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stkjunky HOC Hochschild sold GORO July13 to acquire IMZ for $360+ million consideration. Hochschild still owns 11.2 million GORO shares. They were free to sell a second block tranche in mid Oct. That would require a filing which they have not done so far.
Oct,1st
International Minerals to Be Acquired by Hochschild Mining
http://finance.yahoo.com/news/international-minerals-acquired-hochschild-mining-000000707.html
The transaction represents a total consideration of $360 million to $400 million ($3.04 to $3.31 per share), or a 24–35% premium over the company’s 20-day, volume-weighted average price of $2.46 per share on the Toronto Stock Exchange, International Minerals says. - See more at:
http://www.northernminer.com/news/hochschild-ties-up-loose-ends-with-international-minerals-acquisition/1002633194/#sthash.IEnDQKZE.dpuf
EXN.V trading 2.8xCF BASED ON Q313 from $21.40 avg POS W/$10.65 AICC. 2.4M AgEqoz run rate From EV less than $65m
Q3 Highlights
Net earnings of $3 million ($0.05/share)
Cash flow from ops of $4.8M ($0.09/share) before changes in working capital
Sales of 603,666 AgEq OZ (9-mos - 1,524,727 AgEq OZ), including 452,040 oz Ag, 1,969,259 lb Pb and 2,074,088 lb Zn
Net cash costs/Ag oz produced of $7.77 (9-mos - $8.77)
AICC per silver equivalent ounce sold of $10.65 (9-mos - $15.60)
Cash corporate administrative costs reduced by 37% versus Q2 2013
Nice touch, Salaries and wages, in particular, decreased by 32% and 44% relative to the 3-month and 9-month comparative periods of 2012
Working capital totaled $11.7 million at September 30, 2013
The Company believes that further decreases in production costs are attainable as, during the third quarter.
EXN proved they are safe in this low priced Silver env.
They are on the prowl for acquisition on the steal. Due to their high grades, nearly 1000g/t, they have 45% spare capacity from their mill plus US$21 million in loss carry-forwards
The market should catch on esp after another good Q
EXN.V EXLLF I'm calling a market surprise to the upside tomorrow.
2013 Still guiding for $14/Ag Eq oz AICC ($10.65 AICC Q3 2013) on 2.1 million Oz AgEq including their slow first half. Expecting costs to trend lower as grades increase further plus more cost savings.
They were re ramping after an illegal blockade caused a shutdown that required re permitting.
Wouldnt be surprised to see an acquisition soon as they build their cash.
Market cap about 75 mil minus cash, might leave an EV near $65 million or less based on $10m cash from last figures I could find.
Insider trades and company stock repurchase
http://www.canadianinsider.com/node/7?menu_tickersearch=EXN+%7C+Excellon+Resources
Curlews BRD. Right you are, for the most part. The 2 largest holes reported in October were from Black Fox.
I'd just remembered they had a good hole in Grey Fox as well. Oct 16 they reported the following:
GF13-750 from 355.00 to 368.25 they hit 13.25g for 20.93m in Zone 147 as well as another 3 100g hits.
Not monster hits, but 277 grams over 13 meters is a heavy hit.
http://www.brigusgold.com/_resources/news/20131016.pdf
EOM Re AUMN. Soon they'll be trading for cash and you'll get the large resource in Mex and Argentina plus, paid for processing complete with the developed underground and ramp for free.
If AUMN shores up operations during the shutdown and reopens with better efficiency, higher POS, better employees and conserves enough cash, this could be an easy 10 bagger. For now, their blowing in the wind.
BRD.v Couple of the nicest holes I've seen from a low MC Ontario producer in awhile.
They got their love on the first big hole Oct 16th at Gray Fox.
Whats interesting is this hole is at Black Fox and not associated with the last big hole.
Kozuh not sure why you wrote that, but one US ounce = 28.4 grams and the troy ounce used to measure these metals is 31 grams
SAS.v H1 CF OF $20.7 Million gives CF/share = .18 and a P/CF ratio of 1.6
AICC est $1210/oz est for 2013
capital expenditures in 2013 are H1 loaded and H2 should see $5M in lower outlays
AUN.v Silver Miners: Straight-Up Or Played In A Basket
Canadian based Aurcana Corporation (OTC:AUNFF) the Vancouver, BC junior silver mining company, after finally closing its long anticipated $50 million loan facility, is following expansion plans at its 100% owned Shafter silver mine in Presidio County, Texas. The company also owns the already commercially producing La Negra silver-copper-lead-zinc mine in Queretaro State, Mexico.
