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The target is low but they must start somewhere.
Golden Minerals Co.
(AUM-T, AUMN-A) C$7.24
Velardena Meets its Maker
Event
We are initiating coverage of Golden Minerals (AUM-T, AUMN-A) with a
SPECULATIVE BUY rating and a target price of $14.00/share. Please see
our full initiation report, which we expect to publish later today, for complete
discussion and analysis.
Impact
Golden Minerals is an emerging silver and gold producer that is based in
Colorado and run by the former Apex Silver management team. The company
has a large portfolio of assets but its two principal projects are Velardena in
Mexico, which it acquired through a merger with ECU Silver Mining Inc. in
September, and El Quevar in Argentina.
At Velardena, the company is expanding the small scale production from its
oxide and sulphide mills with simple process control improvements while
mine output is expected to ramp up once development has been shifted out of
the veins and more working faces have been exposed. We forecast silverequivalent
(AgEq) production reaching a run rate of 1.6mm oz/year by Q4/12.
At the same time, the company is advancing a Preliminary Economic
Assessment on a major expansion project that we expect it to complete in
mid-2012. We anticipate a new 2,000-tpd mill generating incremental
production averaging 7.4 million oz/year AgEq at total cash costs of US$7/oz
AgEq after capital expenditures of US$225 million, commencing mid-2014.
In the meantime, we expect an updated resource from the company’s highgrade
El Quevar silver project in Argentina in Q1/12 and drill results that
could yield a discovery from its large Zacatecas property package in Mexico,
its Cochabamba project in Peru or its Atlas project in the Deseado Massif of
Argentina.
AUM has declined by more than 70% this year, and the company is now
trading at a discount to peers and its market cap prior to the merger of equals
with ECU Silver. We are initiating coverage with a SPECULATIVE BUY
rating and a $14.00/share target price, based on a valuation of 0.8x NAV5%
calculated at long-term prices of US$1,500/oz gold and US$30/oz silver.
The target is low but they must start somewhere.
Golden Minerals Co.
(AUM-T, AUMN-A) C$7.24
Velardena Meets its Maker
Event
We are initiating coverage of Golden Minerals (AUM-T, AUMN-A) with a
SPECULATIVE BUY rating and a target price of $14.00/share. Please see
our full initiation report, which we expect to publish later today, for complete
discussion and analysis.
Impact
Golden Minerals is an emerging silver and gold producer that is based in
Colorado and run by the former Apex Silver management team. The company
has a large portfolio of assets but its two principal projects are Velardena in
Mexico, which it acquired through a merger with ECU Silver Mining Inc. in
September, and El Quevar in Argentina.
At Velardena, the company is expanding the small scale production from its
oxide and sulphide mills with simple process control improvements while
mine output is expected to ramp up once development has been shifted out of
the veins and more working faces have been exposed. We forecast silverequivalent
(AgEq) production reaching a run rate of 1.6mm oz/year by Q4/12.
At the same time, the company is advancing a Preliminary Economic
Assessment on a major expansion project that we expect it to complete in
mid-2012. We anticipate a new 2,000-tpd mill generating incremental
production averaging 7.4 million oz/year AgEq at total cash costs of US$7/oz
AgEq after capital expenditures of US$225 million, commencing mid-2014.
In the meantime, we expect an updated resource from the company’s highgrade
El Quevar silver project in Argentina in Q1/12 and drill results that
could yield a discovery from its large Zacatecas property package in Mexico,
its Cochabamba project in Peru or its Atlas project in the Deseado Massif of
Argentina.
AUM has declined by more than 70% this year, and the company is now
trading at a discount to peers and its market cap prior to the merger of equals
with ECU Silver. We are initiating coverage with a SPECULATIVE BUY
rating and a $14.00/share target price, based on a valuation of 0.8x NAV5%
calculated at long-term prices of US$1,500/oz gold and US$30/oz silver.
Seth Dadds, GARP Research & Securities (11/11/11) "Allied Nevada Gold Corp.'s gold recovery rates and ore grades continue to deliver as anticipated, with silver outperforming; during Q311, Allied produced 4.6 ounces of silver for every gold ounce, compared to 2.6 a year ago. . .Allied Nevada is poised to transform into one of the world's largest silver producers and we envision 25 Moz of silver output and 600 Koz of gold in 2015, potentially delivering $14 earnings per share in that year. Known for its heap-leach oxide gold production today, we think the deeper, higher-grade sulfide silver will emerge as the larger driver to earnings, and we feel this catalyst is still underappreciated."
