Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
CPTMatt, Yes forgot about that. At that time, my posts were calling SAS best in class for value for some time. LOL I thought it was going to be Primero buying them. I wish we could have seen SAS play out a little longer into 2016 when everything was running. I think KLG consolidating the strong Timmins minors is going to make for a very strong company going forward.
Before that, I called Lakeshore Gold as best in value and a company that was going to grow out of a tough spot. And that they did, until Tahoe bought them. Tony Makuch was running Lakeshore than and now he runs Kirkland. He likes to push.
I wouldn't be surprised to see Gowest in the mix in another year or so. This is my largest position right now Currently, GWA @ .17 is as low as I think your going to see it.
I think gold $1275 going to hold
GORO 52 week high! Nearing $8
Pounded the table here all the way up from $1.15 in Jan
Not much can match GORO's near term performance either. LC Where's Otto now???
Checkmate posted July 8th
GORO $4.70 Breaking out since Jan at $1.15 low My favorite silver minor even at this valuation, although I would add only on a dip. Lots to come. Production, costs, and most importantly Cash flow will be nicely improving next 3 quarters. This is my no brainer for gains without pain risk vs reward ratio. When they ramp up the divy again, buying at these levels will get a handsome yield when the price per share goes up.
GORO still only 54 M OS. No debt. Previous share price $31, previous sector leading dividend payer. Reduced the divy to increase CAPEX for more production on a number of fronts
Going forward Im hoping for a pull back and then for another run when production increases make for impressive Cost & CF numbers
First Newmarket Swallows Crocodile Gold, Now Kirkland Lake swallowing Newmarket
Great value synergies and compliments, going to be fun to watch. LOL, people used to say that Tony Makuch didnt know what he was doing.
TORONTO, ONTARIO and VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 29, 2016) -Kirkland Lake Gold Inc. ("Kirkland Lake Gold") (TSX:KLG) and Newmarket Gold Inc. ("Newmarket") (TSX:NMI) are pleased to announce that they have entered into a definitive agreement (the "Arrangement Agreement") to merge the two companies, creating an exciting new mid-tier gold company (the "Transaction"). The combined company will have a market capitalization of approximately C$2.4 billion and produce over 500 koz of gold annually. Existing Kirkland Lake Gold and Newmarket shareholders will own approximately 57% and 43% of the combined company, respectively, on a fully-diluted in-the-money basis.
The combination of Macassa and Fosterville will form the production backbone of a new mid-tier, high quality gold producer with low cost production and superior free cash flow generation.
Kirkland Lake Gold operates its flagship Macassa Mine Complex in the historic Kirkland Lake gold camp, as well as the Holt, Holloway and Taylor gold mines (the "Holt Mine Complex") situated along the Porcupine-Destor Fault Zone, all located in northeastern Ontario. With the addition of Newmarket's Fosterville Gold Mine ("Fosterville") located in the state of Victoria, Australia and its other gold producing Cosmo and Stawell mines, the targeted gold production of the combined company will effectively be over 500 koz for the full year ended 2016. In addition, the combined company will have comprehensive technical capabilities to exploit its pipeline of development and exploration opportunities across a broad portfolio in both Tier-1 jurisdictions. This growth strategy will be supported by a strong balance sheet with a combined cash balance of over C$275 million along with superior free cash flow generation that amounted to C$92 million, on a combined basis, in the first half of 2016.
Highlights of the Transaction
Key investment highlights of the combined company include:
Creation of a new low-cost, mid-tier gold producer: Pro forma company will produce over 500 koz of gold in 2016 with cash costs of less than US$650/oz and all-in sustaining cash costs below US$1,015/oz.
Diversified production base: Combined company will operate seven mines and five mills in highly prospective gold camps with low geopolitical risk - Canada and Australia are two of the top mining jurisdictions in the world. Key in-country management structure, led by Darren Hall, will be kept in place to ensure seamless integration of the Australian operations.
Production profile anchored by three high-grade, low-cost operations: Production profile anchored by the Macassa, Fosterville and Taylor mines. Combined production in 2016 from these three assets alone will be over 330koz, with cash costs of under US$600/oz and AISC below US$800/oz.
Driving growth across two world class mining jurisdictions: This combination brings together a full complement of skill sets to position the combined company to take advantage of future profitable growth supported by the enhanced corporate financial strength. In addition, the combined company will have the ability to cross pollinate best practices to drive cost savings across the portfolio.
Expanded discovery and exploration potential: District-scale property positions in established gold camps in Canada and Australia with strong development and exploration pipeline to fuel future organic growth.
Strong balance sheet and healthy cash flow generation: Cash balance of over C$275 million and significant expected free cash flow generation in 2016 will provide industry leading financial strength and flexibility.
http://www.northernminer.com/press-releases/story/?id=1003866041
Nice move on GORO today. New 52 week high. I couldnt get my traders back like the other companys. I think the market has discovered and priced in the significance of the coming new Nevada production.
Matt, GWA I spoke with the company Monday, and the financier just got their DD crew up to Timmins for the visit a few days ago. For what its worth, they said they were real happy with everything and they were impressed with the technical work Gowest has done on their own so far. There also is the toll milling deal that is scheduled to be done by end of Oct. Their has to be a 3 way coordination there.
As for the financing, Im not worried the least. My opinion is, it gets done reasonably soon and it will be fair for the share holders. Its a low risk deal for Pandion. They need to get underground before the snow flys and that will be the catalyst for all parties to get it closed in time.
GWA.V Gowest Gold Good supply of Shares trading for .19 today. Take advantage of the seller, Thats about as cheap as your going to see them with $1300 gold. Trading about a $50 M MC and 40% off the recent high
They have an LOI for the bulk sample financing. Lender is doing DD. payments on the $17M should start when the gold is processed. Since the permits came in, things have been moving along well. I expect them to be under ground this year as they have done well getting financing in the past.
The Pre Feas calls for 40 - 50k production per year at less than $900 AISC.
Thats based on the reserves but the Resource is 1.2 M oz at over 6gpt so this is going to turn in to a larger project very soon.
Gold threatening $1300 Might be near the best time to reload down trodden quality minors. Seasonal fall run up is near.
ORV.T Down about 30% last couple weeks. I added today. MC at $37m AT .27/SH They had about $16M in cash recently but their spending some CAPEX.
They are increasing production, lowering costs and gearing up for about 130k oz/yr AuEq. Rick Rule just mentioned them as good operators.
Hey Matt, Should have kept those shares LOL Thanks alot. Between 7/15 and 8/19 I was able to add 320k at between .0303 and .0385 Still have the remains of a bid in waiting to close. I posted this on SH and came over here to catch up. Just saw your posts. PM me your email here, but Im free so cant reply. IMO financing is getting closer. They may have shook things around due to conditions getting better.
Things looking better for the graphite industry
As DNI is working on getting the financing wrapped up that will close the lab and get moving on developing the property in Madagascar, things are improving in the market place and should make it easier to secure better terms.
1) The wholesale business is picking up as DNI'S customer Great Lakes Graphite just received the green light for $4 million in financing to enhance its business and sales. Additionally today is a news release from GLK describing their increasing sales.
2)The lab should be getting busier as the mining industry picks up. All those cores and metallurgy tests have to be done somewhere.