At a time metal miners are finding it hard to operate profitably given the current depression in silver and gold prices, and at a time many miners are not able to secure needed financing, Aurcana has pulled it off. It appears 2,900,000 tons of ore grading at cuts of 8.48 ounces of silver per ton (8.48 op/t Ag) and even higher in some zones where grades show up to 10 op/t Ag - that's ounces per ton, not grams - is pretty attractive.
the rest here
http://seekingalpha.com/article/1788552-silver-miners-straight-up-or-played-in-a-basket?source=email_rt_article_readmore
SAS.v St Andrew Goldfields another cheap producer and laggard, maybe the cheapest for a safe Canadian jurisdiction. Producing over 100k oz. Low cash costs and they have a chunk of cash. Waiting to see the AISC for the latest quarter, but it should come in low with recent reductions. All this for around $100 MC. EV probably near $75mil
Not a sexy company with the spread of their operation, but their efficient, with good mgt and the numbers work.
Lot of production upside coming with their High grade Taylor development project.
PS. Credits to Dr Air, as I used 2 of his coined terms today, Laggard and AISC LOL!
Dont own this yet but looking to.
Checkmate28
Excellon Resources EXLLF I added today at 1.36
Insider's and company have been buying shares consistently for a long period of time.
Q3 production 607k ozAgEQ with 975 gAg/ton for a yearly run rate near 2.5 million oz yearly.
Market cap about 75 mil minus cash, might leave an EV near $65 million or less based on $10 cash from last figures I could find.
Net cash costs of $7.77 per Ag oz and all-in costs of $10.65 per Ag eq. oz
They have been dealing with a hostile union that was not given the contract last year. The sore losers are doing everything they can to sabotage the company and shares including putting out their own bad press, posting on the BB boards. Worst was a blockade that temp closed the mine. Government stepped in and ran them off about a year ago, but damage was done to the SP. Meanwhile they are kicking it on the operations side and paying for drilling with cash.
http://www.canadianinsider.com/node/7?menu_tickersearch=EXN+%7C+Excellon+Resources
HOC Hochschild sold GORO July13 to acquire IMZ for $360+ million consideration. Hochschild still owns 11.2 million GORO shares. They were free to sell a second block tranche in mid Oct. That would require a filing which they have not done so far.
Oct,1st
International Minerals to Be Acquired by Hochschild Mining
http://finance.yahoo.com/news/international-minerals-acquired-hochschild-mining-000000707.html
The transaction represents a total consideration of $360 million to $400 million ($3.04 to $3.31 per share), or a 24–35% premium over the company’s 20-day, volume-weighted average price of $2.46 per share on the Toronto Stock Exchange, International Minerals says. - See more at:
http://www.northernminer.com/news/hochschild-ties-up-loose-ends-with-international-minerals-acquisition/1002633194/#sthash.IEnDQKZE.dpuf
What It REALLY Costs To Mine Silver: The Gold Resource Corporation Second Quarter Edition
Nice article comparing GORO's cash costs in Silver EQ vs the other silver miners. Also highlighting GORO CF, liquidity & reduced cash costs for Q213.
Going forward, they guide for even further cost reductions that may put them in the elite for lowest cash cost silver producer, as they finish their expansion of the mill that nearly doubles production capacity.
Things must not be to bad, as they just announced another $16 million in dividends to shareholders yesterday.
I think the metal market, Hothchild selling, and the mgt change have over done the sell off and presented a good value situation for GORO. Higher POG, lower costs and higher production are in the future reducing risk to GORO shares IMO.
Hothchild, has alot of CAPEX needs and probably is raising cash for their own operations.
http://seekingalpha.com/article/1787152-what-it-really-costs-to-mine-silver-the-gold-resource-corporation-second-quarter-edition
GWA.v GOWEST SIGNS LETTER OF INTENT TO
RECEIVE $1.5 MILLION FOR 2 PERCENT ROYALTY plus
Announces Proposed Non-Brokered Private Placement
GWA.v is a future gold producer in the Timmins camp trading at a MC at less than $8milion today. They have great management and a credible on board technical team. $4 million will keep them moving forward for awhile.
GWA.v gives you an opportunity to own a future gold producer for .05 /share. The insiders will probably participate heavily in the PP as they normally do.
Xstrada recognizes their project worthy enough to sign the LOI on the processing. Now Gold Royalties Corporation stepped up with cash for the Royalty.
Gowest has the largest credible, near ready project, in the Timmins area.
Like everyone else, they got hit by the POG train.
