I bought back into NST today hoping that last night is a bottoming for gold. Looks pretty cheap at these levels. they are great little producer imo with a very lean, mean management team.
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I bought back into NST today hoping that last night is a bottoming for gold. Looks pretty cheap at these levels. they are great little producer imo with a very lean, mean management team.
Also finally got filled on my VXR punt. Its a real punt, but has come off soooo much think its a bargain. They have just topped up the coffers so shouldn't need any more funding for a while. Zinc is one of my favoured base metals but may take some time for LME stock piles to be chewed through. There has been very little investment in zinc exploration since Pasminco fell over & there are few major mine closures imminent.
Does anybody know how much SOC is short of finance for its operations? I tried to glean it from their presentation but either it was hidden, or I'm blind.
Finance problems could account for the sell off down to 19.5 these past couple of days.
Cheers,
BC
I'm pretty sure they have enough funding for their drill program & they just sold an asset so from memory they are sitting on around $8M in cash
Sorry BC make that around $1.5M in cash in the parent Its a quite complex company structure. They have JVs which gives them $20M of free exploration through their subsidiaries. They did sell an asset for scrip, but I can't see mention of the funds in the latest presentation I think that is worth about $8M but it was sold by Gossan Hill which they own 87% of. They do need to tidy up the company structure to make it easier to understand. So I don't think they need to fund any exploration from the parent so that $1.5M is just to run the office & pay salaries etc I think. I was tempted to buy some more in the last two days & might still yet.
It will be interesting to see how the juniors hold up today after last night's carnage in gold. NST down slightly on the open. Freed up a bit of cash yesterday so may look to pick up some more, but think will hold off a few days & see what happens next.
Reverse psychology comes into play here, Daytr. When gold advocates like you and me start to think it's definitely going to go lower, that's when the market sentiment is so negative it's time to buy.
Double bottom bounce coming? All it will take for the price of ASX gold digger stocks to rebound is:
1. Australia's interest rate cut today at 4:30pm with a corresponding drop in the AUD
2. US jobs data (nonfarm employment) unfavourable
3. US Home Sales unfavourable
2 and 3 are announced tomorrow night.
Don't be a paper trader. We need to follow the physical economic realities and then be patient, waiting for those realities to kick in, and they will...with a vengence (or rather on the back of desperate moves by the soon-to-be-fearful paper tigers).
I've got some NZX settlements due tomorrow which I'll be taking across to my AUD multi-currency account for a top up on a few digger stocks that IMO look oversold on recent panic.
BC
I think you are right BC, however you have to consider what is going on in the US futures market when making investment decisions as at the moment it is driving the price. Like it or not. I would rather see a double bottom confirmed than jump the gun & get it wrong. I have a reasonable stake mostly in NST, SOC & a real flyer in VXR but also have some on the sidelines to buy in at some point.
Yeah thought about buying some more PGI 4c instead topped up my ROC holding
Also going cheap ... We are certainly very close to all time lows in many PM shares ....
When will this end, NCM now just getting lower and lower. Strange we dont even see a rotation of Financials to Mining since now both sectors down. I am still holding long positions in BHP and RIO which are still profitable but losses in NCM mounting. All this yeah nah yeah regarding trimming of QE and market reacts on this vacillation as well.
I would keep well clear of the majors, although at least RIO & BHP have large exposures to iron ore which is doing well. NCM is a dog. Its tempting at the current price because it could get taken over, however I think most of the majors have their own problems so are distracted & the last thing they may be looking is doing a take over. KCN & NCM are vulnerable with their considerable amounts of debt & high production costs. If a producer falls my bet is its one of these two.
It's crazy how some of these quality stocks have been sold down. I've just today topped up my holding of CHN. Aside from the nice prospects at Mogoraib and its Coventry play, cash reserves are $52m which alone equates to around 21c per share! Even if it's liquidated (which I don't for a minute believe it will be) I'll be well in the money having just bought in at 13c.
There are some great bargains out there amongst the gold juniors and mid sized diggers, somewhat independent of the price of gold.
Another example is EVN which is producing above guidance (393k for 2013), has good free operating cash flow ($10.3m), an healthy cash position of $3.7m, and improving AISC (now $1100AUD/oz). Traders seem to have got worried about the AISC still running at just a couple of hundred $/oz under spot price in a bearish market but what many have overlooked is that the company runs a hedge book curently with 380koz hedged at $1590 AUD! With production running at 100k per quarter, this means they are well in the money until at least August next year regardless of the price of gold!