3) The chevy Bolt, mass produced electric vehicle with 200 mi range for under $40k is coming out this year and the Tesla should be on the streets mid 2017. This is going to make news and probably be the beginning of a large transformation the elec vehicles and therefore bring excitement to the industry. Graphite might catch a bid.
4) With the price of base metals going up, the value of the DNI'S Blake Shale property should be going up as well. This is a lottery ticket for DNI should base metals get hot again. This property has large resource of Scandium and Lithium as well. Follow the link for info on DNI'S Blake Shale property. Its my understanding that since DNI is not spending money on the project, they cannot talk about it in the news or on the website. The project is massive and PEA study is already done.
http://www.icmj.com/article.php?id=2182&keywords=dni
Its my opinion that if they reel in a fair finance deal, the shares should move way north rather briskly.
Checkmate28
Luke , thanks for keeping up on the DNI info. Your doing a great job!
LMAO Bobwins. Can we sticky that post? Just sent it to a friend who was telling me yesterday gold got hammered because the Feds were going to raise interest rates. You put it just right!
As if 5% is a hammering after a record bold out of the gates!
CPTMatt GORO EXCELLON & GOWEST I will be looking to buy back my trading position. GORO had good production numbers an AISC last quarter under $700 and some eminent bumps in production coming soon. The Nevada propertys are a whole new layer. Theyll need about $25M to get production going there. Its a steal at $5.20 now but Im hoping for $4.25 $4.60 at $1275 gold to reload. Either happens next 2 weeks or were headed back up fast IMO.
In 12 mths they should be producing from 3 new areas:
1) Switchback, by year end theyll be pulling ore
2) Alta Gracia, by year end theyll SHOULD be pulling ore and filling the CIL heap leach pads they have set up, but never used. Last blasting permit soon.
3) Nevada 3 propertys Isabella Pearl advanced stage high grade. Because its heap leach and company wants it producing ASAP, Production within 12 mths IMO This leads to 3 NE properties within 20 Miles for sharing of CAPEX & OPEX costs
All this stuff is low CAPEX High Grade, minimal dilution. This is why they get the share price that people cant understand.
Isabella Pearl acquisition highlights include:
Undeveloped high-grade deposit averaging 2.18 grams gold per tonne
Proven and Probable Reserves of 191,400 gold ounces at $1000 Au More reserves than GORO has now in Mexico
Near term open pit heap leach gold production potential
Excellent metallurgical recoveries
Low project capital expenditure estimates
Potential to more than double Company's annual gold production profile Remember here GORO mostly produces silver
Advanced stage mine engineering and project design
Advanced stage mine production permitting
They got all this Nevada fire power for basically $2 M shares
Checkmate28
EXN.T Excellon swings back into profit as costs fall
POSTED BY: SALMA TARIKH AUGUST 12, 2016
Excellon Resources (TSX: EXN) is back in the black, after more than two years of losses.
The operator of the high-grade Platosa silver-lead-zinc mine in Mexico reported a second-quarter adjusted profit of US$900,000, or a penny per share, up from an adjusted loss of US3¢ per share, a year ago. Excellon last recorded a net profit of US$1.9 million, or US3¢ per share, in the first quarter of 2014.
The second-quarter adjusted earnings were ahead of the nil per share that Cormark analyst Graeme Jennings had projected, while cash flow per share of a penny met expectations. (The adjusted profit removed a US$5.4 million fair value adjustment loss on embedded derivatives and warrants.)
The return to profitability resulted largely from improved costs, Brendan Cahill, Excellon’s president and CEO, says in an interview. “We’ve seen mining costs per tonne go down by 50% or more, since the beginning of 2015, end of 2014.”
Cost per tonne mined and mill fell from US$481 in the fourth quarter of 2014 to US$242 in the second quarter of 2016.
The executive, a lawyer by training, also attributes the better costs to better management, lower input costs, and a stronger U.S. dollar. “In Canada, people talk about the benefit of mining with the Canadian dollar when you’re selling in U.S. dollar. In Mexico, that is even more of a benefit, where the peso has gone from 11 or 10-to-1 a few years ago to almost 19-to-1 now.
“So Mexico right now is a great place to operate,” Cahill says, adding the slump in oil prices has resulted in cheaper electricity. “We’ve seen prices per kilowatt hour drop from 14¢ in late 2014 to under 6¢ per kilowatt hour right now. When you compare that to the price in Ontario right now, it’s pretty impressive.”
Located in northeastern Durango State, the underground Platosa mine produced more silver and lead in the June quarter — up 25% and 28% — driven by improved grades and recoveries. Zinc output, however, fell 10% on declining grades.
The company’s sole producing asset churned out 368,568 silver-equivalent oz., up 8% from the earlier year period. That includes 227,826 oz. silver, 1.31 million lb. lead and 1.57 million lb. zinc. Grades averaged 536 grams silver per tonne, 5.09% lead and 6.31% zinc.
Of note, all-in sustaining costs per oz. silver dropped 21% to US$19.27, which included one-time costs associated with the ongoing optimization plan at Platosa. Once removed, adjusted all-in sustaining costs were US$15.27, more than US$2 below the average realized silver price.
The company processes all of the ore at its Miguel Auza mill, located 220 km away in Zacatecas, at roughly 160 tonnes per day. The 650-tonne-per-day mill runs half of the time, with Excellon seeking opportunities for the extra capacity, Cahill notes.
From there, Excellon transports Platosa’s silver-lead concentrate and silver-zinc concentrate to the port of Manzanillo, where a subsidiary of the Trafigura Group buys them at market price.
Production costs should further improve with the completion of the optimization plan to prevent water inflows, Cahill says, allowing the firm to increase underground production and development rates.
Excellon has been mining Platosa, containing several high-grade massive sulphide mantos hosted by permeable limestone, since 2005. It has been using reactive pumping to control water inflows, after the mine workings extended below the local water table in 2007.
Since the process was time-consuming and expensive, the miner in late 2014 retained Quebec-based firms Hydro-Ressources and Technosub to assess alternative water management solutions. They designed a proactive plan, currently underway, to install a system to pump directly from water-bearing faults, to eliminate the possibility of water entering the mine.
Once Excellon fully implements the plan, estimated to cost US$6 million, it should be able to dewater at a rate of 4 metres per month, Cahill says, adding initial results have indicated that the drawdown could occur much faster.
The deepest parts of the mine are 160 metres below surface, or 20 metres below the water table, meaning it would take five months to dewater, Cahill says, adding the installation of the new pumping system should take 10 months.
The executive notes all of the mineralization is ramp accessible, making mining at Platosa rather easy. “You need almost no ground support whatsoever. The rock is competent. As long as you can get rid of the major bottleneck, it is actually a beautiful little mine to be working in. It’s obviously exceptionally high grade as well, which makes things easier.”
Without specifying when the optimization plan should wrap up, Cahill reveals by year-end “we should be in very good shape.”
In the first half of 2017, the executive forecasts production could double to 4 million silver-equivalent oz., while all-in sustaining costs will halve to US$9 per oz. silver, on an annualized basis.
With the optimization efforts well advanced at Platosa, Excellon intends to resume its exploration efforts shortly. “The exploration story is wide open. We really haven’t done any resource expansion drilling since 2011,” Cahill says, noting once Excellon realized Platosa then had a 10-year mine life, it started looking for other high-grade manto mineralization and large Source-style skarn deposits. Excellon uses Source to refer to carbonate replacement deposit (CRD) mineralization, as Platosa falls within the prolific Mexican CRD belt.
