Stockchase Opinions

Hap (Robert) Sneddon FCSIGreat Western Minerals GroupGWG.VWATCHJul 14, 2014

With a low volume stock it is hard to make a technical comment. It has a lot of resistance here. See if it goes above $0.10.

$0.08

Stock price when the opinion was issued

Mining
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

You might be interested:

HOLD

Rare earth mine in South Africa. International mines require a lot of money and political gesturing to get them up and running. The big question has been financing and when they are going to get it. In this environment, he doesn’t think it looks very good right now and needs a broad rally in the Junior resource sector. Have a good asset and they are not blowing away their cash.

WAIT

Processor of rare earths and just going into production in south Africa. He is not a fan of owning companies as they start up new projects. He wants to see margins as they start to ramp up.

PAST TOP PICK

(A Top Pick Feb 3/12. Down 45.54%.) He got stopped out at about 25%.

HOLD

Rare Earth is a very difficult sector. There has been a sudden change of course in top management. There are bits and pieces that are very interesting. Took some profits a while back but still holds a little bit.

RISKY

Rare earth that is trying to be a fully integrated company. Nothing like it in that size category. This is about as early a stage as you can be. China is the controller of 90% of the commodity.

PAST TOP PICK

(A Top Pick Feb 3/12. Down 46.72%.) The whole rare earth industry has gone through a significant haircut. He sold it in May at about a 29% loss. Thinks this is one of 3 companies that will be the very first to go into production. By the end of March 2013 he thinks you’ll see insights as to the success and the start of construction with the processing.

BUY

(Market Call Minute.) Rare earths. Likes this one, but the chart baffles her. Vertically integrated. They have a mine that they are looking to bring on production in Africa. Very attractive at these levels.

COMMENT
In spite of good news such as joint venture, financing and 43101 the stock still hovers in the $0.40’s. How come? He has a long position in their debentures and he feels quite secure with it. Rare earth is all related to China.
BUY
Looks like $.39 is a good solid base for this one. Make sure you have a tight stop loss on this. Don't let it go below $.32. He can see it going back to $.46.
COMMENT
Resource stocks have been declining along with the rest of the market. Have good assets in Africa as well as an alloys plant in Liverpool. Also have assets in Canada as well as a plant in the US.
COMMENT
Have their permits and their Thoreum (?) issues taken care of and are waiting on the 43101 in next 3 weeks. Where do you see their S&P going? Mining sector is very, very difficult at the moment. There is nothing different about rare earths. This is one of the foremost outside of China. The early explosion has occurred and in the juniors, it is the early explosion that matters until they are really on production. You will still have to be patient.
BUY
Having a plan build in South Africa. About the most buyable of the whole sector other than NEM. Would buy it right here.
PAST TOP PICK
(A Top Pick Feb 1/11. Down 30.96%.) Rare earths. This one has picked up since December. Still likes. Takeover candidate.
TOP PICK
More speculative. 3 pieces to creating value in rare earth. 1) 20% comes from digging it out of the ground. Reactivating a mine in South Africa and to have it into production in the 2nd half of 2013. 2) 40% is created by being able to separate rare earth minerals they have signed a deal with GCD, the only Chinese separation company.