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LC Re GORO Have a listen to the recent conference call where a caller asked just that question- Where did the gold go? Start at the 44:12 minute mark. You might want to send that over to Otto.
http://www.goldresourcecorp.com/content/conference-calls/1603850_08-06.wav
The difference in the produced gold number and sold gold number, is the cut that the smelter-buyer gets for his service and theirby the answer to the missing gold question.
I bought a nice piece of GORO last week on a stink bid just over $2
The drop happened after the operational results showed lower grades and production numbers that were due to mine development issues plus a short strike from one third of the union workers. 47% of the production was from development ore. Previous to that, shares suffered due to the institutional selling and the class action lawsuit that was settled. I expect these shares to be up 50 - 100% within 12mths even if gold stays here as these were temporary mishaps that provided a temp dip in price. The shares have been beaten down hard and the risk reward ratio is looking good.
My thesis is that GORO has spent the last 2 years rehabbing the mine and mill, theirby doubling production capacity from cash flow. Additionally the Aguila mill currently has a ready to go leach circuit being tuned up that will provide even more production capacity and growth.
They have the new switch back zone feed the current mill to max capacity, plus a lot of very good drill results from a few different property's they can use to feed the leach circuits.
Recently they commissioned a new dory facility that will decrease refining costs from 9% down to 1% for about 40% of their production.
So large increases in mill and mine capacity plus decreased costs should equate to record production and increased cash flow IMO with an added bonus for price of silver and gold going up. IMO each quarter should contain more and more of this increase and prove out this under valued situation.
JMHO
CHECKMATE 28
Zrymd I use the pink sheet version like Bobwins said for my IRA account. I take the US price times the exchange rate and will always get the shares available at the ask instantly. If there ever is a problem, a phone broker will make the transaction for the internet trade fee. You can negotiate the trade fee also.
GORO Just out and main reason I included them in my last post.
Gold Resource Corporation Expands Switchback Mineralization Intercepting Multiple High Grade Parallel Veins Including 15.64 Meters of 2.85 G/T Gold, 169 G/T Silver, 0.52% Copper, 1.60% Lead and 10.16% Zinc
Switchback is a step out from their current Arista mine. This hole just 50 meters out plus up (good). They have delineated a 450 strike by 450 depth open all directions including zinc up to 29% (zinc should be going up). 450 x 450 was the start of their current Arista mine when they made the production decision.
Mr. Jason Reid. "There is a very good chance we have found the next Arista deposit at Switchback, or perhaps it's an extension of Arista, which speaks to the growing potential of this epithermal system. Our plan to touch the mineralization by year-end could see us pulling tonnes for mill feed during the first half of 2016."
The bottom line is, this is high quality new feed for their mill, that still has extra capacity after the recent doubling of capacity, paid from CF while they paid sector leading dividends. This could easily bump their production 30 - 40% Thats a re rating of the share price and the dividend should this carry through.
http://web.tmxmoney.com/article.php?newsid=76361600&qm_symbol=GORO:US
I am accumulating about 50%+ of my new purchases on shares of miners that have the best chance at becoming 10 -25 baggers, and also a low risk of failing. I can endure some short term pain, knowing I have solid companies that can endure these and even lower metal prices. Will have a special eye out for companies in the penalty box, that have shored up operations and solved problems that will allow them great future CF relative to their EV or NAV. Will blend this with the other smart strategy here of concentrating on the best CF ratios period. Might be early, but would rather take my time picking off bargains with no competition, than to have to throw money at running stocks.
When I use 10 - 25 bagger future value, I am assuming gold near $2000 and silver back to $50
For future accumulation
EDV 3rd and 4th quarter numbers
RIC Island gold very high grade coming
GORO Gearing up for higher production, increased resource & divy
EXN Handling their water issue
AUN Dont laugh here, but they are putting things together now that Rodriguiz is gone. Could be 5 - 6 million oz Ag at industry leading low cost and a restructuring of the loan. This would greatly derisk the shares and it would compare favorably with Silvercrest which is trading at 7x the market cap of Aurcana
AUMN Golden Minerals. Worth a shot here and I just bought.
For a $20M MC YOU GET
53M Outstanding Shares (Never reversed)
2 mills in Mexico,
2 underground mines Mexico
127 M oz Silver NI43101 resource
Lots of new potential from exploration
El Quevar Argentina silver property with district potential
They've reopened their mine, revamped operations 180 degrees, hired a new work force, got new tech report, and are mining from an entirely diff area than before.
The companys guidance for Ve-lardeña’s indicates positive net CF from Ops mid-2015 (assuming prices of $17/oz silver and $1,250/oz gold). Anticipated output between 0.8 - 1.0 m AgEq and cash costs between $12 & $15
New Technical Report showed markedly higher silver and gold grades as compared to the previous (June 2012) NI 43-101 Technical Report; the 2015 report indicates silver grades as at December 31, 2014 in excess of 300 gpt and gold in excess of 4.0 gpt. Additionally, the 2015 Technical Report forecasts 2015 through 2018 cash costs per silver ounce, net of by-product credits, of $9.17.
Financial Outlook
At March 31, 2015, the Company's cash and cash equivalents balance was $6.1 million. Assuming metals prices of $17 per ounce silver and $1,250 per ounce gold and a positive operating margin of approximately $2.4 million from the Velardena Properties for the remainder of 2015, Golden expects to spend approximately $6.5 million during the remainder of 2015 on the following items and to end the year with a cash balance of approximately $2.0 million:
Im assuming metals prices can stay near the same and the companys operation can break even with the above changes.
