After gold prices tagged $1,500 on Friday, everyone was talking about the precious metals — that is, if they weren’t busy running away from them in a panic.
Not me. I see an explosive buying opportunity in the precious metals. And last week’s trading action is only serving to make them look even-more-attractive here.
Not just the metals themselves, but also the junior miners, explorers and developers that are getting beaten down to bargain prices … stocks that could soar on even just a small upward move in bullion prices.
However, if you’re averting your gaze from the precious metals for the moment, there are plenty of industrial metals that you might have otherwise been missing in the meantime.
I’d like to talk with you about one of those today, and introduce you to a junior resource company poised to become a major player in this often-overlooked investment space.
Watch Your Inbox Tomorrow …
Right now Sean Brodrick is tracking a small group of 85 stocks that are hyper-sensitive to gold prices … investments that could hand you 5x, 10x, even 40x the gains on a move in the yellow metal.
With the way these stocks are undervalued right now … Sean believes we could be seeing the best buying opportunity in the last 30 years!
He plans on issuing his top new mining recommendations for 2013 tomorrow, Tuesday, April 16. The only way to make sure you get the names and ticker symbols is by watching his latest breakthrough presentation and following the instructions at the end.
Click here to view it now before it’s too late to act!
Graphite is a strategic metal that has a growing list of industrial uses … and users.
It’s integral to the growth of alternative energy, with new and emerging demand from applications such as lithium-ion batteries, fuel cells, nuclear power and other green technologies. Graphite also benefits from strong demand from traditional end-use markets such as steel and automotive.
But not all graphite mines are created equally.
Ultra-pure natural graphite — of more than 99% purity — is also ultra-rare. It’s so rare that there’s only one working mine in the world that produces it.
Most ultra-pure graphite is created in a factory, very expensively.
However, there is an ultra-pure graphite project that is being developed right now. It should be able to produce tons of ultra-pure graphite at a huge discount to synthetic graphite.
This has gotten some of the smart money very excited — even though most investors haven’t even heard of this company yet.
That company is Zenyatta Ventures (ZEN on the TSX-V), which was the best-performing stock on the Toronto Venture Exchange last year. It’s trading just pennies below $2 per share.
Get to Know This Promising Graphite Developer
Last week I spoke to Zenyatta CEO Aubrey Eveleigh, and I learned a lot of exciting things that I want to share with you about this promising junior resource company.
Zenyatta has a market cap of $80.79 million, and fully diluted shares of 58.9 million. It is developing a project near Thunder Bay in Canada that has graphite yielding 99.96% carbon purity.
That’s the same grade as synthetic graphite — but Zenyatta can mine it for a heck of a lot cheaper than a factory can produce it.
Positive drilling results have helped support Zenyatta’s share price, making it the best-performing stock on the TSX-Venture exchange last year. In other words, Zenyatta’s share price went up when many gold, silver and copper miners were getting crushed.
That’s just the beginning of the story that Aubrey told me. You can watch the video here …
Some of the points that Aubrey made in the video and in a presentation he made before we talked …
- Zenyatta will have a new resource estimate coming out in August.
- It expects to have a Preliminary Economic Assessment (PEA) on its Albany Graphite Deposit by the first quarter of next year.
- Until we get the PEA, we’re only guesstimating how much it would cost to build a mine, but Aubrey is using $150 million. He says similar mines have cost around $100 million, and he’s upping that by 50% to be safe.
- But he doesn’t expect to build the mine. Other companies — potential customers and buyers — are sniffing around. Aubrey expects that when the PEA comes out, some companies will decide if they want to put a bid on Zenyatta.
- The company needs about $7 million to $8 million to operate for the next year. It has enough money, and with warrants being cashed in, should have between $10 million and $12 million in the near term.
- There is no official coverage from the big banks now, but they’re starting to get inquiries. Aubrey expects they’ll get coverage in the next few weeks.
- Zenyatta trades under the symbol ZEN on the TSX-V. There is an OTC tracking stock, ZENYF, but Zenyatta has nothing to do with that. It will get an official OTC-QX listing in a few weeks, and the U.S. symbol could change again.
Now, let’s look at a chart …
You can see that Zenyatta is coiling up. We could see a breakout like the one earlier this year that sent it much higher.
Just a few days ago, Zenyatta received the “Discovery of the Year” award from the Northwest Ontario Prospectors Association. That award was for its Albany Graphite Deposit.
The NOPA thinks Zenyatta has just scratched the surface of this deposit — and I think they’re right.
As for the action in the precious metals right now, I’d like to close with a quote from Rick Rule, who actively manages over $10 billion in assets focused exclusively on natural resources.
Rick and I had a conversation recently, and it reminded me of another time earlier this year when he pointed out the “big fallacy” of investors:
If you are not doing the work to segregate the wheat from the chaff, then get out of the sector. People wanted to be in the sector in 2010 at the market top, and they don’t want to be in the sector three years later with the prices 70% off.
It is like someone walked down the street and ignored every store that had a “sale” sign and went to the only store that had the “full price, no discounts ever” sign.
Now is the time to time to buy, as we are in a bear market. We sell high in a bull market; we buy low in a bear market.
We are seeing a lot of “sale” signs on great resource stocks. If you’re investing on your own, do your own due diligence and please be careful.
But if you’re looking for the best picks to buy at the right time, I’m planning to send my newest recommendations to my Junior Resource Millionaire subscribers tomorrow — Tuesday, April 16.
To make sure you’re on board, check out my newest video presentation on gold, and learn how you can get in on my newest trades, by clicking here now.
All the best,
P.S. You know I like the precious metals, and I especially like trading the junior resource companies — miners, explorers and developers and other stocks that are loaded with value, and have “knock-it-out-of-the-ballpark” potential.
Tomorrow I plan to issue a few of my top recommendations in this space, and the only way only way to make sure you get the names and ticker symbols is by watching my brand new investment presentation.
So don’t delay. Click here NOW to discover the top gold opportunities of 2013!