6 reasons to own Rodinia Lithium stock.

Rodinia Lithium (TSX RM)
Today .18c

Last November I discussed Rodinia Lithium and my belief that it is the next prize in the second leg of the lithium boom. Insider trade reports supplied by TD Ameritrade, indicate that, with one small exception, all insider transactions for 2011 are  "buys"!  There are "NO" sell trades.

  This is a clear indication that the people who actually know what is occuring in the company, on a day to day basis, and those overseeing the company's development, are very poositive about their prospects, that they have only bought more of the stock, and not sold "any" of their holdings. This information alone, tells us something of value is growing at Rodinia.

1. Insiders are buying this stock.

2. Rodinia owns three of the top 25 lithium properties in the world.

3. Shan Shan Corp., one of the largest lithium battery suppliers in China, purchased their entire bought deal in Nov 2010, above the asking price, to ensure they are flush with cash to advance their properties.

4. Rodinia's top three properties are all brine properties, with low development costs, in two of the best mining districts in the world, Clayton Valley, Nevada and Salta Argentina. They are also listed in the top 25 lithium properties in the world today.

5. Byron Capital Markets Dr. Jon Hykaway, rates it a strong buy with a target of $2.25
(considered one of the foremost lithium investment experts today)

6.  On April 12, 2011 Ubika Research has issued a valuation report with a Price of $1.12 for Rodinia Lithium. (We think that is a very low assessment)

Rodinia was trading today at .18 cents.  RM.v  or in the U.S. as RDNAF.PK

It's market cap today is listed at $11.79M with 65.5M shares outstanding.

With $10 Million in cash on hand for development, this values the company at only $1.79 million.

That is a ridiculously low valuation for Rodinia's lithium properties! 

Further more, it does'nt even address the large potash concentrations which will be a secondary product for this small company.
                                                                                                            Clayton Valley
Besides the Argentinian properties, Rodinia also has its lithium brine project in Clayton Valley, Nevada which is ajacent to the only lithium brine operation in the continental United States.
 
For these reasons, I have been buying more Rodinia stock this month. I believe this stock will triple by Christmas, however, I am looking for a 10 bagger and I expect to get it sometime next year.

Maybe you should consider adding Rodinia Lithium  to your speculative value portfolio.

Wishing you great success with your Retirefund.

HP

                                                                                                        

Expert Analysis from The Energy Report

 Technical report on Clayton Valley, Nevada lithium property

Ray Goldie, Salman Partners (8/22/11) "We expect Rodinia Lithium Inc. to be able to surf on the strong, stable pricing structure of lithium that has been established and maintained by existing producers—beginning in 2016, Rodinia could be producing from Argentina about 2,000 tpa lithium (about 6% of the world’s supply), with by-product potash. . .because both the revenues and costs in the lithium industry are not readily available, and because our evaluation of the company is based on educated guesswork rather than on sober engineering studies, we initiate coverage of Rodinia Lithium with a Speculative Buy recommendation rather than an outright Buy."

The Energy Report Interview with David Talbot (7/21/11) "Our top pick in the lithium sector is Rodinia Lithium, despite its $30M market cap. We've got a buy with a CAD$1 target price on this stock. RM continues to be one of the most undervalued stocks on our lithium coverage list. Rodinia is developing a brine project at its flagship Salar de Diablillos site in the Province of Salta, Argentina, about 11 km. from the world's second-largest producer, FMC's Salar del Hombre Muerto. It just reported a couple of pit samples that were about three times the average lithium grade of the deposit. Rodinia also has its Clayton Valley Project in Nevada adjacent to Chemetall's Silver Peak brine operation and the only U.S. producer of lithium. Given the company's significant resource in Argentina, good brine chemistry, lack of competition on the Salar and its three aquifers, we think now is a good entry point for investors looking to share in Rodinia's growth. Our target price suggests a triple from here."

David Talbot, Dundee Securities (7/13/11) "Rodinia released pit results from a sampling program at its flagship Salar de Diablillos project in Argentina. Results show grades that were, on average, substantially higher than previous estimates for the shallow aquifer number one. This is especially encouraging because two of the samples were taken from an area where close spaced auger sampling was not possible, and opens up a much larger area that might exhibit potentially higher grade lithium and potassium brine, and this has positive implications for resource growth and production potential. . .Rodinia's peer discount is unjustified. . .conservative lithium brine operation is compelling. . .it has an experienced management team, large brine resource, multiple projects in good jurisdictions and our valuation ignores potash or boron production upside potential."

