Zinc One's Share Price AWS
Zinc One’s Share Price Hi, and welcome to the Front Line Profits podcast! This is Matt Badiali. It's the week ending March 16, 2018. I hope you guys are all doing well. I am fresh back from the giant PDAC [Prospectors and Developers Association of Canada] mining conference in Toronto. It was a spectacular trip! I got to talk to a lot of our companies. Just, you know, cold. [laughter] That's about all I can say. I think today, we're going to read through a lot of your email this week. A lot of you have the same questions. I want to address some of those. Just to start with this one, which is the most common question. Nancy wrote me to say: "Can you enlighten me on what's going on with Zinc One (Toronto Venture: Z; Over-the-Counter: ZZZOF)? It's been going down ever since you recommended it, and it's very close to its stop point." I have to say, in Front Line, my goal is to only recommend companies that go up in price. I apologize. This one is not doing what we had hoped. If you recall, we recommended Zinc One with the launch of the service on January 25. And one of the big problems was we spiked this stock price. Our recommendation coincided with a pretty good press release that they put out, and the share price jumped C$0.10 a share. So on a stock that trades for C$0.42, it jumped C$0.10, and it created a situation where longtime shareholders had an opportunity to get out, take profits and wait for this thing to fall back.
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And it has. And that's what's going on. So, these guys have taken a lot of profits in the face of what looks like pretty good news to me. I mean, they found some high grade. They just added a second drill rig to the program. I'm really not sure what else is going on with these guys that would be pushing the share price down. We're going to honor our trailing stop. If this thing doesn't recover, it doesn't recover. We'll just take our loss, take our lumps and move on. Because we have some great opportunities in some other companies right now. I'm pretty excited! The things I saw at PDAC made me really excited about some different mining companies. So, you know, these companies never work out exactly the way you think they're going to. I've had this issue where I recommend a basket of 10 of these stocks. And, invariably, someone would come to me and say: "I know you said buy all 10, but, you know, really, what's the one that's going to go up?" And in the face of our six recommendations here, I'm really surprised that Zinc One is the one that's not doing well. That's really frustrating to me. We have a basket of stocks. In the beginning, if you had said, "Tell me which one you think is going to do worst," I would not have said Zinc One. So, anyway, that's all I can tell you about that stock. These guys are doing all the right things. The share price is going down. I think it's going down because we spiked the price, and that meant speculators had an opportunity to get out, take some profits and wait for this thing to come back down. I really don't know. I also apparently confused everybody about Mirasol Resources (Toronto Venture: MRZ; Over-the-Counter: MRZLF). The recommendation for Mirasol is to buy up to C$1.95. It's currently trading around C$2.12 or C$2.13. I'm going to re-evaluate this in the light of their press releases. They put out a bunch of press releases last week leading up to PDAC. They have a couple of new joint ventures, so I'll put together a whole update on Mirasol, and I want to do the math and see if it's worth increasing the buy price at this point. It may be. They have some great projects out there right now in South America. I'm trying to line up a trip to go down and visit them. And if I do, we'll know a lot more after that. I'll tell you the company that's doing really well. And none of you really wrote in to ask me about it. [laughter]
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But I'm going to tell you about it anyway, because I sat down with them at PDAC. So I put out an update a little bit ago about Almadex Minerals (Toronto Venture: AMZ; Overthe-Counter: AXDDF). You may remember Almadex. They have that project in Mexico. It's a copper gold porphyry system. And I was a little worried about copper gold porphyries, because they're really big, but they often take a lot of money to explore. And so, when Newcrest came in to joint venture with them, I was very excited. And then they announced that they were going to spin out all their other assets and do a whole other company. I think that's great! So we're going to wind up with our little investment in Almadex. It's going to wind up becoming two companies, which I suspect are going to be worth a whole lot. I don't believe that the market is valuing all the other assets that Almadex has appropriately, and so we spin out this new partnership to develop that porphyry. We're going to spin off all the royalties and the exploration projects. And, you know, what these guys are really, really good at is exploration! They're really, really good at exploration. So it would not surprise me if the new iteration of this company makes the discovery pretty quickly, either. It wouldn't surprise me at all. These guys are that good. And now that they've started with this company called Almaden, and then they began to develop a silver and gold project, and they spun out on Almadex to do exploration, and Almadex made a discovery — who knows what's coming next? So I'm really excited about this! I sat down with those guys, with Morgan Poliquin [president and CEO] and Duane Poliquin [chairman] at PDAC, and they're just over the moon. They're so excited! I couldn't be happier for them. This is great news! I also wanted to give you guys an update on Evrim Resources (Toronto Venture: EVM; Over-the-Counter: EMRRF). So Evrim shares came back down to C$0.40, which is still well above our buy price [C$0.30]. All of the warrants will be taken care of by March 19. So on March 19, I will send you an update and let you know what we're going to do. Whether it's raise the buy-up-to price so that we can get into their shares ... we'll see. You know, there's still the opportunity for the share price to come back down to us. Because that's a lot of warrants. That's a big dilution. But one way or the other, I don't want to get in in front of the dilution. I want to wait for those shares to come down and wait for all those warrants to be exercised one way or the other.
