KMKCF

Continental Minerals was brought to my attention by Tom Bishop, who publishes BI Research. This newsletter has been around a long, long time and has had an excellent track record of uncovering a combination of exceptionally strong fundamentals and/or grossly undervalued public companies. Although strictly a fundamental analysis oriented advisory service, Bishop is clearly one of the few who get it. He knows his stuff. (He is not an advertiser here and I pay full retail for my subscription to Bi Research).

KMKCF Weekly

This is a play on two huge copper-gold deposits owned by Continental near Tibet in mainland China. As Tom Bishop writes in his latest issue of BI Research:

"Okay let me spoon-feed the puzzle pieces and
see if you can put it together. China needs
resources like copper to fuel its economy. It’s well
documented that it’s been on a shopping spree.
Continental has lots of the stuff (1.9 BILLION
pounds, plus Newtongmen’s 2.8 BILLION) and has
advanced its project to the point it is knocking on
the door awaiting approval. There’s not much risk
left in the equation. But the project is in a land far
away. The Hunter Dickinson Group, located in
Vancouver and under whose wing Continental was
formed and operates, has a long history of buying
up floundering resource projects, getting them
financed, drilling them off, proving up a worthy ore
body and selling them off to the highest bidder."

KMKCF 90 minute

This morning, KMKCF is up about 5% at $1.40. Bishop thinks these shares are worth $3.00-4.00, minimum. Quoting again from the latest BI Research:

"Continental’s
Xietongmen deposit has 1.9 billion lbs. of
copper and 3.9 million ounces of gold reserves. At
today’s rates expected annual production works out
to about $450 million of revenue a year. The mine
is expected to cost about $600 million and have a
16% rate of return at $1.50 copper and $650 gold.
But using current metal prices which are now $2.90
and $1,053 (up $100 since last our issue), the
difference goes right to the bottom line, increasing
the rate of return to something way higher than
16%. On top of this, Continental has delineated a
second near-surface deposit on the property called
Newtongmen with indicated resources of 2.8 billion
pounds of contained copper, 2.3 million ounces of
gold and 11 million ounces of silver. I continue to
believe KMK is worth something in the $3-4 range
on a per share basis."

KMKCF Daily

The Daily chart is suggesting a move to between $1.75 -$2.50, which may not seem lot a lot from current levels, but Advanced GET has a tendency to revise it's projections upwards as stocks move up, something I expect as long as this rally continues.

My thanks to Tom Bishop for allowing me to share his work, BI Research is an inexpensive ($95 introductory annual subscription), fundamental analysis newsletter and a worthy addition a trader's arsenal.


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