David Talbot, Dundee Securities (6/9/11) "Rodinia Lithium is an emerging brine developer flying under the radar—it has several features going for it: its main project, Salar de Diablillos in Argentina, hosts one of the largest lithium-potash brine resources in the world, and it lies in close proximity to the third-largest brine producer in the world (FMC Lithium); its second project is underexplored and adjacent to the only lithium producer in the U.S. (Chemetall); it also has strategic investment from one of China's largest lithium-ion battery materials provider. . .our modest CAD$1 target price for RM suggests a triple—it is showing more upside potential than the more well-known brine developers."

The Energy Report Interview with Jonathan Lee (4/19/11) "Rodinia Lithium also has a brine deposit at its Salar de Diablillos project in Argentina. We have a Speculative Buy rating on it with a $2.25 target price. It's another example of fairly good chemistry and good, effective porosity levels. And the project is another that, potentially, could be a low-cost producer. It has a decent level of lithium grade, reasonable magnesium:lithium ratio and very attractive sulfate levels—that's another key. It has a lot of positive qualities. Rodinia has a strategic investor in Shanshan Resources, a wholly owned subsidiary of the largest battery manufacturer in China— Ningbo Shanshan. Some of Shanshan's partners have extensive experience doing brine chemistry in the Tibetan salars. Shanshan is a value-add for that company."

More Articles:

Lithium Junior the most promising
The resource of the 21st century
Rodinia looks like the next prize

Rodinia CEO interview



Links:

The Grandich Letter - Rodinia Lithium

Related articles

• Rodinia Lithium Confirms Brine Grade and Quality at Diabillos lithium property (retirefunds.blogspot.com)
• Rodinia Lithium getting on Analysts radar screens! (retirefunds.blogspot.com)
• Rodinia Lithium Announces Up to 1,800 mg/L Lithium from Aquifer I Pit Sample Results (retirefunds.blogspot.com)
• Rodinia Lithium Provides Update on the Salar de Diablillos Project (retirefunds.blogspot.com)
• Rodinia Lithium (RM - TSX.V) More Insight Into Yesterday's News Release and Byron Capital Markets Initiated EQUITY RESEARCH (investorcubed.wordpress.com)

Gold and Equities VS the U.S. Dollar - US Treasuries are not a safe place to be!

Image by Getty Images via @daylifeI know that, when everyone starts to panic, most investors see the U.S. dollar as a safe haven. This week investors are piling into U.S. Treasuries as they have in the past during past times of fear and uncertainty. The problems in Europe have shaken confidence and the market plumeted yesterday on those fears. It would appear that, what the market has not done, is price in any hopeful sign that the European Union might actually come up with a plan similiar to the U.S. T.A.R.P. plan, which, in hindsight, was very positive for U.S. stocks, and which did not lose any money for taxpayers in the long run.  If the E.U. comes up with such a plan in the near term, there could be a dramatic pop in markets that are currently ruled by fear. There seems to be no pricing in of any good news that may eminate from Europe in the coming week(s).

In the mean time, the best "safe haven" of recent years, gold bullion, and by proxy, gold miners, have taken a beating this week. They have taken a beating only if you consider the price of gold over the course of the past month where bullion prices spiked as high as $1900. Compared to the rest of 2011, gold is still up a healthy 20% or more. It is only back to mid July prices.  That, my friends, is a healthy pullback, not This is not 2008 all over again. The fear is overblown. It may well be 2009 all over again as equities test those "generational lows" once again. I know this may be a contrary view, when compared with many market followers, but if I am right, this is the time to take the advice of Warren Buffett who famously said "buy when all others are fearful".

I am a buyer right now. A buyer of select equities in tech and pharma. A buyer of gold miners. A buyer of top Lithium miners. A buyer of select Canadian banks. If things go lower, I will buy more. Today I doubled down on small and mid tier gold miners like San Gold, and Brigus Gold. I even bought speculative stocks like TNR Gold and Nautilus Minerals. I bought more Talison Lithium. I bought more Rodinia Lithium.