In July 2012, the company discovered a Source-style deposit, 1 km from Platosa. But in the following year, the “market fell apart and we really ratcheted back on drilling since the Spring of 2013,” Cahill says.
Given Platosa’s current resource covers 56 hectares of the 21,000-heactare project, Cahill believes chances of finding more skarn and manto-style mineralization are high.
As part of its new exploration plans, Excellon aims to locate mineralization near the current infrastructure that’s above the water table, as well as find near mine targets for new mantos discoveries, and generate regional targets through the re-interpretation of geophysical and drilling data that were collected over the past decade.
Platosa’s current resource estimate includes 428 million measured and indicated tonnes grading 1,252 silver-equivalent grams per tonne for 17.2 million silver-equivalent oz. It has another 4,000 inferred tonnes grading 2,492 silver-equivalent grams. Based on measured and indicated resources, Platosa has a six-year mine life.
The company has enough cash to complete its optimization program at Platosa and exploration plans, Cormark’s Jennings notes. It exited June with $4.5 million in cash and marketable securities, and then closed an oversubscribed $15.2 million brought deal in July.
Commenting on the recent financing, Cahill says it is a reflection of the improved market and the company’s strong shareholders, which include Eric Sprott, Sprott Asset Management, Dundee Corporation and Blackrock Global Silver Miners ETF.
“So it’ll be interesting to see what we do next. It will be exciting.”
Since releasing its financials on Aug. 8, Excellon shares are up 54% to close Aug. 12 at $2.19.
“We expect to see Excellon to continue to be rerated as precious metal prices further strengthen and as operations continue to improve throughout the year from drier conditions and higher grades,” Jennings concludes. As of Aug. 9, he had a “buy” and a $2 target price on the stock.
http://www.northernminer.com/news/excellon-swings-back-profit-costs-fall/1003776382/
LC DMM. Dynasty I posted I was out. I took over 80%
Re Goro, Those 2 Nevada properties are together within 15 miles of the Gold Mesa property they are working on. This is an advanced situation and Im sure GORO did their homework. They will probably be able to work all 3 properties withs trucks, mobile crushers and heap leach pads. These are high grade properties. Some risk here but I like it.
ORV.T ORVMF Orvana .38 today Been on a tear since May. I started buying this around .19 after a Dr Air post got me on the DD trail. I really like the story and they've put together some nice progress lately. Fearing pull backs, Im having trouble lately, finding something I want to buy. I averaged up on Orvana the other day at .365. I see a dollar coming soon with very low risk. Link back 2 posts for a summary of DD I put up a while ago. They are increasing production, lowering costs and gearing up for about 130k oz/yr AuEq and trading at a about a 50M MC now. Rick Rule just mentioned them as good operators.
LC DMM.t Dynasty Goldfields plus 50% today. They pulled together a nice deal to get on their feet. I bought in April at the bottom when things came to a screech and I got near 100% on the 4 mth trade. Going to be interesting to watch the story from here.
EXN.t yeah Matt it's 11 p.m. here. Just Had a look, saw the 2.24. had to smack myself to make sure I wasnt dreaming. My first ten bagger of the year. I added during that last post and sold the traders couple days ago at 1.94 thinking it was going to struggle to get past $2 LOL. Guess what I'll be doing first thing tomorrow morning, that's right, logging in to see what excellon did.
Trying to figure it out , because I didn't expect this much this fast on the second leg up. Are people finally figuring out what 4 million ounces AgEq at 7 to $9 AISC is going to look like? Drilling for the CRD source was supposed to start 1st of August , did they find something already?
I think those production numbers are eminent in a couple quarters and that alone could take it to $4.00 based on a 5x on the $40 m cash flow I think they'd see.
And I think they have a chance to make a major Discovery at Cinco. Those CRD' s are usually 20-40 year high tonnage deposits. They were on it before the crash in silver and they had the legendary Peter Magaw working . Their resource is the one light spot in the company. They Shore that up and that's going to provide a future and a lot larger valuation on the shares. That's why Sprott bought in, I believe he wants to find the CRD and take the company to another level. Haven't looked at the price since I started typing I wonder if it went higher LOL.
EXN.t EXLLF +15% leader on my list again. Looks like Excellon finding a new home after showing a profit second-quarter . That's just an appetizers for what's to come.
NXS.V Bobwins? Nexus Gold Corp. Signs Definitive Agreement to Earn Up to a 100% Interest in Gold Project in Burkina Faso, West Africa
Market Cap only $5M on this one and Burkina Faso is a hot African jurisdiction that is considered relatively safe. I did some short DD on this one and thought I would log on and take a small bite of the stock at the .085 level. I was thinking it would at least go up on momentum and possibly something I could be interested in holding at least through a couple news releases and some more DD. Turns out I cant buy from my US account, no US equivalant sym. Maybe this is useful for someone to DD as it sound very interesting as a speculation? Bobwins since you have been with EDV for so long I figured you would be a step ahead of everyone on the DD
http://www.stockhouse.com/news/press-releases/2016/07/13/nexus-gold-corp-signs-definitive-agreement-to-earn-up-to-a-100-interest-in-gold
GWA last thought. The 100% Whitney property which is one kilometer from the Former Hallner mine that produceed 1.7 million oz at .4 oz/ton. All this 1.7 million ounces came from like a 1 kilometers piece of ground and is also smack in the middle of Tahoes Whitney project that just got the go ahead to move towards production. It's imminent they are going to want gowest Whitney property, it's smack in the middle of everything they're doing. I think it is going to be worth between 10 and 25 million and Tahao will have to pay it.
Now imagine what they can do with 10 to 25 million dollar cash injection with no balance to pay? The dallar amounts are speculation but can its neat eminant that Yahoo will come knocking on Gowests dor. IMO, this would create an immediate Halt and a large increase its share price.
Trader, based on all my DD , hints, rumors, conversation with the company ( I missed a call on Friday but I'll catch up with them) this will be a gold loan paid forward that will probably include a small sweetener somewhere, but little to no dilution. The 72 month payback period is to allow them to get firmly on their feet and I think there will be a couple year grace period before any payments start.
For information $18 million is about 13,000 ounces of gold at $1400 per ounce. The bulk sample is 30,000 ounces.
They can work a similar deal with the contract minors possibly.
They are negotiating the mill agreement which could come out several different ways and expected to be closed by October 31.Don't be surprised to see Gowest walk away with the whole thing. They have the Chinese Future Fortune investors that are interested in really cranking things up. They would like to see 3 million ounce resource and 300,000 ounces per year which is where you need to be to get it trading on the Chinese stock exchange where they would tear it up. Hint hint.
I ask company if they were settling for the mill or was it an optimal situation. They explained it was an optimal perfect situation for all of their property, centrally located in great shape, ready to go and a nice capacity I forgot 2200tpd?? Which could get them to you near 150 KOZ per year with their grades.
If you look back through my GWA post over the years, it was always the quality of the resource and the mgt I believe that would carry this company through anything. I think with the current drill campaign, the company will reveal the beginnings of a new resource from a new target area.
It was the incredibly long permitting process and the forever dropping price of gold that kept GWA off the radar, but management kept forward progress and the share count under control always refusing to give up the farm.
