Salazar’s (SRL, TSX-V) Fantastic 4-Year Patriotic Chart!

Feb 25

Salazar’s (SRL, TSX-V) Fantastic 4-Year Patriotic Chart!

I’ve found higher-highs and higher-lows to be one of the best predictors of future price movement when looking at long-term charts.

Trump Eyes U.S. Opportunities In Ecuador

After a decade or more where capital was leaving the country, capital for exploration and mining activities started arriving in Ecuador in 2018.  As a “new” industry it’s taken some time to work out the kinks and barriers to business, but it’s starting to feel like Ecuador’s time has arrived in 2020.

Of note this week, the President of Ecuador (Lenín Moreno) was a guest at the White House (it was the first visit of an Ecuadorean President to the White House in nearly 2 decades).  Trump said Ecuador had been doing things a little crazy but now they recognize the importance of having positive working relationships with the United States.

A high-level delegation of U.S. trade and investment officials will travel to Ecuador in April, the White House said following Wednesday’s meeting between President Trump and his Ecuadorean counterpart.

The April meetings will seek to build on a recently signed Growth in the Americas agreement that opens Ecuador to U.S. investment in energy and infrastructure.

In addition, the CEO of the U.S. International Development Finance Corporation, Adam Boehler, will visit Ecuador in the coming months to explore new financing opportunities, the White House said.

SRL is a thinly traded stock and it’s tightly held (the Salazar family and 1 strategic investor out of London, the Arlington Group, own more than 50%).  The combination of thin trading and majority insider ownership is a double-edged sword, but you can make a lot of money when the blade is working in your favor! With discovery stage drilling on 45 or possibly 6 projects this year, and the general lack of awareness of Salazar (they’re working hard internally though, finally, to market SRL), any new buying interest will drive price higher quite easily.

I’ve been tracking and reporting on SRL since the low teens.  Now it’s trading comfortably in the low 20’s and there doesn’t seem to be much left for sale at that level.  Place your bids and hope they get filled is all I can say.  Salazar’s 25% carried interest in Curipamba, alone, is worth approximately 40 cents, and speculation surrounding drilling could create some excitement this year.