Kimber intercepts 14 metres of 4.5 g/t gold plus 112 g/t silver and 4.5 metres of 12.7 g/t gold at the Carmen gold-silver deposit, Monterde project
Kimber intercepts 4.5 metres of 26.6 g/t gold below the Carmen gold-silver mineral resource at the Monterde Project
The Gold Report Interview with David Goguen (10/31/11) "Newstrike Capital Inc. in the Guerrero Gold Belt of Mexico has acquired a resource from Goldcorp that was north of 1 Moz at the time of acquisition, but has grown that through an extensive drill program. It is probably north of 3 Moz now. It has also benefited from the discovery of high-grade breccia material proximal to the mineralized intrusive body itself. That higher-grade breccia material may very well represent the starter pit material that will provide for some early project payback and thereby impact the project economics positively. Given some of the existing producers in the area, there's a ready audience of companies with operating competencies that would see this as a very logical opportunity.
. . .The exploration team in Mexico has been exploring in that region for over 15 years. They have a good understanding of the geology and a good understanding of local relations. The control of the company largely rests with companies related to Lukas Lundin. Lukas is no stranger to surfacing value in corporate transactions. The company benefits highly from his involvement. Richard Whittall, as president and chief executive, is also guiding the company's pace of exploration well and is great at communicating its story to the capital markets."
Gold Canyon Resources has intersected 310 meters at 1.87 grams per tonne gold (1,017 feet at 0.055 oz per ton gold) including 129 meters at 3.30 grams per tonne gold (423 feet at 0.096 oz per ton gold) demonstrating excellent continuity within the higher-grade core of the Portage Zone. The Company's highly successful barge drilling program has come to a close for the season. Since July, nearly 13,500 meters have been drilled at Springpole, over 10% more meters than planned.
The Gold Report Interview with Thom Calandra (11/16/11) "What Co-chairman Yale Simpson has done with Extorre Gold Mines Ltd., a spin-off from Exeter Resource Corp., in Argentina, in terms of discovery holes with tremendous grades and lengthy intercepts, is unreal, too. But very real. I don't own it but I value the Extorre team and its commitment to develop a mine down there."
5 reasons Ultra Petroleum looks like a good long term investment at $34:
Ultra Petroleum is growing production rapidly. It grew output 19% in 2010, is projected to increase production by 15% in 2011 and another 19% in 2012.
UPL’s cost structure is among the lowest in E&P universe, providing it with a lower break-even threshold.
Ultra Petroleum has a forward PE of just 13, which is an over 40% discount to its five-year average.
Given its leading position in the Pinedale field in Wyoming, growing production in Marcellus Shale, and a market capitalization of just over $5B, it would make a logical and compelling pickup for a larger energy concern.
Ultra Petroleum is selling at less than analysts’ price targets. The median analysts’ price target is $47 on Ultra.
Claude Resources (AMEX: CGR ) offers another prime example. Operating only a single small-scale mine that is expected to yield less than 50,000 ounces during 2011 at elevated operating costs, the miner garners little fanfare from an indifferent equity market. But the market's assigned enterprise value of $264 million for the company enters purely ludicrous territory when the rapidly expanding scale of its high-quality resource base comes into view. With 928,000 ounces of high-grade gold indicated at its Madsen project so far -- and 921,000 more ounces of gold-equivalent at the bulk-mineable Amisk deposit -- Claude is quietly amassing riches that remain wholly overlooked by a short-term and earnings-obsessed equity market. Claude's combined indicated resource plus reserves total 2.26 million gold-equivalent ounces, resulting in an enterprise value of just $117 per ounce (excluding inferred resources!). Not even the company's eye-popping discoveries to expand the resource at its existing Seabee mine have managed to move the needle, and the result is a stock that I consider among the industry's premier bargains.
ON SALE NOW !!!!
JAG +47%
AUMN, I bleed, you bleed, we bleed......
500M silver once, market don't care.....
Red as always......
No support, bleedings like pigs.....
If the market continue to push down all the gold/silver company, China is going to convert all is $ in Gold company.
JAG receive 1B$ from a chinese company this morning.
Who's next ? AUMN ?
If the market continue to push down all the gold/silver company, China is going to convert all is $ in Gold company.
JAG receive 1B$ from a chinese company this morning.
Who's next ? AUMN ?
The Company is moving forward with the evaluation, design and engineering of a new 2,000 tonne per day sulfide plant. Samuel Engineering has been retained by Golden Minerals to lead the engineering effort. The Company expects that engineering, construction and ramp-up of the new plant would take approximately three years and would require external funding. The planned plant would have an estimated annual production of 4 million ounces of silver, 80,000 ounces of gold and 10 million pounds of each lead and zinc and could be completed by late 2014.