Checkmate28
EXN EXLLF Excelon Resource Q3 2013 Highlights
607,252 silver equivalent ounces produced,
a 50% increase over Q2 2013, including:
454,573 oz Ag;
1,921,547 lb Pb; and
2,149,884 lb Zn;
Ore grade of 975 g/t Ag (28 oz/T), including over 190,000 ounces of silver production in September from ore grading over 1,000 g/t Ag (29 oz/T);
Net cash costs of $7.77 per Ag oz and all-in costs of $10.65 per Ag eq. oz;
Generating positive cash flow with cash, accounts receivable and securities totaling $9.7 million at the end of the quarter.
They still have plenty of excess capacity in their mill so increases from here will have no CAPEX.
bbotcs re GORO Costs and more
In 2012, they had many problems, including problems with water & ventilation in the mine, employees, excess dilution in the ore, causing a hit to the grades & CF, plus the already dismissed class action lawsuit.
2012, They still pulled off
increased production to 90,432 AuEq at only 773 tpd,
All-In Sustainable Costs/oz sold $ 994,
Total cash cost $547 per AuEq including the royalty,
net income $34mil
Paying a substantial dividend.
H1 2013 averaged 823tpd netting 42,999 AuEq (within guidance)
H2 should be significantly higher as they have most of the 1500tpd mill expansion done. Note: the mine capacity to feed the 1500tpd mill will be lagging but the run rate for the mill has been 1000tpd for awhile.
In short they spent 2012 and H1-2013 rehabbing the mine & production team (including mgt). They did this from cash flow, while paying the divy during a time of very low gold prices.
Cash position $30mil+ Q2, adding production consistently, tight share structure, no history of dilutive private placements, industry leading dividend and near lowest cash costs, large land position 100% owned & overflowing with high grade Silver & Gold for future expansion.
Whats not to like? GORO looking better and better the lower it gets. Hothchild reducing its position might create a better opportunity. Divy over 6% now.
Might take a couple quarters to see the results, but I'm Betting their about ready to turn things up production wise.
Checkmate28
GORO Added at avg $6.65 Close 7.24. Took advantage of what I think was a Hothchild disposition, as the 90 day mark is nearly up since their last filing. I think its cheap for a quality producer paying over 5% divi for nearly the lowest cost producer of high grade silver and gold in a safe jurisdiction.
Im betting they are straightening out their operations problems and will increase their production and CF sharply next couple quarters even in this PM market.
They averaged 778 tonnes per day in 2012 while paying the divi. They are near 1000tpd now, and guiding to exit 2013 bet 1300 and 1500tpd capacity, as they finish adding the new processing upgrades and open up the mine to access more high grade material at a lower cost.
If they just get to the divy they were paying 6 mths ago, the yield on those 6.65 shares will be 11%.
Jul 12, 2013) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") announces today it has received a copy of a Form 144 filed with the U.S. Securities and Exchange Commission indicating the sale of 3.4 million shares of common restricted stock by its largest shareholder.
GORO Added at avg $6.65, Close 7.24 Took advantage of what I think was a Hothchild disposition, as the 90 day mark is nearly up since their last filing. I think its cheap for a quality producer paying over 5% divi with nearly the lowers cost producer of high grade silver and gold.
Im betting they are straightening out their operations problems and will increase their production and CF sharply next couple quarters even in this PM market.
They averaged 778 tonnes per day in 2012 while paying the divi. They are near 1000tpd now, and guiding to exit 2013 bet 1300 and 1500tpd capacity, as they finish adding the new processing upgrades and open up the mine to access more high grade material at a lower cost.
If they just get to the divy they were paying 6 mths ago, the yield on those 6.65 shares will be 11%.
Jul 12, 2013) - Gold Resource Corporation (NYSE MKT: GORO) (the "Company") announces today it has received a copy of a Form 144 filed with the U.S. Securities and Exchange Commission indicating the sale of 3.4 million shares of common restricted stock by its largest shareholder.
The price of silver has little relevance to a company that isn't producing any.
AUMN has an already developed mine with a recently completed ramp, that has added valuation. Additional catalyst, My sources tell me they were having some problems with low productivity from a team they inherited. The low price of silver, created a no win situation. They paid many severance packages and are taking this down time, with the employees they have left, and preparing some higher grade areas for future profitability with the new equipment they just received.
Humm, sounds like a higher price of silver would be a major catalyst allowing them to reopen with a more efficient mine along with more efficient new employees, furthermore, they have enough cash to weather the storm. Add to the valuation, the fact that they could find a partner for El Quivar any day.
Since they have everything they need to make money now, except a decent price for the commodities, I think the price of metals has everything to do with their current and future market valuation.
I support the multi bagger potential here.
EGZ.V ENZR- Kevin but they just keep putting out good news. Todays News: Energizer Resources' Metallurgical Enhancements Yield Superior Graphite Flake Recovery with Significant Increase in Large and Jumbo Flake Sizes.
