Mining Management: Is It Time For A Change?

By Dudley Pierce Baker
Founder and Editor, Junior Mining Resources

Frankly, we are tired of watching companies spend money on exploration, sell more stock, spend more money, sell more stock. Well, you get it. Constant dilution of the interest of shareholders. Sure, in some cases there is an increase in reserves but many of the exploration companies seem reluctant to take their companies to the next levels, development and production. Is this not the end game?

We are at a lost for a good explanation of the reasons why managements delay trying to place properties into production to raise some revenues while continuing to explore the property and expand their resources.

We have seen hints of this frustration from others and sense it is time to pressure management for some answers. Perhaps it is time for a change to younger and more aggressive management and professional geologists.

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Long Term Bullish in a Bear Market

Be a Contrarian and Buy Now

By Dudley Pierce Baker
Junior Mining Resources


For those investors in the resource sector it seems all of the news is negative. Gold is hanging on the edge but has not broken major support around $1,535. Resource shares are virtually at their lowest levels in many years and are greatly oversold and long overdue for a recovery rally.

What am I personally doing?

I cannot tell you that gold and the resource shares will not continue lower, but I have been selectively buying and upgrading the quality of my personal portfolio. I am bullish long term for the resource shares and this is the opportune time for investors to get involved or add to their holdings.

Buy quality shares and be patient as our time will come for big gains, monster gains, outrageous gains over the next few years.

Gold and Silver Shares: Nightmare or Opportunity?

By Dudley Pierce Baker

The last four or five years have been a nightmare for many investors, especially those of us investors in the natural resource stocks. Even though gold and silver rallied to new highs in 2011 most shares did not follow and have in fact greatly lagged in performance.

Of course during this time there have been some companies that have performed well and were big winners. But we know, as well as you, that on balance the natural resource sector has been a nightmare for investors of the shares of juniors and exploration companies. Frankly, that’s putting it nicely.

Throughout the darkest hours we never lost the vision of our dream. The reasons for us investing in the natural resource shares over the last few years, particularly the gold and silver shares and our position in gold and silver bullion and coins, has never changed. All of the reasons for investing in this sector are even more compelling today than ever: the massive printing of monies by the Federal Reserve will, we believe, lead to incredible inflation, if not hyperinflation. Now we have Japan starting the printing presses. The entire world is awash in debt with no way out except to print, print and print. This will not end well and ultimately gold and silver will become investor’s safe haven during the coming crisis.

While it would not have been unusual to experience a pullback in the markets, virtually no one, professional or individual investor, expected what has occurred. The Dark Side of the Dream, our dream and perhaps your dream, of becoming rich in the bull market in the commodity stocks is either over or greatly delayed. So which is it?

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Junior Mining: Investing with $5,000 to $10,000

By Dudley Pierce Baker

Not all investors are flush with cash to put into the natural resource sector and frequently we are asked the question, “Dudley, how much do I need to get started”?

Perhaps your $5,000 to $10,000 will not go far in buying the top companies on the NYSE or the Toronto Stock Exchange, but in the junior mining sector, you will be amazed what you can accomplish. You can actually buy thousands and thousands of shares.

We have seen some recent studies that of the shares trading on the TSX and the TSX Venture Exchange approximately 42% are trading at less than $0.10 and another 20% are trading between $0.11 and $0.19 and many of these junior mining companies are very low on cash.

Thus with 62% of the companies on the TSX and the Venture Exchange selling for less than $0.20 investors have an opportunity to get started investing in this sector with a small amount of money.

Yes, these are ‘penny stocks’ and the challenge is to uncover those companies which have the potential to perform well in the coming months. The risk is incredibly high but so is the potential reward.

There are some great junior mining opportunities buried in those 2,000 companies which have some cash, great properties and good management but of course the ultimate challenge is discovering the special opportunities which have the potential to make you a lot of money, possible, 500%, 1,000% or more. This can definitely be accomplished with some research, attending conferences or following some of the top newsletters in this sector.

There are also many interesting opportunities selling in the $0.30 to $0.50 range meeting our high standards which can be added to one’s portfolio.

We could write volumes on how to find these opportunities but for now we would like to tell you how to invest in these shares once you have found them and will as little as $5,000 to $10,000.

First, we would spread these monies over a minimum of 4 to 6 companies. With $5,000 we would look to buy 4 positions in the junior mining sector and with $10,000 we would spread the money over 6 positions thus giving investors more opportunities as well as diversifying the risk. With the $10,000 dollars we would also include two additional companies selling at higher prices and perhaps with current production.

For example with $5,000:

  • A silver selling at $0.05   – buy 25,000 shares     $1,250
  • B silver selling at $0.50   – buy 2,000 shares       $1,000
  • C gold selling at $0.06    – buy 25,000 shares      $1,500
  • D gold selling at $0.30    – buy 4,000 shares        $1,200
  • Total                                                                    $4,950

For example with $10,000:

  • A silver selling at $0.05   – buy 30,000 shares       $1,500
  • B silver selling at $0.50   – buy 3,000 shares         $1,500
  • C gold selling at $0.06    – buy 30,000 shares       $1,800
  • D gold selling at $0.30    – buy 5,000 shares         $1,500
  • E silver selling at $1.00   – buy 2,000 shares         $2,000
  • F gold selling at $0.75    – buy 2,000 shares          $1,500
  • Total                                                                     $9,800

As you can see we suggest you accumulate a basket of shares each of which has the potential to make you substantial gains but with the full awareness that not all of these position may work out. If only a few shares perform well you can still make a significant amount of money on these investments.

