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Eldorado Gold Completes Acquisition of QMX Gold
Apr 07, 2021
Download this Press Release (PDF)
VANCOUVER, British Columbia, April 07, 2021 (GLOBE NEWSWIRE) --
Eldorado Gold Corporation (TSX: ELD; NYSE: EGO) (“Eldorado” or “the Company”) and QMX Gold Corporation (TSX-V: QMX) (“QMX”) are pleased to announce the successful acquisition by Eldorado of all of the outstanding common shares (the “QMX Shares”) in the capital of QMX not already owned by Eldorado, by way of a statutory plan of arrangement under the provisions of the Business Corporations Act (Ontario) (the “Arrangement”). The Arrangement became effective at 12:01 a.m. (Eastern Time) on April 7, 2021 (the “Effective Time”) resulting in QMX becoming a wholly-owned subsidiary of Eldorado.
https://www.eldoradogold.com/news-and-media/news-releases/press-release-details/2021/Eldorado-Gold-Completes-Acquisition-of-QMX-Gold/default.aspx
“We are very pleased to complete the acquisition of QMX, which significantly increases Eldorado’s position in the Abitibi Greenstone Belt and is consistent with our strategy to invest in world-class mining jurisdictions. Eldorado is a committed partner for mining in Quebec, with exploration and operational success across our Lamaque operations. The addition of QMX to our portfolio opens a range of opportunities to expand our activities in the region and to leverage our existing infrastructure and Eldorado’s strong operational, exploration and stakeholder expertise,” said George Burns, Eldorado’s President and Chief Executive Officer.
Completion of the Arrangement
Under the terms of the Arrangement, each holder of QMX Shares is entitled to receive, for each QMX Share held immediately prior to the Effective Time, (i) C$0.075 in cash and (ii) 0.01523 of a common share (the “Eldorado Shares”) in the capital of Eldorado (together, the “Arrangement Consideration”), for total consideration of C$0.30 per QMX Share (based on the closing price of the Eldorado Shares on January 20, 2021).
With QMX now a wholly-owned subsidiary of the Company, Eldorado intends to de-list the QMX Shares from the TSX Venture Exchange as soon as practicable. Eldorado also intends to submit an application to the applicable securities regulators to have QMX cease to be a reporting issuer and terminate its public reporting obligations. Prior to the completion of the Arrangement, Eldorado owned, directly or indirectly, or exercised control or direction over, 68,125,000 QMX Shares representing approximately 15.55% of the issued and outstanding QMX Shares prior to the completion of the Arrangement.
Information for Former QMX Shareholders
In order to receive the Arrangement Consideration in exchange for QMX Shares, registered shareholders of QMX must complete, sign, date and return the letter of transmittal that was mailed to each QMX shareholder prior to the Effective Time. The letter of transmittal is also available under QMX’s profile on SEDAR at www.sedar.com.
For those shareholders of QMX whose QMX Shares are registered in the name of a broker, investment dealer, bank, trust company, trust or other intermediary or nominee, they should contact such nominee for assistance in depositing their QMX Shares and should follow the instructions of such intermediary or nominee.
Warrants and Options
Pursuant to the Arrangement, each QMX stock option (each, a “QMX Option”) outstanding immediately prior to the Effective Time automatically vested and was immediately cancelled in exchange for a cash payment equal to the excess, if any, of: (i) the product of the number of QMX Shares underlying such QMX Options and C$0.30; over (ii) the applicable aggregate exercise price of such QMX Options. All QMX warrants (each, a “QMX Warrant”) outstanding immediately prior to the Effective Time will remain outstanding and, following the Effective Time, each QMX Warrant shall entitle the holder thereof to receive, upon exercise, the Arrangement Consideration in lieu of a QMX Share.
Additional Information
Full details of the Arrangement are set out in the arrangement agreement dated January 20, 2021 between Eldorado and QMX, which has been filed by QMX under its profile on SEDAR at www.sedar.com. In addition, further information regarding the Arrangement is contained in QMX’s management information circular dated February 9, 2021 (the “Circular”) prepared in connection with the special meeting of the QMX shareholders held on March 23, 2021 and filed on www.sedar.com. All shareholders are urged to read the Circular as it contains additional important information concerning the Arrangement.
About Eldorado Gold
Eldorado is a gold and base metals producer with mining, development and exploration operations in Turkey, Canada, Greece, Romania, and Brazil. The Company has a highly skilled and dedicated workforce, safe and responsible operations, a portfolio of high-quality assets, and long-term partnerships with local communities. Eldorado Shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).