IRR on the coming PEA should raise with this info. The market cap between ZEN and EGZ should close some more.
Graphite ZEN.V (Zenyetta Vent) vs EGZ.v ENZR Energizer Res.
While Energizer gained 100% in share price this week, Zenyetta lost 150 million in market cap.
Other than jurisdiction and share structure, I think Energizer has them beat in all catagories at 1/6 the market cap
ZEN doesn't even have an NI43101 compliant resource or a PEA study.
ZEN's resource consists of buried veins under many meters of over burden while EGY resource starts at surface, open pitable and the 99.9% purity comes from a simple float and leach process.
EGY might have the largest high quality graphite resource on the planet.
Zenyetta carries 6x the market cap of Energizer. I say the trend continues.
Energizers 44% IRR from the PEA should be updated in the next 30 days and is sure to improve as higher grades and puritys mean a smaller CAPEX to produce the same result. Additionally the higher purity product will net more $/ton.
Energizer has a bonus in a very high quality Vanadium resource on the same property that is HUGE as well. Vanadium Redox power supplies and graphine is going to allow bendable cell phones plus might replace silicon for computers. 1 atom thick sheets are stronger than steel and super light weight, conducting electricity and heat better than copper.
Energizer already has a tecknical partner on the books in DRA resources. They are the largest mining operater in Africa.
If I missed anyhing big, feel free to correct me as Im still doing DD.
Looking to add on a dip and when Im back from this 3rd world vacation. The wifey is at the spa so I snuck away for a few. Internet is crawling. Sorry about last post.
Checkmate28
ZEN.V
EGY.t ENZR UP 100 RUNNING HARD. My graphite horse coming to life. Look out ZEN. Link back for more.
Energizer Resources Achieves Ultra-High Purity of Greater Than 99.9% Graphitic Carbon
TORONTO, ONTARIO--(Marketwired - July 29, 2013) - Energizer Resources Inc. (OTCBB:ENZR)(FRANKFURT:YE5)(TSX:EGZ) ("Energizer" or the "Company") is pleased to announce that it has achieved greater than 99.9% graphitic carbon from a finished concentrate of the Company's flagship Molo flake graphite deposit ("the Molo") in Madagascar.
This ultra-high purity graphite concentrate of greater than 99.9% C was achieved on a first-pass, single-stage hydrometallurgical purification test at SGS Canada Inc. ("SGS"). The analysis by SGS that achieved this result comprised of an average of five repeat assays on the concentrate conducted over two days. This preliminary test was done to assess the ability to upgrade the Molo graphite to an ultra-pure concentrate. Based on these exceptional results, SGS will now begin the development of a comprehensive hydrometallurgical process flow sheet, which will be completed over the next 60 to 90 days and will be conducted in adherence to the technical guidelines of a Full Feasibility Study.
These studies are part of a series of on-going metallurgical optimization tests targeted at further enhancing both the CAPEX and OPEX numbers presented in the Company's already robust Preliminary Economic Assessment (PEA) Study from January 2013.
Craig Scherba, President and COO, stated, "We are delighted to have achieved an ultra-high purity of greater than 99.9% graphitic carbon on the first test. This is highly significant and reconfirms, as demonstrated from the mineralogical results in our completed PEA Study, the exceptional quality of our graphite. As outlined in our previous news releases and PEA Study, the Molo is situated in an extremely rare and unique geological setting which has resulted in our flake graphite being both very high in purity and in quality."
The graphite concentrate used in the first pass hydrometallurgical purification testing consisted of a flotation concentrate that was generated in a single cleaner flotation test without optimized conditions. The purification process employed a conventional leach technology and demonstrated exceptional purities.
Metallurgical Optimization Results and Finalized Process Flow Sheet Imminent
In June of this year, SGS commenced Phase 1 of the Molo pilot plant process. This comprised of a systematic series of tests to finalize an optimized process flow sheet for the Molo deposit, focusing on minimizing capital and operating expenses of the future mine, while maximizing graphite flake size fractions, concentrate grade, and graphite recovery.
The Company expects to release the results of Phase 1 to the market within the next 30 days. It is anticipated that these results will have a significant positive impact to the Company's already robust PEA study, which reported this year an NPV of $421 million (10% discount rate), an IRR of 48%, and a payback of 3 years.
No Detectable Carbon Impurities
A carbon speciation of the two composites provided to SGS that were used to generate the concentrate revealed that total organic carbon and carbonate carbon concentrations were below the analytical detection limits of 0.05%. These preliminary results suggest that essentially all carbon contained in the samples was present in the form of graphitic carbon.
