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2016 In Review

2016 In Review
Group of executives discussing business activity graphs on tablet screen


As 2016 comes to an end, it is a good time to assess all that we are grateful for. I had the opportunity to work with the homeless on Christmas Day and will do so again on New Year’s Day. They are grateful for what little possessions they have and show gratitude for anything given to them. They are my true heroes and heroines.

I am also grateful for all the stocks that have made my subscribers profits in 2016. Here is an analysis and assessment of some of my picks:

(1) Keek (TSX,V: KEK). As we expand into the tech sector, I am excited about two tech stocks, the first one being Keek. It is one of my favorite stocks and also one of my top holdings. We introduced this stock to you in the Spring of 2016 when it was trading around $.25/share. It reached a high of $2.40/share and currently sits around $1.25/share.

Keek (Peeks platform) is an e-commerce enabled live streaming platform that allows users to interact and transact in real time with real cash. Live viewers can express their appreciation of live and even archived video content by simply tapping on their mobile screen to easily send tips which is shared with Keek.

The possibilities to monetize are endless BUT nothing is perfect and Keek does have its challenges. Some are calling it the next “Uber” investment but first it needs to get away from the stigma of being a “soft adult content app”. As they introduce the new interface, I am hoping they have sections and categories so streamers who want to avoid certain content can do so.

Secondly, there is a dilemma of the private company (Personas) receiving 70% of the revenues and the public (Keek) receiving 30%. It is true that president and founder Mark Itwaru funded the company and paid a handsome sum to acquire basically the Keek database of users. He has no obligation to merge the two entities into one BUT the advantages to merge the private into the public are many. I am sure he sees that the driving force is the public entity and he has already graciously given an extra 20% of revenues (10% to 30%) to the public company, I think giving the public company quite a bit more of the revenue split and merging the private with the public would serve to show that Mr. Itwaru truly puts shareholders first. I am hoping this transpires as I feel it will take this company to a much higher level and instill more confidence within the shareholder base. If this occurs and the company executes its plan of attack, we could see many multiples in the stock price and it could turn out to be that “Uber” investment.

JGR is paid by the company, is receiving stock options and it is one of my largest positions in my own portfolio. My average price is around $1.20 as I bought between $.25 and $1.70. Do your own due diligence.

(2) First Global Data (OTC: FGBDF)  (TSX,V: FGD) our other tech pick in my opinion is simply a no brainer. We introduced the company to you about a month ago when it was trading at $.12 and subsequently climbed to $.36 and is currently trading around $.27.

First Global Data is an international financial services technology (FINTEC) company. The company’s two main lines of business are mobile payment and cross border payments. Their proprietary leading edge technology enables the convergence of compliant domestic and cross border payments, money transfers, shopping and peer to peer payments. First Global’s network spans 97 countries, with the expansion to 112 countries expected by the end of 2017 and more than 54,000 distribution and payout locations globally. They are integrated with over 200 banks. First Global’s objective is to be one of the top two online money remittance companies and the leading provider of ubiquitous mobile money payment solutions around the world.

I have had the pleasure of meeting and spending some time with president Andre Itwaru. His professionalism, business acumen and humility won me over. Management is key to any successful company and First Global certainly has that with Mr. Itwaru at the helm.

A big coup for the company was the appointment of Douglas Smith, former assistant secretary of the U.S. Department of Homeland Security (DHS), to its board of directors and to the board of directors of its U.S. subsidiary, First Global Money Inc. click here Mr. Smith will bring with him a world of contacts – another brilliant move by Mr. Itwaru.

The company recently announced a payment service in Ethiopia click here

along with launching services in India – there are 370 million mobile users in India click here

Recently First Global launched mobile payments at toll plazas in India click here

Edward Vranic, contributor to Seeking Alpha expects to see a record Q4 click here

At this point I have not been compensated by the company. My portfolio consists a large part of First Global shares. My average price is around $.20. I intend to accumulate more shares shortly. I love this company. Do your own due diligence.

(3) MX Gold (TSX,V: MXL). This company’s share price really experienced a big ride both up and down. A lot of the recent decline has to do with the sudden post election drop in the price of gold. This company is a winner. Not only do they expect to put the Willa deposit into production, but also their recent acquisition of the Magistral Del Oro tailings project click here

The stellar management team is keen on acquisition and made a bold and prudent move by optioning a 5-per-cent interest in the Bonaparte property held by Westkam Gold (TSX, V: WKG) click here

MX Gold is one of my favourite gold companies and with good reason. They expect to be in revenue production in 2017 from at least one of their four assets. Management is seasoned with Bert McPherson as President and COO. His bio is impressive: Mr. McPherson has most recently been the mine manager of Goldcorp’s Penasquito mine in Mexico, having over 1400 employees directly reporting to his office. The Penasquito mine is Mexico’s second-largest mine and is its largest gold producer. In 2015, the Penasquito mine delivered record gold production of 860,300 ounces and record silver production of 25,926,600 ounces. Mr. McPherson was also the general manager of Tasiast in the Inchiri Region for Kinross Gold and mine production supervisor for Teck Resources.