Potential Catalysts
1)They have a cyanide leach oxide mill with a 550 tpd capacity that is idle and could provide a few diff opportunity:
A)Toll mine for other smaller companys,
b)Find feed from current exploration areas and truck it over.
C)Acquire smaller property's locally that are only economic for a company with a ready mill.
2)They have some good current exploration results that would weight in over time or better metals price.
3)Sell or JV ElQuevar
The bottom line, is that if they break even with the CF, while continuing to explor and reduce costs, they will have de risked the operation greatly. If an additional catalyst comes in, thats another bump in value. The NAV of the company is already many multiples of the MC. This company used to trade at $28
SAS.t STADF Added a chip of St Andrews this morning after reading this article below and reminding myself that The Taylor mine should start adding high grade production this year and add about 40+ k oz next year.
They've been paying for most of the development with CF
The real catalyst for me was the artificial perceived drop in value that the market has assigned it, due to the recent mining accident allowing me the buying op!
http://seekingalpha.com/article/3273975-st-andrew-goldfields-is-quietly-developing-its-taylor-project-to-increase-annual-production-rates-with-45-percent-before-year-end
Monte Re Gowest GWA.V Apologies for being MIA.
As to an Xstrata buyout, I've asked Gowest mgt many times about diff scenarios. Heres my take. Back ground - In 2012, Glencore, bought Xstrata Plc for US$62 billion in shares.
A company like Xstrata Glencore (Glencore plc) wants to make money, but Gowest isn't even pocket change, nor worth the time and effort now. They would however, be interested in what Gowest could become in short time after the project is further derisked.
So if Gowest did the following:
1) get fully permitted this year like they claim
2) Get financed for the $21M to go underground and get the bulk sample done. Notes here. They still have some millions now. Gowest will get back alot of the money they spend on the bulk sample from the produced gold. Quick math - a 300,000 Tonne bulk sample will Net 5000 Oz gold at $1200 with a 5 gpt grade. That equals $6 Million in revenues. With a CAPEX and risk so small, they believe they can get some debt financing. Maybe use the bulk sample as collateral? Additionally, there are $4.5 million in warrants held by their finance partner Future Fortune. They will probably exercise those warrants once they see its needed. Their Chinese partner, Future Fortune, may bring the finance deal?
3) Prove the Pre Feas true and continued to drill the resource, thus increasing production with low additional CAPEX
4) Drill some of the other nearby targets to get at least an inferred resource, outlining another area with a high probability profitable mine.
At this point, Gowest might be attractive enough for Xstrata, Goldcorp or another large company to put up a few hundred million for Gowest and another $100 million for a 3000tpd mill and produce a couple hundred thousand ounces. I could easily see this. You can look at the company presentation and see Gowest has a couple million high grade ounces at Bradford.
http://www.gowestgold.com/wp/wp-content/uploads/2014/10/Corporate-Presentation.pdf
For the time being, Gowest has an NPV of $40M and a MC of $15M with $1200 gold with only an avg of 40k oz production. They need a combination of $21 M to get $5M positive yearly Cash flowing in. Those are great numbers for such a small market cap and that just gets things started. With those numbers I dont see a lot of risk.
Have to ask yourself, If Gowest puts this together in a share holder friendly way, what will happen to the share price.
What if ore sorting works, they drill some more reserves, increase production and gold goes up a couple hundred bucks?
One more thing, This mine is in Timmins On, the epicenter of the Abitibi greenbelt, where half of all mined Canadian Gold was produced. Its going to get Much more market cap per once then Africa, Europe or even Mexico.
Gowest CEO Interview just out
http://business.financialpost.com/news/mining/ceo-interviews/gowest-gold-more-gold-near-timmins
Checkmate28
Trader Gowests CAPEX is low because they are contract mining and processing their ore. Xtrata Glenncore has a 3 mile deep mine in Timmins that is nearly exhausted. They have 4 lines there and are only using 2 or 3. Xstrata just recently spent $160 million revamping these lines a few years ago and would like to keep the lines and mines going to avoid mine closure costs.
The xstrata Kidd mine is responsible for about 1600 Timmins ON jobs so the local government is behind this as well. Gowest has the only upcoming mine with a large enough production profile to interest Xstrata. Some of the CAPEX would go towards prepping the line for the Gowest ore. This would give Gowest a great opportunity to use the completed facility and talent to get them up and producing. Also use your head to think of possible outcomes here. Xstrata Glenncore is a mega billion market cap company with plenty of cash. Gowest their neighbor, is going to develop a mine camp IMO.
http://www.gowestgold.com/index.php/news-events/news/article/?t=gowest-gold-granted-further-extension-for-letter-o-tsx-venture-gwa-201407080956161001&id=1856909&f=http://gowestgold.mwnewsroom.com/article/xml?id=1856909
Traderfan, Gowests, PFS is better than expected. For $21 Million Initial Capital, and $21million sustaining cost, Gowest will produce 40,000 Oz/yr with an AISC OF $891/oz and provide a total revenue of $341 million, after tax IRR of 27% and a NPV of $41 million
These numbers are a fantastic start and provide for IMO an easily fanciable project.
A couple things to note,
Stantec Mining, creator of the Pre Feas is one of the best in the business with 22 offices in 20+ countries. These numbers should be good and from talking with Gowest Mgt, Stantec had their best, most senior talent on this project and took a few extra months to validate everything. The PFS is extremely conservative.
A few things to note:
Gowests Bradshaw deposit is in Timmins Onterio, one of the best jurisdictions in the world. More golds come out of Timmins than anywhere else in all of Canada. Infrastructure, and on tap work force, is already there.
