The Bridge - Vol VI
Natural Resources Edition
While President Joe has this enormous vision and a mission of trying to get the USA economy blasting off into space, the least of his worries now in one man’s opinion, mine, is not getting the bill passed through congress, but the huge, massive ( an overused word ) of shortages, from human to metals. In a few weeks after a ground battle in congress will be over and billions will be spent on infra structure spending over the next decade building bridges, laying water pipes, paving roads there are going to be immediate shortages from steel ( Coke Coal required ), cement, and labour. If we were surprised how fast we saw lumber rise, you have not seen anything yet…. (BTO) 1974 circa! This will be unprecedented and with the economy(s) all over the world opening up, brace yourself with labour shortages this will be of atomic bomb proportions. Now how appropriate is this, the new bill being passed through congress is being called, “BUILDING BRIDGES INFRASTRUCTURE BILL”.
www.correa.house.gov - June 10, 2021
Colonial Coal International Corporation | CAD:TSX.v - I continue to highlight this little .60-.70 stock, when a deal is done, current market cap will be irrelevant! These deals are never sold on market cap, but ground assets only. In this case, there are approximately 700M m/t of Met Coal in the ground. Rising steel prices are coming and when they do, the USA steel manufactures alone will need Met Coal, and where will they find it? They do not have enough coal to support their own market and Canada’s coal leaves ports, to Asia mostly... that’s going to change. Right now no one is paying attention, storms coming, if you grew up in the prairies, you know what a hail storm looks like….over the Rockies. With 180M shares outstanding and 7 groups holding 160M shares in tight control, it’s becoming clearer that there are positioning issues now, does this mean were getting closer to a deal? Something else of real significance for my Eu and Australian followers, what happened in Alberta will not happen in BC……coal has been the number one driver of our economy in BC, while BC is in Canada, there is no comparison to Alberta, we have strong unions, which keep strong pro governments in place, keeps the product moving on the rail, with CP & CN our only two rail companies. These companies pay huge taxes, pay many needed salaries in our province and keep Unions strong... What’s good for the goose, is good for the gander, what was not so good for Alberta and Albertans, will be enormous for BC, we are our own economy ( tough to say, since I was born Albertan….) China and Asia are going to have a difficult time cooling this furnace down….”IN-FRA-STRUCTURE"
www.ccoal.ca
"Today, the world consumes 30 million tonnes of copper per year by the year 2050 following this trajectory we have to produce 60 million tonnes per year, we don't have the projects and for the past decade only 500,000 tonnes per year have been added” said Glencore’s CEO this past week. I’d say, over all were in trouble! Similarities to this metal or cracks in the wall are happening all over the metals complex... prices can only go in one direction... and China’s first round of copper, zinc and aluminum actions failed to impress... everyone! They are their own worst enemy but it did create opportunity and prices on the rise stocks can only go one way!!
Sombrero Resources Inc. | private - Still private but with news out that a retroactive TFSA eligibility now exists. Looking to late August or September.
Candente Copper Corp. | DNT:TSX - The Ausenco Desk Top Conceptual Study is now complete, Ausenco's work has identified several opportunities with the potential to lower initial capital expenditures (capex) and operating expenses (opex) while also enhancing the company's environmental, social and governance (ESG) practices. The PEA should be released some time in Q3, trying to understand what Fortescue really wants to do here, will be key. This project is still ranked very high by Goldman. Market cap $30M.
