Gold at Fore of RBC Capital Markets' Top 20 Mining Stocks - Junior Metanor Resources on Growth and Valuation Watch List

Share Article

Conviction buy recommendations in mining sector by noteworthy individuals and entities over the last two weeks.

Market Equities Research Group provides a synopsis watch list and related opinions of mining stocks based on recommendations made by noteworthy individuals and entities over the last two weeks.

Top Junior Gold Mining Watch List Selection:
Metanor Resource Inc. (TSX VENTURE: MTO) (Pink Sheets: MEAOF) (Frankfurt: M3R)
Metanor has been identified as a top selection by both mining experts Jay Taylor and James West.

Metanor Resources Inc. is a unique exploration junior with well over $30,000,000 of gold poured to date from their 1200 TPD mill. Metanor is expected soon to release a new NI 43-101 compliant resource estimate on its Barry gold project. Metanor could conceivably be positioned to move from a projected 60,000 - 70,000 ounces gold production per annum once the Bachelor Lake underground mine comes online (expected later in 2010) to mid-tier producer status on a second front at the Barry mine.

The following Balance Sheet/Book Value opinion excerpt is from a Mining Journal review of Metnaor that may be found at the following URL: http://miningmarketwatch.net/mto.htm online.

Balance Sheet/Book Value: MTO.V only has 128,450,005 shares outstanding and no long term debt and thus poised for significant upside revaluation to better reflect inherent value. Metanor has infrastructure valued at ~$150M including a proven, fully functional, permitted 1200TPD gold mill operating with ~95% recovery rates (over 30,000 ounces gold has been poured to date). We note that Metanor's market cap is currently at ~2/3 the replacement value of the infrastructure alone, ignoring the 1Moz+ resource; the known gold resources between the 100% owned Barry Deposit and Bachelor Lake of over 470,000 oz [this will increase with the imminent 43-101 report on Barry expected within days], plus there is over 100,000 oz historic at the 100% owned Hewfran extension (attached to the Bachelor Lake Underground and adjacent to their 70% owned Nelligan project), and ~450,000 oz at the 100% owned Dubuisson property.

Top 20 Mining Stocks and Consideration as per RBC Capital Markets Q3 Analysts Opinions:

RBC Capital Markets have updated their global mining 'best ideas' portfolio, a list of 20 mining stocks they like best, for the third quarter. The analysts at RBC Capital Markets covering the mining sector have made it clear they still prefer gold over everything else; they were already overweight gold in Q2, and they added to that position with four new names: 1) Newcrest Mining Ltd., 2) Catalpa Resources Ltd., 3) Gold Fields Ltd., and 4) Romarco Minerals Inc.

Main considerations cited for the heavier weighting on gold are Eurozone debt concerns and broader uncertainty in the capital markets.

On the uranium front the market spot price for U3O8 has stabilized at ~US$41.75/lb and the RBC Capital Markets analysts increased their uranium sector exposure from 'underweight' to 'market weight' citing "recent corporate events and strategic government acquisitions have signaled a turnaround for the equities". The analysts added two new uranium names to their portfolio; 1) Cameco Corp. and 2) Paladin Energy Ltd.

The RBC Capital Markets analysts are less bullish on the other mining sectors, maintaining a 'market weight' rating on base metals, noting those stocks are sensitive to a weakening economy. Bulk commodities were reduced to 'underweight' because of softening steel prices and tightening monetary and fiscal policy in China, while fertilizers were reduced to 'underweight' as the sector moves into a seasonally weak demand period.

The RBC Capital Markets Top 20 Mining Stocks 'Best Ideas' portfolio for Q3 is as follows (alphabetically by mining sub sector)…

Precious Metals: 1) Aquarius Platinum Ltd. 2) Avoca Resources Ltd., 3) Barrick Gold Corp. 4) Newcrest Mining, 5) Catalpa Resources, 6) Gold Fields, 7) Great Basin Gold Ltd., 8) Romarco Minerals, 9) Silver Wheaton Corp.

Base Metals: 10) BHP Billiton Ltd., 11) Equinox Minerals Ltd., 12) Inmet Mining Corp., 13) Lundin Mining Corp.

Uranium: 14) Cameco Corp., 15) Mantra Resources Ltd., 16) Paladin Energy Ltd., 17) Uranium One Inc.

Bulk Commodities: 18) Coal & Allied Industries Ltd., 19) Teck Resources Ltd.

Fertilizers: 20) Agrium Inc.

This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. The term special situation advisory and/or investment advisory refers to the fact the reader is being advised there is a publication on an item that is also an investment, and not advice to buy or sell. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned. Readers are referred to the terms of use, disclaimer and disclosure located at the above referenced URL.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

F William, BA Ec.
Visit website