My Top Summer Stock Pick Is Vendetta Mining (OTCMKTS: VDTAF) - Mike Swanson
Strong rallies in metals markets are driving the right small cap mining stocks higher.
This year has been an incredible year for gold, silver, and the precious metals world. The metals came in strong to start the year and pulled back much less than the stock market did when it collapsed in March. And then they rallied faster then the stock market did. As the month of June closed out the price of gold hit a new 52-week high and silver began to breakout. Big cap mining stocks are rallying hard and now the best small cap juniors are in a position to simply soar.
We are still way early in the bull trend. In past bull cycles almost every single junior small cap stock reached a market cap of at least $25 million. Now there are still many with market caps of $10 million or less with great prospects. Last year we hit it out of the ball bark with Aftermath Silver that was around 7 cents in June of 2019 and then ended the year close to 50 cents.
I believe my new stock pick for this month has similar prospects, because it is a well developed property with a full feasibility study complete.
It is Vendetta Mining, which trades as VDTAF on its secondary OTC listing and as VTT on its primary Vancouver stock exchange listing. It is currently trading with a market cap of only $7.8 million USD.
It's main project is the Pegmont Project, an advanced lead/zinc property based in mining friendly Australia. Silver is typically also a byproduct from lead/zinc mining but because prices had a sharp decline in 2018 and 2019 shares of Vendetta also fell.
But now zinc prices are firming up and Vendetta shares are in a position to exit a stage one base, making for a great potential pivot point for the stock. Take a look at the chart.
Vendetta had a final flush out bottom low in March when the financial markets crashed, but had actually begun a stage one basing process when it began to trade between 4 cents a share and 6 cents a share starting last October. It is back in that trading zone trading right at 6 cents making now a great accumulation time, because when the stock goes through that level the stage one basing process will be complete.
Australia is the right place as it is the second largest lead producer in the world, the third largest zinc producer, and the sixth largest silver producer too. The project has undergone advanced exploration work with a full 43-101 report, which reveals that an 8.9 million tonnes open pit mine is feasible and would be profitable enough to deliver a 24% return on IRR at current metals prices.
Companies with an advanced stage project like this often make deals with bigger companies to bring things to production. The Zijin Global Fund currently owns 4% of the companies shares while Solitaro Zinc Corp owns another 4%. Management owns 6%.
You can access the complete 43-101 report by clicking here. Here is a video presentation to give you an idea of what the project looks like.
I believe this stock is a strong buy now before it breaks through this stage one base. I own shares myself and believe it can become one of my biggest plays for the rest of this year. I will do more updates on this company and the situation going forward.
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Disclosure: Mike Swanson owns shares of Vendetta Mining. Because it 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 post (07/06/2020). After that date he may buy or sell shares of Vendetta Mining at anytime without any prior notice or notification after the fact. Wallstreetwindow.com, is owned by Timingwallstreet, Inc., which is being compensated by a third party (Leadgopher LLC DBA Pinnacle Ad Network) to conduct an investor awareness advertising and marketing campaign for Vendetta Mining. This third party paid Timingwallstreet Inc., $10,000 to produce and disseminate this and other similar articles and send traffic to them through paid advertising campaigns. 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.
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