About QMX
QMX is a Canadian based resource company. QMX is systematically exploring its extensive property position in the Val d’Or mining camp in the Abitibi District of Quebec. QMX is currently drilling in the Val d’Or East portion of its land package focused on the Bonnefond Deposit and in the Bourlamaque Batholith. In addition to its extensive land package QMX owns the strategically located Aurbel gold mill and tailings facility.
Contacts
Investor Relations
Jeff Wilhoit, Interim Head of Investor Relations
604.376.1548 or 1.888.353.8166 jeff.wilhoit@eldoradogold.com
Media
Louise Burgess, Director Communications & Government Relations
604.616.2296 or 1.888.363.8166 louise.burgess@eldoradogold.com
Eldorado and QMX Head Office
1188 Bentall 5, 550 Burrard Street
Vancouver, BC V6C 2B5
Cautionary Note About Forward-Looking Statements and Information
Certain of the statements made and information provided in this press release are forward-looking statements or information within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Often, these forward-looking statements and forward-looking information can be identified by the use of words such as “intend”, “opportunity” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements or information contained in this release include, but are not limited to, statements or information with respect to: opportunities to further Eldorado’s operating activities in Quebec; de-listing the QMX Shares from the TSX Venture Exchange; and submitting an application to have QMX cease to be a reporting issuer. Forward-looking statements and forward-looking information by their nature are based on assumptions and involve known and unknown risks, market uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information.
We have made certain assumptions about the forward-looking statements and information, including assumptions about: how the world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic; timing and cost of construction and exploration; the geopolitical, economic, permitting and legal climate that we operate in; the future price of gold and other commodities; the global concentrate market; exchange rates; anticipated costs, expenses and working capital requirements; production, mineral reserves and resources and metallurgical recoveries; the impact of acquisitions, dispositions, suspensions or delays on our business; and the ability to achieve our goals. In particular, except where otherwise stated, we have assumed a continuation of existing business operations on substantially the same basis as exists at the time of this release.
Even though our management believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that the forward-looking statement or information will prove to be accurate. Many assumptions may be difficult to predict and are beyond our control.
Furthermore, should one or more of the risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. These risks, uncertainties and other factors include, among others: global outbreaks of infectious diseases, including COVID-19; timing and cost of construction, and the associated benefits; recoveries of gold and other metals; geopolitical and economic climate (global and local), risks related to mineral tenure and permits; gold and other commodity price volatility; information technology systems risks; continued softening of the global concentrate market; risks regarding potential and pending litigation and arbitration proceedings relating to our business, properties and operations; expected impact on reserves and the carrying value; the updating of the reserve and resource models and life of mine plans; mining operational and development risk; financing risks; regulatory risks and liabilities including environmental regulatory restrictions and liability; discrepancies between actual and estimated production; mineral reserves and resources and metallurgical testing and recoveries; additional funding requirements; currency fluctuations; community and non-governmental organization actions; speculative nature of gold exploration; dilution; share price volatility and the price of our common shares; competition; loss of key employees; and defective title to mineral claims or properties, as well as those risk factors discussed in the sections titled “Forward-Looking Statements” and “Risk factors in our business” in the Company’s most recent Annual Information Form & Form 40-F. The reader is directed to carefully review the detailed risk discussion in our most recent Annual Information Form filed on SEDAR and EDGAR under our Company name, which discussion is incorporated by reference in this release, for a fuller understanding of the risks and uncertainties that affect the Company’s business and operations.
The inclusion of forward-looking statements and information is designed to help you understand management’s current views of our near- and longer-term prospects, and it may not be appropriate for other purposes.
There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on the forward-looking statements or information contained herein. Except as required by law, we do not expect to update forward-looking statements and information continually as conditions change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
https://www.eldoradogold.com/news-and-media/news-releases/press-release-details/2021/Eldorado-Gold-Completes-Acquisition-of-QMX-Gold/default.aspx
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In GOD We Trust - Real Money -
https://www.kitco.com/images/live/silver.gif?0.8344882022363285
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Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
Thanks Bob - Good eye (re QMX)
How DEEP are those grades there I wonder though.....
I know.....My job to check that out
Nope - Those volume bars aren't Eldorado's....because....Eldorado was a private placement
But.......I'm too busy drawing charts !......Just wondering whether you knew (their depth)
Nevermind - Just checked out - Not too deep it seems....
Interesting play this QMX - Like also the map of the surrounding plays
US Dollar - DXY 97
1 week ago
The Big Picture
Gold was at $1800 in 2012 & The Canadian Dollar was at Par
Any kind of move towards 97 from here ?.....Could perhaps start sending gold towards 18 again !
And gold stocks (further) thru the roof.
QMX hits high grades at River
Canadian Mining Journal Staff |
January 30, 2020 | 12:26 pm Exploration Canada Gold
Drill core. Image by QMX Gold.