The Pre Feas by law can only be based off the Reserve ounces of around 300,000. The total NI43101 compliant resource including M & I plus inferred is about 1.5 million ounces (near 5 grams per ton) and that sits on only about 1% of the Gowest land package. Assuming that gold is there, they can produce 100k per year from Bradford. You can see where this is going. Gowest has laid a path, that gets them there without a huge start up expense. This project and its management are top notch IMO.
Permitting is deep on its way and should be forthcoming soon.
As to financing, $21M is not alot to ask for. A small mix of debt and equity financing and the initial CAPEX will be there. Their finance partner, Future Fortune, is already on board and Ill guess the directors will step up as well. Additional cash will come back from the proceeds of the bulk sample.
Traderfan, I couldn't be more excited.
This is going to get some traction when Gowest takes a few more stops and people start to digest the story.
As to now, looking at todays trading, Gowest is still the nobody on the block.
If you link back a post, I put up some other dry information that could be in Gowests future. Additional to the 1.5 M oz Bradford resource, there are 17 other targets with Bradford type signatures on there property.
Hold onto your shares. The potential here is large. Gowest just seriously derisked the project. For $21 million they can start unlocking the value without diluting away the farm. IMO, a fantastic investment comes, when you find a big story before it happens and that management executes in a share holder friendly manner. For me thats Gowest Gold. Still some hard work to do but their getting traction.
Somebody will pick this story up.
Checkmate28
Interesting letter from First Majestic addressed to the Commodity Futures Trading Commision regarding recent silver COMEX activity.
http://www.firstmajestic.com/i/pdf/3259_001.pdf
Currently reviewing the probability's that in no special order SAS, AUN, EXN, GORO, RD, RIC, TGZ, are all cheap now and all have good reasons to grow value safe, going forward. Most of these have stories behind them like ORV that the market does not see or understand.
ORV.to They had a soft quarter( probably reason for the dip) To make yearly guidance like they just said in the conference call, they will have to pull off a strong 2nd half.
Amazing value for such a small EV. They are looking at 13 - 15 million for yearly sustaining costs and the same for CAPEX for the year, plus free CF. That can provide for some nice organic growth. This year I think they produced the same revenue, with reduced costs off setting lower price of metals. All good stuff.
If I had some free cash, Id probably buy some, esp after the dip. I would like to understand what they will do with the cash and then I might get motivated. But looking at the way they run their business, Ill bet they grow organically, efficiently. I stopped in their booth at PDAC and I left with the feeling that their just wasn't anything about the operation that sounds exciting. Slow organic growth doesnt sound sexy to the masses. That just may allow the value to percolate for awhile, until they do something exciting like an acquisition or put a wad of extra cash in the chest. One thing for certain, the downside risk is near nill and the upside leverage to the price of gold could provide some very nice appreciation in the stock price.
Checkmate28
SAS St Andrew Goldfields +.03 finally starting to get recognized.
EV still just over $100 M and still cheap.
SAS From that article Another nice summary.
At $0.32 share price, St Andrew Goldfields trades at 4x cash earnings (only ~3x excluding net cash on hand)
By the end of this year SAS should have net cash on hand of ~$0.13 per share (I dont see this happening as they need CAPEX to fund Taylor development and exploration costs)
At any rate. A debt free, 100k growing producer from Timmins at anywhere near an EV OF $100 Million is a great value.
Note Randall Abramson the writer of the article was buying heavily in the mid 20's
Dr Air SAS.v Nice Summery. Still a favorite on my list. Those are all great reasons to own the stock, but the 2 catalysts that aren't priced in yet are the Taylor production and the outside chance that Primero wants to do something with there Black/Grey Fox zones thats runs under SAS property.
Good thing for you and I, is that Taylor will ramp up slowly and deal with development ore, before they run the big numbers from the high grade ore.
LOL Last time I said that was after I sold RIC for 2.62 and watched it fly to low $3
Richmont going to be a monster when they get to that high grade ore. At PDAC, I was extremely impressed with the presentation they gave. They are moving, fast and furious, to get it done where as, I think SAS will move things forward at a slower pace as CF allows.
I like them both very much.
About 30 days ago Checkmate28 said
GWA.v. about 300k Gowest gold shares available now@ .05 Canadian. Probably nobody going to buy these but whoever does, can thank me later. Currently traveling, posting from my phone. Much news coming very soon and lasting for about 6 months
You could be selling those shares today for .080 or better
Im not normally that bold unless I feel really good somethings going to happen, or the risk reward ratio is so insane the move is near guaranteed.
Traderfan Hi Fives. The Gowest story hasen't changed. What is happening is that Gowest mgt is moving the story forward. If the story is true, than the shares are way undervalued. Market payed no attention to their plan and wrote them off as another exploration play that would fall pray to the overall poor general market. I did my DD, the Resource is outstanding, the management upstanding. They will move the project in a share holder friendly way. A PEA is just a PEA until the Pre Feas comes in and verify s the data to a higher level. Looks like we're going to shortly see. No more time for me now but this is still way under valued.
GORO Gold Reource corp. Great article on GORO pounding the value and reason GORO is misunderstood. I copied only an early paragraph and the conclusion, but the author does a good job explaining the contrarian value of GORO. Nice comparison charts as well comparing them to 20 plus peers.