The independent consulting firm of Chlumsky Armbrust and Meyer (CAM) has been retained to provide an updated Canadian National Instrument 43-101 ("NI 43-101") compliant resource estimate for Velardeña. As part of updating the resource estimate, CAM is auditing the geologic database and the quality control and quality assurance procedures. The Company expects that the new resource estimate will be completed about year-end 2011.
El Quevar Project
The Company continued evaluation of the El Quevar Project in the Salta Province of northern Argentina during the quarter. As previously reported, a preliminary evaluation of the geologic data from the underground drifting suggests that the deposit may be amenable to bulk mining. This could include a potential open pit on the east and central areas of the Yaxtché zone, along with bulk underground mining in the west Yaxtché zone.
Two drills are currently in operation at El Quevar. The Company has developed an underground drill program for the east and central Yaxtché zones, with a 1,300 meter fan drilling program planned for the next several months. Approximately 30 holes of a planned 50 surface drill hole program have been completed on the west Yaxtché zone to provide infill drill data and additional information for the geologic model. The Company has received results for 13 of the holes, of which 10 holes intersected five or more meters of values exceeding 100 grams per tonne silver. This included drill hole QVD-341 which contained a four meter intercept that averaged 878 grams per tonne silver, and hole QVD-342 which contained a 22 meter intercept that averaged 717 grams per tonne silver. To date, a total of approximately 392 diamond drill holes have been completed at the El Quevar project, of which 260 holes (65,800 meters) have been drilled in the Yaxtché zone.
An updated Canadian National Instrument 43-101 ("NI 43-101") compliant mineral resource estimate on El Quevar is being prepared by the independent consulting firm of Pincock, Allen and Holt (PAH). The PAH resource estimate will consider an economic resource from an open pit on the east and central Yaxtché zones and bulk mining by underground methods on the west Yaxtché zone. The updated resource estimate for the El Quevar project is expected about year-end 2011.
IF my numbers are right, this can give 10M once (high grade)/year production (Silver + Eq) = 500M$/year (400M$ net cash flow)
By that time, the PPS should be North of 40$ (With a float of 75M shares, 38M now)
BLTI is artificially pushed down by Short seller.(20-30% float)
What do you see ?
Very frustrating company...
No juice....
Through various funds, Soros has invested in green companies including ethanol maker BioFuel Energy Corp, U.S. solar panel maker First Solar Inc, and Chinese solar company JA Solar, according to U.S. Securities & Exchange Commission filings.
http://www.reuters.com/article/2011/06/23/us-soros-transphorm-exclusive-idUSTRE75M31E20110623?feedType=RSS&feedName=GCA-GreenBusiness&rpc=43
It's all about the permit....
They will stay quiet until the 15 of November. (Warrants issue)
AUMN follow no logic..Painfull....
Tim Lee, Northland Capital Partners (10/31/11) "Gold Canyon Resources Inc. intersected 106m grading 3.36 g/t in the Portage zone at its Springpole project, which also included an intercept of 28m grading 10.1 g/t. The hole indicates potential for a higher-grade core zone and other infill holes a few hundred meters away have also returned high-grade assays."
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or S
Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing
On November 3, 2011, Timberline Resources Corporation (the "Company") provided notice to the NYSE Amex of its failure to satisfy the continued listing requirements of the NYSE Amex as a result of a determination by the Company's Board of Directors, in connection with its year-end corporate governance review, that two of the directors on the Company's Audit Committee were no longer "independent" based on the criteria for independence set forth in Rule 10A-3 of the Exchange Act of 1934, as amended (the "Exchange Act"). Consequently, the Company was not in compliance with the audit committee composition requirements applicable to smaller reporting companies set forth in Section 803B(2)(c) of the NYSE Amex Company Guide.
To regain compliance with the continued listing requirements of the NYSE Amex, the Company's Board of Directors removed the two non-independent directors from its Audit Committee and, on November 2, 2011, appointed Troy Fierro as a director of the Company and to the Company's Audit Committee following a determination by the Company's Board of Directors that Mr. Fierro is "independent" based on the criteria for independence set forth in Rule 10A-3 of the Exchange Act and Section 803A of the NYSE Amex Company Guide. For more information regarding Mr. Fierro and his appointment to the Company's Board of Directors and Audit Committee, see Item 5.02 of this Current Report on Form 8-K below.
Following the appointment of Mr. Fierro to the Company's Audit Committee, the Company is in full compliance with the continued listing requirements of the NYSE Amex.
STRONG BUY AUMN
http://www.stoxline.com/quote.php?symbol=aumn
STRONG BUY AUMN
http://www.stoxline.com/quote.php?symbol=aumn
STRONG BUY AUMN
http://www.stoxline.com/quote.php?symbol=aumn
Thank you lowtrade.
