Three Top Penny Stock Picks
Carpathian Gold Inc. is a gold penny stock focused on constructing its 100%-owned RDM gold project in Brazil that is expected to produce over 90,000 oz/yr for 10 years at cash costs of $525/oz starting in 2013. In addition, this gold penny stock is exploring its 100%owned Rovina Valley project in Romania, which currently boasts 7.0 MMoz gold and 1.4 BBlbs copper from several large porphyry targets. This gold penny stock received official notice that the Licenca Instalacao has been granted for its RDM project in Brazil, which now allows the Company to reproceed with construction. The granting of the LI at the RDM project is a significant milestone for this gold penny stock, as it enables full scale construction activities to resume, moving the penny stock closer to the value-inflating “producer” status.
Intrepid Mines Ltd. is a gold penny stock that has eleven active rigs at their Java Indonesia project. This gold penny stock’s deposit 27.5 MMoz Au and 15.4 BBlb Cu at surface literally has the best of both worlds, an oxidized heapleachable Au-Ag cap (2.4 MMoz Au, 80 M Moz Ag) with a massive underlying porphyry system (25.1 MMoz Au, 15.4 BBlb Cu). Grades for this gold penny stock’s deposit are above average for typical porphyries globally, and we note that Tujuh Bukit (and Tumpangpitu) is arguably the largest porphyry system not currently owned by a major.
Corsa Coal Corp is a base metal penny stock was formed via the acquisition of the Wilson Creek coal properties and associated assets in Pennsylvania. With construction of a new wash plant completed in 2011, this coal penny stock is targeting a ramp up in production over the next two years to its 2.0 MMt per year capacity. This base metal penny stock expects to add further resources in the region and looks to repeat its development strategy. Along with its full year F2011 filings last week, this penny stock provided an updated outlook for F2012 sales, production and costs. The base metal penny stock indicated that weaker coal demand seen in late Q4 has continued into Q1, resulting in a lowering of its potential sales forecast to approximately 605–705kt from 800–900kt previously. Specifically, in Q1/F12 this penny stock expects to sell only 65kt of 90kt previously estimated. As such, going forward this penny stock will look to match production and third party purchases to actual demand and sales orders. As with most coking coal producers, the penny stock’s sale volumes were materially below production capacity in late 2011 due to the uncertainty in the global market. That said, the penny stock’s operations are progressing according to plan and in F2012, production expansion will support over 1MMt ROM met coal available for processing through the plant, compared to 365kt processed in F2011. As such, we believe that despite challenges seen to date, significant upside remains when sales pick up consistently and permits are issued on schedule.