Opinions
James West
Tinka Resources
TK-X
TOP PICK
Apr 11, 2012
Stock price when the opinion was issued
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Just bought stock this morning. Excellent management team. CEO has a lot of experience in base metals in Peru. They have a zinc project that has decent grade. They have a resource, and are now trying to drill out more of the same on a significant land package. The good hole they just drilled was 400 m away from the current resource, and 250 m away from any other hole. They are going to keep drilling this area, and have 3 other targets that they are going to look at drilling. This can get bigger.
A zinc explorer in Peru in a belt that is very well known for zinc. They are going to update their resource. His “back of the envelope” rudimentary calculations suggests this is double the resource, and he is potentially talking about over 7% zinc, which is a great grade. (Analysts’ price target is $1.05.)
(A Top Pick March 6/17, Up 34%) Tinka discovered a zinc resource in Peru. It's not a top pick now because they may have to raise money in the next six months, though he doesn't see this as a problem--the royalty companies are desperate for royalties in a high-quality project they will bid it up. There are ways to fund it, not just equity finance, so he's not sure if he will get a good return. Last year Peru exported more copper to China than Chile. He's spending a lot more time in Latin America than before.