Gold Resource Corp.: A Contrarian Gem
GORO is a profitable, producing miner that trades at a forward price to earnings ratio of 5.7! Moreover, its balance sheet is pristine with a debt to equity ratio of 0.03 (as calculated by finviz). To see how this compares to its competitors, I ran a screen of gold miners whose market cap was <$2B (again from finviz). The results are charted in the below link.
http://seekingalpha.com/article/3093276-gold-resource-corp-a-contrarian-gem
There are some nice drill result charts that show gold silver and base metals from the drill holes. The value of these holes would be Very impressive if they were to calculate the value per ton of the combined metals and convert it to AuEQ
Conclusion
GORO is a contrarian gem because the market fails to appreciate the company's unconventional approach to mine development and reserve delineation. At today's prices it has a large safety factor counting only its known reserves and it debt-free processing plant and infrastructure. Moreover GORO's potential upside is very large as it has discovered many more deposits all of which are returning exciting drill results and which may move into production well before formal SEC reserves are established. I remain long GORO for the long term.
Ill add one thing. Because of this unconventional approach of not using financing institutions, they are disliked be them. This also means no free analyst reports from supporting institutions.
Gowest Gold GWA.v Update: Since I posted this at Stockhouse, I just did a copy and paste here. Link below
Check out this investor presentation from the Timmins Investor Day webcast on April, 9th. (link provided below) After I heard this, it took about 4 days and 4 times listening to get the full weight of what there saying. At 2:57 they start talking about the Hoyle deep project. Part of this project is a rich refractory sulfide zone (PVZ plunge 3:03 ) that would need an autoclave for processing ( at 3:03:55) Goldcorp talks about needing an autoclave operation to process the rich sulfide. They believe they would need about 3 million oz to justify building the autoclave. IMO 3 million oz would be a stretch and take considerable time and money to prove up from their PVZ zone. What if they had some help? Final drill results should be out Q1 in this area, and will offer information they need to make any decisions.
During those 5 minutes, they show a PVZ plunge presentation slide, where you can see they are studying contract processing the sulfide (like Gowest ) vs in house processing.
Goldcorp would have to prove 3 Million oz to justify the autoclave needed for the in house process option. Thats a lot to ask for and would carry a good degree of risk.
I'm going to start a rumor.
1) What if Goldcorp JV'D with Gowest to build as autoclave, sharing the cost and production capacity with Goldcorp?
2) What if Goldcorp got greedy and thought they needed more ore to justify there project and reduce the risk, Where could they get that?
3) Gowest has a 1.5 million oz high grade resource that is nearly permitted and ready to break ground 20 km away from the Goldcorp sulfide deposit.
4) Gowests 1.5 million oz resource is only the beginning. Gowest has 17 other targets, some partially delineated and the Frankfield Resource sits on about 1% of their total land package.
5) These are some of Goldcorps highest level mgt publicly talking about building an autoclave in Timmins. Think these chiefs, thought about the fact that (Gowest Gold) sits nearly next door with its 1.5m oz high grade refractory ore ready to go? or that the Gowest market cap is under $12M
6) Gowests Prefeasibility study is due out any day. Think Goldcorp mgt is waiting to see this as well? Gowest PEA study showed a 50% IRR at $1200 gold, a 60 mill CAPEX and pretax CF $28mil/yr.
7) If the Prefease looks good, and permits start coming in, Gowest becomes a wrapped up package that could help Goldcorp to push this plan through. That would save Goldcorp about 2 years of hard work and get Cash flow pumping while they finish drilling and permitting their PVZ zone.
http://www.platformwebcast.com/goldcorpinvestor2015/index2.html
From my seat, things are shaping up real fast for Gowest whichever way they go. The above scenario could easily happen, and remember Goldcorp just acquired another neighbor, Probe Mines in March for $500 Million. Probe has no production and not even close. What they have, is a similar size property to Gowest that has much more mature drilling than Gowest has been able to accomplish. Im not saying I think this will happen, but Im sure Goldcorp is waiting to see the prefease and the permits and could find it a valuable option to go after Gowest.
If they acquired Gowest for even half that amount at $250 Mil, even 1 year down the road, that would be a 20 bagger from the current market cap.
The markets going to see what I've been here saying for 3 years. Because of the quality of the Gowest property and mgt, Gowest is going to move forward one way or another and create big value. The market cap tells me no one believes this.
http://www.stockhouse.com/companies/bullboard/gwsaf/gowest-gold-ltd?postid=23654652
http://www.gowestgold.com/wp/wp-content/uploads/2014/10/Corporate-Presentation.pdf
Checkmate28
JMHO GLTA
Monte, Im in, bring your commentary. Your posts have always added value here.
Last post, you were looking for information to subscriptions for yourself, Did you land anything eye opening?
Monte said " one thing I learned the hard way was that if I picked the wrong sector/industry even with my best stock picking I still get creamed"
I always admired CL001 for being so fast to sell the fading sector and buy the hottest trend no matter what the value of the company he was selling.
I think many here went back early and stayed too long, or worse yet never left. Cople major lessons there.
SAS St Andrews Reports Q1 2015 Production of 23,727 Ounces of Gold, Exceeding Q1 Forecast by 11%
I like the news. Higher production due to higher grades. Should translate well to the earnings numbers and increase cash flow.
This news, stacked with the Taylor development, plus good probability of M & A activity's keep this high on Checkmates high value list.
Loneclone Re GORO You've called GORO mgt shameless, devious, self serving and full of shenanigans. You based that off of what? that same INCA trash you put up here every few mths???
Remember over a year ago, Loneclone posted an IKN article, saying GORO was a mess, losing money, couldn't afford the dividend and would have to end it..... Result: GORO shortly came out with a very strong quarter, shocking the market with strong earnings and has never wavered from paying sector leading dividends, surpassing even the majors. Self serving??? Where was IKN??
