Special Situation Report:
Date: January 20, 2008
Introduction
Over the past few years, Molybdenum and related products have experienced a massive increase in demand worldwide due to the growth of the steel industry in China. We believe the current bull market for these metals in China will continue. Why? China is protecting its resources by implementing export restrictions of specific mineral resources such as molybdenum (i.e. molybdenum oxide and ferromolybdenum). Also, the Chinese domestic demand for this metal is showing little signs of peaking. These factors and the resultant reduction in export forecasts, will nevertheless enhance the current bull market.
Why is Molybdenum important? Molybdenum is mainly used as an alloy to strengthen iron and steel, increasing the melting point and enhancing resistance to corrosion. The US Geological Survey (USGS) estimates world molybdenum resources at 19 million tonnes, with China accounting for 8.3 million tonnes. International molybdenum prices are expected to increase due to high demand, imposed export restrictions, and by the current bull market for mined commodities.
Now here's the kicker ... Ever since mid-2005, the Shanghai Composite Index ($SSEC), which tracks the largest of China's stock exchanges, has been on fire. The China boom with its red-hot economy reflects the robust steady growth that China offers. The love affair between Warren Buffett (the greatest investor of our generation) and the Chinese energy behemoth PetroChina (the world's second largest company) represents the astounding growth of China. We all know how successful Mr. Buffett is at recognizing investment opportunities of not only companies trading in the United States, but more importantly of international companies with significant growth potential. Tieing the two together, we have found a highly undervalued company that has significant growth potential. Long-term this could be a very lucrative investment opportunity for investors. We now present our featured company.
Newsbreaks !
1.) Chu Phase 2 program intersects additional High Grade Mo
VANCOUVER, Jan. 17 -- W. K. Crichy Clarke, President and CEO of TTM Resources Inc. ("TTM" or the "Company") is pleased to announce additional assay results from the Phase 2 drill program at its 100% owned Chu Molybdenum Project 65 Km Southwest of Vanderhoof, British Columbia, Canada. These holes were drilled to determine grades and widths of the quartz-molybdenum stockwork zone between the High Grade West and East Zones, and to test the near surface molybdenum mineralization of the east zone.
The Company is very pleased with the width and consistency of mineralization demonstrated by these drill holes. For further information of the press release, click here.
2.) Drilling at Chu Molybdenum property extends High Grade EAST Zone an additional 70 meters! VANCOUVER, Nov. 26 -- W. K. Crichy Clarke, President and CEO of TTM Resources Inc. is very pleased to announce additional assay results from the Phase 2 drill program at its 100% owned Chu Molybdenum Project 65 Km Southwest of Vanderhoof, British Columbia, Canada. As shown on the
drill plan map, three holes (CHU E004, CHU E003, and CHU W003) returned very favorable results. Hole CHU E004 carried significant Mo mineralization over its entire length. The hole was stopped in mineralization, and results have extended the West boundary of the EAST High Grade Zone by a further 70 meters. The zone remains open to depth and to the west. Hole CHU E003 confirmed the mineralization trend towards the surface, and the zone remains open to depth and to the east. Hole CHU W003 encountered a number of barren post-mineralized dikes, which could likely be segregated as internal waste during mining, and it had some molybdenum deposits. For further information of the press release, click here.
Our Feature Profile:
TTM Resources Inc.
(TSX-V: TTQ.V, Frankfurt: T2U, US Clearing Symbol: TTMRP.PK)
Close of Jan. 18, 2007: $1.00
Company Profile
TTM Resources Inc. is a Vancouver, British Columbia; Canada-based publicly trading junior resource Exploration Company, focused on four assets in British Columbia, Canada: The Chu Molybdenum Project, the newly acquired Terrace Molybdenum Project, the Deeker Creek Molybdenum Project and the Moly/Gold Project. Exploration programs for 2008 will concentrate mainly on the Chu Project, budget $7,500,000 with definition drilling leading to a resource estimate. On the Terrace Project a ground follow up program is planned to investigate results obtained in 2007. These high potential properties, experienced management, working capital, and attractive share structure all help position this Company for success.
Featured News of "The Company":
Company Overview:
TTM Resources Inc. is a strongly-managed Canadian mining junior that benefits from a strategically sound business model that involves the development of four wholly-owned molybdenum and gold-copper projects in British Columbia (BC).
Much of the appeal to TTM’s business model is that it is scalable. In other words, the Company’s BC projects are being advanced in a very cost-effective fashion. This includes capitalizing on millions of dollars worth of historic exploration data, including drill results, all of which TTM has acquired as the legacy of the exploration efforts of previous project operators.
Of special note is the fact that the Company offers shareholders maximum investment leverage to these emerging opportunities through its 100% ownership of all of its properties. Likewise for TTM’s exclusive operational control over all of its exploration programs. And each of the Company’s projects still offers ‘blue sky’ potential for a bulk tonnage porphyry discovery.