QMX Gold has announced results of the first three holes completed
on the River target on the western side of the company’s
project in Val d’Or, Quebec.
Drill highlights include:
2 metres of 39.83 g/t gold;
4 metres of 17.71 g/t gold; and
2.9 metres of 7.76 g/t gold.
“We are delighted that we immediately achieved high-grade gold
intersections in the first three drill holes on our new River target,”
Andreas Rompel, the company’s vice president of exploration said in a
release.
“This gives us great optimism and encouragement to continue with our
structural target delineation in general and for the River target in
particular, where we anticipate establishing additional resources.”
Assays for four additional holes completed are pending.
QMX plans to complete additional drilling at River once modelling is
completed using the first batch of drill holes.
The River target is located approximately 1 km to the west of
the historic Lac Herbin-Dumont-Ferderber gold system and
was discovered in 2011.
In December, Eldorado Gold invested C$4 million in QMX,
giving it a 19.99% stake in the company;
QMX also holds a permitted mill and tailings facility at
its Quebec project.
A maiden resource for the Bonnefond deposit in the eastern portion of
the property was released in July: indicated resources currently
stand at 4.8 million tonnes grading 1.69 g/t gold for a
total of 258,700 oz. with additional inferred resources
of 2.4 million tonnes at 1.87 g/t gold for 145,100 oz.
Additional targets have been identified for follow-up within
the 200-sq.-km project.
QMX started drilling at the site in 2017.
(This article first appeared in the Canadian Mining Journal)
380 0
Share
https://www.mining.com/qmx-hits-high-grades-at-river/
In GOD We Trust -
https://www.kitco.com/images/live/silver.gif?0.8344882022363285
http://www.kitconet.com/images/live/au0001wb.gif
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
Rights, Liberty and Freedom -
http://www.biblebelievers.org.au/monie.htm
God Bless America
Ps.
opinion appreciated
TIA
$QMXGF Low volume 
#VALX make a BIG move! $EGO is #buying out QMX once #SolidGold results post (fingers crossed) 
$QMXGF QMX Gold Releases Maiden Resource at Bonnefond – Indicated 258,700 Ounces at 1.69 g/t Gold; Inferred 145,100 Ounces at 1.87 g/t Gold
https://www.globenewswire.com/news-release/2019/07/30/1894132/0/en/QMX-Gold-Releases-Maiden-Resource-at-Bonnefond-Indicated-258-700-Ounces-at-1-69-g-t-Gold-Inferred-145-100-Ounces-at-1-87-g-t-Gold.html
$QMXGF Maps & News:
Highlights include:
An open pit constrained resource with a cut-off grade of 0.75 g/t Au,
Over 60% of this initial resource estimate is at an indicated confidence level,
Indicated resource of 4,755,00 tonnes at 1.69 g/t Au for 258,700 ounces,
Inferred resource of 2,410,000 tonnes at 1.87 g/t Au for 145,100 ounces.
“We are very excited to report a resource with its largest part already being in the Indicated category”, says Dr. Andreas Rompel, VP Exploration. “The total ounces were inline with our expectations, however, we are thrilled that the grades were between 1.69 and 1.87 g/t, which compares favourably to our expectations and with other open pit operations in the Abitibi.”
http://www.qmxgold.ca/investors/news/
Thrifty123 Welcome to QMX is a Bargain; Gold Stocks Remain Cheap
Adam Hamilton
December 20, 2019
1
The gold miners’ stocks have suffered a lackluster few months. That’s a disheartening contrast to their powerful summer upleg on gold’s bull-market breakout. While this healthy gold-stock correction likely isn’t over yet, the gold miners remain very undervalued relative to the metal they produce. That means they still have massive upside left in this secular gold bull. Sentiment just needs rebalancing before its next upleg.
In recent months I’ve written a lot about gold’s correction, which is naturally driving a parallel one in the gold miners’ stocks. I’ve explained why speculators’ positioning in gold futures, gold’s dominant primary short-term driver, remains bearish with potential selling vastly outweighing likely buying. I’ve shown how shallow and short gold’s recent correction is compared to bull-market precedent, implying it isn’t mature yet.
This hasn’t changed, gold’s correction is alive and well. Based on their gold-bull-to-date trading ranges, the latest weekly read on specs’ gold futures revealed they have room to buy 59.4k contracts. But that is dwarfed by 6.3x with their potential selling at 372.3k! And at worst so far, gold has only retreated 6.4% in 2.8 months. This secular bull’s prior two corrections following uplegs averaged 15.5% selloffs over 6.0 months.
