Our stock pick of the month for October is Fitzroy Minerals. This is a Copper gold explorer with a drill ready high grade Copper/gold project and a district scale Copper project surrounded by majors in Chile and an early stage gold project in Argentina.
Firstly, they are in two metals that have long term demand. You all know my feelings on gold, with the United States running $2 trillion or 7 percent deficit of GDP and possessing a debt north of $34 trillion or 120 percent of GDP that will climb regardless of who wins the upcoming election there will continue to be monetization, debt increase and inflation in the coming years which will continue to push gold much higher than its current price of $2600 an ounce.
Copper
Copper like gold has strong long term demand fundamentals. Inflationary pressures will lift the price of all metals. 20 years ago 4.50 copper was unheard off as recently as the early 2000s it was under $1.00 a LB. However, now with inflation and new demand for Green Energy and Electric Vehicles .
As we can see from the chart above copper demand is expected to more than double from 2020 to 2050. Even if EV demand is not quite there, if say Trump were to win in the United States globally it will still increase and as well the shift to so called green energies. For example, where I reside in the Bahamas they are replacing the old antiquated Diesel plants with Solar Power. This means demand for copper.
On the supply side we can see that there will be a slight surplus in copper if the best case scenario for supply comes on. Despite all the lip service from politicians on green energy and the like we have seen little in the way of regulatory reform or tax reform to make mining metals like Copper or Nickel or Lithium easier, all which are needed for their so called green revolution. Therefore,without this investment I do not see us meeting the demand. In addition, if we took the middle point between the best case and worst case scenario for supply there would still be a deficit for years for copper for the next 25 years.
The company’s district scale project is the Caballos Copper Project which is in the north east of Chile at a mineable altitude. The property is a 210 KM (so roughly 4 hour drive from Santiago) making it easily accessible. The project is Drill-Ready Mid-Way Between Giants, Los Pelambres and Los Bronces.
Some Highlights of the Caballos Project
IP pole-dipole survey (Quantec) 1998: “Line to line correlation with Potentially economic size.
Continues to depth, possibly widening” 200 x 50 soil grid “>1.2 km continuous anomaly …Cu and associated Au & Mo… …felsic intrusive, Cu oxides and chalcopyrite”
Mineralized felsic intrusion: “~ 200 x 1000 m… …altered, covered by colluvium… …rock chips up to 0.7% Cu, 0.2 g/t Au 63 ppm Mo”
The company is working on 3,000 Metre Drilling Problem on Collabros starting this quarter.
The Polimet Project is a high grade Epithermal Copper/Gold Deposit. This a high grade near surface deposit. They have the option to own this project based on a 2.1 million dollar work program years 1-3 and a 1.2 million dollar payment year 4. They will do mapping in the 4th quarter of 2024 and plan a 2000 drill program in 2025.
Finally, the Taqentren Project in Argentina is a Gold project with over 68,000 hectares of area. It is in in Rio Negro which is a mining friendly district of Argentina and near two major finds Calactreu which has over 1 million ounces of gold and Navidad which possesses 632 million ounces of silver. Mapping and Trenching are planned in the short term with a potential 1.5 million dollar program later in 2025.
In addition, I always like when I have had past success with a company’s management . People and Management are always the most important part of any company . I have known the chairman Campbell Smyth for nearly 23 years. The first deal he introduced to me International PBX soared in price and he also introduced me to Paramount Gold and Silver (which is stilled NYSE Listed) and sold its San Miguel property to Coeur D’Alene for nearly $147 million dollars, finally Campbell introduced me to Cityview (a Oil and Gas deal in Angola which at its peak went up nearly 20x in value from 1 cent to nearly 20 cents!
I have already made money in Fitzroy, it traded as Norseman Silver back in 2020 and I purchased a 5 cent financing which rocked to nearly 70 cents a share!
Campbell has raised millions of dollars for the junior mining industry over the years and worked for hedge funds and investment funds for nearly 15 years before entering venture capital.
The CEO is Merlin Marr-Johnson . He has 29 years’ experience in the minerals sector, including work as an exploration geologist for Rio Tinto, an analyst for HSBC and a portfolio manager for Blakeney Management. Merlin has worked on projects in South America, Africa, Central Asia and Europe, and as CEO he has brought two companies to AIM, London. He speaks several languages, including Spanish. Merlin is also non-executive director for Salazar Resources (TSXV).
Technically, I really like the stock chart. The stock has been rallying towards the 20 cent for most of this year and I think if once 22 cents or so is broken on the upside it could really fly higher . If 22 is broken there isn’t much resistance on the stock till about the 40-50 cent area.
Disclosure: Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to publish this article. This third party paid Timingwallstreet Inc., $2,000 to produce and disseminate this and other similar articles about Fitzroy Minerals and send traffic to them through paid advertising campaigns for 30-days from the date of 10/14/2023. This compensation should be viewed as a major conflict with our ability to be unbiased, more specifically: This communication is for entertainment purposes only. Never invest purely based on our communication. For more on trading risks read our policy statement by clicking here. Mike Swanson is the President of Timingwallstreet, Inc. Because Fitzroy Minerals is a small cap stock with a market cap of less than $100 million he has put himself in a trading blackout on the stock and will not buy or sell a share of it for at least 30-days from the date of this publication date (10/14/2023).
