Written by SmallCapPower.com
The key, as always, is choosing the right stocks, at the right time…so we chose companies with one or more of the following attributes:
and, for the purpose of this exercise, we’ve tried to include as many different commodities as possible in our picks. (Please note that our chosen stocks were made for the purpose of a friendly competition and are NOT to be considered buy recommendations.)
Here is the portfolio of 10 resource stocks we think will outperform long-term during both good and not-so-good times.
1. NexGen Energy Ltd. (NXGEF):
Our top performer thus far. Canada’s Athabasca Basin has some of the richest uranium grades globally and NexGen’s Arrow deposit in Saskatchewan is looking more and more like the next big thing to come out of the Basin. The Company recently released its maiden Mineral Resource estimate for Arrow, which showed 201.9 M lbs grading 2.63% U3O8.
2. Ivanhoe Mines (IVN):
It’s tough to bet against past success and Robert Friedland is arguable the biggest name in the business. Ivanhoe has significant ownership stakes in three big development projects in southern Africa. The Kamoa copper discovery in the Democratic Republic of Congo (DRC) could turn into the world’s largest, highest grade mine of its kind. The Kipushi Project, meanwhile, which is also located in DRC has been ranked in the Top 20 for zinc.
3. Kaminak Gold Corporation (KAM):
Its Coffee gold project in the Yukon has been the talk of more than a few experts/analysts and a January 2016 feasibility study confirmed its potential – estimated production of 184,000 ounces of gold per year over a 10-year mine life from heap leach operations. Requiring C$318 million of capital, this project could generate an NPV (5% discount) of C$295 million and an IRR of 27%, at a gold price of US$1,000 per ounce.