I have been writing about Clifton Mining Company (CFTN) on this blog recently as I have been expecting a move higher. You can take a look at my most recent Clifton Mining Company (CFTN) Posts and see for yourself. On Friday, CFTN surged higher by 23% to $0.48 per share on the heaviest volume this stock has seen in over 2 and a half years!
As noted in this post, Clifton Mining & Partner Desert Hawk Gold Start Production, Clifton Mining is about to see a new revenue stream from mining operations which should have a positive effect on their cash flow and net income.
This is fantastic news for Clifton's shareholders who have been waiting for this moment for a long time. On February 23rd I asked "When Will Clifton Mining Pop?" I mentioned that I thought that this was the final shake out near strong support level around $0.25 to $0.30 and expected CFTN to head higher soon.
The real good news is that Clifton is set up like a mining royalty company. The way the Clifton Mining Agreement is set up with Desert Hawk Gold Corp makes it that Clifton gets a Net Smelter Royalty on all precious and base metals mined from the joint venture properties. For a small company like CFTN, I expect this will have a tremendous positive impact on earnings and cash flow and will be reflected in much higher stock prices down the road.
The next hurdle for Clifton Mining Company common stock will be the 50 cent level. After that look for $0.75 and then over a dollar. Remember, Clifton Mining also owns a large percentage of American Biotec Laboratories and they receive positive cash flow from this investment each year and it continues to grow as well.
If Clifton can punch through the $0.50 level, I would wait for a pullback and then go long if you haven't already.
Although Clifton's properties are not currently 43-101 compliant, it has been rumored that Clifton's properties may hold up to a billion ounces of silver in addition to huge amounts of gold, copper and other base metals.
As always, do your own due diligence, make your own investing decisions and consult with your own financial adviser before making any investment decisions. Especially, with penny stocks like Clifton Mining which are thinly traded and highly volatile. Good luck and good investing.
