Top 10 Mining Stocks in 2013

NAI500 Admin's picture

For the entire mining sector, 2013 was indeed a tough year. This year, the global economy behaved flat, which led to weak demand for mining products. Furthermore, almost all the costs of mining companies were rising. In addition, nearly all the mining products had seen lower prices throughout this year, the prices of gold and silver fell even approximately 30 percent. As a result, mining producers had experienced significant profit decrease and both explorers and developers found it more difficult to raise money than before.

While the mining industry was depressed or at the bottom in 2013, there were still some mining companies performing well which had witnessed a turnaround in their fundamentals and a pretty increase in their stock prices. This may provide food for thoughts for the industry in how to run a better mining company in a tough environment. Entering 2014, demand for mining products may well be on the rise as the global economy becomes better, so there will be more mining companies whose fundamentals turn into upward tracks. NAI500 likes to share with the readers our Top 10 Mining Stocks and their stories in 2013, to refresh everyone’s memory.

1. Fission Uranium Corp (TSXV:FCU) + 84.5% for 2013
Fission Uranium Corp is a uranium exploration and development company who wholly owned the Patterson Lake South (PLS) project covering 31,039 hectares in Canada's Athabasca Basin through buying out Alpha Minerals from its previous joint venture. Athabasca Basin is home to the richest uranium deposits in the world with grades 10 times greater than world average. While drilling in PLS, Fission Uranium encountered high-grade U3O8 mineralization for several times.

Ross McElroy, President, COO and Chief Geologist of Fission Uranium, has been awarded the PDAC 2014 Bill Dennis Award for an important Canadian discovery and prospecting success. The award is the result of Mr. McElroy's work in leading the team that made the Patterson Lake South (PLS) discovery in Canada's Athabasca Basin - one of the most significant discoveries in the Basin in recent years. This is definitely the best exploration story in the junior mining sector for 2013.

2. Reservoir Minerals Inc (TSXV:RMC) + 106.2% for 2013
Reservoir Minerals Inc is a well-funded explorer with C$16 million in their hands, whose management understands the high risk nature of exploration investment and development. Reservoir seeks to mitigate exploration risks by developing a portfolio of exploration projects in different commodities in Europe and Africa. Reservoir enters into partnerships to advance exploration projects and to share risk, while maintaining the opportunity to benefit from transformational discoveries and mining developments. The company has received the permits for several of them. Its Timok Cu-Au project in Serbia has returned some exciting drilling results. For example, the company announced in December 2013 that Drill hole FMTC 1341 intersected an interval of 166.0 meters with an average grade of 11.29% copper equivalent, including 59.8 meters with an extraordinarily high average grade of 23.38% CuEq.

3. Kennady Diamonds Inc (TSXV:KDI) + 336.7% for 2013
Kennady Diamonds is a leading Canadian diamond exploration company. The company’s exploration focus is on the 100 percent controlled Kennady North project which is in the heart of Canada’s diamond fields and is located immediately adjacent to the Gahcho Kué diamond mine in Canada’s Northwest Territories. The highly prospective Kennady North project hosts two known kimberlites - Kelvin and Faraday. Diamond recoveries from the 2013 winter drill program returned a sample grade of 8.13 carats per tonne for the Kelvin kimberlite and 11.23 carats per tonne for the Faraday kimberlite. The result is better than expected. In 2013, Kennady Diamonds raised more than C$15 million and has abundant cash in their hands.

4. Zenyatta Ventures Ltd. (TSXV:ZEN) + 188.6% for 2013
Zenyatta Ventures is a junior exploration company and has found the Albany graphite deposit in northeastern Ontario. Albany graphite deposit is the largest and only new magmatic hydrothermal graphite deposit being developed in the world. The samples from Albany graphite deposit have been tested in the lab. The result showed that ultra-high purity of graphite can be made with lower costs. Ultra-high purity of graphite can be used widely, especially in the some high-tech industries. Emerging economies have high demand for ultra-high purity of graphite. In December 2013, the company announced the results of its initial National Instrument (“NI”) 43-101 compliant resource estimate on the Albany graphite deposit.