I like Cenovus Energy and Suncor in the oil sector, TD Bank, RBC and BMO in banking.
I even like Manulife Financial as they are trading at an all time low this week. I like solid Techs like Intel, Microsoft, Apple and Google. I am watching HP since they announced thier new CEO today, Meg Whitman. I think there are great buys out there, and I am taking advantage of the irrational fear as everyone runs to the not so safe haven of the U.S. dollar.

I do not like the prospects for the American dollar, the Euro or, for that matter, most fiat currencies. Gold is bought and sold by central banks around the world, and it would not surprise me to hear in the coming weeks that countries like Italy have sold some of their gold stocks to pay down debt. Certainly that would account for the current weakness in bullion prices, which will rebound as fiat currencies, including the USD once again, lose favor with investors.

No one has a crystal ball, least of all this writer. However, it is those investors who seize the moment, who most often come out ahead of the herd. I hope you are one of those.

Happy investing.HP

Related articles

• What's wrong with gold? (business.financialpost.com)
• Is China Buying Gold to Challenge the U.S. Dollar? (americanargameddon.wordpress.com)
• Metals Stocks: Gold trades under $1,700, loses 4% (marketwatch.com)
• TSX down sharply on economic worries (thestar.com)
• Jeffrey Rubin: Is Gold a Safe Haven From a Greek Default? (huffingtonpost.com)
• A Declassified Jon Huntsman On China's Terror Of A Gold-Pegged Dollar (lonerangersilver.wordpress.com)
• 'Not to own gold is to trust governments' (business.financialpost.com)
• Gold closes at lowest level in over three weeks (marketwatch.com)
• Reading the U.S. treasury yield signs (business.financialpost.com)
• Markets Swoon on Recession Fears (online.wsj.com)
• Gold Stocks: Hedge Funds Love This List of Gold Mining Stocks (fool.com)
• Markets Swoon on Recession Fears (online.wsj.com)
• Canadian dollar plunges almost three cents (ctv.ca)
• Running of the bears on the markets at midday (canada.com)
• Markets Sink (online.wsj.com)
• Is China Buying Gold to Challenge the U.S. Dollar? (xkorpion.wordpress.com)
• China Pulls The Rug From Under Europe, Halts French Bank Transactions, Makes Good On Trade War Ultimatum (zerohedge.com)

They are mining "pure money" from the "money pits"!

As I have said in a previous post,

Gold does not have a price, Gold "IS" the price!

It is also my opinion that gold miners are very much undervalued as they now are mining "money" and that the cost of that mining is determined in fiat currency.

   Now does it really matter whether the "fiat" currency is the U.S. dollar, the Canadian dollar, the Australian dollar, the Euro, the Chinese RMB, the Brazilian Real, the Chilean or Mexican Peso or any of the devalued currencies of Africa that these miners operate in?  No it does not!  You see, there is a race to the bottom for fiat currencies as governments around the world do not seem to want to own the strong currency left standing.  The United States is no exception.

The exasperated Swiss have been doing everything in their power to keep their now inflated Franc from being the "go to" currency in Europe. The Canadian and Australian governments have been fretting over their strong dollars for two years now.   As investors flock to a basket of these few stand outs to, hopefully, stem the bleeding, reality is slowly creeping into the investing mindset.

The "go to " currencies are now quite obvious. They are Gold and Silver!

Just witness the spectacular growth in new bank paper products like the (GLD) and the (SLV). Many investors have been flocking to these seemingly smart new plays as a "safe haven" should things get even worse than they already are.(A 60-40 chance at this point). Sorry, but I don't have a lot of faith in "Wallstreet  created" safe havens any more. These investment vehicles are supposed to be backed by physical gold and silver, held in London vaults, However, no investor is allowed to view these vaults, or audit the physical stuff to see if it jives with the paper equivalent, which each investor owns. 

When I think of all those wonderful derivatives created from mortgage back securities 3-5 years ago, I get a shiver of deja vu as I ponder the gold and silver back derivatives of the (GLD) and the (SLV) and their ilk. Sorry, I want to "SEE" the real thing, and not just a piece of paper. I guess that's the old cop in me.

I own physical gold and silver. I have for years. However it is the gold and silver miners that have caught my fancy in the past 2 years. I have been accumulating a number of them since 2009, (along with other resource sticks) and in particular, this past summer.  You see, I no longer see these as strictly "resource" stocks. I believe that, in this unstable environment, these companies are actually mining money.