..and there are several other underpriced digger stocks worth a good look in this oversold market.
Discl: have topped up both EVN and CHN this week.
NST released some fantastic drill results today. Was up 10% at one stage but now up a poxy 6% haha. This baby is going to rocket again me thinks.
Significant results from Titan include (uncut):
? 0.2m @ 687.0gpt gold 488mRL
? 0.4m @ 103.0gpt gold 436mRL
? 3.0m @ 12.6gpt gold 380mRL
? 2.4m @ 8.0gpt gold 396mRL
? 1.0m @ 7.7gpt gold 370mRL
? Significant results from Voyager 1 include (uncut):
? 2.1 m @ 85.0gpt gold (true width 2.0m) 503mRL UZ
? 0.9 m @ 44.5gpt gold (true width 0.8m) 271mRL LZ
? 5.1 m @ 31.7gpt gold (true width 2.5m) 413mRL UZ
? 1.5 m @ 16.5gpt gold (true width 1.4m) 470mRL UZ
? 2.4 m @ 16.3gpt gold (true width 1.1m) 365mRL UZ
? 2.2 m @ 15.1gpt gold (true width 2.0m) 436mRL UZ
? 7.1 m @ 12.3gpt gold (true width 4.0m) 481mRL UZ
? 5.7 m @ 11.0gpt gold (true width 1.5m) 365mRL UZ
? 6.7 m @ 10.0gpt gold (true width 3.0m) 418mRL UZ
? 17.6m @ 8.8gpt gold (true width 14.9m) 430mRL UZ
? Significant results from Voyager 2 include (uncut):
? 0.4 m @ 132.0gpt gold (true width 0.3m) 502mRL LZ
? 0.8 m @ 37.4gpt gold (true width 0.8m) 472mRL LZ
? 0.8 m @ 25.3gpt gold (true width 0.7m) 482mRL UZ2
? 3.7 m @ 21.3gpt gold (true width 1.4m) 486mRL LZ
? 4.6 m @ 20.4gpt gold (true width 3.5m) 482mRL LZ
? 3.2 m @ 19.8gpt gold (true width 1.0m) 515mRL LZ
? 2.0 m @ 16.4gpt gold (true width 1.5m) 516mRL LZ
? 6.4 m @ 11.1gpt gold (true width 2.2m) 427mRL LZhttp://www.sharetrader.co.nz/images/share.gif
Sold out of my NST holding on yesterday's spike. Bot more SOC at 15.5 & 16c. Think its at a pretty attractive level. Wouldn't be surprised to see it back in the mid 20s on the next drill results if the past is anything to go by.
Like the look of what VXR are doing as well. Got out of these at 2.4c after trading in & out a few times about 6 months ago. Could tell they were going into consolidation mode & traded right back to half a cent recently where I picked some up. They are now back drilling & promoting the stock. Wouldn't be surprised to see this back over 2c & even back to 4c at some stage over the next few months. Nice grades in the orebody, just nee to extend it to warrant the capex.
Yeah I saw that Moosie. Can't get excited about NTL though. When they talk about producing 285 ounces a month! Sheesh! I thought they must have left the k off the end! Its ridiculously small. Perhaps with this deal they can actually make a mine of it. Think mining in NZ is generally too politically & environmentally risky. Much rather invest in Aussie mining stocks.
Funny that - I also had SOC bids at 15.5 and 16 which got hit a couple of days ago. My guess is it's gone that low due to nervousness around funding. I'll sit and hold what I have now for at least a couple of months at an average cost of 18c. I funded these with a sale on SCI which spiked to take out a cheeky offer I had sitting on market at 8.7c.
Given their volatility, there are profitable short term plays on some of these juniors.
My target buys for early next week include PGI, BKY, AZS, EHL, COK, MLX, VXR and DML.
Target sells include ASL and NTL (after about three more days of price lift...trading these on their peaks and troughs).
BC
SOC are pretty well funded through their JVs so I can't see them needing more cash for a while. Just the nature of the beast I think, these stocks are so illiquid they will always go lower & higher than you would anticipate. The trick is to be patient. Next lot of drill results shouldn't be too far away so as long as they are similar to previous we should see it back over 20c & hopefully toward previous highs around 24c or higher.