If gold continues grinding lower as specs’ collective bets are normalized, it will drag down the gold stocks with it. The major gold miners tend to leverage gold’s material moves by 2x to 3x. That is evident in their leading benchmark GDX VanEck Vectors Gold Miners ETF. Discussing this gold stock correction ( https://www.gold-eagle.com/article/gold-correction-not-over ) in last week’s essay, I pointed out GDX has only lost 15.4% over 1.3 months at worst. That’s 2.4x downside leverage.
But this gold-stock bull’s prior couple corrections directly driven by gold’s averaged 35.4% GDX losses in 11.8 months. That made for 2.3x downside leverage to gold. If gold’s correction isn’t over yet, neither is the gold stocks’. That being understood, speculators and investors need to look past this valley and start preparing for the next ascent. Uplegs and corrections meander in perpetually-alternating cycles in markets.
The major corrections inevitably following major bull-market uplegs are mostly driven by sentiment. The excessive greed generated late in bull uplegs has to be bled away before the next upleg can follow. The only way to kill major-high exuberance is through subsequent selloffs, which ultimately spawn fear. But the broader bull markets containing those individual uplegs and corrections are fueled by fundamentals.
That’s how much profits gold miners are earning compared to their prevailing stock prices. And they are looking fantastic. In mid-November as the latest earnings season ended, I dug into the GDX gold miners’ Q3’19 results. These fundamentals are the strongest they’ve been in years, thanks to gold’s bull-market breakout rally this past summer. Q3’s average gold price of $1474 soared a colossal 21.7% year-over-year!
That drove explosive profits growth unparalleled in all the stock markets. Based on the average all-in sustaining costs of the GDX miners, their earnings catapulted an astounding 68.9% higher YoY! That was awesome 3.2x upside leverage to gold’s gains. And that stupendous earnings growth is likely to persist. With gold’s correction tarrying, Q4’s average gold price so far at $1481 is even a bit better than Q3’s.
I’ve done deep bottom-up analysis on many individual gold miners every quarter for years, which is very data-intensive both to do and explain. That proves the strong relationship between gold-mining profits and prevailing gold prices. Gold stocks are essentially leveraged plays on gold. Thankfully there’s a simple proxy to visualize gold stocks’ valuations relative to gold, the ratio between stock prices and gold’s own price.
The gold stocks as a sector can be measured by GDX. Its daily closes can then be divided by those of the world’s dominant gold ETF, the GLD SPDR Gold shares. The result is the GDX/GLD Ratio, or GGR for short. Charting it over time shows whether gold stocks are gaining or losing ground relative to gold, and more importantly whether they are richly-valued or undervalued compared to the metal they bring to market.
The latter is true today, gold stocks remain very cheap relative to gold. Again that doesn’t mean that their healthy and necessary correction is over. But it does greatly boost the odds the coming gold-stock uplegs in this secular gold bull are going to be outsized. The gold stocks have to power far higher to reasonably reflect these higher prevailing gold prices. The biggest gains of their bull market are almost certainly yet to come.
At best in this entire bull so far, GDX had blasted 151.2% higher by early August 2016. That’s actually still tiny by gold-stock-bull standards! This sector’s last secular bull ran for 10.8 years from November 2000 to September 2011, straddling the birth of GDX. The older benchmark HUI NYSE Arca Gold BUGS index skyrocketed 1664.4% higher over that span! Gold stocks were that decade’s top-performing stock sector.
Like most other indicators, the GGR is still bearish over the near-term. It joins the chorus suggesting this gold-stock correction isn’t finished yet. This first chart superimposes the GGR in blue with its technicals over GDX itself in red during this gold-stock bull. The GGR hasn’t yet retreated low enough to signal a likely bottoming in gold stocks. This key gold-stock valuation metric remains high for a gold-stock correction.
The GGR’s primary value over the short-term is highlighting trends in gold-stock performance versus the metal they mine. When this ratio is rising, the gold stocks are outperforming gold. That usually happens during gold uplegs, when the major gold stocks of GDX again amplify gold’s gains by 2x to 3x. All 3 of this gold-stock bull’s major uplegs saw big GGR gains. Gold stocks were advancing much faster than gold.
But gold stocks’ leverage to gold is a double-edged sword, working equally as well on the downside when gold corrects. So the GGR has retreated during this gold bull’s prior couple corrections, showing the gold stocks as measured by GDX were falling faster than gold as measured by GLD. So in other words, gold outperforms its miners’ stocks during corrections by not selling off as much. The GGR nicely quantifies this.
Heading into this gold-stock bull’s initial correction in mostly the second half of 2016, the GGR peaked at 0.244x. A share of GDX was worth almost a quarter of a GLD share. By the time the dust settled, GDX had plummeted 39.4% compared to gold’s milder 17.3% correction! That crushed the GGR back down to 0.176x. This key fundamental indicator plunged by 27.9% or 0.068x absolutely in that utterly brutal selloff.
