To the successful investor in Gold mining shares, after doing the necessary research and due diligence, price weakness and multi-year lows in prices  can be a tremendous opportunity  for capital gains. But few investors have the patience and perhaps less will engage in “dollar cost averaging” which can allow an investor to lower their average cost during periods of price weakness. During a bear market in mining stocks, the stocks often decline between 50% to 90% and yet most come back.

In our analysis and research, mining stocks are in the process of completing their price bottoms-but keep in mind that not all bottom in price at the same time. Since July of 2013, we have said that many of the mining stocks have been in a bottoming mode. The bottoming process in most stocks should continue despite the fact that gold bullion is being manipulated by the Federal Reserve and its crony investment bankers. There is a shortage of gold bullion for buyers and an “overage” of gold represented by “paper” from commodities manipulation.

The New York Federal Reserve  cannot even deliver to Germany the Germans’  350 tonnes of gold that has been kept for “safe keeping” in New York for decades. Safe keeping?  In the meantime, we have many stocks on our screen that to us represent an opportunity for capital gains over the next eighteen months. Some are extremely undervalued based upon their in ground resources and in many cases their cash positions. You might also notice that many mining companies have large ownership by management.

Let’s keep in mind that our analysis suggests that we need to see gold bullion moving over the $1400 to $1450 per ounce price to start to reinvigorate the gold mining share market. In the meantime many investors sit and suffer while other investors see the price lows and say to themselves “what a great opportunity I have to pick this stock up while it is literally being given away.” That will never change.

NIOGOLD MINING,  “NOX” .21 cents on TSXV, is a Quebec exploration company that now has over 2 million ounces of gold resouces in the Val D’or region. The company has a cash position of approximately $4 million at present. Its properties lie within one of the major mining areas of North America with large gold production by their next door neighbors. Exploration is ongoing and their Quebec land package is quite large. We expect that they can increase their resources more than marginally over the next year. In the .20 cent range, our analysis suggests that Niogold is quite undervalued.  It is down from .49 cents three years ago.

RICHMONT MINES, “RIC”  $1.45 trades on TSX and NYSE, is an Ontario and Quebec based gold mining company with years of successful gold production. Moreover, their exploration is continuing and we expect an increase in Richmont’ resources and production to occur over the next several years.  Richmont has successful operating mines in Quebec and Ontario. The price is down from $12 three years ago.

LION ONE METALS, “LIO” .36 cents on TSXV, is a Canadian exploration company with  exploration and development of mineral resources in Fiji and Australia. The price is down from $1.20 a share three years ago. There are institutional investors in LIO and management has an outstanding  record of success in  his mining management in the past. Management owns a very large percentage of the shares.

Next week we will be putting another three to four stocks on our undervalued list . Thank you and what do you think? K.C.