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Kaiser Watch August 5, 2022: Time to tip toe back into the resource juniors?

Posted: Aug 5, 2022JK: Kaiser Watch August 5, 2022 with Jim Goddard and John Kaiser
Published: Aug 5, 2022KRO: Kaiser Watch August 5, 2022 : Time to tip toe back into the resource juniors?
Kaiser Watch is a weekly 15-30 minute audio show produced by KaiserResearch.com with Jim Goddard and John Kaiser discussing the junior resource sector. The show has three parts: the first is a general topic, the second discusses developments involving the KRO Favorites which as of January 1, 2022 are no longer exclusive to KRO members, and the third is a peek inside the members only KRO Bottom-Fish Workshop. KRO is transitioning into a Do-It-Yourself research platform that covers all Canadian and Australian resource listings and which also features a Bottom-Fish Workshop where John Kaiser highlights juniors with solvable "missing pieces". Companies that graduate from the Workshop may become part of the Annual Favorites collection whose profiles and related commentary are unrestricted for non-members. Visit the KRO Favorites Dashboard for quick access to all the unrestricted Favorites related content. KRO is not sponsored or compensated directly or indirectly by public companies. The business model is based solely on membership fees in the form of a USD $450 Annual Individual Membership that at some point will increase substantially to reflect KRO's shift to a research platform. However, when the change happens active members will be grandfathered to renew indefinitely at the current rate provided they maintain a continuous paid membership. Kaiser Watch is available at Kaiser Research YouTube and as a Podcast downloadable from KaiserResearch.com. Each episode will be made available through the publication of a Kaiser Media Watch blog report which will provide links to specific questions and include supplementary graphics. All episodes will be archived at Kaiser Watch.

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Kaiser Watch August 5, 2022: Time to tip toe back into the resource juniors?
Jim (0:00:00): Do you expect the market for resource juniors to improve in August?
August is traditionally a slow month for resource juniors because investors are still on vacation, results will generally not start flowing until September, and the market just wants to ignore them until everybody is back at work in September. Despite a rough period since April the resource juniors are in fairly good shape based on latest financial filings, and while the number trading below $0.10 continues to rise, at 38% we are still a long way from the 66% bottom of January 2016 and the 54% hit in March 2020. Financially the TSXV resource juniors are in decent shape, provided you can identify the 31% which owe $3 billion compared to the 69% which hold $5.4 billion in working capital. Given the uncertainty over how the Pelosi visit to Taiwan will work out for the relationship between China and the United States, it is best to focus on discovery focused juniors unless you have a long term accumulation strategy for advanced juniors that are sensitive to metal price trends.

Relative traded value of TSXV resource and non-resource listings

TSX & TSXV Resource Listing Price Range Percentages

Working Capital ranges for TSXV Resource Listings

Positive & Negative Working Capital Totals for TSXV Resource Listing Price Ranges

Price Range Breakdown of TSXV Resource Listings

TSXV Resource Listing Market Cap Totals per Price Range
Jim (0:08:04): FPX Nickel published a metallurgy update for the Decar nickel project. What did we learn?
The metallurgical update was a real chore to digest which may be why the stock sagged slightly in its wake. It was really intended for parties on the sidelines, namely producers who might want to develop Decar, and EV end-users such as battery makers and car makers wondering if Decar can provide a reliable and verifiably clean supply of battery grade nickel sulphate. FPX Nickel is a KRO Favorite so the July 28, 2022 Tracker which unpacks the meaning of the met update is unrestricted to the public.
FPX Nickel Corp (FPX-V)

Bottom-Fish Spec Value
Decar Canada - British Columbia 6-Prefeasibility Ni

Story Path Chart for FPX Nickel's Decar Project

Long Term Nickel price and Warehouse Stocks Chart
Jim (0:18:18): Tower Resources slumped in July when it published final results for its spring drill program at Rabbit North. What did the market not like?
Tower Resources plans to be drilling again soon in August with a strategy to confirm the new interpretation of the geometry of the Lightning Zone on the Rabbit North project. The July 13 news dropped the stock below $0.20 when the market realized that the initial interpretation was wrong, but I was very pleased with the implications of the new interpretation. I explained why to KRO members in the Bottom-Fish channel of the KRO Slack Forum at the time, and published a members only August 5, 2022 Tracker to remind them why this is a great emerging discovery. This KW audio episode for the general public includes the key graphics.
Tower Resources Ltd (TWR-V)

Bottom-Fish Spec Value
Rabbit North Canada - British Columbia 3-Discovery Delineation Cu Au

Syory Path Chart for Tower's Rabbit North Project

Map of Tower's Rabbit North Project

Rabbit North Geology Map and Dominic Lake Gold Grain Dospersal Train

Comparison of Lightning Zone Old and New Geometry Interpretation
Disclosure: JK owns FPX Nickel; FPX Nickel is a Good Spec Value rated Favorite; Tower is Bottom-Fish Spec Value rated

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