Home > stock charts, technical analysis > Small cap miners prepping to breakout?

Small cap miners prepping to breakout?

A couple of small cap miners that I’ve followed (and held at times) during the last year look poised for possible breakouts.  USSIF is a small silver miner that hedges only about 20% of its production, with mines primarily in the U.S.  It looks to be forming an ascending triangle.  An upside break, especially with silver itself breaking out, would seem likely.

SNDXF is a small cap “miner” that deals in gold.  Except they aren’t actually a miner.  They are run by a former SLW CFO and use the same approach, buying gold production from mines in exchange for an up-front rate.  They provide the hedge for miners and take the price risk, so they are good way to get leveraged exposure to gold prices.  They are contracted to receive production for about 400-500 per oz., from what I recall.  Obviously, do your own DD.  But the chart shows an ascending triangle that has formed over the last year or two.  If gold can break to new highs, SNDXF is set up to follow nicely.

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