Stockchase Opinions

Joe Mazumdar Trilogy Metals TMQ-N TOP PICK Oct 16, 2019

A copper explorer and developer in Alaska. It hit $3.90 per share recently. It has two joint ventures that he thinks will produce a 50-60% return in a short period of time. Yield 0% (Analysts’ price target is $5.08)
$1.630

Stock price when the opinion was issued

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BUY
Impressive run. Looks very nice here. You can draw a straight line up and to the right, and as long as it stays above the 200-day MA, you're good. Use that as a stop for a full exit. Upside is unlimited, but you have to be careful. Good exit points are the 30-day MA or $3.32 for a partial sell.
TOP PICK
A copper play in Alaska. High quality here and great managers. But a major mining company decides on Jan. 31 whether to invest in this or not, so that's an uncertainty. Also, they need to build a road for this deposit to go ahead. But he's confident that both issues will be resolved. A tier-one deposit with huge potential. (Analysts’ price target is $4.86)
HOLD
It rallied to $4, then fell to $2, where there is support. Hang onto it. Sell at $3.
PAST TOP PICK
(A Top Pick Oct 16/19, Down 2%) The big catalyst would be to have South 32 come on for them. The next big catalyst for them is to have the Ambler Road permitting exercise come through. They expect the decision in the next 6 weeks.
BUY
Short-term for copper is not good, given all this volatility, but longer-term their deposits of that quality are superb. Can they get a road built to the mine? He thinks it will, given the politics in Alaska and among First Nations people there. After this year, the copper price should rebound. TMQ will generate a lot of free cash flow for a long time.
HOLD
Be cautious of very long timelines. Extremely high-grade copper deposit. Political winds are against it, as US government denied funding for access roads. First Nations are solidly in favour of the project. Own it for the extremely high potential value.