Going forward I expect things to go fairly smooth with surprises to the upside which will be a welcome change. Companies will look forward to doing business with GWA because of their future and fair management they can count on. Won't be long and GWA will be a blooming mid tier producer or bought out. For now they are in the driver seat headed that way.
Checkmete28. JMHO
Sent from my iPhone
Matt, GWA. Financing. I am impressed because for a long time I didnt think they could get that much money without dilution. I always added some dilution in with my models. in my conversations with the company, they were very confident they could get it done without the delusion and we're very concerned that the share count did not go up.
The other nice piece is the 72 month pay back, I'm guessing payments won't even start for a couple years. They want to make sure the cash is Flowing nice before payments start.
yeah I'm looking for Beach rocks i n the Philippines both above water and below water LOL
Matt EXN EXLLF equals value and eminent catalysts. About the best out there IMO
Also Gowest GWA.v has big news. LOI 17 million gold loan to finance the bulk sample.. The'll be underground by year end. Edit LOL it's 7am where I'm at and didn't see you hit the GWA news here already
Can't post links Working with one bar data on my phone while traveling 3rd world in vehicle
Goro for non-believers! You have to peel back a couple layers of the onion to see what was really going on. 8 months ago HOC gave us an incredible opportunity when they crushed the GORO shares by selling for cash needed. On the other hand you had Goro gearing up for higher share prices , spending development money on 4 fronts of future production instead of boosting production by selling more gold at $1,000 to break even better. They did all this with current cash flow and no dilution. The market gave them no credit because the market likes debt.
From the conference call,
The second quarter of 2016 was the solid quarter. Comparing Q2 to Q1, we saw increased gold and silver grades, increased metallurgical recoveries and increased production of gold and silver. We also saw increases in net income, gross mine profit and cash in the bank. We accomplished this while decreasing payables, decreasing G&A, eliminating our capital equipment leases and lowering our cost per ounce.
They also increased inventory and receivables and posted AISC in the $600'S for Q2.
another note to mention is they pushed through 11000 tons of low-grade development ore diluting the numbers and increasing AISC. At 1200 tonnes per day that's about 7 days worth of production.
They will be in the high grade Switchback Zone probably pulling ore by end of Q4. This zone is developed and only 450 metres away. Switchback is all of what the Arista resource is now, so should increase all numbers, including the bottom line significantly. GORO has plenty of production capacity and can eliminate filling in the development ore, thereby really increasing the head grade and bottom line costs.
If that's not enough, they are about to crack open production at Alta Vista, where there are only waiting on a blasting permit otherwise they are ready to go. This is ultra high grades and easily truckable to the Arista Mill. Mental lapse, and I'm not looking it up , this ore may be going to be reopened CIL circuit that they have which is double bonus . This will be additional production to the mill, low CAPEX - short time.
Right behind that , will be the gold Mesa property in Nevada that looks like a sure-fire hit . low CAPEX hi grade, heap leach 30 - 40,000 oz per year for seven eight years.
Right about this time we should be about $30 per share
Checkmate28 GLTA
CPTMatt, GORO I was thinking like you and drizzle couple thousand shares off at $6.20 woke up this morning seen it went higher LOL everytime I sell anything this year it goes higher and then I average up LOL.
CPTMatt GWA as high as .28 today. I think there are a lot of locals from Timmins buying into this. From what I understand it is Big Talk in the town. Basically like I said before the value was incredible and receiving the last permit would kill the risk and uncap the value. Than GWA took it a step further and negotiated the use are the nearby brownsfield Mill.
I'm looking for next step for them to show up with substantial Creative Financing that will not be dilutive.
This would pave the way 2 moving towards free cash flow without the need for further financing.
All of the above was not expected by the market in my opinion.
But you're right, you gotta wonder if this price is sustainable? going to depend on how quick they get the news and where the price of gold goes
It's my 6th 5 bagger this year and his one came after the move the other ones made. I posted somewhere in March after the others moved, that Gowest and DNI were the only two stocks I was buying.
Trust me DNI is going to go. I've been chipping away all along.
I bought some CSQ after I saw that Goro was selling to raise CAPEX money thereby holding the shares down. Another lonely trade, but it's starting to pay off. Bought at.045 and a few weeks later the're up nearly 50% as GORO is out. CSQ is going to rip and make a nice trade
Posting from the phone on vacation with limited Wi-Fi
GWA.V About to hit a new 52 week high. Theres really been no pull back other that 10% here and there this whole year. Gowest should be breaking out for the next 5 years IMO. The future is very good and what you dont see is the way things are all going to go together. Headed out of country for about 16 days. Be posting lightly from the phone.
ORV.T Orvana nice news. Should allow some more value to be accessed. Link back for DD. Been a recent runner.
TORONTO, July 27, 2016 /CNW/ - Orvana Minerals Corp. (TSX:ORV) (the "Company" or "Orvana") is pleased to announce that it has entered into a $12.5 million copper concentrates and gold doré prepayment agreement (the "Facility") with Samsung C&T U.K. Ltd. ("Samsung C&T"). All dollar figures are in US unless otherwise expressed.
Jeff Hillis, Interim Chief Executive Officer, said, "We are very pleased to announce this commercial and financing partnership with Samsung, a reputable and well-recognized global corporation. We are very proud that, after detailed due diligence by Samsung, Orvana's gold and copper production will form part of its future plans. The successful completion of this transaction, at a competitive cost of capital, represents a significant achievement for Orvana. The financing proceeds will allow us to expedite planned development and infrastructure investments at our El Valle Mine in Spain, as we continue on the path to increase metal production and lower unitary costs at the operation. Along with our recent announcement on May 30, 2016 of the US$7.9 million financing for the recommissioning of the CIL circuit at our Don Mario Mine in Bolivia, we believe that Orvana is now well-positioned for the future and will be able to capitalize on strengthening precious metals markets."
Under the terms of the Facility, Orvana will sell gold doré from its El Valle Mine in Spain and copper concentrate from its Don Mario Mine in Bolivia to Samsung C&T, on an exclusive basis for a period of thirty months (the "Facility Term"). In exchange, Orvana will receive $12.5 million in prepayment financing from Samsung C&T in two instalments. The first instalment of $8.0 million will be drawn upon closing and will be repaid beginning twelve months after drawdown in eighteen equal monthly payments. The second instalment of $4.5 million will be available for drawdown six to twelve months after closing and will be repaid beginning nine months after drawdown in nine equal monthly payments. The Facility will bear interest at LIBOR plus 4.5%. Interest payments and principal repayments will be made against Orvana's future shipments of copper concentrates and gold doré during the Facility Term. Samsung C&T has agreed to pay for copper concentrates and gold doré on at a price based on the prevailing metal prices for the gold, silver and copper content around time of shipment, less customary treatment, refining and shipping charges, and pursuant to the terms of the Facility.
The Company's obligations to Samsung C&T under the Facility are secured by the pledge to Samsung C&T of all of Orvana's shares of its indirectly wholly owned subsidiary OroValle Minerals S.L.U. which owns El Valle Mine in Spain.
Drawdown of the Facility is subject to satisfaction of customary closing conditions by Orvana for this type of transaction.