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So the dilution's in ahead of us, and then we'll get in at whatever price it stabilizes at. So expect to see an update on the 19th or 20th of March letting you know what to do with Evrim. OK, I'm going to go back to the mailbag, because Hope wrote in and said she hasn't gotten any response from me about Zinc One Resources. Hope, I just want to let you know I usually don't respond to specific people. This style is new. I really would like to know if you guys like it when I actually read your name out on the podcast. Typically, if you send me a question about Zinc One, I'll answer the question about Zinc One without calling you out on the question. But for all of you guys who wrote in about Zinc One, I hope I answered your question. Please don't take it personally if I don't specifically say it. So, anyway, that's how I usually deal with this. In this case, I just wanted to respond. I try really hard to answer everybody's questions. I don't want you to ever think that I'm ignoring you or that I don't have a good response. Some weeks, there are things that take priority. But really, honestly and truly, you guys are my main priority. You're my subscribers! I want to make sure that we make money. I want to make sure that all your questions are answered. I want to take care of this stuff as best I can. And I have one more I wanted to read specifically. Barbara wrote in to say: "For the EVM trade, Wells Fargo will not allow any purchase less than 50% under the current price of $11.02." Barbara, you have the wrong ticker. So EVM on the Toronto Venture exchange is Evrim. But EVM — so if you just type in EVM, that is the Eaton Vance Municipal Bond Fund, which, as a friend of mine pointed out to me, will pay you a much larger dividend. However, it's not Evrim. OK, so Diane asked about watching the markets in Toronto and other foreign exchanges: "How do I find them, and what are the best sites?" I use tmxmoney.com. That's the Canadian markets. So TMXmoney, all one word, dot-com, will get you the TSX and the TSX Venture. Just for watching stocks, I use something called stockcharts.com. That's a simple charting software that I mess around with.
WWW.BANYANHILL.COM
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For most U.S. stocks, I have a Bloomberg terminal. I actually do most of my stuff on Bloomberg, but I've found that Yahoo Finance, which is just finance.yahoo.com, does a pretty good job for most stocks. So I hope those help. I would really appreciate it if you guys would keep sending me emails. Don't let your feelings get hurt if I don't respond in a week. Sometimes, I am doing other things, and I don't get to the mailbag every single week. But I will do my best, particularly when a lot of you have the same question. I hope I answered it. Look for that update on Mirasol. Look for the update on Evrim. Keep your eye on Zinc One. Let's keep our fingers crossed that this recovers before they put out really good news. And let's just keep on rolling. Thanks very much for listening. This is Matt Badiali for Front Line Profits. Have a great week!
WWW.BANYANHILL.COM
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WWW.BANYANHILL.COM
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And it has. And that's what's going on. So, these guys have taken a lot of profits in the face of what looks like pretty good news to me. I mean, they found some high grade. They just added a second drill rig to the program. I'm really not sure what else is going on with these guys that would be pushing the share price down. We're going to honor our trailing stop. If this thing doesn't recover, it doesn't recover. We'll just take our loss, take our lumps and move on. Because we have some great opportunities in some other companies right now. I'm pretty excited! The things I saw at PDAC made me really excited about some different mining companies. So, you know, these companies never work out exactly the way you think they're going to. I've had this issue where I recommend a basket of 10 of these stocks. And, invariably, someone would come to me and say: "I know you said buy all 10, but, you know, really, what's the one that's going to go up?" And in the face of our six recommendations here, I'm really surprised that Zinc One is the one that's not doing well. That's really frustrating to me. We have a basket of stocks. In the beginning, if you had said, "Tell me which one you think is going to do worst," I would not have said Zinc One. So, anyway, that's all I can tell you about that stock. These guys are doing all the right things. The share price is going down. I think it's going down because we spiked the price, and that meant speculators had an opportunity to get out, take some profits and wait for this thing to come back down. I really don't know. I also apparently confused everybody about Mirasol Resources (Toronto Venture: MRZ; Over-the-Counter: MRZLF). The recommendation for Mirasol is to buy up to C$1.95. It's currently trading around C$2.12 or C$2.13. I'm going to re-evaluate this in the light of their press releases. They put out a bunch of press releases last week leading up to PDAC. They have a couple of new joint ventures, so I'll put together a whole update on Mirasol, and I want to do the math and see if it's worth increasing the buy price at this point. It may be. They have some great projects out there right now in South America. I'm trying to line up a trip to go down and visit them. And if I do, we'll know a lot more after that. I'll tell you the company that's doing really well. And none of you really wrote in to ask me about it. [laughter]