I am listing here 7 gold miners (and one silver) with several mines in operation, increasing production rates and solid management (as evidenced by their operations) Stalwarts Gold Corp (GG) Barrick Gold (ABX), and Kinross Gold (KGC)  as well as some smaller operators have huge upside potential such as SanGold (TSX-SGR) and Brigus Gold (TSX-BRD). 

I also like one very unique, but speculative stock Nautilus Minerals due to its big first mover advantage (both technical and geographical) in seabed mining. Nautilus is listed in Toronto (TSX-NUS) and in London (AIM-NUS)

My silver pick is Great Panther Silver (TSX-GPR)

Although September and October are not historically great months for stocks, they are usually great for gold stocks as India and China approach their marriage season, and the growing middle classes search for physical gold for thier dowries.

If you do not already own physical gold and silver, or feel you are late getting to that party, (You are not) then maybe you should consider the "Money Miners" for your portfolio.

Related articles

• Nautilus Minerals may hold worlds richest deposits (Retirefund)
• Brazil Enters the Race to Debase (dailyfinance.com)
• Canadian market rises on strength in gold prices (marketwatch.com)
• San Gold Reports Record Quarterly Gold Production and Provides Notice of Second Quarter 2011 Financial Results Conference Call (retirefunds.blogspot.com)
• San Gold Provides Near-Surface Exploration Update confirming even more rich deposits (retirefunds.blogspot.com)
• Meet the king of Seabed mining (retirefunds.blogspot.com)
• Brigus Gold reports 80% increase in production in Q2 - Outlook bullish for Q3 and Q4 2011 (retirefunds.blogspot.com)
• Why I Doubled Down on Brigus Gold (fool.com)

Nautilus Minerals may hold the world's largest deposits of gold, silver, copper and cobalt - Beneath the Ocean!

Nautilus Minerals Inc.
NautilusMinerals.com

Nautilus Minerals (NUS - Toronto and London)  is the first company to commercially explore the ocean floor for polymetallic seafloor massive sulphide deposits and is currently developing its first project at Solwara 1, in the territorial waters of Papua New Guinea where massive deposits of gold, silver, copper and cobalt have been discovered.

In 2008, the highly respected "Golder Associates" completed a National Instrument 43-101 Technical Report of Nautilus's "Solwara 1 project", a vast deposit of gold, silver, copper, and cobalt, which protude from massive hydrothermal sulphine vents (Massive seafloor sulphides known as chimneys) which pockmark the geography of the seabed over a very large area. This technical report was requested after Nautilus, in conjunction with scientists from the Woods Hole Oceanographic Institution (WHOI) did a joint exploration of the area in 2006 and discovered massive gold and silver deposits 1500 ft below the Bismark Sea.The estimates for gold and silver deposits alone (let alone the massive deposits of copper, cobalt, lead and zinc) are staggering. 

Underwater Gold Fountains

The massive seafloor sulfides come from small underwater vents that go deep inside the Earth’s core where the planet’s crusts are loaded with valuable metals.

As pressure builds up inside the vents, they eventually release much like a geyser.

But instead of shooting water out, the vents blast gold, silver, copper, and zinc out all over the ocean floor.

They’ve been doing this for millions of years. And now the floor is literally covered with the densest clusters of precious metals on Earth.

According to the International Seabed Authority, “a single deposit could weigh 100-million tons.”





Nautilus is listed on the TSX and AIM stock exchanges, and has among its largest shareholders two of the world's leading international resource companies Anglo American (11.1%) and Teck Resources (6.8%), as well as Metalloinvest, one of the largest and fastest growing mining and metallurgical holding companies in Russia, which beneficially owns 21% of the Company's issued shares through Gazmetall Holding (Cyprus) Limited.

Recently Nautilus released their first half highlights for 2011
 



An exclusive 20 year licence!