Dropbox - Candente Copper Corp - June 2021
Copper Mountain Mining Corporation | CMMC:TSX - With the markets sliding on copper over the past few weeks, a second opportunity at a gift presented itself. Q2 numbers should be reported by July 22–26th and off to the races we go, reduction of all debt, 2022 forecasted production of 135M pounds of copper and drilling continuing both in BC and Australia suggesting that Q3 and Q4 should be robust. Lots of eyes on this one now, copper producer in one of the globes safest governmental environments... Market cap $794M
Copper Mountain Mine Corporation Song and Video
Tier One Silver Inc | TSLV:TSX.v - Out of the gate, blast off to $1.90 I guess we all thought this was going to the moon ……. now hanging out in the $1.40 range, drills are turning on hole #1 and we are at time of writing around 200m into what should be 650 m depth. What is being seen at site is very positive stock is reacting accordingly... assays in August and this may be just what we have been waiting for... if we hit on two of three holes is it just too early for someone to step up and step in... if we hit on three ( I am thinking we will ). Market cap $175M
District Metals Corp | DMX:TSX.v - With a great news release on its maiden drill program, we started off with nothing less than success, however, the market never reacted that way, but we have a long way to go and were expecting more news... this week and maybe even a new acquisition. I’ve said to Garrett on a few occasions, perhaps you will become Mr. Sweden... in Canada. This is in elephant country and could be a surprise to all shareholders... Gold and silver were the first out of the gate last year, and they passed the torch over to copper in September. The torch may be getting passed back to precious metals now as inflation starts to outpace interest rate increases. Market Cap $30M
District Metals Press Release - June 28, 2021
Barrick Gold Corp | ABX:TSX - Are you kidding, there may be a gift on this coming to a stock chart near you, watch the RSI very close here 30 and it could be another buying opportunity. Market cap $45 BILION! Under 30 RSI and it’s a steal as it was at $23... Canada’s largest Au Company...
Torq Resources Inc. | TORQ:TSX.v - Exploration has begun on Margarita and so now we wait on news, a bit of concern hit this one because of politics but I need not remind everyone reading this that mining is a long game, and governments come and go this is of interest... Market Cap $68M
Torq Resources Press Release - April 21, 2021
Fury Gold Mines Limited | FURY:TSX - Gone very quiet! I have to become my own filter as someone reminded me this week, so let’s say this, about that….those of us that know this story, know were lucky! We should have news flow soon about Committee Bay ( crews heading north in July ) this could be its summer of destiny, Eau Clair, news flow soon and what could be big extensions and Homestake could become our future bank account! There is no hurry to own fury until... it’s too late! A small piece is better than no peace!
Osisko Mining Inc | OSK:TSX - Pick away with profits as you get bored, 2024 it goes into production, I think there is time on this those that follow the mining clock, pay attention to this at 9... and paper take outs.
Kenorland Minerals Ltd | KLD:TSX.v - They are now in the field on the maiden drill program! This is a developing project with some very good long term stakeholders. I think this may be the sleeper in the portfolio...
Kenorland Minerals Press Release - June 3, 2021
Triumph Gold Corp | TIG:TSX.v - This has been an exciting week for me on this one, I had the chance to walk alongside the entire geo team on a potential new project. And while the project holds a great deal of interest, not many get a chance to walk and listen, listen and walk and walk and walk… clearly I’m getting to old. That said, being in the field is like a 5 hour game of golf, you get to know them as people not as things. 1000% impressed! The exploration in the Yukon has now commenced and this just may be one of the best summer yet on this Big Creek Fault! Exploration and theory come together when you have people in the field that put a desk top plan into action. With 6 months of fall and winter behind them, the desk top comes alive with the drill. One need no look any further than Casino mine, north by NW of Freegold Mountain, they released their PEA this week…. only one word describes this now, MONSTER! Three year payback 47 year mine life…. Newmont owns Coffee Deposit, Western Copper owns Casino and Triumph owns Freegold…. look to a map to get your bearings. Yukon could be the untapped and with Canada’s newest mine the Eagle Mine just getting a huge kicker from Coeur, this could be the summer of discontent. Market cap $35M
Book of the Week: When Money Dies - economy. Expensive cigars, artworks, and jewels were routinely exchanged for staples such as bread; a cinema ticket could be bought for a lump of coal; When Money Dies
Humor - "The Stock Market is less volatile than most romantic relationships” Author Unknown
FjP
“A port in a storm, we seek safe harbour"
fport@bridgeportcapital.ca
