Gold and other precious metals have sustained a considerable comeback in 2016, after seeing prices deteriorate over the past several years. Thanks to a steep global sell-off in equity markets to begin 2016, investors began to stampede into safe haven assets, such as gold and silver. However, even after stocks rebounded in the months to follow, precious metals were able to hang on to a vast majority of their gains. As of October 2016, silver is the best performing metal commodity with year to date gains of nearly 25%. Palladium has rallied 18.54% year to date, gold is up 17.21% year to date, and platinum has sustained a 7.51% year to date gain, through October 2016. Copper has been the notable laggard of the metal commodities, which is up only 1.90% year to date. Despite the gains we have seen in 2016, many respected analysts see gold’s rally continuing:
- Credit Suisse Group AG (ADR) (NYSE: CS) forecasts gold at $1,500/ounce by early 2017
- RBC Capital Markets forecasts $1,500 an ounce gold for 2017 and 2018
- Robert McEwen, famous gold bull, suggests gold could be trading between $1,700 and $1,900 an ounce by the end of 2016
However, there is another metal that has made major headlines in 2016: lithium. In what Goldman Sachs Group Inc. (NYSE: GS) called “the new gasoline,” lithium’s demand could triple within the next ten years thanks to the growth in electric car market. The bullish forecast and outlook on lithium by Goldman Sachs Group Inc. (NYSE: GS) came after Tesla Motors Inc. (NASDAQ: TSLA) CEO Elon Musk stated that “[Tesla] would basically need to absorb the entire world’s lithium-ion production,” in order to reach its target of 500,000 cars per year. Needless to say, the lithium buzz in 2016 has put exploration and development companies in a mad-dash to make discoveries and acquisitions.
With a considerable amount of buzz and positive fundamentals surrounding the mining industry, here is one company that is well-positioned to benefit moving forward: RT Minerals Corp. (OTC Pink: RTMFF).
Overview: RT Minerals Corp. (OTC Pink: RTMFF)
RT Minerals Corp. (OTC Pink: RTMFF) is a Canada-based junior resource company that primarily engages in the acquisition, exploration, and evaluation of precious metal properties in North America. As of October 2016, RT Minerals Corp. (OTC Pink: RTMFF) held interest in five different mineral properties:
- Ballard Lake Property – Gold property located approximately 50 kilometres northeast of Wawa, Ontario, in which the Company owns a 100% interest, subject to a 2% net smelter royalty.
- Norwalk Property – Gold property located approximately 5 kilometres south of Wawa, Ontario, in which the Company has an option to earn a 100% interest, subject to a 2% net smelter royalty.
- Dill River Property – Gold property located several kilometres southeast of Wawa, Ontario, in which the Company has an option to earn a 100% interest, subject to a 2% net smelter royalty.
- Golden Stock Gold Property – Gold property located approximately 50 kilometres northeast of Wawa, Ontario, in which the Company owns a 100% interest, subject to a 2% net smelter royalty.
- Lac Mica Property – Potential lithium property located approximately 130 kilometres north of Montreal, Quebec, in which the Company owns a 100% interest.
As you can see, RT Minerals Corp. (OTC Pink: RTMFF) maintains 100% ownership (or option for 100% ownership) in each of its five mineral properties. In addition, the company is primarily focused on gold and lithium (four gold properties, one lithium property). All of RT Minerals Corp. (OTC Pink: RTMFF)’s properties are located in Canada; however, the company has suggested that they would be open to expanding into the United States, if an opportunity presents itself. For now, management plans to continue focusing on acquisitions, and drilling its current properties.
Drilling Update: Ballard Lake Property
Back in July 2016, RT Minerals Corp. (OTC Pink: RTMFF) announced they had completed the first round of exploration on the company’s Ballard Lake property. The company was able to collect 64 samples from the nine trenches within the Ballard Lake Property. Three of the trenches came back with the following impressive six results: 1.23 g/t of gold, 1.32 g/t gold, 1.51 g/t gold, 2.38 g/t gold, and 7.48 g/t gold. In a press release from July 2016, the company noted that the “higher grade gold mineralization appears related to local quartz veins within chlorite schist units and is associated with pyrite and galena.”
In late September/early October, RT Minerals Corp. (OTC Pink: RTMFF) commenced drilling of at least three holes beneath the higher grade gold values in the trenches on the Ballard Lake property. The company will also review the drill core for local geology in gold zones. Other minerals, such as kimberlites, are known to be present in the area. RT Minerals Corp. (OTC Pink: RTMFF) says they plan to release a report on the drill results from the Ballard Lake property over the next two weeks.
RT Minerals Corp. (OTC Pink: RTMFF) will follow up any significant gold mineralization at Ballard Lake with more drilling in 2017. Furthermore, RT Minerals Corp. (OTC Pink: RTMFF) plans to drill its Norwalk property and test for gold potential within the next 30 days.