Then Loneclone posted a fire warning from IKN stating that Hochschield Mining was pulling its support and selling its millions of GORO shares because of their disgust for the company and mgt. Remember later I posted the press release from Hochschield. HOC told the world they were bleeding cash and had to sell GORO to fund their development of another project. Where was Loneclone and IKN then ????
Now Loneclone posts more information from the same outfit criticizing GORO again. I took my Saturday morning digging for the benefit of the board here. Lets have a look, at what an amateur can dig up.
INCA accused GORO of losing gold in Q4, Really??? In the article IKN quotes GORO's execution of their Q3 plan to withhold gold for their new Dore pouring facility. IKN then puts up a chart they created with incorrect data stating this dory concentrate went down in Q4
IKN quote
"For five previous quarters to 2q14 concentrates held in inventory were at or under $1m. Then in 3q14 the number jumped to $3.4m. We can then see that GORO was apparently true to its word about processing the extra in 4q14 because the number dropped back most (though not all) of the way, with 4q14 filing $1.481m in inventory of concentrates."
IKN states they got this info from the 2014 8-K
What were the IKN financial wiz's smoking when they read that?
This is a cut and paste from the MGT discussion under Dore:
At December 31, 2014 we had approximately 6,400 ounces of high grade gold and silver concentrate inventory awaiting to be processed into doré bars at our doré facility in early 2015.
This information is in the 8-k two times and was also stated in the GORO conference call. So while IKN stated DORE inventory's went down in Q4, their was actually a large Q4 net increase in DORE concentrate waiting to be processed even after they processed some of it.
Second IKN mishap: IKN quote
"And by the way of a slight sidebar, one of the weirdest things about this company these days is how it gets more of its revenue from the zinc, lead and copper base metals credits than it does from silver or gold."
The truth is This is actually false. It is very easy to see that annual 2014 revenues for Gold Resource were $115M, of which base metals delivered $40M
Third IKN mishap IKN quote from another post:
IKN says GORO was profitable for Q4 2014 because the Company didn’t pay taxes.
He should have listened to Jason’s conference call remarks. Gold Resource Corporation did not pay as much in tax in 2014 because it OVERPAID 2013 taxes by $3M. That means the Company’s profit should have been higher in 2013 than was reported.
4TH IKN mishap is the one previously corrected by DR Air in a previous post.
LONECLONE I am awaiting your thoughts on IKN. You've used some heavy name calling against GORO and relentlessly have posted IKN attacks on GORO that are for the most part, untrue slanders on the company. IKN just accused GORO of misplacing gold when in fact its there, clear to see in the 8-k. Furthermore, there are many here, including myself, that spend our valuable time looking for true information's on mining stocks. You've wasted our time here posting that IKN drivel. You also said you had special access to IKN's analyses. I have to ask, did you actually pay the $400 IKN asks for the yearly subscription to their special analysis???
Loneclone, You are hosting 8 boards on IHub, you clearly let us know how you feel about GORO, please let us know, with adjectives how you feel about IKN???
LC I'm an amateur and I easily found the truth in the GORO 8-K. It looks like a smear and vendetta to me. If I was GORO mgt, I would turn this over to mt legal team and sue IKN.
I wonder if IKN will do the right thing and correct their information for their paying subscribers so they can keep them fairly updated with the best information possible????
Awaiting your thoughts
Checkmate28
GWA.v. Gowest gold shares available now, about 300k @ .05 Canadian. Probably nobody going to buy these but whoever does, can thank me later. Currently traveling, posting from my phone. Much news coming very soon and lasting for about 6 months
SAS Volume, My guess without investigation, would be an arraigned trade set up by the company since there was really no meaningful change in the PPS. Possibly Abramson who has been on the ask for a long time with many millions to sell. Possibly Sprott. The answer should show up soon. One of the best valued safe jurisdiction jr producers out there IMO and a solid buy at this price.
Taylor is going to do well for their future revenue and AISC IMO.
LC, I had a look, so all the numbers dont add up. If I have them (IKN) right, their hinting, mgt walked off with $3,000,000 worth of gold? If I have them right, why wouldn't they just not put those ounces on the production side and keep everything looking even?
Maybe with the low price of gold, they held some back from being sold, in order to get more later or pay less tax this year? lol let me rephrase, maybe the buyer missed his appt to count the oz and write the check by year end 2014?
Lets see what happens next quarter and for now, Ill see if I can come up with another answer.
The company's doing a great job IMO creating value and setting up for growth and profits. Mgt interests are aligned with ours in the sense they are large share holders and benefit by keeping the share count down and protecting the value for the share holders.
Then theirs the $103M paid back to share holders. iS That the character of a CON MAN?
My decision is based on where I see the share price and divy 2 - 4 years from now. Another factor is the low degree of risk I see for the investment.
Thanks for calling it to my attention and I have one eye open at night now. Weakness of mine, that I discovered past couple years, was hanging with companies that I discovered had bad mgt. Its a much more important criteria now.
You might find this interesting or at least entertaining.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112091246
The new presentation is nice.
GORO Loneclone, (edited) it always takes you to get the best of me and out here posting true information on the other side of a smear. As smart as you are, how can you post that drivel? You need to try and help me out in case Im confused? You've continuously been out here smearing GORO, posting they will stop the dividend, they got a new plush office they cant afford, their going broke, costs are skyrocketing, HOC is running from them when the reality was HOC was bleeding badly and needed cash. ((OT Sidenote, I like the HOC value now)) All the while, it looks to me they keep being fiscally responsible and watching my investment.
