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(TSXV:YORK) Metal Mining Play: York Harbour Metals Stock (Updates)

Metal Mining Play: York Harbour Metals Stock YORK.V (Updates)

Written By: Marc Challande


Published : April  May 4th, 2022

 York Harbour Metals Inc. (YORK.V) is an exploration and development company focused on the York Harbour Copper-Zinc-Silver Project, located approximately 27 km from Corner Brook, Newfoundland. The company announced several updates, proving the company is advancing step by step.

Great Results for the Phase 3

York Harbour Metals provided results on April 18th, about the Phase 3 diamond drilling program at the York Harbour Copper-Zinc Projects. It is located approximately 27 kilometers from Corner Brook, Newfoundland.

Completed 28 NQ-size diamond drill holes totaling 4,980 meters;66 diamond drill holes for a total of 10,764 meters completed since July 24th, 2021;Long delays at the assay laboratories;Analytical and assay results from Phase 3 drilling program expected shortly;All Phase 1 and 2 drill core sample results have been reported;Encountered multiple zones of copper- and zinc-rich mineralization with attendant silver and cobalt within the Main Mine Area; andPhase 3 drilling results, based upon the visually observed VMS mineralization, will both confirm the earlier drilling results and extend the drill indicated mineralization both along strike and downdip.

“Phase 1 & Phase 2 drilling programs have successfully identified, delineated, and discovered several copper-rich and zinc-rich mineralization lenses in the Main Mine Zone. The systematic drilling in Phase 3 was to infill the Main Mine Zone and begin our expansion of the 400-metre strike length. With the Permit in place, we can aggressively continue our drilling program to further expand both along strike and at depth.”

Bruce Durham, Chairman

Corporate Updates

On April 15th, the company shared several updates.  The company welcomed Michael Williams to its advisory board. M. Williams is the founder and executive chairman of Aftermath Silver and currently serves as a director, CEO & president of Vendetta Mining Corp. Michael Williams brings over 25 years of experience as a senior executive within the mining industry. Mr. Williams will bring a lot of experience as, in the past, he held a senior role in several successful public companies, including Underworld Resources. This company has been sold to Kinross Gold Corp. for $138M.

York Harbour Metals also announced it had joined the Mining Industry NL association as a corporate member. The association represents the mineral industry focusing on the Newfoundland & Labrador provinces. The advantage of joining this association is it allows the company to have connections to government, community, supply, services, and professional firms.

Share Structure/Fundamentals

The company has strong fundamentals. With 48M shares outstanding, and Blair Naughty’s current buying program, the float is tightening, enabling investors to witness more considerable price fluctuations as fewer shares are available. Moreover, 3M options with an exercise price of $0.55, 10.2M warrants, leading to only 62M shares fully diluted. What is very interesting about these numbers is that they have a controlled dilution. Indeed, all of their warrants’ exercise prices are below the current share price, enabling the company to raise money if needed. They can potentially raise $7M! One last essential piece of data is the company has no debt.

If we focus on the insiders/key insiders’ stake data, it is also very positive. Almost half of the float is controlled by officers, directors, insiders, and key/strategic investors. It is a data investors appreciate when this number is high.

Share Movement

The stock is currently traded at $1.31 for a $62M market cap. The stock gives an excellent return on investment to its shareholders. Year-over-Year, the company witnessed a 351% increase, while the TSXV is down by 15%. The stock price is close to its 52-weeks high of $1.49 and far from its 52-weeks low of $0.25. With all the catalysts coming for the company, we shouldn’t see the stock price going towards its lows. The company’s stock price still enjoys an uptrend, benefiting from market uncertainties. So far, mining stocks represent the safest asset to own. Most of the other sectors, such as technology, cannabis, and leisure industries, have been bearish since the beginning of the year.

Its Simple MA (20) is at $1.27, way above its Simple MA (200), worth $0.69. Averages crossed in August, 2021 and since then, the stock price has been bullish, and averages show a considerable uptrend. The Bollinger bands indicate daily fluctuations between $0.99 to $1.55. This data is broad because of the recent substantial increase in the share price. Besides, the stock price should consolidate around $1.30 before the next movement. Recently, the volume of daily shares traded decreased. In comparison, its 20-day ADV went as high as 273k shares traded when its 10-day ADV was at 171k. If we focus on level 2, there is a significant wall at $1.50. Twelve orders totalize 166k shares on the sell order. This wall presents an excellent opportunity to add more under this price.

Another exciting data is the large shareholders buying. Over the last three months, more than 33 buying transactions have been triggered, proving the company’s sustainability. Blair Naughty has filled big orders (4 transactions totaling 400k shares), with the most recent on April 14th. He now owns more than 6M shares or 12% of the outstanding shares!

Bottom Line

York Harbour Metals (YORK.V) continues to structure its growth step by step through the arrival of Michael Williams to YORK’s advisory board, the Mining Industry NL association joining, and the positive Phase 3 drilling results. The sector is bullish, and so is the stock price. The future should be bright for YORK.

This article solely expresses the opinion of the writer which might be disagreeing with the other writers of Money,eh?. Moreover, the writer is not involved in YORK, and does not own shares of the Company .

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