Zinc Hits a 10-Year High, and
a Real Shortage is Imminent!
This Deficit is Creating Decade-High Explosion of Price in 2017…
This is the Most Discounted Stock I’ve Profiled This Year.
Portfolio Stock Suggestion:
Callinex Mines (TSXV: CNX & US: CLLXF)
After last year’s drill results, legendary investor Rick Rule hand picked Callinex Mines for himself and his clients, and Sprott Group has become one of the largest shareholders of the company.
So many times over my career,a significant portion ofmy criteria for finding the next big winner for Crush The Street is lookingatguys like Mr. Rule to see what they are investing in and then invest alongside them. It’s a simple formula to maximize our returns:We invest with the best and brightest. In this case, Rick is now confirming our established position, and at this point, Callinex Mines could not be more exciting to research.
Zinc is trading at 10-year highs. At CAD$0.34, Callinex Mines (TSX-V: CNX & US: CLLXF)is an absolute steal. This is a rare opportunity to capitalize on a disconnect that the market will soon figure out, whichwill send this stock soaring and our shares will go much higher.
At a market cap of onlyCAD$26 million and $7 million cash, Callinex’s mineral projects are valued at $19 million as management relentlessly advances their strategic zinc assets that are nearby producing mines.
Since January of 2016, zinc has been on a tear.
This isn’t the typical high-risk, pure exploration play – the company has proven indicated and inferred resources right now!
Max Porterfield, President and CEO of Callinex, is someone who understands how valuable the development of the assets is. The market has yet to fully price in what Callinex is currently worth — not even close — and I want you to focus on why right now.
Compared to its peers, Callinex is heavily undervalued.
It’s closest peer trades at 4 times the valuation of Callinex, but what’s even more unbelievable about this is that if you were to compare their value to the amount of zinceach company has, CNX is currently 50 times cheaper than this peer.
Companies are starving for zinc, and it’s a company such as Callinex that is sitting on considerable zinc that they could look to buyout.
In a phone call with management, one of the things I learned was that on a per-pound basis, Callinex is trading at a 50% discount to their peers.
Not only that, but your average zinc company doesn’t have a deposit that will have an initial mine plan announced shortly in one of the richest mining jurisdiction for these type of zinc deposits.
If CNX’s PEA is able to demonstrate the economic viability in its projects that we could see, and presumably that management sees given they are telling the market they are going to complete this milestone soon, then thiscould be a major valuation catalyst.
At $0.34, CNX is a speculator’s dream.
The catalyst for narrowing the valuation gap could be lurking around the corner.
I can tell you that Callinex is strategically positioned and has recently acquired two major projects in the established Bathurst Mining Camp of New Brunswick. One of the projects is a stone’s throw away from the world-class Brunswick Mine #12, which was the world’s largest underground zinc mine, earning over $40 billion over its mine life.
Nash Creek and Superjack are these two projects. They’re sitting on 9 million tons of indicated resources and 4 million tons of inferred resources, and as the market bridges this gap, Callinex’s value will have to rise.
I know the management, and they aren’t sitting around and waiting to be bought out.Instead, they are aggressively advancing these projects.
Callinex is in a position where if things go the way I think they will, every current shareholder will be able to walk away with substantial gains by positioning at current prices.
This is at a time when Goldman Sachs
is forecasting a widening of global shortages for zinc!
Max Porterfield has what is possibly the best team in the world for their region of exploration.They’ve been key in the discovery of three of the four largest mines in the FlinFlon Mining District.
Mike Muzylowski: Chairman of Callinex Mines who was involved in 16 mineral discoveries and was actually placed into the Mining Hall of Fame in Canada for a zinc discovery in a neighboring property.
Alan Vowles and James Pickell: Two recipients of the Bill Dennis Prospector of the Year Award (Grammys for geologists). This team has over-delivered for shareholders with the recent news of having the best drill hole for precious metals out of 625 drilled over the last 90 years on this property, located in a world-class mining district!
This is a zinc and gold play, but any investor who owns
Callinex will also benefit from silver and copper as well.
Their Pine Bay project is only a few miles away from billion-dollar HudBay’s 777 mine, which is a major producer of gold, silver, copper, and zinc… And according to HudBay’s own admission, they are running out of ore. So the serendipity in this for investors is that Callinex is advancing exploration next door to a giant who is running out of minerals!
For investors looking to add metals and mining shares to their portfolio, Callinex Mines is a must-own stock, in our opinion. This stock is cheaper today, than at any other time I’ve mentioned the company.
Chief Editor, CrushTheStreet.com
Crush The Street “CrushTheStreet.com” is owned by Future Money Trends LLC. This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought. We have been compensated by Callinex Mines one hundred and twenty five thousand for digital marketing. Never base any decision off of our emails. Please use our site as a place to get ideas. Enjoy our videos and news analysis, but never make an investment decision off of anything we say. Please review our entire disclaimer at CrushTheStreet.com.