Here’s an unusual change in focus that reflects the urgency of the world’s food needs: what was primarily a metals and minerals company has at least temporarily expanded into agriculture.
Hinterland Metals (HMI: TSX.V)) announced this week that it has applied for an exploration license for potash in the area of Malagawatch near Cape Breton, Nova Scotia. Apparently, Potash Corp. of Saskatchewan (POT) is already mining potash not too far away near Sussex, New Brunswick. Since the Malagawatch deposits were first identified in 1978, it’s amazing that they haven’t been mined before now.
Given the Chinese demand for potash right now, Hinterland is definitely one mining stock to watch. It was trading around 0.19 (CAD) on Friday, down quite a bit from its 52-week high of 0.30. This means it’s on sale, and I am sure the price won’t stay here long if they start pulling out any sizeable amounts of that power ingredient in fertilizer. They do not pay a dividend. Normally I am not that interested in stocks without dividends, not because I am afraid of taking on more risk or excitement, but because I invest for cashflow. The current agriculture boom, however, is an exceptional historical situation and has me looking at certain growth stocks well positioned to provide the solutions that will be needed in the industry. Hinterland could be one of them.
If you’re bullish on fuel-cells, you might want to invest in the Platinum Group Metals (platinum, palladium, rhodium, iridium)
Hinterland has met with quite a bit of success in the last six months, finding and mining platinum and palladium deposits in Quebec over a three-month period, as well as finding copper and nickel on the same property. This past April they also found more gold and silver in one of their Ontario properties. I’m no mining expert, but it looks like they’re on a tear. And of course, if fuel-cell cars and other fuel-cell-powered devices such as generators take off, platinum and related metals will be even more in demand since they are used in fuel-cell manufacturing.
They have an email update list that you can subscribe to from their website, which, aside from the news releases, has a few places where it’s not frequently updated.
Hinterland Metals’ transfer agent is Computershare Canada.
If you are interested in this topic and would like to read more about it, subscribe to my RSS feed (click on the little orange square you see below my site’s logo or on the floating sidetab). And if you’re already invested in similar stocks I’d love (and so would other readers) to hear your opinions here in the comments section below. What’s happening with resource stocks lately? They’ve gone down a bit temporarily. Let me know what you think. And thanks for reading!
Related Posts - UK Stimulus Fails, Sees Sixth Quarter of Recession
- This Downturn Maybe Not the Real Big One: My Top 5 Stock Picks for Making it Through 2015-2030
- The Most Important and Irreversible Financial Decision You Can Make
- List of the Rare Metals and How To Invest in Them
- Advantages and Disadvantages of Investing in Gold Bullion vs. Gold Stocks vs. Gold ETFs
Related Articles From Other Websites
{ 2 comments… read them below or add one }
This looks promising and is at a bargain. If you look and compare to RingBolt Ventures (RBV:TSX.V)which has ran up to $1.69 at close Friday. Hinterland is a bargain at .19 cents.
Another company with good platinum, palladium, rhodium, is Premium Exploration (PEM:TSX.V) with trades between .23 and .30 as of late. According to Christine, they will have there drilling results from there 50% JV of Chrome mountain in Montana sometime soon. They also have silver and gold projects in Mexico and Idaho with drills turning in Mexico. This stock is undervalued and a bargain at .30 cents.
That’s interesting, I didn’t know there was potash in Utah. Thanks for the tips on the other two – I’ll be checking them out.