This gold-stock bull’s second correction began in early 2017, but dragged on way into summer 2018. It hammered GDX 31.1% lower, again much worse than gold’s own 13.6% correction that drove those gold-stock losses. The GGR peaked at 0.216x in the preceding upleg, before plunging to 0.155x by that next correction bottoming. That’s a 28.1% or 0.061x gold-stock-correction GGR retreat, similar to the earlier correction.
So this bull’s previous corrections averaged tight 28.0% or 0.065x GGR slumps. Contrast that to the gold stocks’ current correction. The latest GGR peak hit 0.211x in early September, and at worst so far merely fell back to 0.188x in mid-October. That makes for only an 11.1% or 0.023x GGR retreat at most. Thus odds are the gold miners’ stocks haven’t fallen far enough yet relative to gold to rebalance their sentiment!
Past gold-stock corrections saw the miners’ stocks drop far enough compared to gold to force the GGR under both its 200-day moving average and gold-bull average. Neither has happened yet in this current correction, with these metrics now running 0.191x and 0.186x. The gold stocks aren’t likely to finish their crucial sentiment-rebalancing selloff until this GGR retreat grows larger, more in line with bull-to-date norms.
Given the better prevailing psychology now after gold’s summer bull-market breakout, there’s probably no need for this gold-stock correction to snowball to much-higher bull averages. That’s both in terms of GDX itself and its fundamental relationship to gold as quantified by the GGR. But this gold-stock selling still has to persist long enough and be big enough to largely eradicate greed, which really hasn’t happened yet.
The reason gold-stock prices have stayed relatively high absolutely and compared to gold since their latest upleg toppings in early September is residual greed. Major uplegs generate great greed, complacency, and euphoria as they go terminal. These can only be eradicated and turned to fear, worry, and despair through sizable correction selloffs. That has yet to happen after this latest topping, the downside has been mild.
Regardless of this near-term bearish outlook on gold-stock prices, their longer-term prospects driven by fundamentals instead of sentiment look awesome. An analogy is a spring snow storm. As spring progresses, temperatures are generally warming and daylight lengthens. That’s similar to a secular-bull uptrend in the markets. Spring and summer are coming in gold stocks, after their long winter bear ending in early 2016.
Yet even in the warmest of springs, strong snow storms are always possible. Temps plunge in those, and they make it look like winter is returning. Yet no matter how severe they get, they can only last for short spells. The spring warming trend driven by far-larger factors persists, despite any temporary reversals. There’s no contradiction inherent in expecting near-term gold-stock weakness before a resuming secular bull.
This next chart uses this same GGR data but zooms out to a longer time horizon, since 2007. As GDX was birthed in May 2006, that encompasses nearly its entire lifespan. Despite their near-term correction risks, the gold miners’ stocks remain deeply undervalued relative to the metal they mine. Thus they have massive upside as this gold bull’s future uplegs unfold. Gold stocks still need to mean revert radically higher!
This current young gold-stock bull that has enjoyed some powerful uplegs in recent years still looks tiny in big-picture context. Incredibly its average GGR of 0.186x is so darned low that it is still below the wildly-extreme stock-panic levels from late 2008! That first true stock panic in a century was the biggest market fear event of our lifetimes. It’s crazy that nearly this entire gold-stock bull has drifted below that miserable metric.
Gold stocks traded far higher relative to prevailing gold prices before that panic, with the GGR averaging 0.591x in the preceding 2 years. While that drooped to 0.422x in the 2 years after that panic, that was still far higher than today’s gold bull. For GDX merely to regain those levels relative to GLD, it would have to soar another 114% higher from this week’s levels! Gold stocks remain radically undervalued compared to gold!
A more-conservative post-stock-panic GGR average is the 4-year one from 2009 to 2012. That was after that stock panic, but before 2013 where the Fed epically distorted markets. That year was when its third quantitative-easing bond-monetization campaign peaked. The Fed’s balance sheet skyrocketed 38.7% or $1125.3b higher that year alone, far beyond any precedent! The US stock markets soared 29.6% on that.
Such astounding stock-market gains killed demand for alternative investments led by gold. So the yellow metal plummeted by 27.9% in that peak-QE year, crushing GDX a gut-wrenching 54.5% lower in 2013! Thus the 4 years between those wild events were arguably the last quasi-normal years in the markets. During that span, the GGR averaged 0.381x. GDX would have to soar 93% higher to regain those levels today.
Gold stocks are still super-cheap relative to the metal they mine which drives their profits. That anomaly has to be rectified before this gold bull runs its course. GGR extremes never last, but see sharp mean reversions and subsequent overshoots eventually. That will happen as today’s secular gold bull matures in future years. The gold stocks will far outperform gold’s coming uplegs, regaining much lost ground.