EXN.T EXLLF Forgot a main part of the DD in my last post. Note its an older article but that history is the point they start back on the exploration.
http://www.silverseek.com/commentary/mexico%E2%80%99s-highest-grading-silver-mine-excellon-resources-site-visit-13182
Peter Spina | May 13, 2014 - 12:41pm
Mexico’s Highest Grading Silver Mine - Excellon Resources Site Visit
Peter Spina | May 13, 2014 - 12:41pm Facebook Twitter Forward Print
When your company only has one mine, that one mine had better be a good one. For Excellon Resources, their only mine just so happens to be the highest-grade silver producer in Mexico, as well as one of the lowest-cost operations in the country.
As of now, Excellon's Platosa mine, consisting of several carbonate-replacement manto deposits, has a resource of 484,000 measured and indicate tonnes grading no less than 777 g/t silver, plus 8.42% lead and 10.15% zinc, for a 1,277 g/t silver equivalence. That makes for about 20 million silver equivalent ounces in less than half-a-million tonnes of rock.
Along with grades, the mine benefits from great infrastructure including grid power, a national highway close by, and the sizable city of Torreon with its international airport only 55 km away.
The high-grade, low-cost mine in northeastern Durango State gives the company cash flow and potential profits despite the pullback in precious metal prices, and has the company set to reap big rewards if the silver price climbs. But it's the potential of a big-tonnage, lower-grade source deposit that brought Excellon to the 41,000-ha project in the first place, and it's discovering that resource that could truly transform the project, and the company.
In March, I visited Durango, Mexico spending time at the mine site with senior management. The quick 45 minute drive from the airport makes it a pleasant mine to access, easily allowing for breakfast in Denver and lunch at the mine site.
Visiting La Platosa, the large property itself, would require an extended stay, so my focus was on the underground mine and reviewing prospective core samples. Which could lead the way to finding what would be the real blue sky potential for Excellon, locating the large tonnage source deposit. Such a discovery could turn this project into a multi-decade mine which would not only reward its investors but also the local community with its social and economic benefits.
Even though now is not the best time for ambitious and expensive exploration programs, Excellon’s healthy financial position allows them to hunt for that big deposit while keeping focusing on their core mission of producing as much metal from its mine, at as low a cost, as possible.
Last quarter those efforts led to the production of 365,941 oz. silver, or 589,881 oz. silver eq. with lead and zinc factored in, from the 18,890 tonnes milled. Overall the company produced 1.4 million oz. silver from 70,000 tonnes in 2013, the most tonnes milled since it opened the mine in 2005, and the most silver produced since 2009. Total cash costs came in at $10.01 per silver oz. payable and all-in sustaining costs were $19.62 per silver oz. payable for 2013.
The company has fantastic grades but has struggled with water issues at the Platosa mine, despite it sitting in the arid plains of northern Mexico. In 2013 the company continuously pumped 800 litres of water per second, or 12,500 gallons per minute, to the surface. It's been a complicated and expensive road to get the right water management system in place, including installing back-up pumps and generators, finding the right concrete and reinforcements, and getting the right safety system in place, but the company says that it now has the issue largely under control, allowing it to reach its record tonnes milled last quarter and getting silver production back up to its peak.
Despite the operational challenges and the silver price, the company still reported gross profits of $8.7 million for the year and net income of $1.9 million for the first quarter 2014, while bringing all-in sustaining costs down to $17.28 per silver ounce payable. The company had about $4 million in the treasury at the first quarter, along with securities and accounts receivable totalling a further $5.1 million. With steady operations and increased efficiencies ahead the company expects costs to go down further in 2014, as it looks to produce between 1.4 and 1.6 million oz. silver, 7.5 and 8.5 million lbs. lead, and 9 to 10 million lbs. zinc.
Besides getting the mine running smoothly last year, the company spent 2013 getting its corporate side refurbished as it settles into the role of established producer.
Brendan Cahill stepped into the role of CEO, having quickly worked his way up from an appointment as executive vice president in mid-2012 to president and CEO in early 2013. The 35-year-old Cahill joined a management team with extensive experience, including chief operating officer Rob Moore with more than 30 years of mining experience and vp of exploration John Sullivan with more than 35 years.
At the same time as Cahill came on as CEO, Ned Goodman, president and CEO of Dundee Corporation, and Joanne Ferstman, chair of Dundee Industrial REIT, joined the board of directors. Goodman recently stepped down from Excellon's and several other boards, but Excellon still has impressive roster of board members including Peter Crossgrove, Thor Eaton, Alan McFarland, Tim Ryan, André Fortier, and Oliver Fernández.
To broaden its investment appeal the company also instituted a share rollback last year, bringing the share count down to an attractive 55 million outstanding from the 277 million it reached after financing and building the mine. With no anticipated need to raise money by issuing stock, the company saw it as a way to attract more stable institutional investors without burning current shareholders. Institutional investors now include Sprott Asset Management, Dundee Corp, Crystal Fund and Notae Investments and represents 33% of shareholders.
Excellon also started a share buyback program to keep its share price up, buying a total of 232,000 shares during 2013 at an average of $1.59. The company renewed the program in December 2013 to keep open the option of buying as many as 5.2 million shares, or 10% of the total float.
Along with working to impress institutions, Cahill has been busy improving relations with locals living around the mine. That relationship soured somewhat in 2012 following a government supervised union election at Platosa. A union-backed NGO instigated a bitter campaign with the support of a local agrarian community, and the losing union commenced an illegal blockage of the mine. For 64 days in mid-2012 the losing union blockaded the mine, which resulted in 99 days of suspended mine production.
Cahill came on with the company in the midst of this challenge, and has been steering the company towards a more sustainable and conciliatory relationship with the locals. Excellon has initiated a number of community initiatives in health care, education, and cultural programs. The company is also running vocational training so more locals can benefit from employment at the mine, which currently employs 352 Mexicans, making up 100% of its workforce in an area with limited opportunities. Excellon reports that it has an excellent working relationship with its employees, the local communities, and all levels of the Mexican government.
During my time at the Platosa mine, I visited with their community manager Sandra Magaña and was able to see that these efforts paying off. Excellon’s engagement in the community is creating a healthy relationship for this important source of opportunities. I saw the positive impact of the local population being engaged in various programs to improve their town. For example, as difficult as it may seem for many to relate to not having access to the internet, such is a privilege for the community. Now with Excellon’s support, internet will soon be brought to students.
Community relationships are a big priority for Excellon, because the company plans to be at La Platosa for the long term. The current resource will sustain production for about seven more years, but the company is busy exploring for more high-grade mantos to the north, east, and southeast of the current mine workings. And then there's the potential of that major source deposit lurking nearby.
The style of mineralization at the Platosa deposit is similar to several of the world-class carbonate replacement deposits of Mexico. Those include New Gold's 151-million-tonne Cerro San Pedro deposit, Penoles' 120-million-tonne San Martin-Sabinas deposit, and Goldcorp's 45-million-tonne Penasquito deposit, though overall the CRD deposits in Mexico average around 10 to 15 million tonnes. CRD's are epigenetic, intrusion-related; high-temperature, sulphide-dominant, lead-zinc-silver-copper-gold-rich deposits that commonly occur in clusters associated with major regional geologic features.
La Platosa sits in the middle of the prolific belt of such deposits that run along Mexico's spine, leading Excellon to suspect the source of the precious metals from the mine is a carbonate replacement deposit nearby. Indeed, finding the big-tonnage source has been Excellon's eventual intention since acquiring the project back in 1996.