5. Lucara Diamond Corporation (TSX:LUC) +162.1% for 2013
Lucara Diamond Corp. is a new diamond producer. Its two key assets are the Karowe mine in Botswana and the Mothae project in Lesotho. In December 2013, the company stated that a significant population of large and exceptional diamonds has been recovered during mining operations in 2013 at Karowe and these larger diamonds have now been factored into the mineral resource estimate resulting in a greater than $1 billion increase in the estimated in-situ value of the Indicated mineral resource. In 2013, selling mined diamonds brought Lucara Diamond continual revenue.

6. Dynacor Gold Mines (TSX:DNG) +38.8% for 2013
Dynacor Gold Mines Inc. is a gold ore-processing company and explorer, capitalizing on a two-fold revenue strategy. First, it is a profitable junior gold company operating in Peru through its established gold and silver ore-processing business. Secondly, it is exploring its premier property Tumipampa. Ore-processing business exempts itself from the effect of volatile gold price and helps Dynacor obtain stable cash flow, which protects its shareholders from future dilution and. Dynacor expected the increase of gold production in its ore-processing plants. In December 2013, Dynacor Gold Mines announced underground drilling results on the Manto Dorado structure in the Tumipampa property. Four holes had been drilled from an underground drilling station into the Manto Dorado. High gold grades and polymetallic mineralization were obtained in all four drill holes. The company’s solid business strategy is the main factor why it can still out-perform the peers in a falling gold price environment in 2013.

7. Orocobre Limited (TSX:ORL) + 53.6% for 2013
Orocobre is building the large–scale lithium project at its flagship Salar de Olaroz resource. This enables Orocobre to join the three existing low-cost producers, with 17,500 tonnes per annum of phase one production of battery grade lithium carbonate. This production is expected to come on-stream beginning in April 2014. Toyota Tsusho Corporation is the company’s strategic partner for the Olaroz Lithium Project. This strategic partnership has made it possible to finance the project on a highly favorable basis, and to be able to effectively market subsequent battery grade lithium production into Japanese and Asian markets. As clean energy becomes more popular, lithium battery has the potential for huge demand growth.

8. Pacific Booker Minerals, Inc. (TSXV:BKM) + 9.5% for 2013
The company has gone through a roller coaster 14 months since Oct 2012. Pacific Booker Minerals Inc. (PBM) owns the Morrison property located in Central British Columbia. PBM is in the advanced stage of development of the Morrison porphyry copper/gold/molybdenum deposit. PBM has completed a Feasibility Study and NI 43-101 compliant Technical Report and is proposing an open-pit mining and milling operation for the production of copper/gold/molybdenum concentrate from the Morrison deposit. On Dec 9, 2013, BPM benefited from a B.C. Supreme Court decision which vindicated the company’s earlier move to challenge the provincial government’s October, 2012, rejection of the proposed mine on the basis of a “risk versus benefit” criteria that the province said the company had failed to meet.
In simple terms, the provincial government must reconsider Pacific Booker’s application for an environmental certificate.

9. Klondex Mines, Ltd. (TSX:KDX) + 28.8% for 2013
Klondex Mines Ltd. is primarily engaged in the development and exploration of its 100%-controlled Fire Creek Gold Project in North Central Nevada. Klondex's secondary focus is acquiring, exploring and developing other gold and silver properties in Nevada. In 2013, the company closed a total financing amount close to 100 million including equity financing, insuring warrants. On December 4, 2013, Klondex announced a definitive agreement to purchase the Midas Mine and Milling Facilities from Newmont Mining Corporation. The acquisition is transformational to Klondex, adding a high-quality operating mill, high-grade gold mine and substantial upside potential. During the year 2013, strengthened management improved corporate performance and helped the company get rid of troubles occurred in 2012.

10. Intrepid Mines Limited (ASX:IAU) + 34.1% for 2013
Intrepid Mines Limited is an international precious metals development and exploration company with primary operations in Indonesia. The focus of Intrepid Mines is the Tujuh Bukit Project which covers 11,621 hectares. The exploration site has a potentially large porphyry and high sulphidation epithermal gold-silver-copper system. For the porphyry deposit, inferred resource remains at 1.9 billion tonnes at 0.45% copper and 0.45 g/t gold (19 billion pounds of contained copper and 28 million ounces of contained gold) at a 0.2% copper cut-off. The current porphyry resource represents only part of one of five porphyry systems discovered so far.