The timing is perfect for all investors to get started in the resource sector. Most of the shares are trading at historic lows and most newsletters and analysts are expecting a banner 2013 for gold, silver and the shares. It’s time for you to get in the game.

Disclaimer/Disclosure Statement:

Neither Dudley Pierce Baker,,, or are investment advisors and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Pierce Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or warrants.


How to buy Canadian mining stocks

By Dudley Baker
Common Stock Warrants

We are of the opinion that the Canadian mining stocks are close to a spectacular breakout very soon and we think it timely to revisit one of our articles of a few years ago.

Are the potential gains only for Canadian investors?

Frequently I read comments from other analysts regarding the difficulties of trading, i.e. buying, the Canadian mining stocks. They usually suggest investors seek out a broker that specializes in these stocks and while that is not bad advice, it is not necessary to do so.

There is no secret code to be entered to play this game. It’s just a matter of understanding a few basic rules and you will soon be a professional yourself.

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Most Analysts Still Don’t Get It

By Dudley Baker

There are a lot of good men and women writing newsletters in the resource sector. All have the best intentions of providing their readers/subscribers will quality content and some good stock picking opportunities.

However, it is how some of these analysts approach their stock selections that is the subject of our thoughts today.

How do they decide which companies to research and to ultimately recommend?

We could probably write volumes on this subject but we will try and focus our views for the sake of brevity.

Everyone talks about People and Properties, People and Properties, People and Properties ………

Sounds so damn simple doesn’t?

But many in the business would not know what it means to go with Good People/Good Management.

What the heck does it really mean?

Good Management does not mean just being approached at a investment conference by management of a resource company looking for an analyst/newsletter writer to tell their story.

Good Management/People does not necessarily mean just having 20 plus years in the business, but rather have they actually accomplished something, i.e., were they responsible for discovering a significant resource, taking a company into the development and/or producing stage and possibility selling ‘their’ company to a major mining company and thus creating great shareholder value for their shareholders?

So now let me contrast this statement above with what I just read from another analyst just recommending the shares of a new company to their subscribers. Obviously, all names will not be mentioned, but the facts are correct.

The president of this small exploration company was being interviewed. Initially, I liked what I heard. A small share structure of less than 40 million shares outstanding and a market price of less than $0.25 and a property in Mexico, ah tell me more ….

But before I even read more, here is what I did, and what I do for all new company names which I hear. Immediately, I look at a price chart with the idea of seeing if the stock is near its high or its low, i.e., have the shares just doubled in value? I want to be buying low. Also, within two minutes more, I know exactly what share positions that the management has in ‘their’ company. This can be the most telling factor of all in a search for new opportunities.

OK, now back to our interview, the analyst refers to the strong management team of this small exploration company and what a good job they are doing.


What I already know from my two minutes of research is that:

This is no management team that I want to follow.

Why? First, the president of this company owns only 12,500 shares of stock with a current value of appropriately $2,400.

I wish I was kidding, but I am not.

The other members of that ‘strong management’ also have a small or no position in the company’s shares. Sure, they were issued some stock options, but it didn’t cost them anything.

Folks, stock options do not count, not in my opinion. I want to see management with ‘skin in the game’, real money they have invested in the company and they should they have a significant stake — a lot more than I would be investing, assuming that I liked the story.

So, I am already turned off on this story and then see that the company has virtually no cash, hell I have more cash in my account that this company currently does, and the President is wearing many different hats, other consulting jobs, other companies, and well, in my opinion, not focused on advancing this alleged interesting new opportunity being presented to the subscribers of this other service.

Why another newsletter would want to recommend shares in a story like this is frankly beyond my comprehension. End of story.

All of us in the business as well as you as readers and investors in this resource sector need to be able to cut through the B.S. and get to the facts.

Our service is here to assist our subscribers with making money and reducing risk by reasonable research which is at our finger tips and which we enjoy.

We trust you are following us at

Each service has it’s own different and specific approach to assist subscribers in picking the big winners.

“This train is not going to wait for you, you are going to have to jump on.”

When To Buy Warrants?

By Dudley Baker

When does it make sense to buy warrants?

First, if you do not know about warrants, please visit our Learning Center for some background and don’t forget that warrants have actually been around since the 1920s and even AT&T once had a warrant trading.

Secondly, if you are not interested in warrants, no problem.

Since, starting our service in March 2005 as basically a warrant database service, we have greatly expanded our services to subscribers. Did you know we have links to LEAPS and Options available on all resource shares?

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The best is yet to come, but not now

By Dudley Baker

The resource markets have been on fire lately and we are excited about where this will lead us in the coming months.

But not now!!

Even though on Friday, our #1 position (a silver company) and #2 position (a gold company) hit highs for multiple years, we must remain cautious.

Why? you ask.

The markets are bucking serious overhead resistance as we show you in the gold charts and the silver chart below.

It is so easy to get carried away with the excitement of the day but let’s stay rational and if you have some cash reserves, hold off deploying it at least for a few weeks. We will try and let you know as best we can the opportune time.

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Resource Remorse

By Dudley Baker

First we want to welcome all of the new subscribers joining us. Your timing could not be better and we appreciate your confidence in subscribing to our unique services.

So, how about it?

Are you having regrets of investing in the resource sector?

I’m sure many of you are questioning your decision and no doubt you have plenty of company right now.

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