Thursday, August 18, 2011

Questions raised about impact of coal seam gas

On the 15th July 2010 I questioned the claims of the coal seam gas industry that it was in fact 'climate friendly'. Read my post here. When I say 'climate friendly', I mean that I have huge problems with the global warming hypothesis that its largely caused by human activity, but IF there is solid evidence for 'said influence', then coal seam gas is a future 'sensitivity'. Other people seem to be questioning this issue now - a year after our post.

Of course the greater issue is the question of 'climate change' itself. It was only in 2007 I think that a satellite was placed launched to measure the variations in sunspot intensity. Yes, that's right. Only from 2007 do we have statistics which may or may correlate the Earth's climatic variation to solar radiation. The sun is of course the source for most of the earth's heat, so you'd think this question would be the first 'cause' to identify; but no, academics have to blame 'dirty corporations'. We of course discuss the false science at our climate change blog.

Such issues of course place a risk in people's minds about the appeal of coal seam gas.

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Wednesday, August 10, 2011

MIL Resources (MGX.ASX) - consolidating

With the calamity behind us and the market likely to settle down, we are going to see gold prices slump a little, the $A drift, and confidence return to the speculative end of the market; at least the end which is cashed up. MIL Resources (MGK.ASX) are well positioned for recovery. The company has $4mil in cash, and is just about to launch into a drilling program; at a time when gold prices are $1800/oz, and copper prices still a healthy $4/lb. Mostly they are a gold story!
With drilling starting in several weeks, expect speculative interest to return to this end of the market. We can already see this happening. The stock fell to 1.6c when risk capital evaporated, but it quickly returned, and the stock reached 2.2c on Monday before closing at 2c. Today the stock was stronger, reaching 2.2c before sustaining a sell-off due to off-screen selling. It might take a little time to regain the confidence, but I expect it to remain above the moving average.

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Tuesday, August 09, 2011

Gold stocks will lead the market

The Sydney Morning Herald has come out with an introduction to some gold stocks. The price of these stocks is already very high. I prefer to go into the future and look at stocks which have the capacity to:
1. Excite the market with attract drilling results
2. Increase gold resources substantially
3. Greatly increase their share price
4. Other factors which I explain in the eBook

We really want to anticipate the stocks which will be big in the future, so that we minimise the downside, and maximise the upside. We don't have to speculate on market volatility. If we stack all the factors in our favour, we maximise our chances of success.

Japan Foreclosed Guide Profiting from the Gold Boom Mining Fundamentals eBook
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Thursday, August 04, 2011

MIL Resources (MGX.ASX) - a short term hit

MGK will take a hit today after a 550pt hit to the Dow Jones after bad news from the EC. The Dow closed at its low, so further falls can be expected in Friday trading. I note however that gold was strong until gripped by profit-taking. Low interest rates or asset deflation is actually good for gold, because 'no yield' gold becomes more profitable against falling yields of other assets. Gold is going to $2400/oz, so expect more upside. Meanwhile the Dow Jones is going back to 10,550 points - technical support. MGK will probably get support at 2.2c, however it will probably go as low as 2c during the day, so be in there. The Dow will go lower tomorrow, but gold has already had its profit taking. Gold will recover, so buy today. The day to buy is today.

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Wednesday, August 03, 2011

Vital Minerals (VML.ASX) - a starter, but...

Vital Metals (VML.ASX) has restored some confidence since the last announcement. The early drilling results were not encouraging. The latest results offer some promise of high grades, though the widths and lack of consistency are reasons to retain some risk-aversion. Check out the results here. Some 15 drill holes of the 60 hole (5000m) program are outstanding. It is not clear what the relationship between mineralisation and host lithologies is, so there is the potential for a new association. This is not clear from the disclosure; nor is the position of the intrusives in relation to the mineralisation, i.e. At depth?
Mind you, with a market capitalisation of $18mil, I'm inclined to think MGK.ASX is far better value, with far more upside. I must acknowledge though that Vital's Watershed tungsten deposit is strategically important, and a nearer term project, as opposed to MIL Resources' Amazon BAy, which they will be sitting on for another decade.

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Tuesday, August 02, 2011

MIL Resources (MGX.ASX) - a mover! 2nd day

As expected MIL Resources (MGK.ASX) closed up around 10% today at 2.4c, having touched 2.5c yesterday. There are no announcements at this point; however irrespective of any corporate news stimulus, I suggest there are 'technical' (chart based) reasons to expect a breakout tomorrow to new highs, i.e. above 2.5c. Watch for news overnight or tomorrow.

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Monday, August 01, 2011

MIL Resources (MGX.ASX) - building support for next move!

MIL Resources rose to 2.5c today in lunch time trading. The stock has fallen back to 2.3c in the last 30minutes. I see it trading as low as 2.2c (support) before it consolidates for a bigger move in coming days.

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MIL Resources (MGX.ASX) - moves higher

MIL Resources (MGK.ASX) is in recovery mode. As expected the company established a support at 2c, or more correctly 1.9-2c, and is moving higher. There is temporary resistance at 2.3c, and I expect them to challenge the 2.5c level next week. The company is planning a 4000m drilling program, and I'd not be surprised if they expand this, though this will depend on their capacity to prepare drilling platforms and to schedule a drilling rig. The reason I say this is because they might have more current interpretation of the gold anomalies.
MGK is a rather undervalued stock compared to its peers, so I see this as a good stock to buy. It is an exploration stock, so there is a necessity to trade out of this one. Its a buy, and don't hold for too long. Its a stock you might be able to trade 3-4 times before production, at which point I loose interest, because at that point, they cease to offer predictability. Blessed are the explorers! That's about as religious as I get. Oh, and of course GOLD!! I had to repress it whilst I was a coal analyst.

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