Hence, TTM has a strategic focus on the development of promising early-stage molybdenum prospects. The logistics of commercializing a molybdenum deposit benefit immeasurably from the fact that it is an industrial metal that is in huge demand.
Simultaneously, the Company (www.ttmresources.ca) is evaluating and exploring for associated copper and gold mineralization that coexists with the molybdenum discovery zones at two of its four core BC properties.
Why TTM Resources Warrants Investment Consideration:
- Extension of high grade prospects (areal distribution of estimated reserves) due to successful drilling programs:
- November 26 - Drilling at Chu Molybdenum property extends high grade east zone an additional 70 meters
- October 28 - High grade molybdenum in Chu E-001 intersects interval of 192 meters of 0.11% MO as part of 635 meters of 0.08% MO extending western boundary by 150 meters
- The company has acquired vast funding to continue operations and meet its objective, as shown by:
- completing a $8,682,750 private placement on Nov. 15, 2007
- completing a $8,250,000 private placement on Apr. 24, 2007
- Cost of International molybdenum prices are expected to increase:
- Increase in demand for Molybdenum and related mined commodities with little sign of peaking
- Implementation of export restrictions (reduction in export forecasts) on specific mineral resources such as molybdenum
- The company is highly undervalued based on its outstanding growth potential and magnified by the robust growth of China, which consumes 43.7% of the world's molybdenum. Not to mention that the greatest investor of our time "Warren Buffett" continues to invest in the red-hot economy of China. Long-term TTM could be a very lucrative investment for those who are knowledgeable of this company now and prior to the street knowing of its potential.
TTM Resources Inc. possesses a strong management team, with each member having solid credentials in both education and work experience to manage a successful company. The company is led by the following individuals.
- Terrence A. Lyons, Chairman of the Board and Director
- W.K. Crichy Clarke B.A., President, Chief Executive Officer and Director
- Michele Pillon, Chief Financial Officer
- Warren Robb (P. Geo.) Chief Operating Officer & Vice President Exploration
- David R.C. McMillan, Director
- Charles Ikona P.Eng, Director
- Richard Jordens, Secretary and Director
- Robert Sibthorpe, Director
- Donald Davidson, Advisor to the Board
Click here for the full description and backgrounds of key management.
Projects:
| CHU/MOLY Project | "Phase 2 drilling of 20,000 meters plus continues on the Chu project" The Chu Molybdenum Project (the “Chu Project”) located in the Omineca Region of Central British Columbia and is comprised of seven contiguous mineral claims. The Chu Project covers an area of 3,246 hectares (8,100 acres) and is approximately 80 kilometers south-southwest of Vanderhoof, BC, and approximately 75 kilometers from Thompson Creek Metals Company Inc. (TSX:TCM) 75% owned Endako Moly mine and processing facility. |
| Terrace Project | In the fall of 2006, TTM purchased and staked 8,410 contiguous acres of Molybdenum (Mo) prospective claims. The area is 20 km northeast of Terrace, British Columbia, contiguous with BCM Resources Corp.’s (TSX.V: B) Shan property. BCM’s work to date on the Shan property includes highlights of 59.65m of 0.118% Mo and 112.7 m of 0.107% Mo. TTM’s claims are on trend with the Shan property, situated directly to the west. An AeroMag survey and extensive ground sampling and mapping program have been completed and follow up work is scheduled for the early summer. |
| Deeker Creek Property | "The Deeker Creek Claim Group is situated in an area that is well-known for hosting precious metal deposits." The 100% owned Deeker Creek Claims consist of forty six contiguous claims, located in the Liard Mining Division, 210 kilometers northwest of Stewart and 65 kilometers southwest of Telegraph Creek in northwestern British Columbia, Canada. The claims are situated on the western margin of the intermontaine belt within the Stikine River arch area. The Deeker Creek Claim Group is situated in an area that is well-known for hosting precious metal deposits and numerous gold-copper showings occur in close proximity to the subject claims. Two major porphyry copper deposits, Liard Copper and Stikine Copper, are situated within the lower Stikine River area. Other mineral occurrences, most of copper, are widely distributed within the area. Molybdenite occurs as a secondary ore mineral at liard Copper, and in a number of mineral occurrences elsewhere, notable within the Upper Chutine and Barrington river drainage areas. The Galore Creek copper porphyry deposits, located only 25 kilometers southeast of the Deeker Claim property, are another example of the potential of the region. The deposits were first discovered in 1955 by Hudson Bay Exploration and Developments Company Limited, and later explored jointly by several companies. Although never brought into production, mineral reserves for the Central Zone deposit stand at 137,000,000 tons grading 1.06% copper with 0.25 ounces silver/ton and 0.013 ounces gold/ton (1.8 million ounces contained gold). |
| Moly/Gold Project | "Contains a significant number of anomalous target areas requiring detailed follow-up work."
