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BREAKING - EXMGF mining corp EPA permit received

BREAKING - EXMGF mining corp EPA permit received

Here at FJJ we have been experimenting in the stock market this year more than usual. As you know, we have been advocating sites like Betterment for investing for some time. 

Alas, since the inception of the investing idea came into my head I have actually been learning about real stocks and the stock market. At the same time I have been growing a position in individual companies that I feel have a future. 

How has this been going? Well, just like the rest of the market, not super good. Kinda been stagnating a bit like the entirety of the DJIA and other indicators. I will say however that I believe the REIT sector is delivering solid returns like clockwork due to the dividends they pay (often in excess of 10% a year,) and that these dividends are coming in hot for Q2 2018 as we speak. This sector is easily outperforming the market average, but needless to say I will not be retiring anytime soon off of these picks. 

Enough of the chit chat. I have a position in EXMGF EXCELSIOR MINING CORPORATION which I have been holding for some time. This is a copper mine in Arizona that works with underground injection mining where they squeeze acid water into the ground and pump it back out. The stuff that comes out has copper dissolved in it and they get it out with a simple deposition process. You can read about it all on their site here:

EXMGF

They have been essentially waiting on an EPA permit to continue their project. It is a Class III Underground Injection Control (“UIC”) Area Permit which is provided by the EPA. During the last year the stock is up as the permitting and mining process has been progressing. See below:

 EXMGF year to date 6/25/18 stock price

EXMGF year to date 6/25/18 stock price

Which would explain the smile on my face at 6:20AM today when I saw that I had an email from these guys with a press release stating they have received the operating permit. 

 EXMGF operating permit notice mailer

EXMGF operating permit notice mailer

The stock opened pretty high and it has appeared in the news a few times:

 News today

News today

Overall, good feelings to be had. One analyst has commented the following on Seeking Alpha (A killer stock and analyst website):

"Using current spot prices for copper (US$3.25/lb) MIN shares currently trading at roughly 20% of project NPV(7.5), which means that investors are getting a substantial margin of safety, just as Excelsior ramps up into the construction phase and further de-risks the project."

-Robert Sinn, Seeking Alpha

Of course any investment carries risk. A large scale mining project is no exception. Their permit could be appealed, their costs could overrun, the price of copper could go down, any number of things could get in the way of this company reaching it's full potential. Invest at your own risk!

Disclosure: Author is long MIN shares at time of publishing and may buy or sell at any time without notice. Do your own due diligence; it’s your money and your responsibility.

Disclosure: I am/we are long EXMGF.

Update 6/26/18: Negative move relative to good news. Very odd. Still long. 

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 In for the long haul baby

In for the long haul baby

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