I am expecting great things for MX Gold in 2017 and beyond. The $.12/share it recently reached I feel is its low and I am expecting a good ascension. I am excited to be covering the company and keeping you informed and updated. I own shares and JGR is being compensated. Do your own due diligence.

(4) Coronet Metals (TSX,V: CRF). We introduced our readers to Coronet Metals in September of this year when it was trading around $.40/share. That is where is currently sits but had a ride up to over $.70 and fell during the fall in the price of gold.

Coronet Metals is engaged in the business of acquiring, exploring and developing natural resource properties, with a focus on precious mineral properties/projects which have the potential for both near-term cash flow and significant exploration upside potential.
Coronet’s White Caps Gold Project is near the town of Manhattan in Northern Nye County, Nevada, only 13 miles south of Kinross’ multi-million ounce Round Mountain Gold Mine. White Caps is well in line with its strategy of acquiring precious metals mining projects which have the potential for both near-term cash flow and significant exploration upside potential.

The near term excitement comes from the White Caps Gold Property

250,000 tonnes of historic mine dumps/tailings @ average grade of 3.15 g/t.
These grades were from September 2012 assays that were conducted by a metallurgical testing company out of Colorado on representative samples and the average fire assay results for the tailings and dumps were 3.15 g/t. That is about 25,000 oz of gold in “situ”, based on these grades. The Company is continuing to make progress, using modern techniques for maximizing recovery. Older assays show higher values.

25,000 ounces of gold ready to be processed for cash flow. These are tailings which means that milling is not needed. From what I understand, management is investigating companies that can process the tailings efficiently and effectively.

Another exciting piece is that the company has less than 15,000,000 shares fully diluted, with insiders and former insiders owning about 2/3rds of the shares. With a stellar management team and near term clash flow, Coronet Metals presents current and future shareholders with good upside potential.

We are still very bullish on Coronet Metals. I believe that with a supportive gold price, the share price will exceed its high reached in 2016. I feel there are exciting times ahead for this company and its shareholders.

I own shares in this company and JGR is being compensated. Do your own due diligence.

(5) Explor Resources (TSX,V: EXS). I have had the pleasure of seeing this property first hand earlier this year. The company’s assets are stellar with its flagship property, the Timmins Porcupine West (TPW) Project. The TPW is located in Bristol and Ogden Townships in the Porcupine Mining Division, District of Cochrane, Province of Ontario – only 13km from downtown Timmins. The property consists of 185 unpatented mining units and 3 patented mining claims located in the Bristol and Ogden Townships in the Timmins-Porcupine Mining Camp for a total of 3,200 hectares. The property is contiguous with Tahoe’s Lake Shore Mine, and where one of Lakeshore’s previous acquisition’s West Timmins Mine (WTM) where WTM intersected 83.40 meters (273.44 feet) grading 12.75 g/t (0.37 oz/t) on their property. (WTM later purchased by Lakeshore and Lakeshore was recently purchased by Tahoe) As a mining focused economy, Timmins has the necessary infrastructure and labour pool to move quickly on mining developments, representing an advantage for the junior mining corporations in the area.

In December 2014, the Corporation signed an agreement with Teck Resources Limited (Teck) under which Teck can acquire an initial 55% interest in the Timmins Porcupine West property by completing exploration work expenditures totaling $8,000,000 by May 1st, 2019. The $8,000,000 is being invested in installments until 2019 again showcasing a deep commitment to develop the property to its full potential. Following this, Tech has an additional option agreement to earn an additional 15% by spending an additional $4,000,000. This will give Teck a 70% interest in the property. The joint venture will be structured with a 70/30 relationship with each party to fund its share of the arrangements.

Striking a deal with a major is a real feather in the cap for Explor Resources. We are looking forward to the drill results from TPW and their other properties. To read my previous article on Explor please click here. JGR has been compensated by the company. Please do your own due diligence.

(6) Nexus Gold (TSX,V: NXS). We introduced the company to you about a month ago. The stock faired well rising about 25% despite the decline in the price of gold.

Nexus holds properties in two of the world’s prolific mining jurisdictions – the first being Burkina Faso. The company successfully raised $1.25m earlier this year and is set to begin work programs. Nexus is well positioned heading into the first quarter of 2017.