No one knows how big gold’s bull market will ultimately prove, but it’s likely to be very large given the vast monetary inflation the world’s major central banks are spewing into the markets. But even considering the next upleg alone shows how compelling the gold-stock opportunities are. This gold bull has enjoyed 3 major uplegs so far, up 29.9%, 20.4%, and 32.4%. Gold’s next major upleg should prove relatively in-line.
While these bull-to-date upleg gains averaged 27.6%, let’s conservatively assume 20% for the next one. If gold’s correction extends to 10%, much smaller than that 15.5% bull-to-date average, gold will bottom near $1400. A 20% upleg from there would carry gold near $1680. At the current gold-stock bull’s super-low GGR of 0.186x, that implies GDX would rally near $29.50. The gold-price-to-GLD conversion loses 5.8%.
GLD’s managers have big costs storing gold bullion, so they charge investors 0.4% of its net assets each year. Cumulatively since GLD’s late-2004 launch, that adds up to about 5.8%. GDX $29.50 isn’t very exciting though, just 7.5% above this week’s levels. That’s because GDX would leverage a 10% gold correction by 2x to 3x, extending its own correction to 20% to 30%. So GDX’s next upleg would start off lower.
But on balance during secular gold bulls, gold stocks regain ground relative to gold. The longer they’ve generally powered higher in a bull uptrend, the more capital speculators and investors deploy in them to chase this sector’s gains. That leads to much-higher prevailing gold-stock prices. The gold miners’ upside over the coming year if the GGR mean reverts back up to that post-panic 0.381x average is impressive.
At $1680 gold and a 0.381x GGR, GDX would soar near $60.25! That’s about 120% higher from this week’s levels, and a whopping 160% higher than where GDX would bottom if its total correction extends to 25% before gold’s next upleg starts marching. With gold stocks remaining so cheap relative to gold today, their upside potential remains massive. And even these targets are conservative on multiple fronts.
Gold’s secular bull is likely to see at least several more major uplegs in coming years, not just one. And gold stocks not only mean revert in GGR terms, but overshoot proportionally to the high side as euphoria builds late in secular gold bulls. So if you plug in higher gold prices, and higher GGRs, the potential gold-stock upside targets get astoundingly high. Remember gold stocks’ last secular bull saw epic 1664% gains!
So it’s exceedingly important not to make the big mistake most traders do during major corrections. As gold and gold prices grind lower over a few months or more, traders gradually lose interest. Apathy mounts leading to gold-stock selling, which is what’s necessary to rebalance sentiment after a major upleg. By the time gold and gold stocks have bottomed, traders have either moved on or given up on those bulls.
That means they won’t buy low as corrections end, greatly limiting their potential gains in the following uplegs. The only way to overcome these natural human tendencies is to always follow the markets, to keep the big picture in mind no matter what short-term trends are. And while today’s remain bearish for gold stocks over the near-term, their deep undervaluation relative to gold implies their bull is still young.
To multiply your capital in the markets, you have to trade like a contrarian. That means buying low when few others are willing, so you can later sell high when few others can. In the first half of 2019 well before gold stocks soared higher, we recommended buying many fundamentally-superior gold and silver miners in our popular weekly and monthly newsletters. We later realized big gains including 109.7%, 105.8%, and 103.0%!
To profitably trade high-potential gold stocks, you need to stay informed about what’s driving broader gold cycles. Our newsletters are a great way, easy to read and affordable. They draw on my vast experience, knowledge, wisdom, and ongoing research to explain what’s going on in the markets, why, and how to trade them with specific stocks. Subscribe today and take advantage of our 20%-off sale! Get onboard now so you can mirror our coming trades for gold’s next upleg after this correction largely passes.
The bottom line is gold stocks remain very undervalued relative to gold. They’ve spent most of this bull languishing under stock-panic extremes, which means they still have vast room to mean revert higher. Such low gold-stock prices compared to prevailing gold levels virtually guarantee the miners will enjoy seriously-outsized gains during future gold uplegs. They can way-outperform gold for years before normalizing.
But that longer-term super-bullish fundamental outlook doesn’t negate the need for periodic corrections to rebalance sentiment. The recent one is likely still underway today, as key gold and gold-stock indicators have shown no signs of bottoming yet. That’s wonderful news if you’re looking to deploy capital in this highest-potential sector, as the next big mid-bull buying opportunity before gold’s next upleg is likely still coming.
Adam Hamilton, CPA
Copyright 2000 - 2019 Zeal LLC (www.ZealLLC.com)
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Adam Hamilton, CPA, is a principal of Zeal LLC, which he co-founded in early 2000 as a pro-free market, pro-capitalism, and pro-laissez faire contrarian investing and speculating Information Age financial-services company. Hamilton is a lifelong contrarian student of the markets who lives for studying and trading them.
