With 2018 just underway, we have reviewed the data and identified three themes and related companies that we believe investors should pay close attention
to this year. In the precious metals space, we believe discovery and other value creating catalysts are likely to drive investor returns versus metal
price appreciation. We believe battery metals are going to continue to be strong, with both cobalt and lithium companies likely to have good years.
Finally, zinc continues to be our favourite base metal; however, fundamentals appear to be improving for copper. For more details see the summary below,
our video summary and our detailed report.
Discovery, markets crave it – investors benefit from it. Our
focus remains the junior exploration space and while we are still in the early stages of a precious metals bull run, we are remaining focused on companies
which, in our view, have significant discovery potential. Some of our favourite names include: Novo Resources (TSXV:NVO), Marlin Gold Mining (TSXV:MLN),
Sailfish Royalty (TSXV:FISH), Red Pine Exploration (TSXV:RPX), Urban Barry Camp – Metanor Resources Inc. (TSXV:MTO) and Aurania Resources Ltd. (TSXV:ARU).
Energy Metals – Ongoing Battery Revolution plus Uranium? We continue to believe that forecasts for increased Li-ion battery production
will drive demand for key components. In particular, we expect it to benefit cobalt and lithium focused companies. Plus we believe the uranium market
may have reached a tipping point, suggesting it may be time to take a look at this space again. Some of our u names include: First Cobalt (TSXV:FCC),
Brixton Metals (TSXV:BBB) and Standard Lithium (TSXV:SLL).
Base Metals – Zinc still has strong fundamentals, Copper poised for a comeback. Last year, zinc has seen significant price momentum ending
the year at $1.50/lb Zn as zinc inventories continue to decline. With a continuation of the current trend, we favour pure-play near-term producers
and explorers such as Bunker Hill Mining Corp. (CSE:BNKR) and Tinka Resources Ltd. (TSXV:TK). While the copper market was balanced in 2017, inventories
remain low with a lack of significant production entering the global pipeline in the near-term. Our favourite copper explorer is Solgold Plc (TSX:SOLG).
For more detailed information on our outlook and the names we like please download the full report here.
Priced as of prior trading day's market close, EST (unless otherwise noted).
All values in USD unless otherwise noted.
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