Yeah no news has been a real killer of PGI of late that and the general sentiment towards PM miners at present...
I can see PGi spiking 50% on a good ann on targets being reached..I don't think the market understands PGI are now getting $1470oz+ AUD for their Gold thanks to the hedging and weakening AUD/USD ...sadly the silver is unhedged
SOC just announced $4M of further funding through a convertible. Pretty attractive deal compared to what other juniors are getting at the moment.
SOC will trade on drill results, not things like this even though it is good news. Basically means they wont need to tap shareholders for funds for quite some time to come. Exploration funded through JVs & this will keep the office running basically. Next drill results shouldn't be far away.
I only sold just over half my holding round 6c still got a few ..wish I had sold the lot the way the market has treated them of late ,,, I would have been stoked to been buying now
Much the same for SOC sold a good amount at their recent high to be temped back not much lower and to now see them at stupid low levels I never dreamed would go ...
Daytr,
Your MLX and NST are doing well today. I've had them on my watchlist for a couple of weeks now but instead invested in Rox Resources (RXL), which I have wanted for a while and the timing Friday seemed good (after announcing two nickel sulphide discoveries and seeing the sp hover around the company's SPP issue price of 3.2c).
Both their Camelwood and Cannonball prospects look very promising, and with about $3m in cash post-SPP, they are well positioned to operate without much financial impediment.
Your thoughts?
http://www.asx.com.au/asxpdf/2013121...gl2490q12f.pdf
I'm out of both at the moment. Was looking at getting back into NST but the announcement beat me this morning. Will wait until the heat comes out of them again & get back in.
RXL seem cheap enough I just don't like the prospects for the nickel price for some time to come. Nickel is always tricky to process & capex is generally high. With all the pig iron around I can't see the price of nickel back above say $16k/ton for some time so hard to get excited about that one I'm afraid.
Yeah they are having great success with the drill bit!
looking forward to PGI DEC Qtr results.... market not valuing PGI gold hedge at all ..
what you reckon guys I'm no expert on hedging but does sound like PGI has some downside protection on the further falling Gold price (if not actually pay off all their debt quick smart)...also PGI always predicted to produce Gold eqif for round $650per oz now recoveries haven't been as good as hoping but with fine tuning of late pushing recoveries much higher costs must be coming down ...PGI could well be the turn-round story of 2014 IMHO gold falls to $900 PGI closes out hedge for enough money to fully pay of all debts and some ...and continues to produce Gold eqif for a solid profit
--post from speculator on HC---
I think the hedge that PGI hold is now becoming a bit of a trade of sorts, as in, buyers know that if the POG drops massively, PGI will be well within its rights to fill the hedge, wipe of its debt and be sitting on a functioning gold producing plant while, lets be honest, the vast majority of gold stocks will simply go belly up due to their costs being so high.
I think the hedge still has approx 100k ounces to be filled, with a price of $1320, at current POG, sold, it would provide PGI with about $10.2 million, which of course, would not be enough to pay off the loan, but if gold does drop further, I mean really drop, the viability of filling the hedge becomes a reality. i.e, at $1000 US per ounce, we are looking at $32 million, at $900 US, we would have $42 million.
JB, is that an AUD gold hedge or USD hedge?
VXR I picked up at half a cent has got some buyers this morning, think something up. No announcement yet. They seem to be getting back on track & I think will be back over 2c before long.
So lets go people.
Pick your best gold stock for 2014 same as I'm doing on HC.
Pick the best performing gold stock for the end of 2014 in percentage terms.
Price will be compared from the close on 31st Dec 2013 compared to the close on 31 Dec 2014.
Rules.
1) Stock must be ASX listed.
2) Only one pick per participant.
3) No reason or commentary to be entered into otherwise risk disqualification.
4) Just post the stock code, nothing else required.
5) Picks close as at midnight 31 Dec 2013 AEST.
My pic is SOC
Nope gets to be too much work
I'm tossing up between OGC, NTL and EVN...
I've got a soft spot for Sth Island companies and so, OGC it is. I'm picking its sp to be a little over $4 by 2014's year-end. Trading to it.
Pick your best gold stock for 2014 same as I'm doing on HC.
Pick the best performing gold stock for the end of 2014 in percentage terms.