I think the bottom line is the market has them wrong because they dont like their style. Banks and hedgies dont like them, because GORO doesn't want their money. No free coverage from the banks but rather snubbing negative articles and gads, they even keep gold in the treasury and pay their shareholders in gold coins. What kind of a fraud is this circumventing the US FED banking system?
GORO keeps making money and honing operations for the future. Not much reason to care to much about the PPS when you dont need it to raise funds? The market and bankers would love for GORO to go out, leverage up and start building another $200 million mine and boasting all the new ounces and CF projections... Instead, they just keep paying, continuous sector leading dividends thru the last few years, while doubling production capacity, punching out their under ground mine, streamlining processes for cost reductions, exploration drilling to increase their official NI43-101, acquiring leases right next to Canamex where by they recently purchased 20% in the shares of the entire company. And they did all this with Cash Flow from operations, and gads they didn't even use the banks.
They created all this value with cash flow from operations and I forgot, the Cash position for GORO keeps going up quarterly as well, even after they took roughly 6 thousand ounces ($7m) from their 2014 q3 production to fuel up their new Dore bar producing equipment that will reduce costs even more.
Im only fair with accounting numbers, so maybe you guys can find a pair of new alligator shoes they expenced that would explain away all good deeds GORO has been doing for me. Im looking forward to the more in depth look from the IKN as they must really be smart if they have their own blog.
GORO, being about the only solid company allegedly creating value, that hasn't partaken in the post tax sale rally, is a value alarm for me.
Having these catalysts is a Nice set up. With GORO, I feel good to tuck them away and just wait. Wont be long and these $3.00 shares will be earning a 33% yield on the divy alone and we know where that going to take the PPS. Add back that CAPEX, the acquisitions, the dore with holdings and some of those other expenses and the EPS would have been phenomenal.
I may be eating crow after Loneclone puts up that new piece he promised. Really sorry LC, not normally my MO but your one sided stuff just brings out the underdog defender character in me. Their may be some worthwhile info there that I don't agree with or am surprised with, but it will take much more than that for me to believe I made a mistake.
While Im not excited my shares are still at $3, Price and value are 2 different things and I am excited I have more time to accumulate a position while GORO builds out the value, preparing for the coming increase in the POG at which point I think they will put things in second gear.
Checkmate28
JMHO and GLTA
ICG.V I still like ICG but Im out. Those thousands of people from Val D'Or knowing the project are probably priced in now. They probably saw the vision long before me and hoped in before those catalysts hit.
NOTHING new in that news from Ceasar's report or the local news, that I didn't post (before the run up in PPS :) while pounding the table with a half dozen posts from .18 to .33 since the new year. I cant think of any other stocks that ran up since the new year and stayed up thru now.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110170394
Butt... I sold on the last spike to .33 end of Feb right before PDAC so I would have some PDAC shopping money. My reasoning was the $80 million market cap was near fair value for the progress they had in.
Going forward, there is plenty of increased value coming, but its going to be another 18 - 24 months to get to production and show the market how profitable they can be. I see the PPS going mid to higher .30's based off hot drilling and selling the story. They need the upper .30 PPS to bring in $10.5 Million from 35 million warrants priced at or near .30 They have roughly $10m cash as well. That should keep progress moving as they chip away at the $60m CAPEX or become an M & A participant. I could see them doing a JV on the newly acquired Century Mining 2.5 M oz resource that came with the new mill or selling the whole thing to a major for a nice profit. Talking with mgt at PDAC led me to believe they are highly interested in either.
Get your Gowest Gold GWA.v now. I know we didn't get a chance to talk on the phone but I had some things to tell you. We were able to buy the shares for for awhile at .035 - .04 US in my case. There was good volume around PDAC time but supply is starting to tighten up. Still quiet though.
Those articles will soon be titled Gowest Goes Gold! And the market will ask Why didn't we see that coming.
Wish I had time to post more but Im buried with work lately. I do manage to keep a good 20 hours a week for stock research & IR talks.
Im In the hole today with time already going over ICG and GORO.
Hopefully I can add some more content on GORO later. Im a buyer all day long at $3
Checkmate28
Deals are everywhere. Oceana Gold OGC.T Safe bet
2014 307k Oz Au production plus Cu
AISC $785
TOTAL PROFIT $111M
Cash $51M
Debt $118
MC $632M
EV $699M
CF $105M
2015 Moving into even higher grades
SAS.t PS I forgot to mention SAS has a 200 million tax loss pool that a potential profitable buyer could use to their advantage if they were to aquire SAS. That is a potential $60 million bonus.
SAS.TO - 2015 guidance from the recorded CC about 8 Min in.
2015 guided production: 106k from Holt Hollaway and Taylor
Assumption: Taylor will be fully permitted and ready Q4
Holt Hollaway will provide 90k,
The math! 106k - 90k = 16k Q4 Taylor
They are just scratching the surface at Taylor at 400 meters
2015 Company Cash costs Bet 800 -850 includeing royaltys
2015 AISC guidance $1000 Keep in mind, there are 37k meters of drilling in the budget, some of which is sustaining. AISC would go down if they trimmed the sustaining drilling. Also they have a reputation for beating guidance.
Nice tidbit here, Canadian $ Rate reduces $19/oz in US costs per basis point reduction
2014 Phaze 1 Drilling at Holt Deep zone 4 West Ext:
Shallow dipping and open to the North and west
4gpt over 37 meters
21gpt over 22 Meters
Produced inferred resource of 1 million there alone
2015 37k meters of drilling is going to add nicely to their resource numbers and should help the share price.