Merry Christmas
Hi NYBob! That news Caught my eye! So I bought in
Eldorado takes 20% stake in QMX Gold
Canadian Mining Journal Staff | December 19, 2019 | 10:33 am Canada Gold
Eldorado begins commercial production at its first Canadian mine
Mill at Lamaque underground gold mine in Quebec.
QMX Gold announced a C$4 million share purchase agreement with Eldorado Gold which will give the producer a 19.99% stake in the company.
“QMX continues to return excellent results from its various projects across its extensive Val d’Or property, demonstrating significant upside potential. Eldorado’s investment will allow us to continue to progress our projects, creating shareholder value and validates QMX’s work completed to date,” Brad Humphrey, the company’s president and CEO said in the release.
The 68-million share non-brokered private placement will be done at C$0.06 per share, a 9% and 11% premium to the close and 20-day weighted average price of QMX shares respectively for proceeds of C$4 million.
Eldorado holds the Lamaque project in Quebec which started commercial production in April and is expected to produce 100,000 oz. to 110,000 oz. this year. It acquired the project in May 2017 for C$590 million from Integra Gold.
QMX holds 200 sq. km of holdings in Val d’Or with an indicated resource of 4.8 million tonnes at 1.69 g/t gold for a total of 258,700 oz. with an additional 2.4 million tonnes at 1.87 g/t gold inferred for a total of 145,100 oz. at the Bonnefond deposit. The company also holds the Aurbel mill in its portfolio.
(This article first appeared in the Canadian Mining Journal)
QMX Reports Revenue of $30.62 Million and Operational Cash Flow
of $5.45 Million for 2013 -
TORONTO, ONTARIO--(Marketwired - April 1, 2014) -
QMX GOLD CORPORATION -
(TSX VENTURE:QMX) ("QMX" or the "Company") sold 22,209 ounces of
gold at an average price of $1,428 for revenue of $30.62 million
in 2013.
All figures are reported in Canadian dollars,
unless noted otherwise.
2013 Financial Summary:
http://web.tmxmoney.com/article.php?newsid=66791923&qm_symbol=QMX
Presentation April 2014 -
http://www.qmxgold.ca/files/QMX%20Marketing%20Presentation%20April%202014_v001_a0z277.pdf
QMX Gold Corporation
Brett New
President and CEO
(416) 861-5904
QMX Gold Corporation
Louis Baribeau
Public Relations
(514) 667-2304
QMX Gold Corporation
Rob Hopkins
Investor Relations
(416) 861-5899
QMX Gold Corporation
Toll Free: +1 877-717-3027
info@qmxgold.ca
http://www.qmxgold.ca
God Bless
QMX doing the milling for Kerr Mines -
The Aurbel Gold Mill
http://investorshub.advfn.com/QMX-Gold-Corp-QMXGF-17662/
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=98660148
God Bless
Dutch4 welcome to QMX Gold Corp. (QMXGF)
hope the history repeat itself -
in 2008 it was as high as $25/sh
QMX Gold Produces Over 22,000 Ounces of Gold in 2013 from Lac Herbin Mine
Company expects production of 16,500 to 19,000 in 2014
http://web.tmxmoney.com/article.php?newsid=65977136&qm_symbol=QMX
TORONTO, ONTARIO--(Marketwired - Feb. 25, 2014) -
QMX GOLD CORPORATION
(TSX VENTURE:QMX) ("QMX Gold" or the "Company") produced
approximately 7,260 ounces of gold from its
Lac Herbin Mine in Val D'Or, Quebec
in the fourth quarter of 2013.
This brings total production for 2013 to over 22,200 ounces of
gold, in line with Company guidance. Full financial details
will be released in March 2014.
Production Summary for 2013
Quarter Q1 Q2 Q3 Q4 Total 2013
Tons Milled (mt) 33,866 39,667 40,403 59,791 173,727
Grade (g/mt) 4.09 4.42 4.62 4.03 4.27
Average Recovery Rate 93.0 % 93.5 % 92.6 % 93.7 93.2 %
Recovered Gold (oz) 4,141 5,275 5,549 7,260 22,225
2013 Production Results
The Aurbel Mill continued to generate positive and consistent results in 2013 with an overall annual average recovery rate of 93.2% and was achieved with a significant increase in the mill throughput quarter over quarter. Over the course of 2013, the mill processed a total of 173,727 tonnes of ore at an average grade of 4.27 g/t to produce 22,225 ounces of gold. The production figures do not include an additional 10,000 tonnes of ore that were custom milled under the milling agreement with Armistice Resources (now renamed Kerr Mines Inc.) in the third quarter.