Price will be compared from the close on 31st Dec 2013 compared to the close on 31 Dec 2014.
-------------------------------
--PGI .my pick. will finally get it new tech plant to work the way S/H hoped ...hedging will protect downside
Any thoughts on Tribune (TBR)? Not my area of expertise, but looked interesting. I'll have it for my pick anyway :)
ROL slowly proving up a monster of Gold and other metals.
I like the idea: 1 shot at the bulls eye.
My pick : GOR
Last chance to get your stock picks in !
Daytr,
Since you went ahead on my rec and bought TRY at a good price (up 6% since then), I thought it only proper to do the same off one of yours.
I purchased a small parcel of WAF today @14c. All I really had to go on was what I read on their Web site and in their lastest cashflow report. Also, their chart looks timely for a buy (rising RSI, good support at 12.5c, etc). Before I decide whether or not to buy more, what can you tell me about its management, prospects and track record?
Send me a private message if you prefer.
Cheers,
BC
Jeez guys gold stocks are continuing to get thumbed. Does anyone have a valuation on TRY? This looks like an obvious buy when the trend reverses.
as for a gold stock I'll take NCM
Gold stock picks for 2014. We obviously had a good start yesterday with gold stocks out of the blocks for the 1st trading day of 2014. Long may it continue ! Good luck everyone & happy trading!
Best Stock NZ Name SOC Daytr OGC bobcat PGI JBMurc TBR Lizard ROL Joshuatree GOR airedale NCM Corporate
Just bought back into ALK. Always liked these guys, I have known Ian Chalmers the MD for 12-15 years. Absolutely lovely bloke. Anyway first production should now only be weeks away & they still have plenty of cash at bank.
Some fantastic results released by PMR today which is majority owned by SOC. No bang for their buck on this today, which is surprising however it must add significant value to SOC.
Just part of the announcement
Promising Results – Initial Halls Peak Drilling
• PMR DDH HP 026 – First of six holes completed37.2 metres at an average grade of 8.7% zinc, 3.0% lead,
1.4% copper and 85 g/t (2.8 oz/t) silver, over 4 bands
Including 10.5 metres at an average grade of 9.81%
zinc, 5.63% lead, 2.67% copper and 196 g/t (6.3
oz/t) silver
Including 1.48 metres (from 1.62 to 3.1m)
at an average grade of 19.2% zinc, 10.7%
lead, 5.66% copper and 509 g/t (6.3 oz/t)
silver
Hoping we see some announcement out of SOC soon on their own drilling as it was disappointing they didn't release these results under the SOC banner as well as they were stellar imo & would have moved the SP.
Just posted this on HC re Alkane (ALK). I have a small stake, thinking of adding to it.
Lets have a very simplistic look at the market valuation of ALK versus its asset backing.
Market Cap currently circa $130M
Cash as at 30 Sep $72M
No debt.
Tomingley 60k toz pa gold project about to be commissioned.
2nd resource at Caloma could extend mine life & increase production.
Then the big prize the Dubbo Zirconia Project.
At $130M market cap the market is placing around $80M valuation on Tomingley & no value on the rare earths or visa versa.
ALK imo is now one of the most under valued plays around.
JB, I think SOC is suffering a little as hot money is moving to producers as the POG looks a little better. The PMR results were absolute stunners & I think we would have seen a spike in SOC if released under the SOC banner. We should see some more results shortly so hopefully we can get it bqack in the 20s. We are now back to my buy back in levels!
Agreed Daytr - today I also have bought into this stock - its fundamentals and chart both look favourable.
1. Tomingley gold project on schedule and budget for a pour next month ($20m per annum free cash flow forecasted).
2. Dubbo Zirconia optimised with 'dry hire' to bring down mining costs (Op costs of $200-220m per annum producing $450-500m per annum revenue)
3. Greater recoveries have restored company financials back to pre-April state of health
4. Caloma 2 and Wyoming to be brought on board in 2014
5. Heavy rare earth recoveries have improved by over 40%.
BC
I'm not so excited on ALK as others..
The market cap is $135m and once TGP is complete cash will be under $30m.
TGP has high C3 costs and is only expected to make an EBITDA of $140m on the entire mine life. This isn't great!
Then BZP needs a $1 billion of CAPEX.
Hi Corporate, each to their own, however I would like to point out a few things.