2014 paid off their debt and CF around $30 Mil, puts them at 3 x CF based off the $90M EV
Going to spend some face time with them at PDAC next week. 520 companies going to be there and I have only 2 days. Be busy this week mapping things out
SAS.TO Comments ? Just a few small ones Ha Ha! I think it presents a compelling buy IMO for many reasons. Besides the obvious extension of Gray Fox Zone being traced south, with high grade results from SAS, there are other reasons to own SAS, that on their own would support the $90M EV
The Holt mill - Holt/Holloway mine is their bread and butter and thier expecting 90k cash flowing oz just from that. After the Royaltys, AISC is about $1040, not the best, but it pays the bills, PLUS CAPEX for the other projects and sustaining costs, thus allowing them to move forward without costly financing's. The Royaltys provided the path to this luxury, that no other good jurisdiction company with a EV less than $90M has. Remember, Primero bought Brigus that was weighted with the 8% gold loan where Brigus had to sell 8% of the gold to Sandstorm for $500/oz. How many extra ounces, did it take to pay for the loss of the extra cost, over and above the $500.
SAS Near producing Taylor, will produce 16k oz in 2015 4th quarter per the recent conference call. These are **Very** high grade ounces with very low, royalty, like 2% that will add 64k yr oz if you annualize it.
They have hundreds of millions in Infrastructure when you count Holt, Tayloy and Aquarius.
SAS has 3000 tpd milling capacity, more then they need. If Primero wanted to build a 3000 tpd mill it would cost over $100 million and take 1-2 years to finish
Don't know how current this number is because its a couple years old in my notes but SAS had a $190M tax pool that would be Very valuable to a profitable producer. Cant by very different now.
Largest land position Timmins 121sq km
About 700k in mineral Reserves and about 6 million oz (rough from notes) total including Inferred.
Currently they have $21M cash and a line of credit for $10 Million, They can cut CAPEX and use reserve cash if they have to survive an even lower gold price.
One of my favorites for quality jurisdiction, low risk, high future value return irregardless of any buy outs.
Checkmate28
Thanks for the good words Kozuh
Since your always hovering
Whats your favorite hovering play or two, going forward,
in or outside of resources?
SAS.t Looks like the Halt was due to the production decision on their High grade Taylor mine after the bulk samples produced head grades above 9gpt
From memory Taylor should add 40k oz per year starting beginning of 2016. Thet should be highly prifitable with the 9gpt grades.
Nice bump in already good numbers for a solid company with a good balance sheet. They could be nearing 130,000 oz in a year.
The real watch is to see what they do with Primero as their black fox mine borders SAS on the north and SAS has proved it extends onto their property . I was told by someone in the company that obviously we will have to do something with Primero.
Gold Resource Corp. Misses 2014 Production Guidance, But Shares Remain A Strong Buy
Feb. 11, 2015 4:27 PM ET | 1 comment | About: Gold Resource Corporation (GORO)
Disclosure: The author is long GORO.
Summary
Gold Resource Corp. has announced preliminary production results and missed its 2014 guidance. .
The company produced 19,057 ounces of gold equivalent for the last quarter and 83,902 ounces for all of 2014, below the full-year guidance of 85,000 ounces.
However, I still believe the stock is undervalued and holds tremendous upside potential.
Gold Resource Corp.
Gold Resource Corp. (NYSEMKT:GORO), a Mexican gold producer targeting projects that feature low operating costs and high returns on capital, just announced its 2014 preliminary production results. For the year, the company increased annual gold production by 4.7% an annual silver production by 8.7%. For the fourth quarter, Gold Resource produced 19,057 ounces of gold equivalent and 83,902 ounces for all of 2014, which was just below the company's guidance of 85,000 ounces. Gold production for 2014 was 35,552 ounces, with silver production of 3.29 million ounces.
I have previously recommended Gold Resource Corp. here on Seeking Alpha for a few reasons. First, the company is a profitable gold and silver producer based in Mexico, a solid mining jurisdiction. The company's El Aguila mine cost just $34 million to start production but has returned several times that cost in cash flow. On an all-in sustaining cost basis per gold ounce, Gold Resource produces gold at less than $850-$900 per ounce, which means $300+ margins at current gold prices.
Although Gold Resource missed its production guidance, I am still very bullish on shares. One main reason is the company's outstanding exploration success. Recently, the company announced high grade drill intercepts at Alta Gracia, including one drill that intersected 1,383 g/t silver and 1.53 g/t gold over 5.06 metres. This was followed up two weeks later with arguably even better drill results at El Aguila, including 6.12 metres of 5.53 g/t gold and 4.15% zinc, and 1.71 metres of 13.45 g/t gold and 860 g/t silver. Other drill holes at the Las Margaritas deposit included silver grades as high as 2,600 g/t. These results will most definitely lead to an upgraded resource estimate in 2015, and perhaps an increase in annual production and mine life extension.
Arguably more impressive is the fact that Gold Resource Corp. has maintained such a tight share structure during the bear market in gold and silver. Currently, Gold Resource has 54.18 million shares outstanding, and this has barely changed over the years. So while other gold and silver juniors have had to issue equity to fund operations, Gold Resource has not, which means far more upside potential. What's more, Gold Resource pays a monthly dividend of $.01 and the stock yields 3.5% currently. Since its inception, Gold Resource has paid out over $100 million in dividends to shareholders.
Gold Resource still has a great balance sheet, too, with $24.8 million in cash and just $2.78 million in debt as of the end of the last quarter. With an enterprise value of $157 million and annual EBITDA of $28.7 million, the stock is trading at an EV/EBITDA of just 5.46, according to Yahoo Finance. In addition, insiders own 22.51% of the stock, with management owning 7%.