RTMFF: Financial and Industry Analysis
RT Minerals Corp. (OTC Pink: RTMFF) maintains a market cap value of nearly $1.43 million and a share structure consisting of 14.55 million shares authorized, as of October 2016. During the company’s fiscal second quarter, ending May 31st, RT Minerals Corp. (OTC Pink: RTMFF) reportedly held cash and equivalents of $359,168 CAD, total assets of $538,710 CAD, and total liabilities & shareholder equity of $538,710 CAD (unaudited). Furthermore, Canadian-listed shares of RT Minerals Corp. (TSX.V: RTM) have soared 90% year to date, as of October 2016.
Gold miners have seen a strong rebound in 2016, thanks to the surge in gold and other precious metal commodity prices. However, the miners have far outperformed metal commodities. For instance, the Market Vectors Junior Gold Miners ETF (NYSEARCA: GDXJ) has surged 95% year to date, compared to gold commodity futures, which have rallied 17.47% year to date, as of October 2016. In short, gold and precious metal miners have seen an extensive rebound in 2016, after several miserable years for the overall industry. The lithium boom is another major event that is taking the mining industry by storm. With electric cars expected to increasingly hit the roads over the next decade, high-powered lithium batteries will continue to see high demand. Here are five mining and exploration companies worth taking a look with regards to RT Minerals Corp. (OTC Pink: RTMFF)’s future prospects:
Lithium Corporation (OTCQB: LTUM) operates as an explorer, acquirer, and miner of lithium projects in Nevada. The early stage lithium company has a market cap value of nearly $8.05 million. Furthermore, Lithium Corporation maintains a share structure consisting of 3 billion shares authorized and 81.5 million shares outstanding, as of April 2016. During the second quarter 2016, Lithium Corporation reportedly had $358,000 in cash and cash equivalents, total assets of $910,000, total liabilities of $505,000, and total stockholders’ equity of $405,000. Shares of Lithium Corporation have soared 248.50% year to date, as of October 2016.
Midas Gold Corp. (OTCQX: MDRPF) is engaged in the exploration, acquisition, and mining of precious metal resources across North America. As of October 2016, Midas Gold Corp. maintains a market cap of nearly $109.6 million. Furthermore, the junior gold mining company has a share structure consisting of unlimited authorized shares and 175.83 million shares outstanding, as of March 2016. During the second quarter, ending on June 30th, Midas Gold Corp. reportedly had cash and cash equivalents of $42.16 million, total assets of $113.86 million, total liabilities of $77.4 million, and total shareholder’s equity of $36.5 million. Shares of Midas Gold Corp. have rallied 175.50% year to date, as of October 2016.
Pretium Resources, Inc. (NYSE: PVG) is in the business of acquiring, exploring, and developing minerals and precious metal deposits across the Americas. The Canadian-based company primarily focuses on gold, silver, and copper deposits. Pretium Resources, Inc. has a market cap of $1.55 billion USD, 178.77 million shares outstanding, and a float consisting of 149.03 million shares, as of October 2016. During the second quarter 2016, the company reported cash holdings of $372 million CAD, total assets of $1.72 billion CAD, total liabilities of $601 million CAD, and total shareholder’s equity of $1.12 billion CAD. Shares of Pretium Resources Inc. have surged 67.46% year to date, as of October 2016.
Kinross Gold Corporation (NYSE: KGC) is engaged in the acquisition, exploration, development, and production of gold properties worldwide. As of October 2016, the Canadian gold company had a market cap value of $4.4 billion USD, 1.24 billion shares outstanding, and a float consisting of 1.24 billion shares. During the second quarter 2016, Kinross Gold Corporation reportedly held cash and cash equivalents of $1.3 billion CAD, total assets of $10.79 billion CAD, total liabilities of $5.19 billion CAD, and total shareholders’ equity of $5.55 billion CAD. Shares of Kinross Gold Corporation have rallied 93.96% year to date through October 2016.
Newmont Mining Corporation (NYSE: NEM) explores, acquires, develops, and produces precious metals from the company’s vast number of mining projects around the world. As of October 2016, Newmont Mining Corporation has a market cap value of $18.05 billion, 530.59 million shares outstanding, and a float consisting of 528.98 million shares. During the second quarter 2016, Newmont Mining Corporation reported total revenue of $2.04 billion and net income of $23 million. Furthermore, the large-cap miner held cash and cash equivalents of $2.9 billion, total assets of $24.7 billion, total liabilities of $13.3 billion, and total shareholders’ equity of $11.42 billion, during the second quarter. Shares of Newmont Mining Corporation have rallied 89.16% year to date through October 2016.
Overall, the mining industry has sustained a strong rebound in 2016, thanks to underlying commodity price appreciation. There are some short-term headwinds that could push precious metal prices lower, such as the election and a perceived interest rate hike by the Federal Reserve. However, with the IMF sounding the alarm on a potential global debt crisis and high stock market valuations, gold’s long-term prospects continue to look positive. This will help continue the recovery in the precious metal mining industry. RT Minerals Corp. (OTC Pink: RTMFF) is well-positioned to continue benefitting from increasing precious metal prices. The company’s 4 gold properties and 1 lithium property are scheduled to continue with exploration and further development into 2017.