Interactive Investor

Three small-cap mining share tips for 2022

22nd December 2021 21:55

Lee Wild from interactive investor

There’s rarely a dull moment in the world of mining exploration, and 2021 was no exception. John Meyer, mining analyst at broker SP Angel, shares three of his best investment ideas with interactive investor.

Lee Wild, head of Equity Strategy, interactive investor: Hello, with me today I'm lucky to have John Meyer, mining analyst & partner at SP Angel.

John, there have been some big performances from small cap mining stocks in 2021. Also some disappointing ones. But which small cap mining stocks do you think will do well in 2022? 

John Meyer, mining analyst at broker SP Angel: Well, I'll talk my own book to some degree. I own Rambler Metals and Mining (LSE:RMM), I think that will do very nicely, it’s listed on the London Stock Exchange. And the exploration results out of the drilling look better than - certainly better than I had expected. And that is - that's a copper gold producer, it’s based in Canada. It's an underground mine, which is not something I would normally look to invest in from a copper perspective, but actually the results are good. It should become extremely profitable next year. It's just working its way through a hedge book where it had pledged to forward sell its production at lower prices than we see now. And as it comes out of that, and as it produces higher grade copper and probably a bit more gold with that production as well, I think we're going to see a complete transformation of the business, which is nice. 

I'm also invested in Cornish Metals (LSE:CUSN), they have a discovery at United Downs in Cornwall. That discovery is now showing exceptionally high grades of tin and copper. Now the few grades that we see are not enough to make a mining project all on their own, but they’ll carry on drilling this thing and if they carry on drilling the sorts of grades and intersections that we see, then I think there’s a reasonably good chance that this might turn into a production unit. They also own the South Crofty mine. The South Crofty tin mine in Cornwall where I actually started my mining career with a shovel and a sledgehammer, and I’d be very pleased to see the company dewater and re-access that mine in future years.

So I hope the United Downs project will actually act as a sort of starter motor and kick start the South Crofty project. So if we're lucky, we might get two mines almost for the price of one out of this company. But that's a bit more of a slower burn, and certainly carries a higher risk. 

Other companies that we look at are Bluejay Mining (LSE:JAY), for example, which I also own. That company is looking to develop a titanium mineral sands project in Greenland. And they announced this morning [29 November] that they’ve just taken on a new titanium mineral sands expert to work with the project there. And I think that's very good news because you can't make these things happen without having the right people on the ground. And so nice to see some progress going on there. 

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