Pennies with prospects — and risk to match

Article Excerpt

Many junior resource stocks have rebounded lately, along with commodity prices. As well, it’s getting easier for many juniors to raise funds for exploration and development. Here are four penny stocks that have promising prospects and cash to sustain themselves, whichever way commodity prices go. We think they have a better-than-average chance of long-term success. MIRANDA GOLD $0.40 (Toronto symbol MAD; SI Rating: Start-up) (604-689-1659; www.mirandagold.com; Shares outstanding: 44.9 million; Market cap: $18.0 million) is a gold exploration company mainly focused on Nevada. Miranda holds $12 million in cash. That’s enough for four to five years of exploration. The company also has joint ventures with Montezuma Mines, Piedmont Mining Company, White Bear Resources and Queensgate Resources. These partners pay for high-risk early drilling on Miranda’s properties. They get interests in these properties in return. Miranda is a buy for highly aggressive investors. BAFFINLAND IRON MINES $0.49 (Toronto symbol BIM; SI Rating: Start-up) (416-364-8820; www.baffinland.com; Shares outstanding: 255.3 million; Market cap: $123.8 million) is looking for…

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