This is further confirmation that the flake graphite from the Molo is of remarkable quality. The ability to produce a natural flake graphite product with the highest purities possible using low-cost, standard processing techniques will allow Energizer to target all markets utilizing value-added graphite applications.
According to industry experts, only natural flake graphite has the necessary attributes that allow it to be used across all applications where natural graphite can be used. The three largest demand markets for high-purity natural flake graphite today, and going forward, are refractories, battery and energy storage, and specialty graphite foils. Natural flake graphite is the choice for many refractory applications owing to its particle shape and size. Neither synthetic nor amorphous graphite can be used to produce graphite foils, a main component in smart phones, consumer electronics, solar panels, laptops and all flat panel television and computer monitors. Flake graphite is the primary form of natural graphite that competes directly with synthetic graphite in producing battery anode material.
About SGS Metallurgical Services (Lakefield)
SGS Canada Inc. ("SGS") is recognized as a world leader in the development of flow sheets and pilot plant testing programs. SGS' Metallurgical Services division was founded over half a century ago. Its metallurgists, hydro-metallurgists and chemical engineers are experienced in all the major physical and chemical separation processes utilized in the recovery of metals and minerals contained in resource properties around the world.
Qualified Person
The technical information presented in this press release has been reviewed by Oliver Peters, M.Sc., MBA, P.Eng. (Ontario), Principal Metallurgist and President of Metpro Management Inc. and a Qualified Person under NI 43-101.
About Energizer Resources
Energizer Resources Inc. is a mineral exploration and development company based in Toronto, Canada, which is focused on developing its flagship Molo flaked graphite deposit in Fotodrevo, southern Madagascar. The Molo deposit is located in the Green Giant Graphite project, and is part of the joint venture (JV) property with Malagasy Minerals Limited in Madagascar. Energizer has a 75% ownership interest and is the operator of the Project.
Alexco Reports Increased Silver Production in Second Quarter 2013; Low Silver Prices Prompt Plans for Suspension of Winter Operations
Im seeing other silver producers cut back or halt production.
Golden Minerals AUMN Suspended production in June
Excelon Resources EXN.v 5 drill rigs on site. Their parking them to conserve cash
GOLD RESOURCE CORPORATION ANNOUNCES DISMISSAL OF SECURITIES CLASS ACTION LAWSUIT
COLORADO SPRINGS – July 16, 2013 – Gold Resource Corporation (NYSE MKT: GORO) (the “Company”) announced today that the U.S. District Court for the District of Colorado granted with prejudice the Company’s motion to dismiss the class action lawsuit filed by Nitesh Banker.
With their jurisdiction, grades, share structure, cash costs and divy all being nearly the best in the sector, I see GORO as a very low risk, high return investment right now.
They also are guiding for a 2013 year end run rate nearly double the 2012 average from the latest CAPEX improvements to the mill and mine.
With the above Class action in the background, I hardly think GORO would risk over guiding or deception.
Checkmate28
BRD.v Whats not to like. 100k producer with upside, increasing operational efficiency on both the tech and financial side.
Safe jurisdiction separates it from most of the other comparable bargain producers with similar market caps.
CM 28
GWA.V Gowest Gold. Insiders again spent about $85k on the open market amid shareholder worries that the company will need to do a low priced share raise. They did this right after the shares went up 100% and paid the new price.
You have to ask, if they were expecting a low price cash raise in the short future, why wouldn't they wait and get the free warrants?
Bobwins Re AUN Nice way to sum that up. The constant thrashing by a couple longs on the AUN Stockhouse board cant be helping.
On the bright side insiders including Lenic have spent about $150k on the open market shares and those factors you mentioned have created a compelling good value buy at the depressed levels.
Bobwins Re AUN Nice way to sum that up. The constant thrashing by a couple longs on the AUN Stockhouse board cant be helping.
On the bright side insiders including Lenic have spent about $150k on the open market shares and those factors you mentioned have created a compelling good value buy at the depressed levels.
GWA.v Trader Financing is the major question but GWA or XST wouldn't be this far without some good company DD in the area. Also, XTA choose GWA as they were the best suiter, largest resource without a mine in the area. Insiders own a lot and have been hitting the open market recently and the last few years. MY thoughts are high grade low CAPEX programs will draw the money with good terms. They cay piece off the 60 mil over time. Xstrada has deep pockets and is benifitting from the agreement. They make cash from a line they were scheduled to close soon as their scraping the bottom past 9000 feet now. Only a few years ago, they spent 120 mil to refurbish it. Community and gov is on board as well for the jobs it provides the area. This is really a great situation as Gowest can rely on Xstrata's experience, employees, and permitting. Gowest can use this as a stepping stone to their own mill as they further drill out the property from CF. MY thoughts are Xstrata will rehab the GWA line and use the concentrate and rich tailings as collateral for a loan to GWA. They will need to find more though but there are options for the good projects.
