Highs and lows of mining. While collapses do occur, opportunities still abound

Never a dull moment in the mining space. 

In case you missed it, in the past several days, shares of Victoria Gold Corp. (TSX: VGCX) have been decimated from C$7.30 to C$1.29 on news that the heap leach pad at its Eagle Mine had collapsed.

Share price action aside, the news has severe real world implications for the people that make a living from the mine. There will also be implications for the Yukon as a whole as the collapse is yet another stark reminder (as if we needed more) of how risky the mining industry and investing in mining stocks can be.

On the polar opposite end of the spectrum, Fission Uranium (TSX: FCU) shares have surged over 100% in the past year. And just two days ago, the company received an offer from none other than Paladin Energy (ASX: PDN). The offer caught many off guard and has led many to speculate about the potential for a competing offer.

There’s also speculation that oil companies are now looking to get involved in the clean energy space in a serious way. The uranium sector is tiny, and large-cap energy companies are beginning to pivot into the space as the energy transition shifts into high gear. 

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Speculation aside, the news is an indicator of what I see as the resurgence of accelerated M&A in the uranium space. M&A that, for uranium bulls like myself who have waited years for this market to develop, will lead to a very profitable several years in the sector.

And it’s not just uranium. While the lithium spot price and equities continue to bottom, Rivian was up some 50% after announcing that Volswagen plans to invest up to $5 billion in the company. 

That won’t be the last of that type of partnership. And those doubting the lithium fundamentals in the mid to long-term are going to miss out on a spectacular opportunity to profit from a trend that will be in our favor for the foreseeable future. 

Same goes for gold.

Lastly, what's good for lithium is really good for copper. And I encourage all of you involved in the space to look at your mining stock list, check it twice, and get some exposure to the red metal.

They won’t all work out, of course, and there will be volatility. Yet, with the right timeline and the right approach, you can do very well in yet another market that’s setting up beautifully for us contrarians

Let’s get it!

Gerardo Del Real

Gerardo Del Real
Editor, Daily Profit Cycle