1) $140M EBITDA is based on A$1350, so that figure will be higher or lower depending on the POG. We are currently at A$1378.
2) Knowing Ian Chalmers which I have for around 12 years, his numbers will be conservative, as they should, so only my opinion but I think they will bring costs in lower than that.
3) Your breakdown doesn't include the exploration success they have had & it is very likely they will be able to a) increase production & b) increase mine life with the addition of Caloma Two open pitand underground,Expand Wyoming One underground, Caloma underground, Myallsunderground, Wyoming Two and Three underground.
True its the Dubbo Zirconia project that is the game changer & in some ways Tomingley will be generate cashflow to keep the company in the green whilst they try & bring this to fruition.
So as a base case you are correct, I suppose my view is based on knowing Ian Chalmers & how he operates & I think Tomingley will far out perform what has been forecast & the rare earths project seems to be getting some very good support with credible advisors on board to raise the capex.
ALK just traded 39.5c! A 2 month high & up 11% for the day. Gotta lurve it! ;-)
Well done!
I knew the guys at NAV, man they were just pouring money down a hole!
Yeah as does most miners ,,,now making much of a profit seems to be the biggest hurdle these days
SOC down again geez should have stayed with producers even PGI seem to have a floor @4c ..where SOC have nil buying love from the general market wish a big buyer would come out on market soak up the fool sellers...
Yep I think the producers have attracted some of the hot money, although most of them have been down a bit in the last few days. It looks like there is an overhang from the fund trying to exit? I'm looking closely at picking up some more, but am pretty overweight so may just sit on the sidelines. Patince is a virtue & as long as the drill bit does the talking as it has in the past we should see another spike before the end of Jan.
anyone get in on the huge RMX run, im currently sitting a bit burnt buying at 0.032 but after those 2 announcements it seems imminent there may another one soon. will hold and wait
Red Mountain rocket ride continues
Thursday, 9 January 2014
Justin Niessner
SHARES in Red Mountain Mining continued a stellar run this morning, rising as much as 88% on new trench sampling results from the Batangas gold project in the Phiippines.
The best new result from the shallow dipping layer of the project’s promising Lobo area was a 1.8m intersection grading 55.9 grams per tonne gold, including 0.9m at 110.9gpt gold.
Another nearby sample recorded 1.2m at 17.2gpt gold from 1.2m vertical depth, including 0.6m at 31.2gpt gold.
The news builds on a series of exciting trenching results at Lobo that have increased the company’s share price by as much as 700% since the beginning of the week.
“These additional high-grade gold results indicate that the exceptional high grades in bedrock are also dispersed into the overlying colluvium rubble, from right at surface,” Red Mountain managing director Jon Dugdale said.
“The company will continue to rigorously sample the colluvium layer that may be wide spread down slope of the lodes and represent an additional, at surface, mineral resource target in conjunction with the primary target of the high-grade bedrock lode occurrences.”
Further test pitting sampling is also in progress at a breccia structure immediately southwest of a shoot hosting an indicated and inferred resource of 194,000 tonnes at 7.2gpt gold.
A trenching result of 14.5m at 24.5gpt gold was produced in the area as well as a vertical test pit result of 1.1m at 7.46gpt gold including 0.6m at 12.4gpt gold.
Earlier this week, Red Mountain attracted attention at Lobo with a 2.6m intersection grading 28.6gpt gold, including 1.5m at 45.9gpt gold.
This was recorded just 100m along strike from a 2m intersection reported in November to grade 31.1gpt gold and including 1m at 60.2gpt gold.
Batangas holds an indicated resource of 2.76 million tonnes at 2.3gpt gold for 208,000 ounces of gold and an inferred resource of 3.02Mt at 2.1gpt gold for 200,000oz of gold.
Shares in Red Mountain closed Monday at A0.4c before gaining 75% on Tuesday and 142.95 yesterday.
They were last trading 76.5% higher at 3c.
Well it RMX was trading around 0.005c! It still only has an MC of $10M at 2.5c.
