Nautilus Minerals Is an Intriguing Speculation Stock

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Source: Thinkstock

As we mine the Earth for resources, they become scarcer and more difficult to produce. What used to be a low-grade copper mine, in which copper comprised 1 percent of the ore, is now a high-grade copper mine. The same thing can be said about pretty much any other mineral. As a result, it is becoming necessary to search for resources elsewhere. One source is the sea floor, and one company that is preparing to mine the sea floor is Nautilus Minerals (OTCMKTS:NUSMF).

Nautilus Minerals is truly a unique opportunity with incredible upside potential but with limitless downside risk. The company is a pioneer in the mining space in that it holds land leases and explores for resources on the ocean floor. It is also the only major mining company that is involved in exploring the ocean floor. Because of this, there is virtually no demand for ocean floor land, and so Nautilus Minerals has been able to accumulate an unheard of 500,000 square kilometers on which to explore. While it has a market capitalization of just $95 million, the company holds more land on the sea floor off the coast of Australia and Papua New Guinea than most multibillion-dollar mining companies hold on the surface.

Nautilus Minerals has already found a poly-metallic resource on its Solwara property that is far more dense than your typical land mine. It has found 178 million pounds of copper at 7.2 percent, 166,000 ounces of gold at 5 grams per tonne, and trace amounts of silver and zinc. Its Clarion-Clipperton deposit appears to be far bigger, with 1.2 percent nickel ore containing an incredible 12 billion pounds, and ore that is 1.1 percent copper amounting to 11 billion pounds. From these two deposits we can deduce that Nautilus Minerals may be one of the largest — if not the largest — holder of mineral resources of any mining company.

More Articles About:

To contact the reporter on this story: To contact the editor responsible for this story:

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business