The company was busy drilling away and exploring for this game-changer when the silver price plunged, so Excellon had to shelve an ambitious $18 million exploration program it had planned for 2013. But the drill results the company had before cutting back are sure to keep Excellon's exploration team excited to start looking again soon.
Drilling in early 2012 hit upon the Rincon Del Caido discovery about a kilometer from the current mine, which is the most promising lead on the source of the Platosa deposit. Results include hole LP1019 that hit 55 metres grading 132 g/t silver, 3.1% lead, 1.7% zinc, and 0.08 g/t gold, and hole LP1030 that returned 7 metres averaging 409 g/t silver, 10.2% lead, 8.4% zinc, and 0.11 g/t gold. Hole LP1038 hit 7 metres carrying 13.1 g/t gold, which the company says could indicate a more gold-rich source deposit.
For 2014 the company is keeping a cautious approach to exploration, holding back on any big programs. The latest technical report proposed a $5 million drill program, with about 90% of that going towards looking for more high-grade mantos and the rest to keep the search alive for the large-tonnage source, but the company has not committed to any program yet. The company also has the option of exploring its 41,500-ha Miguel Auza project in Zacatecas State, but exploration focus will remain focused on the La Platosa property.
As a silver investor, Excellon’s valuations are very attractive at these levels with much more upside than downside. Even more so since the stock price has come down substantially with the silver sector. Excellon provides investors with a very low cost producing mine reaping profits with strong upside exposure to the silver price. There is an excellent share structure in place (55M) along with a solid management team that can leverage their cash flow into exploring and potentially unlocking a large-tonnage long-term mine. 2014 looks to be an exciting time for the company and I expect we will see Excellon be a sector outperformer.
EXN.T I would buy it here anywhere near $1.15 and did add myself last 2 days. I spent an hour typing up a book for the board here yesterday and lost it due to computer crash. Ill resummarise briefly. Remember I touted this in the low .20s through Nov Dec Jan as a no brainer. It went 6x in 3 months time. Things have settled and changed. I know this story well.
Going forward, the de weatherization program will show up on the operation and financial quarterlys incrementally starting now. That alone will move the shares. Bottom line is 4 million oz AgEq production at AISC of between $6 and $9 depending on how FX and lower energy improve from the PEA is going to start weighing in now.
Eric Sprott recently put in his own money, and since than, just set up an over subscribed bought deal financing for another $13m. Excellon did not need the money. They could have moved forward from CF and the initial financing for the dewatering project that was separate from Erics. I tried to get in last week because I wanted the half warrant, but was to late. I was told, there are people only getting 40% of the shares they wanted.
Eric is interested in the following up on the CRD Carbonate Replacement Deposit that Excellon was working on when they share price was $8 right before POS forced them to stop. CRDs are the deposits that the big boys in Mexico all have and will provide multiple 1000s of tpd production for 20 - 40 years. This was always my secondary reason for liking Excellon but its coming into play early because Sprott is driving it. The reality is hes looking to drive up the value of his Excellon shares by pushing forward the exploration by providing the cash. The following is my opinion but based on much DD.
The CRD being there is inevitable, it has to be there based on results so far. Its a matter of continuing with where they started. Driven by Erics money, which is enough, drilling will be mobilized fast. This will be a large share price driver as the results come in and the market see this as a catalyst. The large near term coming CF increase, was always inevitable after the dewatering program started and the reason for the 5X rerating after the market caught on.
At a MC cap of $62 million, the market doesn't see this. Excellon is my horse again for the next 6- 12 months.
Because the ask came down to $1.14, I added again at the ask while writing this article.
Checkmate28
AVI Gilbert weighs in. My favorite indicator as to where metals are going and the reason I found every nickel under my couch to load gold stocks 7 months ago.
]Sentiment Speaks: What Is In Store For Gold
Summary
Price Action Over the Prior Week.
Anecdotal and Other Sentiment Indications.
Price Action Over the Prior Week
Over the last week, we have seen gold provide us with a nice pullback. The market seems to be in a corrective state right now, but nothing is yet suggesting that we need to expect anything significantly bearish at this time.
Anecdotal and Other Sentiment Indications
For those of you that have been familiar with my analysis before my hiatus from Seeking Alpha, my perspective of markets is based upon market sentiment, rather than fundamentals. And, the funny thing about how market sentiment works is that it often provides a purely contrarian perspective at the point in time when the market can see a turn in price. In fact, for those that remember, it was my first market call on Seeking Alpha back in August of 2011 which called the top to the gold market within $6 of the actual high struck in 2011 as many were certain we would be eclipsing the $2,000 level.
For the last several years, while the metals have been dropping in their long term corrections, many continued to point towards the rising demand in China and India as being the definitive indication that the metals were about to soar. However, not only did this not mean anything to price action, but price continued to plummet in the face of these factors.
Recently, Lawrence Williams penned an interesting article wherein he noted how Chinese demand has dropped 18% during 2016 (along with a drop in demand in India). Yet, the market has seen the strongest rally experienced for the last 3 years during this time when demand has strongly dropped in these countries. Yes, I know this is a head scratcher to those that do not understand market sentiment. But, do you need more evidence for the lack of efficacy of following such misguided perspectives, no matter how counter-intuitive the more accurate perspective may be?
Moreover, government actions have also been quite indicative of this contrarian thesis. Many believed that the strong demand seen by governments over the last several years indicated that the market was going to see a strong rally. However, it seems the exact opposite - government selling - may have actually indicated the long term bottom in the metals.
You see, governments are usually the last actors within the chain of events, and are always reactive to societal events. Just think about what often prompts new laws, especially in the finance arena.
For the perfect example of a government being the last actor within a trend in gold, we can look back to the last gold bear market. The last bear market in gold lasted from 1980 until 2002. Between 1999-2002, when gold prices were at their lowest, Gordon Brown, who, at the time was the UK Chancellor of the Exchequer, decided to sell approximately half of the U.K.'s gold reserves. As we now know, that marked the end of the gold bear market, followed by a strong rally into 2011 which saw gold increase in price by over $1,600. The price multiplied by over six-fold from the low in 2002. This became known as the "Brown Bottom."
Along these lines, in October of 2015, I wrote an article suggesting we are approaching a major bottom in the complex, and noting how Venezuela could be selling more than 3 million ounces of gold reserves before year-end. The country has more than $5 billion in maturing debt and interest payments due before year-end without the ability to repay it. This was the first anecdotal potential for an approaching long term bottom that came up on my radar.
And, in January of 2016, it seems that Venezuela sent $1.3 billion worth of gold bars to Switzerland, according to data from the Swiss Federal Customs Administration. In fact, it seems that the Central Bank of Venezuela has reduced its gold holdings in 2015 by 25%, and this is even before hearing about this transfer in 2016.
Then, in March of 2016, we found out that the Bank of Canada's gold reserves have been reduced to nothing. As amazing as it sounds, that is a fact. Canada has now sold its gold, which is an event similar to what occurred in 2002 with the UK's sale of gold.
With the technicals suggesting that the long term bottom may have been struck, the anecdotal evidence of governments again selling at the bottom would add support to what the technicals may be suggesting. Maybe this time it will be known as the "Maple Leaf Low."
Price Pattern Sentiment Indications and Upcoming Expectations
For the last 7 months, many were certain of lower lows below $1,000 in gold and have been on the sidelines. Many are now calling for a large pullback in the market before they move into the market. Maybe they are right. But, based upon the current pattern we are seeing, they may be watching for the rest of 2016.
