eResearch Blog: FinMetals Mining Ltd.
Just the Start, Not the Finish
The stock price of FinMetal Mining is tied primarily to the price of nickel. After nickel’s meteoric rise during 2006 until May 2007, it has plummeted about 50%. Likewise, FinMetal Mining’s shares since May are down about 75%. In our opinion, the worst is over, for the metal and the stock. However, we do not foresee an instant return to the former highs. Rather, the recovery is likely to be slow and deliberate.
FinMetal is a mining exploration company based in Finland, and traded on the OTCBB exchange in the United States. Currently, the Company is active only in Finland, with its primary focus being brown-field nickel exploration; it is also involved, to a lesser extent, in gold exploration. The Company has 17 exploration projects it is working on, 14 nickel and 3 gold. Its key property is the past-producing Hälväla Nickel Mine.
Positive factors include: (1) nickel prices are expected to recover and remain historically high pending increased production; (2) gold prices are anticipated to continue rising backed by increasing demand/decreasing supply; and (3)Finland is under-explored, with highly favourable geological potential.
Challenges include: (1) that this is a early-stage exploration company with a long lead time to feasibility; and (2)the Company has low investor awareness and low share trading volumes.
We recommend the shares of FinMetal Mining as a Speculative Buy. Our 12-month Target Price is $0.70.
This and other reports are available at http://www.eresearch.ca/
The stock price of FinMetal Mining is tied primarily to the price of nickel. After nickel’s meteoric rise during 2006 until May 2007, it has plummeted about 50%. Likewise, FinMetal Mining’s shares since May are down about 75%. In our opinion, the worst is over, for the metal and the stock. However, we do not foresee an instant return to the former highs. Rather, the recovery is likely to be slow and deliberate.
FinMetal is a mining exploration company based in Finland, and traded on the OTCBB exchange in the United States. Currently, the Company is active only in Finland, with its primary focus being brown-field nickel exploration; it is also involved, to a lesser extent, in gold exploration. The Company has 17 exploration projects it is working on, 14 nickel and 3 gold. Its key property is the past-producing Hälväla Nickel Mine.
Positive factors include: (1) nickel prices are expected to recover and remain historically high pending increased production; (2) gold prices are anticipated to continue rising backed by increasing demand/decreasing supply; and (3)Finland is under-explored, with highly favourable geological potential.
Challenges include: (1) that this is a early-stage exploration company with a long lead time to feasibility; and (2)the Company has low investor awareness and low share trading volumes.
We recommend the shares of FinMetal Mining as a Speculative Buy. Our 12-month Target Price is $0.70.
This and other reports are available at http://www.eresearch.ca/
posted by Bob Weir at
12:39 PM
0 Comments:
Post a Comment
<< Home