Answer from IR as to spending the CAPEX ...."the projected $60 million we expect to spend would include (very roughly) about $10 million in refurbishment costs to the Kidd Mill plus $25 million in underground development plus another $5 million for the Feasibility Study, finalizing an agreement with the First Nations, permitting costs, ramp development plus $5 million for infrastructure (roads et al) and G&A plus a $15 million contingency".
GWA.v Gowest Gold, 100% bounce with some volume since my post. Link back, read bottom line. Checkmate said, Gowest is about to go!...just last week at .035
Everything falling in place, with the signed LOI for processing agreement w/Glencore Xstrata. Remember, Xstrata wouldn't have moved forward without extensive DD and a clear understanding that Gowest could pull it off. They even hired independent technical professionals to review all the technical information reports and studies.
95k oz/yr gold production 2015, with 60 million CAPEX (needs to be raised) IRR 50%+ with 27mil CF at $1200 gold... Successful Ore sorting or POG could turbo charge production as grades would be up 50% allowing the same processing line to run a head grade of 10- 15gpt allowing for nearer 150k oz/yr.
NI43-101 1.5 million oz cut off 3gpt Market Cap after the recent gain still only $11 mil
Full Feas study coming. Plenty of upside catalysts
Best low Market Cap exp/developer I can find weighing risk vs reward
Checkmate28
GWA.v Gowest Gold Keeps doing what they say. Up big today. GOWEST GOLD SIGNS LETTER OF INTENT
Plan to Process Frankfield East Gold Deposit
Ore at Kidd Operations Mill in 2015
TORONTO, ONTARIO – (Marketwire – May 29. 2013): ("Gowest" or the "Company") (TSX-VENTURE: GWA) (OTCBB: GWSAF) is pleased to announce that it has entered into a non-binding Letter of Intent with Glencore Xstrata’s Kidd Operations, located in Timmins, Ontario. The plan is to refurbish the Division ‘D’ line of the mill at Kidd Operations to process Gowest’s ore into a high-grade (+90 grams per tonne) gold concentrate. The proposed arrangement between the companies significantly reduces the cost and time to commercial production of the Frankfield East gold deposit.
Highlights of the collaboration between Gowest and Glencore Xstrata:
Utilizes excess capacity at the Kidd Operations mill, reducing overall milling costs and increasing revenue;
Significantly reduces Gowest capital cost requirements by an estimated $107mm in avoiding the construction of a stand-alone facility ($60mm vs. $167mm)*; and,
Enables Gowest to begin commercial production 2-3 years earlier since a new mill would not have to be constructed.
* see news release dated November 12, 2012 and NI 43-101 Technical Report dated November 11, 2011
Gowest has completed a detailed concept engineering study for the mill refurbishment and is now advancing detailed mining plans and initiating a feasibility study. A Definitive Agreement is expected in the latter part of 2013.
Gowest is planning to begin commercial production of its Frankfield East gold deposit in 2015.
Gowest President and CEO, Greg Romain, said, “We have achieved an extremely important milestone in our plans to develop our Frankfield East deposit into the next new gold mine in the Timmins Camp. I am confident that, with the expertise and dedication of the team, we will achieve this goal.” He added, “The use of the Kidd Operations mill will significantly reduce our capital expenditures and expedite our path to generating cash flow. It is also evidence of Glencore Xstrata’s willingness to support the continued development of the Timmins economy.”
Qualified Person: This press release has been reviewed by Mr. Kevin Montgomery, P.Geo., Gowest’s Manager of Exploration, and a Qualified Person under National Instrument 43-101.
About Gowest
Gowest is a Canadian gold exploration and development company focused on the delineation and development of its 100% owned Frankfield East gold deposit, part of the Company’s North Timmins Gold Project (NTGP). Gowest is exploring additional gold targets on the 107-square-kilometre NTGP land package and continues to evaluate the area, which is part of the prolific Timmins, Ontario gold camp.
The latest updated resource estimate for Frankfield East included approximately 945,600 ounces of gold (“Au”) in the Indicated category (6.0 million tonnes at a grade of 4.9 grams per tonne [“g/t”] Au) and 536,800 ounces of gold in the Inferred category (3.7 million tonnes at a grade of 4.2 g/t Au). As was used in the Company’s recent Preliminary Economic Assessment, the current estimate is based on a 3.0 g/t Au cut-off and a conservative gold price of US$1,200/oz. This resource estimate has been completed by Neil N. Gow, P. Geo., an independent Qualified Person, and reported in accordance with Canadian Securities Administration National Instrument 43-101 ("NI 43-101") requirements and CIM Standards on Mineral Resources and Reserves.
