Better Mining Stocks Could Offer Multi-Bagger Potential
Contributed Opinion

1. Western Exploration Inc. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Western Exploration Inc. and Outcrop Gold and Silver. 
3. Katherine Del Buono wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Jeff Clark's father was a gold prospector, and he is one, as well — of sorts. He started thegoldadvisor.com to share his own mining stocks with investors and wrote a book called PAYDIRT: Mining for Profits with Gold & Silver Stocks. Now, he's also taken over Gwen Preston's well-known The Maven Letter as Paydirt Prospector. 

As we move into the holiday season and trudge through to the end of the year, we at Streetwise thought it was pertinent to sit down with Jeff Clark again and see what he has been working on and what companies may be on his radar.

First, we asked for any updates after acquiring The Maven Letter and Paydirt Prospector. Jeff was very excited to share that the acquisition was now complete.

"We have a brand-new website and a full staff, and Peter Krauth of Silver Stock Investor came over as well. Furthermore, we're launching two new products, one free and one paid, that investors may find useful. We're doing all of this because we believe we're in the right place, at the right time, with the right investments."

He suggested interested investors go to The Gold Advisor's website (linked above) to see all of what they offer.

Western Exploration: A Stock With a Crack Geologist Lead

We next asked him about Western Exploration Inc. (WEX:TSX.V; WEXPF:OTC), a company that has been on his list for a while now.

When asked why Clark was interested in the company, he responded, "They're a gold explorer with a 1.35-million-ounce resource that, based on high-grade step-out results, looks like it could hit two million ounces."

Clark also noted that Western Exploration is in the middle of a drill campaign to answer that very question. He also stated that the campaign is spearheaded by a geologist who's made multiple discoveries, with two producers and multiple institutions invested in the stock.

As for upcoming catalysts for Western Exploration, Clark told us that we should look out for the assays for two more holes that have been pending. He commented that the data should be available shortly, with management strategizing the best time to make announcements. 

"We'll likely see a new plan from them in Q1. This is a crack geologist leading the company," Clark said.

We then spoke about the company's current valuation and goals. 

Clark told us, "The goal to increase the resource is still on, which is largely the basis of the investment here. There may be another drill program first, but it'll grow; it's really a matter of how many more ounces are added."

When asked whether he considers the stock undervalued, Clark added, "The stock hasn't left the station yet, so if I didn't own any shares, I'd build a position on days it's dipping."

About 72% of Western Exploration is owned by strategic entities and high net worth investors, according to its latest investor presentation, including Golkonda LLC with about 46%, Agnico Eagle Mines Ltd. with 14%, and Auramet Capital Partners with 5%.

Other institutions hold about 6%, insiders and management hold about 3%, and the rest is retail.

Western Exploration's capital structure consists of 45.43 million outstanding shares and 17.85 million free-float traded shares, according to Reuters. Its market cap is CA$61.54 million. Its 52-week trading range is CA$0.46−CA$1.50 per share.

Outcrop Gold and Silver: A Silver Powerhouse?

Next, Jeff Clark said he definitely wanted to speak about Outcrop Silver & Gold Corp. (OCG:TSX.V; OCGSF:OTCQX; MRG1:DB). He said that he considered Outcrop an exciting company with a clear path to becoming a silver powerhouse in the future.

Clark has had a lot of history with Outcrop, and participated in an analyst tour last June in Colombia, South America. He told Streetwise that its "Flagship Santa Ana currently has a 37Moz silver resource, but management sees the potential for 100 million ounces."

He continued, "That's a big jump — but I've spent a lot of time assessing that possibility and, as a result, went overweight the stock."

Once Clark met the CEO, Ian Harris, and fully was able to see Harris' vision, he knew he needed to visit the projects. "After my visit, I prepared an onsite report, one of the biggest I've ever done, that goes into a lot of detail and answers probably any question you'd have about them," Clark remarked. "It's behind a paywall at Paydirt Prospector, but by the end of reading it, you'll understand why I have an overweight allocation to the stock."

As for catalysts, Clark stated that the company has primarily been zoned in on drilling and expanding its current resource.

"They're exploring far outside the current resource area, showing it has enormous expansion potential, and they're hitting," he said. "There's so much room to explore here that I could easily see holding this stock for another two to three years to hopefully see them hit that 100-million ounce resource."

Refinitiv provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 7.53% of the company.

According to Refinitiv, Executive Chairman Ian Slater owns 6.82%, Director Joseph Hebert owns 0.65%, Director Kevin Nishi owns 0.03%, and President, Chief Executive Officer, and Director Ian Harris owns 0.02%.

2176423 Ontario Ltd. owns 21.42% of the company as a strategic investor, stated Refinitiv. Institutional investors own 0.06%. The rest is retail.

The company has 297.7 million shares outstanding and 211.51 million free float traded shares, while the company has a market cap of CA$69.96 million and trades in a 52-week range between CA$0.13 and CA$0.35.

A Unique Position in History

As for the overall gold and silver market, Clark said, "We're in a unique position in history: surrounded by geopolitical, financial, and monetary risks, such that the case for gold couldn't be stronger."

Clark believes that gold and silver will take off.

"If gold and silver do what many of us think it will, the better mining stocks will offer multi-bagger potential. That could change our financial station in life," he concluded.