The 100% owned Molygold property is located approximately 120 km north of Vancouver, 10km to the northeast of Pemberton, and approximately 15km to the northwest of Whistler Village, British Columbia, Canada. The property is well situated as several power stations are present in close proximity, a major power grid passes through nearby communities, and an extensive logging road network exists within the claim block. The local Mount Currie First Nations Band also continues to support the Company’s current and future plans to date through regular consultations. |
Press Releases:
Share Structure & Key Statistics:
| Exchange and Symbol | TSX-V: TTQ.V, Frankfurt: T2U, OTC-PK: TTMRP.PK |
| Recent Price | $1.00 (TTQ.V), January 18, 2008 |
| 52-week High - Low | $1.78 (high) - $0.17 (low) |
| Average Volume (3 month) | 331,502 |
| Shares Outstanding | 46,221,379 |
| Market Capitalization | $46,221,379 |
| Industry/Sector | Mining Industry/Molybdenum Exploration & Development |
| Additional Statistics | http://finance.yahoo.com/q/h?s=TTQ.V |
Contact Information:
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Technical Analysis
We are presenting TTM Resources, Inc. (TTMRP.PK) as a "long buy" candidate. We are bullish TTM for these reasons:
- For almost a year, TTM has been forming a pennant structure as part of a massive continuation formation that has been consolidating inbetween $0.7 to $1.7. Normally for these type of formations, the predicted direction of movement as the stock exists the formation is the same as the direction of the prior trend. The previous direction back in early 2007 was up, so we expect an explosive breakout to the upside soon.
- Previous areas of buying volume for each major surge have been very bullish (e.g. March '07 and October '07). Present volume is starting to enter the formation as the stock nears the break-out price of its upper resistance trendline. This is normally very bullish and if the stock breaks out above trend resistance, then it should surge to much higher prices.
- The stock is trading above its 50- and 200-day moving averages.
- Key technical indicators such as the moving average convergence/divergence (MACD) and the relative strength index (RSI) are reading very bullish. The stock was short-term overbought as displayed by the consumer commodity index (CCI), so we are seeing the classic short-term pullback. However, it is clear that the overall trend is bullish. Buying the stock now on the pullback represents a perfect buying opportunity.
Based on technical analysis alone, we assign a three-month target price of $2.25 - $2.50 for a +100% profit.
Conclusion
Solid company fundamentals and the technical forecast paint an exciting future for TTM. The growth potential of TTM has become very exciting with the extension of high grade deposits of molybdenum. In addition, other very favourable impacts such as: (1) the company's ability to acquire additional funding through recent private placements, (2) the anticipated cost increase of molybdenum due to export restrictions, and (3) the robust growth of China, which exploits 43.7% of the world's molybdenum reserves, magnifies how undervalued this company is. We are also glad to be presenting this company to our members prior to Wall Street knowing its magnitude. In the long run, we believe investors will be rewarded handsomely by a much higher stock price if the company can successfully mine and develop its potential reserves. We believe TTM is a very lucrative long-term investment.
Disclaimer and Disclosure
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This publicly distributed email report is a sponsored advertisement. This paid advertising issue of StockChartist.com does not purport to provide an analysis of any company's financial position. StockChartist.com is a paid advertiser. TTM Resources is the featured company. All materials presented on our web site and individual reports released to the public are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with trading any stock, there is always a high degree of investment risk and volatility. All investors are cautioned that you may lose all or a portion of your investment if you decide to make a purchase in any profiled company. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment.
This advertisement alert contains or incorporates by reference "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements" within the meaning of the Safe Harbor Clause of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements invoke risk and uncertainties that may cause the Company's actual results to differ materially from such forward-looking statements. Forward looking statements in this action may be identified through the use of words such as “expects”, “will”, “anticipates”, “estimates”, “believes”, or that by statements indicating certain actions “may”, “could”, or “might occur”, and similar expressions which are intended to identify forward-looking statements. These risks and uncertainties include, but are not limited to, demand for the Company's product both domestically and abroad, the Company's ability to continue to develop its market, the Company's ability to obtain necessary financing, general economic conditions, and other factors that may be more fully described in the company's literature and any periodic filings with the Securities and Exchange Commission.
It should be understood that there is no guarantee past performance will be indicative of future results. The accuracy or completeness of the information on our web site or within our report is only as reliable as the sources they were obtained from. In order to be in full compliance with the Securities Act of 1933, Section 17(b), Stockchartist.com, LLC received $3,500 U.S. cash from TTM Resources, Inc. for its efforts in presenting and disseminating this information to our subscriber database, and posting this report on the Stockchartist.com, LLC web site. StockChartist.com and its officials do not own any shares and will not trade the security at any time in year 2008, since this may be interpreted as a conflict of interest.
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Exchange Commission (SEC) at: http://www.sec.gov and/or the
National Association of Securities Dealers (NASD) at:
http://www.nasd.com. Readers can review all public filings by
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