WWW.BANYANHILL.COM
2
But I'm going to tell you about it anyway, because I sat down with them at PDAC. So I put out an update a little bit ago about Almadex Minerals (Toronto Venture: AMZ; Overthe-Counter: AXDDF). You may remember Almadex. They have that project in Mexico. It's a copper gold porphyry system. And I was a little worried about copper gold porphyries, because they're really big, but they often take a lot of money to explore. And so, when Newcrest came in to joint venture with them, I was very excited. And then they announced that they were going to spin out all their other assets and do a whole other company. I think that's great! So we're going to wind up with our little investment in Almadex. It's going to wind up becoming two companies, which I suspect are going to be worth a whole lot. I don't believe that the market is valuing all the other assets that Almadex has appropriately, and so we spin out this new partnership to develop that porphyry. We're going to spin off all the royalties and the exploration projects. And, you know, what these guys are really, really good at is exploration! They're really, really good at exploration. So it would not surprise me if the new iteration of this company makes the discovery pretty quickly, either. It wouldn't surprise me at all. These guys are that good. And now that they've started with this company called Almaden, and then they began to develop a silver and gold project, and they spun out on Almadex to do exploration, and Almadex made a discovery — who knows what's coming next? So I'm really excited about this! I sat down with those guys, with Morgan Poliquin [president and CEO] and Duane Poliquin [chairman] at PDAC, and they're just over the moon. They're so excited! I couldn't be happier for them. This is great news! I also wanted to give you guys an update on Evrim Resources (Toronto Venture: EVM; Over-the-Counter: EMRRF). So Evrim shares came back down to C$0.40, which is still well above our buy price [C$0.30]. All of the warrants will be taken care of by March 19. So on March 19, I will send you an update and let you know what we're going to do. Whether it's raise the buy-up-to price so that we can get into their shares ... we'll see. You know, there's still the opportunity for the share price to come back down to us. Because that's a lot of warrants. That's a big dilution. But one way or the other, I don't want to get in in front of the dilution. I want to wait for those shares to come down and wait for all those warrants to be exercised one way or the other.
WWW.BANYANHILL.COM
3
So the dilution's in ahead of us, and then we'll get in at whatever price it stabilizes at. So expect to see an update on the 19th or 20th of March letting you know what to do with Evrim. OK, I'm going to go back to the mailbag, because Hope wrote in and said she hasn't gotten any response from me about Zinc One Resources. Hope, I just want to let you know I usually don't respond to specific people. This style is new. I really would like to know if you guys like it when I actually read your name out on the podcast. Typically, if you send me a question about Zinc One, I'll answer the question about Zinc One without calling you out on the question. But for all of you guys who wrote in about Zinc One, I hope I answered your question. Please don't take it personally if I don't specifically say it. So, anyway, that's how I usually deal with this. In this case, I just wanted to respond. I try really hard to answer everybody's questions. I don't want you to ever think that I'm ignoring you or that I don't have a good response. Some weeks, there are things that take priority. But really, honestly and truly, you guys are my main priority. You're my subscribers! I want to make sure that we make money. I want to make sure that all your questions are answered. I want to take care of this stuff as best I can. And I have one more I wanted to read specifically. Barbara wrote in to say: "For the EVM trade, Wells Fargo will not allow any purchase less than 50% under the current price of $11.02." Barbara, you have the wrong ticker. So EVM on the Toronto Venture exchange is Evrim. But EVM — so if you just type in EVM, that is the Eaton Vance Municipal Bond Fund, which, as a friend of mine pointed out to me, will pay you a much larger dividend. However, it's not Evrim. OK, so Diane asked about watching the markets in Toronto and other foreign exchanges: "How do I find them, and what are the best sites?" I use tmxmoney.com. That's the Canadian markets. So TMXmoney, all one word, dot-com, will get you the TSX and the TSX Venture. Just for watching stocks, I use something called stockcharts.com. That's a simple charting software that I mess around with.
WWW.BANYANHILL.COM
4
For most U.S. stocks, I have a Bloomberg terminal. I actually do most of my stuff on Bloomberg, but I've found that Yahoo Finance, which is just finance.yahoo.com, does a pretty good job for most stocks. So I hope those help. I would really appreciate it if you guys would keep sending me emails. Don't let your feelings get hurt if I don't respond in a week. Sometimes, I am doing other things, and I don't get to the mailbag every single week. But I will do my best, particularly when a lot of you have the same question. I hope I answered it. Look for that update on Mirasol. Look for the update on Evrim. Keep your eye on Zinc One. Let's keep our fingers crossed that this recovers before they put out really good news. And let's just keep on rolling. Thanks very much for listening. This is Matt Badiali for Front Line Profits. Have a great week!
WWW.BANYANHILL.COM
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