For the past 18 months or more the junior resource sector has taken a tremendous beating. Over the past few weeks however, several companies within the sector have begun to form a base and now look attractive. This article provides the details of the companies we have purchased.
The 247Bull investment portfolio (Click on the chart for a larger version)
Portfolio as of 20 March 2013
New additions to the portfolio include:
- Rubicon Minerals Corp. (USA)(NYSEAMEX:RBY): Rubicon Minerals is an advanced stage gold development company with a fully permitted flagship gold project in the Red Lake gold district in Ontario Canada. The company is well-funded and is slated to begin production in 2014. Rubicon’s stock has recently broken above overhead resistance on strong volume and looks set to continue higher.
- Coeur d’Alene Mines Corporation (NYSE:CDE): Coeur d’Alene Mines is a large primary silver producer with assets in the United States, Mexico, Bolivia, Argentina and Australia. Coeur d’Alene also owns strategic minority shareholdings in eight silver and gold development companies in North and South America. From a technical perspective the company has begun to form a base and also has the potential to trace out an inverse head and shoulders pattern. In addition a breakout above previous resistance would likely be followed by a decent jump since the price has a gap to fill.
- Endeavour Silver Corp. (CAN)(NYSE:EXK): Endeavour Silver is a premier, mid-tier silver mining company focused on the growth of its silver production in Mexico. The company operates three mines in Mexico and has posted eight consecutive years of growing silver production, reserves and resources. Endeavour has recently broken above overhead resistance on strong volume and the outlook for the company, both near-term and long-term, look positive.
- Uranium Participation Corp. (TSE:U): Uranium Participation Corp. is an investment holding company which invests in uranium, either in the form of uranium oxide in concentrates (“U3O8″) or uranium hexafluoride (“UF6″), with the primary investment objective of achieving appreciation in the value of its uranium holdings. As mentioned previously, Uranium Participation Corp. acts as a proxy for uranium and this year’s termination of the Russian Megatons to Megawatts program should provide a substantial boost to the price of the metal.
- Uranium Resources, Inc. (NASDAQ:URRE): Uranium Resources explores for, develops and mines uranium in the US states of Texas and New Mexico. Since its incorporation in 1977 the company has produced over 8 million pounds of uranium from its Texas projects, however, it also has 206,600 acres of uranium holdings and 152.9 million pounds of in-place mineralized uranium material in New Mexico. Uranium Resources also has a bullish chart since it has begun to form a base and is now testing overhead resistance.
- Gold Resource Corporation (NYSEAMEX:GORO): We have sold half of our holding of Gold Resource Corporation due to its continued underperformance. The company remains on probation.
Overall the 247Bull portfolio is down -3.9%, however the short, medium and long-term outlook for the companies and assets held is very positive.