Yes but does it really deserve more ? on what they have which is 206koz Indicated gold resource and some great trenching results(have seen some spectacular trenching results before that didn't continue into a commercial size deposits)
--One of my biggest holdings is in CVR which spent the whole 2013 de-listed as they look to re-start production on getting extra funding(after running issues during winter needed resolved) they last traded @ 1.8c giving them a market cap 17mill now likely they will re-list closer to 10mill in market value ...and they have 1.2moz gold + silver 300-400koz resource(564koz Indicated) and a small heap leach gold plant they should be able to produce 20-30koz gold eqif p.a at one of the projects for 3yrs est. all in costs 800-900oz USD
--last ann-27 dec 2013
Funding Update
Negotiations for debt funding from a Kazakh bank are progressing. Confirmation of this funding should be the trigger for the final Gold Loan tranche (US$0.5m) and for an equity raising. These raisings, and funds from ongoing gold sales, would allow a Full Mining Restart to occur at Dalabai, as well as a return to trading of shares in the Company.
Point I was trying to make badly, was that it was worth stuff all & now its worth something. Will keep it on the radar that's for sure.
Good to see TRY bouncing back today & ALK put in another high trading just over 40c.
Right..fair enough...sounds like SOC big buyer was a broker looking to get on board SOC @18c before promoting them to investors
wouldn't be surprised to see Raffles shift more of their shares at higher levels through the broker involved)
which is exacting what we need ....bit worried PGI might stay flat on this qtr report ann so sold a third of my holding to buy more SOC
@14.5c(getting towards 160k holding) really think we will bounce hard before the months out to round 20c etc (just above my new average)
well thats painful with RMX, going to continue to hold though. thankfully with a stock like this one more announcement in a week or so (maybe less) i will be back in the money. no point in selling now
SparkytheClown, yeah I know them well as used to meet with them 3-4 times a year in Perth or Kalgoorlie. Haven't caught up with them for around 18 months since leaving the market. My thoughts on management were that they do the basic things well & generally stick to their knitting. I wouldn't say that they are particularly corporately or market savvy but they are good operators & keep a lid on costs etc. They do seem cheap here at an MC of A$250M, but then are so of a lot of other gold stocks. Really like most its just a punt on the POG.
Ahh so that was you JB! haha. I was watching them pretty closely myself & resisted the temptation. Although I am bullish on these guys & probably more than that, it will purely depend on the drill bit, so I wasn't prepared to take that risk with more as I am already quite heavily loaded up. We should see something on the next set of drill results before the month is out.
yeah got most of my order ...good bounce on open to 16.5c not going take much to see this back to 20c likely we will get news this week..
RMX trading halt Capital raising 1.7-1.8c ? likely to see the SP further south ....If you believe in the resource be a good chance to buy
Nice one JB, I think you should do well out of SOC at that level. As mentioned before, it will come down to the drill results clear & simple.
Looks like these RMX guys know what they are doing, a nice jump in the SP & they are all over it raising capital. Nice to see. Will certainly keep an eye on it.
I was hoping for more out of TRY & ALK yesterday, perhaps the way gold is closing in NY perhaps we will see higher again today.
Yeah hope so ....have also bit the bullet on PGI and sold my lot for a loss ...still bullish but more so 2nd half of the year and will get back in during the 2Q14(hopefully still in the 4's) well known they will turnover round 11-12mill for the 1Q14 but should be adding quite a few mill for the last couple Qtrs
Instead see better returns in the short term with CFE @13c(target 15c-18c before mid year) , ROC @46c (55c-65c) so shifted the funds into these two,,, just about brought more SOC but would have really unbalanced the portfolio ....also likely I will be involved with the CVR CR likely FEB (hoping to shift some profits there)
PGI have just put out a presentation.
Looks like they plan to install and operate a thicker this quarter to provide greater control of feed particle size, and concentration.
Other works include insulation of the 5 oxidation tanks (hopefully be a quick and easy fix) and the addition of a 6th tank due mid-way through 2014 will fingers crossed turn them from a slightly profitable company, to one which can actually make a fair bit of cash in the near future once design targets are reached.
They are forecasting US$33m operating profit for cy2014, and US$55m operating profit for 2015, not too bad for a company with a market cap of $30m. I guess that’s why the price is languishing in the 4 cents at the moment, lack of faith they can actually deliver those targets.
There can’t be too many more things go wrong can there? List of things they have had to do so far since commissioning for memory are:
• Installed feed barge system rather than a digger – now have three feed barges for redundancy
• Ball mill upgrade to grind the feed finer
• Ball mill motor upgrade when motor wasn’t up to it
• Higher reactive activated carbon for gold recovery
• Replaced the stirrers in the oxidation tanks with non-corroding materials.