Burkina Faso, which means an honest man is a unique country located in Africa as it currently seems to be both politically and to some degree, economically stable. Political turmoil was a common place but with a recent coup, law and order seems to have restored. That is great news for the people of Burkina Faso and for gold miners there. Three titans, Endeavour Mining, Roxgold and Orezone have mines located there. Endeavour has a gold mine producing 190,000 oz/yr at an all-in-cost of US$714.
According to Nexus Gold’s Power point:
— Gold mineralization was first identified on the Bouboulou area by Boliden in 1997 where a Regional Rotary Air Blast drilling program outlined a broad northeast trending gold anomaly measuring 13km by 2 km over what is now the Bouboulou permit. The concession was then explored by Riverstone Resources and Roxgold Inc.
— Highlights of these surface exploration programs include; surface rock sampling and trenching returning gold grades from 1.09 to 19.16 g/t gold. Four zones of gold mineralization have been identified on the property termed Koala, Rawema, Bouboulou 2 and Pelgtanga.
— Roxgold later completed reverse circulation (RC) and diamond drilling (DD) to test the four mineralized zones.

The company just finished RAB drilling at Niangouela Gold concession at Niangouela Gold Concession – click here

I am impressed with the management team as they “get it”. They understand the markets and the need for marketing and keeping the shareholders informed. I am looking for good things with the company in 2017 and beyond. JGR has been compensated by the company. Please do your own due diligence.

(7) New Age Farm Inc. (TSX,V: NG). The marijuana sector really took off in 2016 but a lot of companies came off their highs quite a bit the last month or so – New Age Farm was no exception. We introduced you to New Age Farms when it was trading around $.09. It subsequently rose over $.30 and currently trades around $.12.

Through its Washington State subsidiary, New Age Farm owns two properties, one located in Sumas, Wash., and the other in Oroville, Wash., where it offers fully built-out turnkey service operations to licensed I-502 tenant-growers who will lease the facilities for production and/or processing.

Through its wholly owned subsidiary, NHS Industries Ltd., New Age owns a 5.5-acre greenhouse facility in the Lower Mainland of British Columbia with a 48,000-square-foot greenhouse facility.

The company is pre-building marijuana grow facilities which will then be leased as turn-key operations to companies with the proper license in their jurisdiction.  New Age Farm’s turnkey farming operations provide every resource for a Tenant Grower to grow a high value Luxury Crop.

New Age Farms currently has 3 properties under development.

New Age Farm introduced a spin off which benefited investors who held shares

click here

I believe this had an impact on the decrease of the share price as investors received “spin-off” shares.

JGR has been compensated by the company. Please do your own due diligence.

(8) Mezzi Holdings Inc.(TSX-V: MZI, FRA: 0MZ). This stocks movement has actually confused me. After writing it up and introducing it to my subscribers earlier in the month, many shares were traded but eventually the share price decreased a bit – possibly tax loss selling. We are keeping a watchful eye on Mezzi and will alert our readers if we feel any negativity is occurring. So far we have no reason to believe so.

About MEZZI BRAND GROUP – from Company’s description

MEZZI Brand Group is a Vancouver-based consumer accessory brand management company. We believe that great brands are built one great product and one valued customer at a time. We have gathered a group of young talented experts ranging from accessory design, product development, marketing, branding, e-commerce, digital media and PR to build and scale our millennial-customer focused brands. A well-defined, strategic philosophy and clear mission statement promotes and protects MEZZI Brand Group’s most valuable assets – our brands – MEZZI Smart Luxury, Capital Eyewear and MLine Cases.

The very confusing part of Mezzi’s current low stock price is that Mezzi IS revenue positive and the market cap is just over $5 million. On December 19th- the company announced:

Mezzi Holdings Inc. (“MEZZI”, “MEZZI BRAND GROUP” or the “Company”) (TSX-V: MZI, FRA: 0MZ) is pleased to announced that sales results for the month of November including pre-orders and fulfilled transactions exceeded $201,000.

During the month of October, the Company sold out of its existing MEZZI inventories and November’s sales largely represented pre-orders on future production. A portion of these new inventories have been received with deliveries on certain pre-orders now being fulfilled.

We are expecting that Mezzi will increase revenues month over month in 2017. JGR has been compensated by the company. Please do your own due diligence.

Gold has dropped post election but have the fundamentals of the companies themselves changed? If you were bullish on junior mining companies a couple of months ago when their stock price was probably lower and bullish on gold at about US$1300/ounce then you must be really bullish now – I AM!

It is impossible to pick a grand slam homerun company/stock every time but our distinguished track record speaks for itself. I am not an financial advisor so I cannot provide advice to buy or when to sell. But I will continue to present companies I feel have great assets and are of great value.

Looking forward to keeping you informed in 2017.

Happy Investing and Happy New Year to you and your loved one’s from the Junior Gold Report team.

Dr. Kal Kotecha

“Help those in need”


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