Fourth Quarter Production Results
In the fourth quarter of 2013, mill throughput was 77% higher than in the first quarter of the same year, processing 59,791 tonnes of ore at an average grade of 4.03 g/t Au with recoveries of 93.7% to produce 7,260 ounces of gold. The mill throughput increase was a result of producing from larger zones, which were developed by the operating team over the last year, at slightly lower than average grades.
Operational Outlook
QMX Gold continues to mine out the Lac Herbin mine above the 42 Level as a suspension of development and exploration activities remains in place. The Company plans to to process ore at the Aurbel Mill for Kerr Mines Inc. under the custom milling agreement signed in June 2013. QMX Gold intends to process at least an additional 20,000 tonnes of ore under the agreement. The Company continues to search for additional feed to maintain operation at its Aurbel mill.
Also, the Company is continuing to evaluate several projects within a 150 kilometer radius from Aurbel mill which could be put in production in the short to medium term.
The sale of QMX Gold's Snow Lake property to Northern Sun Mining Corp. remains pending and is expected to close on or before March 31, 2014.
Brett New, President and CEO of QMX Gold, commented "I am pleased to report that our year-end results are in line with 2013 budgeted figures as we produced between 20,500 and 23,500 ounces of gold at the Aurbel Mill. The team at Lac Herbin and the Aurbel Mill have done an excellent job at keeping operations running smoothly and efficiently, despite a number of cost-reduction measures that were necessary over the course of 2013. This can be seen as our mill recovery rates have remained very consistent throughout 2013. The Company plans to continue to mine out the mineralized lenses above the 42 Level in 2014 and expects production to be 16,500 to 19,000 ounces of gold in 2014."
Qualified Person
Technical programs and information included in this release have been reviewed and approved by Patrick Sévigny, eng., Vice President of Quebec Operations and a Qualified Person as defined under NI 43-101.
Cautionary Note Regarding Forward-Looking Information and Mineral Resources:
This press release contains or may be deemed to contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements (express or implied) relating to financial results, production results and/or the impact of such production results with respect to the mine at Lac Herbin, the timing, cost and/or amount of future exploration and development of the property, if any, the closing of the Snow Lake sale transaction, the processing of more custom mill feed, the timing, cost and/or amount of future production, the future price of gold or other minerals, the mineral resource estimates, the successful implementation of development plans at any of the Company's properties and/or the future financial or operating performance of QMX Gold, its properties and/or its projects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, its properties and/or its projects to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the annual information form of the Company, which is available under the profile of the Company on SEDAR. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. It should also be noted that mineral resources that are not mineral reserves do not have demonstrated economic viability.
QMX Gold Corporation
Brett New
President and CEO
(416) 861-5904
QMX Gold Corporation
Louis Baribeau
Public Relations
(514) 667-2304
QMX Gold Corporation
Rob Hopkins
Investor Relations
(416) 861-5899
QMX Gold Corporation
Toll free: +1 877-717-3027
info@qmxgold.ca
www.qmxgold.ca
God Bless
bobhwang welcome to QMX Gold Corp. (QMXGF
http://www.alexisminerals.com/files/QMX%20Marketing%20Presentation_February2014_v001_g12p8r.pdf
http://web.tmxmoney.com/article.php?newsid=65977136&qm_symbol=QMX
http://web.tmxmoney.com/quote.php?qm_symbol=QMX
God Bless
QMX Gold Corporation (QMX)
Exchange: TSX Venture Exchange
$ 0.04 Feb 28, 2014, 5:53 PM EST
Change: 0.015 (60.00%
Volume: 558,275 good demand
http://web.tmxmoney.com/quote.php?qm_symbol=QMX
QMX Gold Produces Over 22,000 Ounces of Gold in 2013 from Lac Herbin Mine
Company expects production of 16,500 to 19,000 in 2014
TORONTO, ONTARIO--(Marketwired - Feb. 25, 2014) -
QMX GOLD CORPORATION
(TSX VENTURE:QMX) ("QMX Gold" or the "Company") produced approximately 7,260 ounces of gold from its
Lac Herbin Mine in Val D'Or, Quebec
in the fourth quarter of 2013.
This brings total production for 2013 to
over 22,200 ounces of gold,
in line with Company guidance.
Full financial details will be released in March 2014.
http://web.tmxmoney.com/article.php?newsid=65977136&qm_symbol=QMX
http://www.alexisminerals.com/
God Bless
Shark Atack welcome to QMX Gold Corp.(QMXGF
good to see you @ QMX -
following mark #19 to you -
you are lucky, got QMX for a bottom bargain -
God Bless
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