• Fixed the replaced stirrers when the welding broke off and they couldn’t stir
• 2 years of process fiddling the albion process
I mentioned this last week that bigger Gold Mining cos will start buying out smaller mining operations to improve efficiency and I just saw tHat Goldcorp has made a $2.4B bid for TSX listed Osisko Mining. I think this is just the start.
Yeah PGI has disappointed S/H so many times in the past with predictions that till we see the right profitable numbers the SP will stay pretty flat IMHO but if your've got a longer term outlook and believe they will deliver the results(and bullish the PM) 100-200%+ return will be your reward for 2yrs hold..IMHO ,,,,,will be buying back soon enough
I was holding SLR until I read their company presentation 15 November then sold out:
http://www.asx.com.au/asxpdf/2013111...9yq7rkw97v.pdf
$16m in debt against $25m cash + bullion (priced at $1,350USD).
Murchison AISC for 3rd quarter = $A2,119/oz !! dropping from over $2,500 to A$1,432 in Sept but still way too high to profit.
Mt Monger is bigger at just over 100koz and slightly cheaper to operate at $1,030/oz
Also, there was no mention of hedging and I wasn't impressed by the contradictions between the AISCs on slides 11, 25 and 28.
Sold out at 76c and was later tempted to come back in when trading in the high 30's but instead bought into another slider with confirmed hedging and better prospects - EVN @53c...and with both stocks now trading in the low 60s, EVN still better value IMO.
POG would need to be higher than 1300USD before this high cost operator will make decent profit, let alone pay a divi.
BC
Teranga's sp has had for the past few months a major overhang in the form of substantial s/holder, Mineral Deposits Ltd, disposing of $USD20m of TGZ shares...until yesterday that is.
http://www.asx.com.au/asxpdf/2014011...2hrl3k3fy6.pdf
I bought into this stock last year after looking into its fundamentals, which are still good:
Current P/E = 2
Forecasted P/E = 3.5
EPS = 28c
Price/Book = 0.4
Price/Sales = 0.4
It closed in Toronto this morning at 62c and has traded at 62c on the ASX today. AISC is still high, at just over $1200AUD/oz, but with this seller now gone, I'll continue to hold, expecting this baby to climb pretty well over the next few weeks.
BC
SOC just released PMR's latest drill results. Again they look pretty good with some very high grades. 2 holes drilled both successful, 4 to come!
BC, I just got hit on my WAF bid at 12c so now back in. A little bit of activity was just sparked, so I'm not sure if something is up?
I don't actually know the management. I was recommended the stock by an ex market colleague out of London who was looking at financing them before the gold crash. Has good copper as well though so I like the play as its not just a gold punt. Very cheap here & likely to go back toward 18-20c imo.
Nope haven't had a chance to look at TGZ yet, but now on my radar.
See WAF just got approval to float on the TGX. Another good sign that things are turning for the company.
BC, I just looked at the TGZ deal they just did with Franco Nevada. It seems to be very expensive. The repayment for the first six years seems to be about right at the current POG, however then they have 36 more years of acquiring 6% of production at 20% of the POG at the time? Why would you do that last bit? Am I missing something?
Yes, it's a 40 year agreement. I'm looking through it again now - on what page did you see the 36 year obligation to acquire 6% at 20% of the POG? The only place I see 6% mentioned is w.r.t. Insurance - clause 6.7c.
I must admit that I'm still trying to fully understand the definition of the Purchase Price (section 2.4). Are you sure that the Deposit Reduction Date is after just 4 years (i.e. 1 Jan 2018)? Where do you read this?
Cheers,
BC
Well it states that the 1st 6 years are for 22.5k toz & the remaining is 6% of production at 20% of prevailing spot price. Its a 40 year agreement so that leaves 34 years, sorry not 36. I assume the mine life is the 6 years so they will only have to pay the 6% if they find more economic gold & can afford to actually produce it & give away 6% at 20% of POG.
Great quarter by OGC, BC you must be happy with the SP. Great costs & increased production. I noticed for each operation they mentioned accessing higher grade ore as for some of the reason for the better costs & production. Do you think they are actually high grading? What are the estimates of the next few quarters? Another words can they keep this performance going or is high grading mean they are going to have some lower grade to process in future.