From 2011-2015, the metals market has provided very hard lessons to market participants. It has predominantly taught them that rallies are to be sold, since it "always" leads to a strong drop. Many have still retained this same perspective, even though it is becoming more and more likely that we have moved from a corrective market back into a bull market. Many have been selling every time they see a small decline in the market.
In fact, I received a number of comments to other articles I have written, questioning my view that we may not see many more pullbacks for a while. Some on Seeking Alpha have even compared my analysis to others who are confident of a pullback, concluding "we will see who is right."
Anyone who takes such a perspective about the market really does not understand the market. Clearly, those that were sitting on their hands at the lows, and waiting for the market to drop lower have not made any money. In fact, many have been shorting all the way up in 2016, and have even lost a significant amount of money. There is nothing "right" about that.
For those that have read Jesse Livermore, allow me to quote one of his famous sayings:
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It was never my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Ultimately, being "right" means knowing when to get into the market, when to get out, and when to just "sit tight," with appropriate stops in place. And, those that follow me at Elliottwavetrader.net have gotten into the market "right" at the end of 2015 and early 2016, we have been "sitting tight," and we have "appropriate stops in place." I would say we have done everything "right" for 2016. And, even in the lesser likely event that the market does make a lower low, we will have been stopped out of all our long positions, after making more than 100% off many of the stocks we bought back in 2015 and 2016.
So, as long as silver remains over 19 and GLD remains over 124.50, and GDX remains over 27.70 I will continue to "sit tight" and look higher. A break of those levels will have me reconsider my expectations. Our next higher minimum targets are 137 for GLD, 22.15 for silver, and 33.50 for GDX. Should all those levels break as support, I will have to adjust my larger degree wave structures, but the likelihood that a lower low may be seen is estimated to be between 25-30% in my humble opinion.
Disclosure: I am/we are long SLV OPTIONS AND VARIOUS MINING STOCKS.
http://seekingalpha.com/article/3990603-sentiment-speaks-store-gold?app=1&isDirectRoadblock=false&uprof=44&utoken=bc434369ec6bce9e322d28dda5de8b6d
Comments are interesting as well.
CPTMatt GORO, At this point I need to step back and see their next step. Obviously the market see the value and some Goro catalysts are priced in. I think their closer to fair value until they show some more cards. Longer term, I see $30 at $1900 gold as no problem as they'll be producing more gold and cash flow than before. Im mostly looking to seeing the balance sheet, updated costs and cash flow on their current production. As to the new ounces, I know those are coming.
LC GORO As to IKN I only said they posted a smear campaign and I refuted with truth everything they said. I can repost it for you if you need. As to shorts, I have no idea where they came from but GORO had a few growth pains as they may have spent to much on the divy in lieu of growth and mine infrastructure got behind.
As to bad self serving GORO mgt, are you talking about the fact they paid the shareholders a record sector leading divy yeild for several years or the fact they set up projects for payback of CAPEX in one year or less, or the fact they self financed without the banks and kept the share count down to $54 million without diluting or the fact they are the only company that offers share holders dividends in kind. They serve themselves by mere fact they are large share holders and are aligned with us.
Huesos Re GORO +.32 TO $5.20 Keeps on truckin. Thanks for the good words. The IKN smear campaign aloud me the opportunity to get shares cheaper. One thing about GORO, they havent done a financing in 6 years and don't take money from banks. That left them without analyst support during a time where HOC was selling GORO to raise cash. Near sure the'll have analysts write ups soon as the funds start buying in.
Sidenote HOC chart is pretty to look at. They were so cheap back then, I almost bought them when I was doing the DD.
Dr Air, Re Zinc TK GORO EXN Unfortunately I don't know alot about zinc except for what you said. Alot of zinc supply has come off the market with the 2 mine closures plus Glenncore and Nystar took a million T/Yr off the market.
I think demand will be effected by the global economy - China weather it slows down or not. One question, Can Glenncore and Nystar just turn it back on when economics increase. 2.3 oz zinc per ton of earths surface.
http://www.criticalinvestor.eu/zinc
I've been aware of the zinc shortage and my way to be on board, is to have polymetalic minors like Excellon and GORO who have plenty of Zinc for credits. They can increase Zinc production if it turns economical and turn it back if needed. Personally One story I like for Zinc, is TK Tinka Resources, only because I know a few things about the company. They are drilling one hell of a polymetalic/zinc resource and looking to sell to their north neighbor BHP Hilton for a $billion some day. Heres a story where I want to be careful to not be too early, sitting on dead money that could be in gold or silver. Pretty shrewd mgt also. This could fall in the category of extremely good sit and wait value though.
My one cent opinion. Like to here more weigh ins on this.
Checkmate28
Bobwins TML.TO Easiest for me to compare this to Gowest. I always size a new company up against something I know well, my value leaders. When they dont size up, I pitch the idea.
Previously I blew them off when I saw the high MC compared to Gowest. Since GWA had a big move, they are near even MC so this was interesting DD for me.
Similar Market caps both near $50m, with similar Resources both just under 1.5m oz, near 3gpt cutoff with similar grades. Both near Timmins ON. GWA land package twice as big, plus its 16 km of contiguous rock along the Pipestone Fault
Treasury seems to be a couple years behind GWA, explain later. So my big question is how does Treasury garner a MC so high when there 2 years behind?
First, Treasury is starting as a pit moving to underground whereas GWA is underground and Treasurys grade is pretty good for a pit. I think thats one reason, as pits are normally considered easier and less costly. The other reason might be promotion. Gowest comes in low when it comes to promoting. No fluff.
GWA s resource of 1.3M oz was done in 2011 where they posted a PEA with a 100k OPY operation similar to Treasury but with a bit more NPV. Treasurys cutoff is lower and they used a higher gold price.
Greg Romain from GWA always told me, Gowest could have been a pit but the permitting would take much longer since more fish, birds and ground are disturbed.
So heres where my personal experience comes in with a caution flag. Treasury is in late stage permitting and still needs a feasibility study before they can talk financing. When GWA got their pre feas done, I was disheartened as the it had to be based off reserves and not M & I resources and this meant a much smaller operation on paper. They went from 100k OPY on the PEA to 40K in the prefeas. 40k doesnt sound to impressive even with the low CAPEX. Fortunately I know there is a 1.5M oz resource and the operation will be larger soon. I also saw the permitting process take forever compared to what the company thought.
Treasury is still in the process where they are waiting on questions from the locals plus First Nations. It took GWA a couple years from that point to get the signed last permit. Onterio is terrible. Second is, the feasibility study still has to be done and it will be based off reserves. I see no reserves on the Treasury website but I know they will be much less than the resource used in the PEA and thats going to downscale the operation. One more thing is that I don't see a technical team with TML plus the CEO just left June.
So my DD boils it down to time and money. Two years of time is a lot of money. Their site says production decision q217 and Feasibility about now. Its going to take 18 TO 24MTHS for permits IMO. Im tired of being too early to the party sitting on dead money unless the value is so compelling and so unnoticed, that it pays alot to wait such as in Gowests case where they were recently sitting at a $15m MC while not one sole outside of me mentioned them. LOL! I am very comfortable to be right and sit tight as opposed to chasing well promoted storys. As to Treasury, I like Timmins, Im up to date now and I like their story. They have to create some value or lose some MC.
