Duluth Metals Ltd (NASDAQOTH:DULMF)

CAPS Rating: No stars


Player Avatar TSIF (99.96) Submitted: 1/6/2010 3:17:47 PM : Underperform Start Price: $2.14 DULMF Score: -59.10

I have no serious issues with this exploratory miner other than current valuation. IT has gone from $0.12 to over $2.00 since March, and maybe I'm just jealous that I wasn't along for the run! The 0.12 to $2.00 runup may not be unusual either as it takes time to mature an active mine. Duluth has been in active on the Toronto and US exchanges for about 3 years and are below the price they issued at. The recent investor interest is due to test results from their explorations in Minnesota. Each sucessive round of testing has increased potential from the area. Copper, Nickel and Platinum are enjoying a renewed interest as the recession wanes.

My issue with valuation is that there is still no permitting, environmental impact statements, nor other key pieces needed for actual extraction. The issues that occur during these stages can set a company back months and sometimes years. The area, however, is near Polymet Mining Corp. (PLM)'s holdings, however, which has done much of the early work, demonstrating that the steps Duluth needs to take may be smoother. Based on their timeframe to revenue, and current cash on hand, I would recommend that investors look at PLM and hold on Duluth until valuation to schedule to hurdles to viability are shortened.

"Duluth is committed to acquiring, exploring and developing copper, nickel and platinum group metal (PGM) deposits. Duluth's principal property is the Nokomis Property located within the rapidly emerging Duluth Complex mining camp in northeastern Minnesota. The Duluth Complex hosts one of the world's largest undeveloped repositories of copper, nickel and PGMs, including the world's third largest accumulation of nickel sulphides, and one of the world's largest accumulations of polymetallic copper and platinum group metals."

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Member Avatar TSIF (99.96) Submitted: 1/14/2010 11:17:59 AM
Recs: 0

Duluth received much needed financial backing today, and the stock soared, taking my CAPs play to the cleaners. Short of hte backing, I do believe it was overvalued in it's current stage of production. With the backing, they should be able to bring the area into production faster, but are still several years away. The blimp to $3.30 will decay away slightly over time, but no doubt I will close this one in the red. Great call on the green longs! :)

Chilean copper miner Antofagasta (ANTO.L) is to acquire a 40 percent interest in a mine project in the northern United States, expanding its footprint to North America as it seeks to boost growth. London-listed Antofagasta said on Thursday it would provide $130 million of funding over three years for the Nokomis project in Minnesota, owned by Canadian-listed Duluth Metals (DM.TO), in exchange for the initial stake.

Member Avatar minnesotaguy (< 20) Submitted: 2/17/2010 2:55:04 PM
Recs: 0

Appreciated the reco on PolyMet (PLM) as more advanced. I think both are good "cheap" stock's that have a chance to produce a double over the next 5 years with limited downside. With the big boy's starting to pay attention it might be a buy and hold and dream. Eh!

Member Avatar TSIF (99.96) Submitted: 2/17/2010 5:19:07 PM
Recs: 0

There's always a dream to be had in equities, especially gold ones. I picked up some FRANCONIA MINERALS C(Other OTC: FRALF.PK), up the road from these guys and less developed. At $0.54 it's also a dream. I closed my Duluth pick after the cash investment here on CAPS. On rare occasions a featured pitch stays up after the call is closed. I think they are also worth a look as a long speculation also. The $3.30 excitement left some "bag holders" for awhile, but helped to strengthen the lower resistance.

Between PLM and FRALF.PK, I probably have enough gated in one area.

Good luck mining the junior miners. Some will succeed. I've done well off of NXG, although it should be higher.


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