Dr Air, Re GWA.v Konnigen Just saw your post about 8 hours ago. I must be Sleeping at the wheel. Must be a holiday or something LOL. Must say, you threw me for a loop when I read that. My first thoughts were, great loss for GWA and maybe they just couldn't afford his salary.
At 2AM EST I fired off that press release and a couple questions to the Ask Gowest tab on their site. About 6 hours later I got the reply from IR.
Hi _
Darren's role with Gowest remains unchanged from what it has been for the past year or so; he is still an active and important member of our technical team. He has worked with more than one company at a time for as long as I can remember.
Regards, Greg IR
------------------------
From the GWA site.
Darren M. Koningen, PEng, Technical Advisor, Project Development
Mr. Koningen is a professional engineer (metallurgy) with over 20 years of international mining experience.
Mr. Koningen is currently an independent metallurgical consultant, managing process development projects, test work and metallurgical studies on behalf of clients. Most recently, he was Vice President of Project Development, and before that, VP-Operations and VP-Engineering for Castle Gold Corp. and Aurogin Resources (prior to its merge with Morgain Minerals to form Castle Gold). Before joining Castle Gold, Mr. Koningen was employed as a Senior Process Engineer (mining) with Kvaerner Engineering. Mr. Koningen's broad international experience in metallurgy process design and operations has allowed him to make significant contributions to bringing two operating and profitable gold mines to production for Castle Gold. Mr. Koningen also serves as a director of Virgin Metals Inc.
Remember his GWA title used to be VP Project development. Just the title was changed to Technical Adviser due to how it affected his other endeavors. He has, and still remains front and center and very involved with GWA.
My personal thoughts are, that he has considerable time, and a boatload of GWA shares purchased on the open market, as you know. He has dedicated himself to the toughest years of the GWA development story. He would not miss seeing this threw and being a part of where "Gowest is about to Go". Pun intended!
Enjoy your holiday Checkmate28
Tim Important to note, Stonecap's report only looked at nine gold producers in its coverage universe Endeavor is not included in their coverage
Analysts see Timmins, Argonaut, B2Gold as "survivors" of the current gold price (ONLY LOOKING AT THEIR COVERED COMPANYS)
Mon 12:00 Pm By Deborah Bacal
The analysts, Ali Kahn, Brian Szeto and Christos Doulis, reviewed their coverage universe by stress-testing companies' valuations using gold prices as low as US$1,000 an ounce, and concluded that companies that are focused on open-pit heap leach operations are "well positioned" relative to their peers.
Stonecap Securities analysts have issued a mining report this morning outlining "the survivors" of the industry given the recent fall in the gold price that has called into question the ability of some gold producers to generate free cash flow in this lower gold price environment.
The analysts, Ali Kahn, Brian Szeto and Christos Doulis, reviewed their coverage universe by stress-testing companies' valuations using gold prices as low as US$1,000 an ounce, and concluded that companies that are focused on open-pit heap leach operations are "well positioned" relative to their peers.
"Due to the low sustaining capital expenditures associated with these types of operations, the majority of the cash flow generated directly contributes to the health of the company’s balance sheet," they said in the report, when comparing to mining operations that require a milling circuit or most underground miners that need substantial amounts of sustaining capital year after year.
The analysts took note of both Timmins Gold (TSE:TMM) and Argonaut Gold (TSE:AR), both of which they looked upon favourably, with outperform recommendations.
They said Timmins is the only company in its coverage universe that shows a positive three-year cumulative free cash flow of US$11.5 million, and an actual increase to its funding surplus over the same period of US$35.7 million when using reduced gold prices.
"Timmins’ open-pit heap-leach operation in Sonora, Mexico is profitable at any gold price environment that we have looked at. Under our current assumptions, we expect that the company will free cash-flow in excess of US$50 million in 2013 and reach US$64 million in 2014 once the La Chicharra satellite deposit is up and running.
"Even at a US$1,000/oz gold price environment, Timmins’ operations continues to produce positive cash flow which cannot be said for a number of other companies within our coverage universe," the analysts wrote, citing the key reason for this feat as the low sustaining capex nature of its operations.
Meanwhile, Stonecap's analysis suggests that Argonaut is estimated to have a funding surplus exceeding US$100 million over a three-year period, even when the brokerage runs its valuations using a gold price of US$1,000 an ounce. "In our opinion, Argonaut is very well positioned to weather a period of low precious metals prices."
Argonaut’s two producing assets are relatively low cost, the analysts said, and generate free cash flow at prices well below US$1,400/oz gold. All-in costs, which includes capex, exploration and taxes, of around US$900/oz gold are expected for El Castillo while costs of US$1,000/oz gold are anticipated for La Colorada over the next five years.