• In January, the PNG Government (Papua, New Guinea) granted Nautilus a Mining Lease to enable production at the company's first development project at Solwara 1, in the Bismarck Sea. 
• The lease provides Nautilus with an exclusive, 20 year license to mine an area of approximately 59 km2 surrounding Solwara 1, 50 km north of Rabaul, where Nautilus intends to mine high-grade copper and gold deposits on the seafloor, at depths of approximately 1600 metres. (For the full release see Links section below)

• In March, the PNG Government confirmed its intention to take a 30% stake in the Solwara 1 project as a joint venture partner. The Government will contribute funds to the project in proportion to its interest, including its share of the exploration and development costs incurred to date. The initial contribution to be made by the Government's nominee, Petromin PNG Holdings Limited, will be approximately US$24 million. The audit of the final amount has recently been completed with payment to be made in accordance with detailed project agreements being finalised by the parties.
• In April, the company announced an agreement to form a joint venture with German shipping company Harren & Partner, to own and operate a production support vessel which will serve as the operational base for Nautilus at Solwara 1. Under the terms of the strategic partnership, Harren will design and construct the vessel at a cost of approximately EUR127 million, with delivery scheduled for the first half of 2013.
• And in May, the company completed a major exploration drilling campaign in the Bismarck Sea, which has delivered an enhanced understanding of the Solwara 1 deposit and identified potential subsequent development sites.

Since the end of the first half, the company has also announced two major advances in exploration.

• Nautilus Minerals' Tongan subsidiary, Tonga Offshore Mining Ltd. (TOML), became one of the first private sector organisations to be granted exploration licences in the highly prospective Clarion Clipperton Zone (CCZ) of the Eastern Pacific in July. Sponsored by the Tongan Government, TOML was granted approximately 75,000 km2 of prime exploration territory in the CCZ, which lies in international waters between Hawaii and Mexico. As a result of exploration conducted in the 1980s, the CCZ is known to host hundreds of millions of tonnes of polymetallic nodules, rich in copper, nickel, manganese and cobalt, lying on the seafloor in water depths starting at 4500 metres.
• The Fijian government this month granted Nautilus 14 special prospecting licences in its territorial waters, covering a total of approximately 60,000 km2 of highly prospective territory. Nautilus is the first private sector organisation to be granted offshore exploration permits in Fiji.

Following the continued extensive investment in the development phase of the Solwara 1 project during the six months to June, the company today announced a first half loss of US$7.98 million, which was significantly reduced from US$18.75 million in the six months to June 2010.

   The reduction in losses was largely a result of the company capitalising exploration and evaluation expenditure at Solwara 1 following receipt of the Mining Lease in January.

The net cash position remained strong at US$112 million at the end of the period, following additional investment of US$42 million in plant & equipment and mineral properties during the six months.

"Nautilus made excellent progress in the first half of 2011, achieving a number of important milestones," said CEO Steve Rogers.

"Our financial position remains healthy and strong global commodity prices continue to enhance the business proposition. Significant value has been added over recent months as our exploration programs have yielded encouraging results, and we have gained additional highly prospective exploration territory in Fiji and International waters.

"We look forward to the delivery of components for our seafloor production equipment and the announcement of a resource update in the second half of the year," he said.

Links  

Nautilus Granted Mining Lease
http://www.nautilusminerals.com/s/Media-NewsReleases.asp?ReportID=437932

The Financial Statements and Management's Discussion and Analysis have been filed on www.sedar.com and are also available on the Company's website
www.nautilusminerals.com/s/Investors-Financials.asp.

For more information you can go to www.nautilusminerals.com or contact:

Investor Relations
Nautilus Minerals Inc.
Email: investor@nautilusminerals.com
Tel: +1 (416) 551 1100

Joe Dowling
Vice President Investor Relations and Communications
Tel: +61 (7) 3318 5544
Cell: +61 431 365 741
Email: jjd@nautilusminerals.com

Numis Securities Limited
Nominated adviser: John Harrison
Corporate broking: James Black
Tel: + 44(0) 20 7260 1000

Related articles

• The great treasure of the Bismark Sea (Oxford Club)
• Nautilus Minerals raising $100 Million in private placement (Marketwire)
• Gold does not have a price. Gold "IS" the price! (SeekingAlpha.com)
• Meet the king of Seabed mining (retirefunds.blogspot.com)
• Nautilus Minerals Granted more Exploration Tenements, this time in Fijian Waters (retirefunds.blogspot.com)
• Lets try this again boys...Deepwater Digging for Minerals and Ore, take 2. (gcaptain.com)
• Nautilus Minerals is leading the undersea mining business of the 21st century. (retirefunds.blogspot.com)
• Seabed mining on Pacific agenda (bbc.co.uk)