Kincora Copper Ltd. in Mongolia? No guarantees as yet, but important agreements seem to be in the wind in Mongolia! Our analysis suggests that Mongolia, the asset rich next door neighbor to China offers exceptional investment opportunities for patient risk oriented investors! On August 8th, on this site, we commented on the disagreement between the government of Mongolia and the mining companies operating there. Those companies have already invested billions in exploration and development in Mongolia. The key point is that major international mining corporations are there developing mining operations. The projects are huge on a world scale.

In our opinion, the expected final agreements between the mining companies and the government of Mongolia boil down to percentages and how much for each side. From news recently released, it is our belief that the “quagmire” could soon end to the satisfaction of all parties-government and mining companies. Throughout this frustrating period, we have remained favorably inclined on Mongolia based upon what we view as incredible undervaluation of the country’s mineral assets. We have continued to recommend investing in several Mongolian mining companies.

 
Since 2012, we have been monitoring several mining companies’ fundamental developments as well as the insider buying of the corporations’ officers and directors. We have always maintained that when companies are overlooked, suffered severe price declines and have “slipped through the cracks,” intensive analysis is warranted. It has proven to be rewarding in the past. The larger companies in Mongolia include Entrée Gold, Turquoise Hill, South Gobi and Rio Tinto. Those companies are in the process of continuing to spend billions of dollars in the development of major mining projects. World level mining production and thousands of jobs are expected to come on line. It would be tragic for the Government of Mongolia to obstruct the enormous benefits to the people of Mongolia brought by the mining industry.

 
Quick view: On a small cap scale, our analysis continues to find Kincora Copper, symbol “KCC” as offering the potential for exceptional capital gains. We have been following closely the progress that has been made by Kincora. Its exploration activities are located in a region of enormous potential in copper. Above all, the company is presently engaging in active exploration, it is not wasting time by waiting until the final agreement is approved. Their Bronze Fox project, in our view offers the potential of a major project. Of note, its exploration neighbors include some of the world’s major mining companies. Recent press releases from Kincora are very encouraging with our expectation that further positives will be forthcoming.

Worth mentioning! Note that Kincora’s management stock options are exercisable at prices from .105 cents to .195 cents, well above the present market price. This reflects the fact that the company’s stock price must perform well for management to profit as shareholders. Moreover, and perhaps just as important, we have seen officers and directors buying Kincora shares in the stock market with no selling whatsoever. As you know, insider trades (officers and directors) must be reported within five business days. The price of the management options and the insider buying suggest that we are correct in our positive outlook for Kincora. As with all stocks, when investing, “limit orders” are always suggested.    KCG
For most investors: “When prices are high, they run to buy;
when prices are low, they let them go.”…… That will never change.