the 1960-70’s and has an abundance of exploration lands surrounding the producing facilities and expects to drill the exciting “I and L” prospect in June-July of 07.” He suggests the stock has currently suffering because of selling pressure caused by some flow through issues that were done a while ago and he suggests at least “offer a tempting entry point in the stock prior to the summer drill program.” The drill program itself he suggests, “is basically twinning non 43-101 compliant holes that were drilled in the 1960-70’s by industry biggie, Newmont.”
They are awaiting the drilling okay from the Alaska Department of Forestry.
Another pick that Koyich has big hopes for is March Resources. They have just concluded a deal or shall we refer to it as the “definitive Special Operations Contracts” with the Chilean government. This final approval was needed to begin the oil and gas exploration and development work on two blocks in Northern Chile in the Tamarugal Basin.
Koyich suggests that the Pica North and Pica South blocks in this basin consist of approximately 9,000 square km (or 2,500,000 acres in English) and he suggests that when these blocks are drilled in September, people will care.
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