I commented earlier this morning on the OGC.NZX thread. I like their improved ASIC, their diversification, decreasing debt and management. Their hedging was badly timed IMO but that's about the only downside I can see. I have no info on the grading.
I continue to hold until investors (Black Rock included) have absorbed this announcement and get more interested, which hopefully coincides with a another lift in the POG later this week...now that would be timely.
BC
Just be aware of gold seasonality of gold demand BC. Chinese NY coming up & physical demand may ease. Most banks are saying that shorters are waiting for end of Jan (demand season) to get in. I lightened up a bit today just in case.
In the report it mentions from all operations, access to higher ore. Seems a bit too coincidental to me that you suddenly have higher grade from all operations at the same time. Many companies are high grading at the moment to try & lower short term production costs & ride through the lower price environment. Just something to be aware of as if they are high grading means they are leaving lower grades for later & means they will be eating into any stock piles quicker. I'm not knocking them as it is a great quarterly.
I bought into ROL yesterday & today. Been keeping an eye on it since one of the posters on here brought it to my attention. Looks like a very promising company & have had great success with their drilling, finding good grade in a multitude of metals. Also should still have a reasonable amount of cash at bank to keep their drill rigs (7!) going.
Hats of BC, you have played the market very well! Congrats mate. Off sailing for the long weekend. Catch ya all Tuesday.
Sold TRY today buying more SOC .....just looking over the last top20 ....hard to believe only 38 interests hold over 100k shares and I make up 2 of those LOL (one me personal the other a mates funds) .....92% of the shares held by the top20... todays buy must have meant a top20 sold me their shares 280k ......looking forward to the latest top20 watch out for NJS investments ....JBM trade just outside the top20 208k
Well worth a watch long term good Gold deposits will reward
http://www.youtube.com/watch?v=eO1pA6VC-8Y
Wow JB, you have gone big on SOC! You will be looking for a board seat next haha.
My view is that SOC's story is going from strength to strength despite what the SP has done. Most days, yesterday being a bit of an exception there has been very little volume. They are extremely well funded as through their JVs as JB mentioned. If SOC has anything like the success they have had to date with the drill bit this stock will rocket imo. They have their fingers in so many pies & they all look very promising so there is a good chance that even one of them coming off let alone several. The potential is exponential which few other explorers can say. The risk is they don't find anything more, however with the hits they have & the strike rate they have either been the luckiest explorer in history, or there is a hell of a lot of material there. No one is that lucky imo.
I will also plug ROL which again I think has exponential potential with three very promising projects & the grades they have been drilling have been phenomenal!
By the way nice trade on TRY JB, I got out far too early!
Put some funds toward RSG again yesterday. Only last week flicked out my holding at 60.5c & just bought back in at 51c. Very cheap again in my view. POG will drive it of course & again I wanted to be positioned in a stock with substantial production as I think the issues unfolding in Emerging Markets will gather momentum & gold will benefit. DOW also looks broken to me.
Yeah looks like I did as well.....
-Just heard SOC had yet more big orders placed on offer....got to be a TOP20 selling out wonder who it is and how much many shares they have left to dump my 280k order got filled within the hour then 400k placed late last week ?????? no doubt have filled many other orders of late ...good to see GOLD up in value going need to see some more love there along with SOC getting some stellar drill results
as the buyers don't seem to have much interest currently
ROL just announced a massive issue to raise $25M at a premium to the current SP which is almost unheard of. Management is displaying a lot of confidence here & it's a stroke of genius imo, as it sends a clear message to the market that they value their assets & they are not willing to give them away. Most issue,s especially one of this size, would be done at a significant discount to the current SP to attract buyers. They are obviously confident of take up.
You've done well with RSG, Daytr. Up 15% in 4 days. I'm still holding as well, having bought in a little higher.
I've taken profit today on a few shares that have been flying nicely this past week, but still holding most of my PM digger stock. PMs are getting a boost from American TV networks adopting anti-Russian scare tactics regarding the Sochi Olympics, and if 1275USD is broken tonight, we may well see a bullish breakout. Alternatively, the fear may subside as people watch more of the event, and relax a little...which is why I've taken profit on stocks that are well over 80% on the relative strength indicator.
It is shaping up to be an interesting week. ASX resource sector is pumping but not so much the junior explorers.
Enjoy.