Over the last two weeks, gold prices have declined approximately 12 per cent from US$1,597 an ounces to US$1,404 an ounce. During this period, gold equities have also declined dramatically, with many now trading at multi-year lows.
Indeed, the analysts said that with gold trading at around US$1,400/oz, many gold equities (represented by the GDX index) are trading at levels that have not been seen since January 2009, when gold prices were in the US$825/oz range. The Stonecap analysts cited rising input costs for the mining industry over the last several years as one of the key reasons precious metal prices are so low relative to the last time gold was in the US$1,400 an ounce range.
Stonecap's report looked at nine gold producers in its coverage universe, including Timmins, Argonaut, B2Gold (TSE:BTO), Lachlan Star (TSE:LSA), Orvana Minerals (TSE:ORV), Rio Alto Mining (TSE:RIO), San Gold (TSE:SGR), SilverCrest Mines (CVE:SVL), and St. Andrew Goldfields (TSE:SAS).
Other survivors of a US$1,400 an ounce gold price, albeit with some possibly needing to reduce discretionary expenses, include B2Gold, SilverCrest and St. Andrew Goldfields.
However, while some companies can fund their capital spending initiatives through existing cash and cash from operations at a price of US$1,400 an ounce of gold, other companies face significant challenges in the form of funding gaps, the report found.
Those that see "rough seas" ahead at the current gold price, according to the analyst research report, include Rio Alto, whose estimated funding gap is derived from its planned build-out of phase 2 in 2015/2016 for its La Arena project, with capex estimates of roughly $300 million.
Another listed in this category is San Gold - for which Stonecap has an underperform rating - whose estimated funding gap of around $55 million stems from its "ambitious capital spending program". The analysts estimate around $137 million between 2013 and 2015 at Rice Lake over the next several years.
Should prices remain at or below US$1,400 an ounce for the next three years, these companies, like several in a similar position, would likely defer development of new projects or capital spending initiatives, or seek additional sources of capital.
Read more at http://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32499376&l=0&r=0&s=TMM&t=LIST#gk79CZzZERwLHtsg.99
BRD.TO Hopefully they provide some Net cash flow & earnings guidance based on the current POG and how that would affect their forward plans.
Dr Air Brigus CC today 11am est case you dont know
Brigus Gold Corp Q1 2013 Webcast and Conference Call
Tuesday, May 14, 2013 at 11:00 AM ET
Dial in: 1-877-407-813 US
Dial in: 201-689-8040 International
No pass code is required
The teleconference will be available for replay until May 28, 2013.
Q1 2013 Conference Call Presentation on website
Lone Clone GORO has upgraded a number of key technical mgt personnel plus added a director the last 12 months, presumably to help get them to the next level.
As to Hothschild, who knows, maybe GORO doesn't need their hand held any longer or Possibly HC wanted another lucrative private placement, while GORO had ideas of creating shareholder value?
Lot of opportunity out there for sharks on the prowl. Who knows, possibly Burstein found a more lucrative use for his company time.
Other than the last year, running into growth problems and missing guidance, GORO has masterfully worked their business plan towards creating value to share holders.
With the flack they caught the past 6 months, I believe they were very careful when they put out that latest guidance for end of 2013 run rate.
With their jurisdiction, grades, share structure and cash costs, all being nearly the best in the sector, I see GORO as a very low risk investment right now.
Checkmate
LoneClone RE GORO With 2012 opps problems, POG, and added Capex, the divy cut was a given. Looks like market may like the future and the nearly doubling of 2012 avg run rate being guided for in 2013.
2012 Record production of 90,432 ounces (AuEq)
total cash cost of $419 per ounce AuEq
Record annual revenue of $131.8 million
Record annual mine gross profit of $87.8 million
Annual net income of $33.7 million, or $0.64 per share
Record annual dividends of $36.5 million, or $0.69 per share
averaged 772tpd for 2012 and are guiding for 1500tpd to start the new year after the current expansion is completed. (I bet you'll be suprised)
GORO'S valuation is no longer lofty and if they put that all together, they'll be better than fine. Grade is king!
Dr Airtime St Andrew Goldfields T.SAS
Might want to add them to line item 6)Expanding 100k producers
MC 127.04 m EV < 100M
2012 Net earnings $18 m
2013 guiding for 95-105k production actual 24.5k Prod Q1
2014 guiding for 125k production w/reduced costs
$30 million cash end 2012, after subtracting loan
Few options no warrants
All propertys safe in Timmins ON
2013 61,000 m drill program for catylst
Thanks for the informative post