Gold Resource Corp. is currently finalizing its 2015 production outlook, so stayed tuned. The company had previously guided for production in the range of 110,000 to 120,000 ounces of gold equivalent.
With a solid balance sheet, a stable monthly dividend, profitable production and tremendous exploration potential at its Mexican properties, I consider Gold Resource Corp. as one of the best junior miners in the industry.
IIROC Trading Halt - SAS
TORONTO, Feb. 12, 2015 /CNW/ - The following issues have been halted by IIROC:
Company: St. Andrew Goldfields Ltd.
TSX Symbol: SAS (all issues)
Reason: Pending News
Halt Time (ET): 2:59 PM
Dr Air ORV.t Orvana Fantastic post and you beat me to it. I've had some windows up on my computer for a couple weeks wanting to put together some DD for a post.
Looked like a perfect storm to me. What mainly caught me, was the Trading at 1 x Adjusted EBIDTA and the fact they paid down so much debt last year plus increased their cash with the sale of the Michigan property. That money they spent on debt last year can only go one place now.
2014 Numbers Nice numbers here.
150oz Aueq
84KOz .... 2015Guid 82-84
21M lbs Cu.... 2015Guid 20-23
890K ozAg .... 2015Guid 550-680
Consolidated COC of $696 and AISC of $949 per ounce of gold sold 1X
Plus they still have a chip of cash owed them for the Copperwood property, tax rate in Spain going down 5% this year and lets not forget the soft Euro is helping them.
Im looking forward to how they make the transition from pressure to pay the bills to what to do with the free cash.
Checkmate28
ICG.V .305 Up 13% on 2 million volume. I pounded the table at .18 along with my other favorite tax loss favorites. Link back to Dec 31st for more DD.
The new mill/mine is a game changer. If the catalyst they have now and in the very near future, are coupled with a steady rising price of gold, there is going to be a long steady raise in the share price creating a perfect storm scenario IMO.
Production capacity and permits in place to produce 110K oz yearly
Take from the old PEA
Key take In the first full year of production, the company will generate its market cap (~$52 million) in pre-tax cash flows on 111,100 ounces of gold, assuming US$ 1,175 per ounce gold. Based on Life of mine ("LOM") cash cost of C$551 per ounce and all-in sustaining costs of C$731 per ounce
All they need is the $60 million CAPEX to tie everything together. I believe with these economics, they are collecting term sheets.
Integra Gold ICG.v ICGQF Halted today on very good news. As I suspected, the new drill results were very good and upped the resource to over a million oz indicated at over 7 gpt. Very impressive for low market cap developer. Thats going to extend the mine life to 10 years at 100k oz/year.
From the release: There are very few low cap-ex, safe jurisdiction, high-grade gold assets that can boast the potential for a 100,000 ounce per year or greater production profile. I'll second that and another that comes to mind is Gowest Gold.
Without incorporating the new resources announced today, and using the closing spot gold price of US$1239 per ounce and exchange rate of 1.24 from February 9, 2015, the Lamaque South Project PEA reports a pre-tax IRR of 106% and NPV(5) of C$266 million,
Those numbers can only get better if POG stays same or higher when they add the new ounces.
Stock has moved nice since I bought in Dec, but I think this release is going to get some attention. Those numbers make them very attractive to a mid tier. They have a fully permitted 2200tpd mine they just picked up. They are fact tracking to production and have excellent management.
Stay tuned for more as they are in their most extensive drill program ever and the PEA is going to be updated soon,
Link back for more DD
Cork Thanks, one thing I forgot to mention and Im sure most here figured it out. The divi figure I mentioned, presumed the FV of gold being much higher $2000 or above, thereby greatly increasing Cash flow. Im hoping they hold some of Q4 production for the dore pours, as that will give me a another quarter to add to my position.
Smitter I heard you from the beginning. What you meant, was price (PPS) was under-performing relative to value.
The market is misunderstanding GORO for the following reasons.
2014 Q3 HIGHLIGHTS
- 17,262 ounces AuEq mill production
- 11,923 ounces AuEq sold but costs based off line 1
- 5,878 ounces AuEq of high grade gold and silver concentrate produced and stockpiled in ending inventory
Reid "We stockpiled much of our high-grade gold and silver concentrates produced during the quarter in preparation for pouring Dor bars in our new Dor facility, which we began commissioning at the end of the quarter and which increased our unsold inventories. We recorded a $(0.03) per share loss which was contributed by unsold concentrate inventory as a result of stockpiling the high-grade concentrates for the Dor facility process. These inventoried ounces are planned to be processed and sold during the fourth quarter as Dor bars. By expanding our production methods, we expect to lower our treatment and royalty costs for the Dor ounces sold further optimizing operational costs"
What we have above, is good news that the market has viewed as bad news
Earlier, there was Hochschild's relentless dumping of 17% of the total outstanding shares
Then there's the conspiracy part.
Ever notice GORO doesnt have many analyst covering them, nor do you see GORO in many comparisons.
I think this is due to the fact that GORO has nearly no use for the banks or other funding institutions. They keep the share count low without the low priced financing's.
They are organically growing production, growing production capacity, growing resources, growing cash, buying exploration property's and shares, and still paying the divy with the low price of gold. My kind of business.
Switchback should warrant a production decision any day now. That will help fill the extra processing capacity they have.
Being about the only solid company, that hasn't partaken in the post tax sale rally.
Having these catalysts is a Nice set up. With GORO, I feel good to tuck them away and just wait. Wont be long and these $3.50 shares will be earning a 33% yield on the divy alone and we know where that going to take the PPS.
Checkmate28