Is It Time To Buy China?
By Jeff Clark
Thursday, November 3, 2011
On September 2, Silvercorp Minerals (SVM) – a large silver mining company headquartered in China – announced it had received an anonymous letter alleging the company was a fraud.
Specifically, the letter accused SVM of fudging the numbers on its income statement to make it appear more profitable than it was, falsifying its silver reserves, and overstating its cash balance.
The stock dropped 30%.
This was particularly concerning to me since only three weeks earlier, I had recommended SVM as part of a covered call strategy to subscribers of my conservative, income-producing newsletter, Advanced Income. Instead of owning an easy trade on its way to generating a 20% gain in just four months, my subscribers were staring at a 14% loss.
To its credit, the company addressed the fraud allegations head-on. It posted its bank account statements – showing a large cash hoard – on its website. It re-published the latest geological reports verifying its silver reserves. And it presented copies of its tax receipts as proof of the company's profitability.
The stock price started to recover. I reiterated my confidence in the company and in the stock. I even went so far as to tell subscribers that selling uncovered puts on SVM – a lower-risk, income-generating strategy than owning the stock outright – at such inflated premiums was like "Christmas in September."
Then it happened again. Two weeks later, SVM got hit with more allegations of fraud. This time, it was problems with the company's accounting procedures, conflicts of interest, improper activities by the company's CEO, etc. SVM was getting hit with every allegation in the book.
And the stock got clubbed... again.
All the allegations have since been proven false. SVM is trading higher now than it was before the accusations surfaced. My subscribers are making money. And I'm feeling good about sticking to my own research rather than doing what most of Wall Street does when a Chinese company gets accused of fraud – sell first and ask questions later.
But I may have missed a bigger idea...
Has investor sentiment toward China gotten so bad that it's now time to buy Chinese stocks?
Think about it. Reaction to an anonymous letter was bad enough to knock 30% off the share price of one of the world's premier mining companies. That probably wouldn't have happened to an American firm. But since SVM is a Chinese company – and sentiment toward China is so bearish – investors panicked and dumped their shares at bargain prices. This happened even after SVM addressed each false fraud allegation point by point.
It's hard to imagine investor sentiment getting much more bearish than that. Of course... if it can't get much more bearish, it has to get a little more bullish. And as investor sentiment improves, so will the price action in Chinese stocks.
Here we go.....Value play....
+9% AUMN
Hello Mr. or Ms. XXXXXXXXXX,
We understand the desire for news flow. We have been working on many items since the ECU/Golden Minerals merger closed in September. As I'm sure you can appreciate, it is no small effort to combine companies and produce the first financials of the newly combined company.
It has always been Golden Minerals' policy to report news that is material and substantial. We expect news flow between now and the end of the year to include an updated resource estimate at both Velardena and El Quevar and results from drilling programs at Zacatecas (Mexico), Cochabamba (Peru), and Atlas (Argentina). We will also be providing an operational update for the many improvements were are currently making at Velardena.
We will be releasing third quarter financials in the next few weeks as well.
Best regards,
Golden Minerals Investor Relations
Wendell Zerb, Canaccord Genuity (5/31/11) "Kimber Resources has released new deep-drill results from zones associated with the Carmen deposit at its 100%-owned Monterde project in Mexico. We believe KBR remains undervalued based on current fundamentals, and with the new successes of the deep drill program we reiterate our Speculative Buy rating. . . .mineralization at Monterde is associated with a massive-sulphide breccia zone, which is considered a new style of mineralization; in our opinion, this opens up the potential for high-grade mineralization at depth at Carmen."
Wendell Zerb, Canaccord Genuity (4/21/11) "We have increased our peak Au and Ag assumption to USD$1,600/oz. Au from USD$1,500/oz. Au and USD$47.5/oz. Ag from USD$30/oz. Ag, and the overall effect is positive to our valuation of Kimber Resources: We are maintaining our current Speculative Buy recommendation while increasing our 12-month target to CAD$3.15 (was CAD$2.65). . .the company expects to advance development and economic studies at the Monterde deposits, including the completion of a prefeasibility study, which is being targeted for September/October 2011."
Chris Thompson, Haywood Securities (6/10/11) "Monterde offers Kimber Resources development-stage leverage to gold with significant value from a silver credit, which may potentially overshadow gold in the early years of the project's mine life. . .we initiate coverage with a Sector Outperform rating and look for results from a 30,000m-plus reverse circulation and diamond-drill program to expand and upgrade resources and drill test new exploration targets, culminating in a prefeasibility study anticipated in Q411."