Metal Mining Play: York Harbour Metals Stock (YORK.V)
f you are looking for a valuable metal mining play, York Harbour metals stock (YORK.V) is made for you. York Harbour Metals Inc. is an exploration and development company focused on the York Harbour Copper-Zinc-Silver Project, located approximately 27 km from Corner Brook, Newfoundland. The company plans to continue drilling the 11 known mineralized zones and test other new massive sulphide targets, like the No 4 Brook showing, while focusing on gaining access to the 4 Level and Sea Level Adits.
Newfoundland is the New Gold Rush
If you think the Gold Rush era is a part of the past, learn more about Newfoundland’s “New Gold Rush”. The province is currently one of the top jurisdictions globally, and more and more companies are settling their projects there. The province now has 389 companies looking for resources; the highest number in the last five years. Among these companies, we can highlight Brascan Gold, a company we took the time to know more about, implementing operations in Baie Verte. The Canadian government understands this opportunity and is looking for all of the ways to grow this economy.
“The mineral exploration numbers for 2020 are very impressive – illustrating the mineral potential that exists here in Newfoundland and Labrador. I look forward to continuing to grow this critical industry, especially as the need for many of our products increase as we transition to a greener economy.”
Honourable Andrew Parsons (Minister of Industry, Energy and Technology)
The YORK HARBOUR PROJECT is located 27 km west of Corner Brook. The company has a 4,725-hectare expanded license area (the historical project was only 650 hectares) with minimal modern exploration. YORK intends to complete a 100% Earn-In Agreement for the project during the current Phase 3 Drilling Program. In compensation, YORK will pay $95k in cash, issue 1,485,566 shares, and the optionor will retain a 2% NSR.
Historically, the project was discovered in the 1890s. Shaft Sinking began in 1897 and mining continuing to 1918. To date, the area counts 210 x underground exploration drill holes (10,994 total meters) and 45 x Surface exploration drill holes (8,235 total meters). The company recently shared incredible results. In a news release, the company reported high-grade copper and cobalt values in diamond drill hole YH21-24, grading 5.25% copper, 436.5 g/t cobalt, 8.97 g/t silver, and 0.801% zinc over a drilling length of 29.0 meters.
“High dollar value, high grade copper mineralization like the intersection in drill hole YH21-24 is very rare and they are important indicators of strong mineralizing fluid systems at work.
Bruce Durham, Chairman
Share Structure/ Fundamentals
The company has strong fundamentals. With 48M shares outstanding, and Blair Naughty’s current buying program, the float is tightening, enabling investors to witness bigger price fluctuations as there are less shares available. Moreover, there are 3M options, 10.2M warrants, leading to only 62M shares fully diluted. What is very interesting about these numbers is that they have a controlled dilution. Indeed, all of their warrants’ exercise prices are below the current share price, enabling the company to raise money if needed. They can potentially raise $7M!
Share Movement
YORK gave its investors an excellent return on investment. The stock over-performed the market, offering a 151% return on investment year-over-year. The company is currently valued at $52M and saw an all-time high of $1.37. The TSXV is down by 6% YoY, and the TSX is 13% up YoY.
In the meantime, the stock is still on an uptrend, benefiting from the market uncertainties, bringing back investors to invest in commodities stocks, and from the company’s current flow of good news. If we focus on the chart, the stock has been on an uptrend since August 9th, 2021, when its Simple MA (20) crossed the Simple MA (200). The short-term moving average is $1.15, while the long-term moving average is $0.61. Regarding daily fluctuations, the Bollinger bands indicate we could see the stock price moving from $0.98 to $1.31. These fluctuations will be buoyed by a volume increase over the last couple of weeks. The 10-day average volume reached 281k, whereas the 50-day average volume hit 139k. The stock price is healthy as its RSI, at 49, is neither in the overbought nor oversold territory (under 30 or above 70).
Another exciting data is the large shareholders buying. Over the last three months, more than 30 buying transactions have been triggered, proving the company’s sustainability. Blair Naughty has filled big orders (4 transactions totaling 400k), with the most recent one on April 7th. He now owns more than 6M shares or 12% of the total shares outstanding!
Bottom Line
The company has a lot of compelling key data. Its projects are located in the new commodity hot spot and its drilling tests are successful. The company has strong fundamentals, leverage to raise more cash, and strategic investors continue buying shares. YORK can control its dilution having no debt. Quants Report gives the company a current fair valuation at $1.4; we could potentially hit this target soon. It is only the beginning for York Harbour and all we can say is we look forward to seeing where the company will be at in the future.
This article solely expresses the opinion of the writer which might be disagreeing with the other writers of Money,eh?. Moreover, the writer is not involved in YORK, and does not own shares of the Company .