This week we take a look at some of the non-gold mining stocks we have been tracking over the past few months.
Gold prices may have taken a short term drop (we think they will be back though), but demand for some other metals and minerals is sustained or picking up. Asian economies are coming back on track and industrial production in major consumer economies like China and South Korea is looking more positive than 1H 2020.
On top of that the EV battery market is poised to pick up speed in 2021, bringing with it massive new demands for rarer metals and other minerals.
Eurasia Mining [LSE:EUA]: A popular stock with mining investors in 2020, it is one of the few independent players in the platinum group metals (PGM) market. Eurasia Mining is thought to be in the process of trying to find a buyer, and the rumour mill says it could be an Asian buyer. Eurasia owns the West Kytlim mine in the Ural Mountains in Russia. Eurasia Mining shares rose from around 20 to 37 on the expectation of a sale. They are currently trading at around the 30 mark as investors wait for further news.
Kodiak Copper [TSXV:KDK]: A junior miner exploring the MPD copper-gold porphyry project in British Columbia, Kodiak Copper completed drilling and assay of the initial exploration phase this autumn. There is intense excitement around this stock because of the involvement of Chris Taylor, chairman of the board and . Kodiak’s drilling has already revealed significant copper-gold mineralisation which are the hallmarks of a well-developed alkalic porphyry system. Shares have dropped to about CAD 1.33 in recent weeks, but there are still a lot of seasoned mining investors following this one. We expect it to pop if there are positive results from the next drilling phase.
Sotkamo Silver [NGM:SOSI]: This is a pure-play silver mine on the north-eastern border of Finland, noted for its safety and solid infrastructure. Finland has also not been hampered by the pandemic, which has allowed its mining sector to continue relatively unmolested. Sotkamo Silver shares have been trading in the EUR 0.26 – EUR 0.34 range in the last three months. Sotkamo Silver shares are currently trading at the lower range of around EUR 0.28 with a market cap of approximately EUR 50m. We believe that if silver prices stay at around their current levels, or rise above this, Sotkamo Silver will represent a very interesting medium to long term opportunity.
Euro Manganese [TSXV/ASX:EMN]: Listed in Canada and Australia, this battery materials company plans to re-process a unique anthropogenic manganese deposit in the Czech Republic. It has two key attractions – firstly, scope for bringing ultra-high purity manganese (HPM) onto the market from a more environmentally friendly source (i.e. tailings from previous mining activities), and secondly its location at the heart of European auto manufacturing, in close proximity to a multitude of potential customers across Europe. Electrolytic manganese metal and manganese sulphate have industrial applications in lithium-ion batteries.
Peninsula Energy [ASX:PEN]: A Wyoming uranium miner, we like Peninsula Energy because of its proximity to the US energy market. It is one of the stocks that stands to profit if, as we suspect, nuclear energy needs to be used to bridge the US move to clean energy. The miner is debt-free, with over $10m funding and is positioned to re-start the Lance Uranium Project, one of the largest uranium mining projects in the US in terms of both size and scale. Peninsula Energy is currently transitioning to a low pH extraction process which will allow it to become a cheaper and much longer-lived project.