Checkmate28
GORO $4.70 Breaking out since Jan at $1.15 low My favorite silver minor even at this valuation, although I would add only on a dip. Lots to come. Production, costs, and most importantly Cash flow will be nicely improving next 3 quarters. This is my no brainer for gains without pain risk vs reward ratio. When they ramp up the divy again, buying at these levels will get a handsome yield when the price per share goes up.
GORO still only 54 M OS. No debt. Previous share price $31, previous sector leading dividend payer. Reduced the divy to increase CAPEX for more production on a number of fronts
T.PRU Perseus Mining Limited Quarterly Update
Perseus is a monster in the makings. Been waiting for an update. Things are going well. Just sit and wait on this one. Endeavor be looking over its shoulder in a couple years.
http://www.stockhouse.com/news/press-releases/2016/07/06/perseus-mining-limited-quarterly-update
PRU, T.PRU | 16 hours ago
PERTH, WESTERN AUSTRALIA--(Marketwired - July 7, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Perseus Mining Limited (ASX:PRU)(TSX:PRU) ("Perseus") intends to release its comprehensive Activities Report for the Quarter ending June 30, 2016 (the "June 2016 Quarter" or "the Quarter") on or about July 25, 2016. As an interim measure, the Company is pleased to provide the following update on recent events:
OPERATIONS
Edikan Gold Mine - Ghana ("Edikan")
The intensive work programme implemented earlier this year to improve operating performance at Edikan has been successful in materially improving operating performance at the mine in recent months;
Adjusted grade control procedures contributed to the average head grade of ore processed during the Quarter increasing 19% to 1.01g/t. In the month of June 2016 the head grade averaged 1.04g/t. Mill run time has also progressively improved with the plant operating 88% of the time (including downtime for scheduled maintenance) in the month of June 2016;
Gold production for the Quarter totalled 40,058 ounces, 8% more than the March 2016 quarter and 24% more than December 2015 quarter. For the six months ended June 30, 2016, Perseus produced 77,208 ounces, in line with its revised production guidance of 75,000 - 90,000ozs of gold;
As at the date of this report, June 2016 Quarter financial accounts have not been finalised but it is expected that the all-in site costs that will be reported in the full Quarterly Report will also be in line with revised cost guidance;
With the recent strong performance at Edikan, previously announced production and cost guidance for FY 2017 is confirmed, as are forecasts for the remaining life of mine that were published in April 2016;
Construction of houses required to relocate residents of the Eastern Pits and Esuajah North mine take areas is on schedule and under budget with first houses due for occupation later this month;
Commissioning of a diesel fired power station to ensure 100% self-sufficiency for Edikan in the event of a failure of the national power grid is on track for final completion in mid July 2016;
Planned upgrades to the processing plant to improve plant run time and reduce maintenance costs are on track for implementation during the six months ending December 31, 2016, with downtime required for installation incorporated into production forecasts.
DEVELOPMENT
Sissingué Gold Project - Côte d'Ivoire ("Sissingué")
Execution plans for the full-scale development of Sissingué have been activated with first production of gold scheduled to occur in the December 2017 quarter. At a total cost to complete of US$100 million, Sissingué is currently forecast to produce 385,000ozs of gold at an all-in site cost of US$632/oz over a 5.25 period from first gold production to generate an after tax IRR of 27% at an average gold price of US$1,200/oz;
Negotiations with a highly regarded contractor are well advanced on an engineering, procurement and construction "EPC" contract, accounting for approximately 50% of estimated construction scope and involving commencement of site works during the current Quarter;
A total of 100,000ozs of gold has been sold forward at an average price of approximately US$1,308/oz in satisfaction of the project lenders' hedging requirement of not less than 100,000ozs at a price of US$1,200/oz or better;
Final credit approval and documentation of a US$60 million project financing facility for Sissingué are anticipated to be completed in the coming months.
Yaouré Gold Project - Côte d'Ivoire ("Yaouré")
Following Perseus's recent acquisition of Yaouré, contracts for all work major packages required to complete the Yaouré Definitive Feasibility Study have been awarded to a range of consultants and contractors. Runge Pincock Minarco ("RPM") will perform the role of lead consultant for the study;
A 42,000 metre infill DD and RC drilling programme involving several drilling contractors is scheduled to commence in the third week of July 2016. The program will include grade control drilling in targeted areas. A RAB drilling program will also be completed to sterilise planned infrastructure sites;
The environmental permit or "ESIA" for Yaouré is expected to be formally granted by the government of Côte d'Ivoire during the current quarter.
CORPORATE
Following a positive vote by shareholders and approval by the High Court of Justice of England and Wales, the scheme of arrangement under which Perseus acquired all of the shares of Amara Mining plc (the owner of Yaouré) took effect on April 18, 2016;
An institutional placement of shares to raise approximately A$61 million and a 1 for 10 pro rata accelerated non-renounceable Entitlement Offer to raise up to approximately A$41 million, for total proceeds of up to approximately A$102 million, was launched on June 20, 2016. The A$94 million institutional component of the A$102 million fund raising successfully closed oversubscribed on June 23, 2016. The A$8 million retail portion of the raising is currently in progress and is scheduled to close on July 15, 2016;
The successful equity capital raising when combined with a planned project financing of US$60 million and internally generated cash from Edikan and Sissingué is expected to fully fund Perseus's corporate strategy of transforming from a single mine, single country enterprise to a multi mine, multi country gold producer with production targeting in excess of 500,000ozs of gold within five years.
GWA.v Gowest Gold - THO.t Tahoe Resorces. Stumbled on some more DD substantiating the value of Gowest Gold as an upcoming developer/producer.
You can see from the GWA presentation slide 21 Gowest Whitney property lays smack in the middle of the Tahoes/LakeShores Whitney Property just 1km from their project and also 1km from the historic Hallnor Gold Mine (1.7 million ozs @ 0.41 oz/t)
http://www.gowestgold.com/wp/wp-content/uploads/2016/04/Corporate-Presentation.pdf
You can also see on the Tahoe Presentation slide 18 and 20 the map where they are moving forward with Whitney and planning on adding 1 million oz grading over 6gpt of production to the Bell Creek mill.
http://www.tahoeresources.com/wp-content/uploads/2013/02/TahoeRBCjune14152016J10V1.pdf
Next you have Tahoe/Lakeshore currently bidding for the last 30% of the Whitney project from Goldcorp by agreeing to pay $12million in closure costs. Now thats a lot to offer for 30%. Think they might see some value in Whitney?
http://www.tahoeresources.com/tahoe-resources-acquires-2-nsr-royalty-at-bell-creek-signs-letter-of-intent-to-obtain-100-interest-in-whitney-joint-venture/
Now the big question is. How does Gowest fit here? Will Tahoe make a bid for the Gowest Whitney that sits right in the way of their project? Tahoe could you just write us a check so we can move forward with the Bradshaw project?
Checkmate28
Thats an awesome quote. Most of my best winners came from my worst losers.
to understand the story and judge if the worst is priced in with a turnaround ahead, on a new find, you need to spend alot of time and overcome a lot of fear before you risk your capital which is hard to find when you are busy. With the previous losers, you are intimate with the details and managements credibility, therefore executing with confidence is easy.
I think in our case, it was easy to pick good resource companies at the wrong time. think MMT Many of those companys had great mgt, assets and catalysts but no capital. Today capital is igniting this whole market.