Weekly Watchlist - Feb. 03, 2024

Another tough week for commodities after a spike in the dollar and rates. Money continues to chase tech and growth stocks. This is a dangerous area of the market to play in right now imo.

There is always alot of volatility around Fed meetings and this week was no different. Powell came out and put any early rate cuts into question, this created a spike in rates and the DXY which in turn caused commodity related stocks across the board to get hit pretty hard.

Gold/Silver stocks are close to cyclical bottoms at this point and are at levels worth heavy accumulation right now. Historically once the fed starts cutting rates this is when the cycle turns for gold/silver sector. Currently the market thinks there is a 38% chance of a rate cut in March, and is even more definite there will be a rate cut by May with a 90% probability.

Okay now let’s take a look at the watchlist for the week.

Calibre Mining - Market Cap $1 Billion Canadian

The company acquired the Valentine project in Newfoundland which is going to grow production substantially. The project is 50% complete now and we can expect first pour in 1H 2025. The company has a healthy cash balance of nearly $100 million. They’ve been able to keep costs relatively stable at their producing assets with AISC of $1100 per ounce.

Volume has been high since the company closed on the Marathon deal. It looks poised for a breakout, earnings are 2 weeks out. I believe this stock will do really during a gold bull market.

Bonterra Resources - Market Cap $29 Million Canadian

The stock has taken a beating over the last couple years, the company is now partnered with Osisko Mining in a 70/30 relationship. Osisko has to spend $30 million in exploration over the next 3 years to keep their stake. With over 35,000 metres planned for this year. The Urban-Barry property already has a significant resource base. This will be non dilutive for shareholders of Bonterra and is a great deal for the company in my opinion.

The company also owns the mill in the area and has the 100% owned Desmaraisville project close by. They recently hit 10g/t Au over 10 metres at the this location. Results will continue to come in over the coming months. The company is now able to focus here with the Joint Venture deal in place.

This is a unique story, and the valuation here is very enticing for the investor that is looking for a long term play. The stock has been showing signs of life recently, and has likely bottomed.

Hemisphere Energy - Market Cap $131 Million

This oil stock has basically flatlined for the last year, but has paid a very healthy dividend which is currently yielding 9% annually. The company is debt free and is focused on shareholders returns through dividends and share buybacks.

The company is based in Alberta and Saskatchewan, they expect to product 3400 boe/d in 2024. It showed sign some really positive signs last week when it looked like oil might finally break out. It’s one to add to the watchlist and if you are looking for something with a decent yield might be worth a long term hold.

Disclaimer

The views and opinions expressed on this website are for educational and informational purposes only, and should not be considered as investment advice. The author may hold positions in stocks mentioned on this website.  The author of this website is not a licensed stockbroker or financial advisor.  Nothing contained herein should be construed as a recommendation to buy, hold or sell any securities or financial products.  Always seek the advice of a financial advisor and do your own independent research prior to making any trade or investment decisions.

We do not guarantee the accuracy or completeness of any information on this website.  Such information is provided “as is” without warranty or condition of any kind, either express or implied.  Past performance may not be indicative of future results. This website could include inaccuracies or typographical errors.

We are not liable or responsible for any damages incurred whatsoever from actions taken from information provided on this website, including financial losses.  Since all readers who access any information on this website are doing so voluntarily, and of their own accord, any outcome of such access is understood to be their sole responsibility.  In no event shall we be liable to any person for any decision made or action taken in reliance upon the information provided herein.