My thoughts Bobcat is the PM sector is well oversold .....and I'm sure you could easy add another doz gold producers that are very cheap on pure historic basis of profit margin +reserves/resources in place +PM prices
Printable View
My thoughts Bobcat is the PM sector is well oversold .....and I'm sure you could easy add another doz gold producers that are very cheap on pure historic basis of profit margin +reserves/resources in place +PM prices
AQG does sound undervalued whilst not having researched, will have to take a further look. There will be a discount for country risk, although Turkey as long as not near Mid/East boarder is pretty stable. RSG is a bit like KCN, management has underperformed although RSG has generally improved their performance in the last year or two, haven't done much reading on them lately. The CFO Greg Fitzgerald is a hell of a nice guy, but overall their performance has been pretty lackluster imo. but will refresh my research on them & revert.
Here's an interesting article on Indian and Chinese gold buying, and its seasonal patterns.
http://www.kitco.com/ind/Holmes/2013...This-Year.html
Note the habitual purchasing of gold in September ahead of October gifts for harvests and weddings.
I don't think I can sit on my hands much longer. Anytime tomorrow or Wednesday (i.e. ahead of the FOMC) when the POG dips dramatically (i.e. as big sellers complete their current orders), I'm turning bullish and will buy up large.
Daytr - RSG has a much higher All-in cost of $A1375/oz (c.f. others listed above which operate at under $1000/oz - AQG, SBM, etc).
AQG is trying to sell out of Australia and put all its eggs into one Turkish basket (but is otherwise attractive with a very low operating cost). My pick of the three is probably SBM, which if I time it right could climb up easily and quickly from its current 59-62c range. I'll be watching it closely tomorrow.
Disc: Current holdings in FML, GRY, EVN, OZL, PDN, PNA, WHN, GBG, ERA, JPR and CFE.
Here's a low cost gold and silver producer with a Reuters BUY recommendation:
TRY - Troy Resources:
Four Gold Mines - Sandstone (WA) plus three Sth American gold mines - Andorinhas, Brazil (to close in 2015); Sertao, Brazil; and Casposo, Argentina (also Silver) - plus this year acquired Azimuth Resources in Guyana (mining friendly, large 8000sq km land package, English speaking).
Producing 103koz of gold per annum
Has paid 13 cash divis over past 13 years
Builds mines quickly at low cost
NPAT of 18.6m (40% down from 31.6m in FY12)
$21m cash with $25m debt (Net debt/Equity of 16.2% c.f. 34% in 2012)
New $40m debt facility
Cash costs of ~$A700/oz (up from $A500/oz in 2012). All-in op costs not disclosed.
It's now on my watch list.
Other's thoughts/comments?
BC
Here's two more attractive low cost gold producers :
Perseus (PRU):
West African gold producer
NPAT of $41m (EPS = 9c)
Op Cash flow of $47m
Debt free ($481m current assets against current liabilities of $447m)
All-in Op costs of $1,150USD (=$A1250)
Cost reduction programme includes Directors fees reducing 15%
(Rueters recommend a HOLD)
Teranga (TGZ):
200koz with All-in Op Costs of ~$1060/oz
FY13 sales increased 42% with revenue increasing 21%
NPAT of $7.2m (eps = 3c), down from $14m (6cps) in FY12
Hedge free
Recent amendment to $60m loan facility with McQuairie Bank
Cash of $53m (incl $9m of bullion receivables)
Op Cash flow of $21m (for 2Q13)
Definitive deal with Republic of Senegal recently signed
Comments?
The presentation of the 2012 result shows 288.3m shares outstanding. The exercising of a few options could account for the difference between 291m and 288.3m.
http://www.alacergold.com/files/q4_a...tion_final.pdf
Agreed, Corporate.
For some reason, The Age, for one, shows 103m shares and $307m M.Cap. Someone has it wrong and I suspect it's The Age?
Well, I've just picked up some TRY at 145.5. I'm satisfied after quite a bit of research that this low cost producer will return well enough on my investment.
SBM bid is close to being taken as well.
With the Rupee strengthening against most currencies now, I'm picking that Indian wedding and harvest gift buyers will begin purchasing more earnestly through the remainder of this month and early October. That's my theory and I'm sticking to it....at least for now.
Much is being made of this week's so-called 'tapering' which is an euphemism for not-quite-printing-as-much-extra-money per month as has been done over the past few months. So-called 'qualitative easening' #1 tapered to zero, likewise QE2 but this one is hardly being tapered at all. If the Feds stopped QE altogether they know that the stockmarket would crumble - and the US politicians and career bureaucrats prefer a slower death where the real substantial pain is inflicted upon their nation's children (i.e. after they are no longer in power). The national debt ceiling if lifted will push the US's debt/GDP ratio over the threshold used by the IMF in Europe to justify a bailout...and the rhetoric is meanwhile full of lies about a US recovery being just around the corner. Do the Math - it won't happen anytime soon. I'm buying Gold and Silver stocks accordingly. It's not a matter of 'if' their shareprices rise, but 'when' - I'm picking later this week. Already today it's bouncing up off a double bottom at 1310USD.
Don't miss the wave.
BC
Sold out of my reasonable holding in KCN this morning on POG breaking $1300, booking a small loss. Kept my smaller EVN stake as they have a reasonable hedge in place at A$1598. So pretty much on the sidelines until POG settles. Good luck y'all
Call me a gambler but I'm holding and buying more today confident that 1292 will hold. If that breaks overnight, next support is quite a bit lower, and I lose out, but hey it's September (10 years of seasonal patterns must count for something!). The Bears have ruled these puppies for several weeks now. The FOMC meeting could well provide the fuel and trigger to reverse that trend.
Have a good evening chaps (don't lose much sleep),
BC