Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Trump Wins: G-20 Drops 'Anti-Protectionist, Free-Trade, & Climate-Change Funding' Commitment
Oh boy, watch the dollar Sunday after FX open, should be heading much lower, great for gold!
After delays and hours of discussions amid tensions over 'trade' comments between the United States and the rest of The G-20, it appears President Trump has 'won'. While China was "adamantly against" protectionism, the finance ministers end talks without renewing their long-standing commitment to free trade and rejection of protectionism after US opposition.
The world's financial leaders are unlikely to endorse free trade and reject protectionism in their communique on Saturday because they have been unable to find a wording that would suit a more protectionist United States, G20 officials said.
This would break with a decade-old tradition among the finance ministers and central bankers of the world's 20 top economies (G20), who over the years have repeatedly rejected protectionism and endorsed free trade.
But the new administration in the United States is considering trade measures to curb imports with a border tax and would not agree to repeat the formulations used by previous G20 communiques, clashing with China and Europe, the officials said.
"Unless there is a last minute miracle, there is no agreement on trade," one official, who declined to be named, told Reuters.
"This is not a good outcome of the meeting," a G20 delegate quoted Bundesbank President Jens Weidmann as saying.
In a partial face-saving move, the communique may contain a reference to the importance of trade for the economy.
Reuters also points out another potential win for Trump as the communique will also drop a reference, used by the G20 last year, on the readiness to finance climate change as agreed in Paris in 2015 because of opposition from the United States and Saudi Arabia.
Trump has called global warming a "hoax" concocted by China to hurt U.S. industry and vowed to scrap the Paris climate accord aimed at curbing greenhouse gas emissions.
Trump's administration on Thursday proposed a 31 percent cut to the Environmental Protection Agency's budget as the White House seeks to eliminate climate change programs and trim initiatives to protect air and water quality.
Asked about climate change funding, Mick Mulvaney, Trump's budget director, said on Thursday, "We consider that to be a waste of money."
The G20 do agree, however, to show continuity in their foreign exchange policies, using phrases from the past on foreign exchange markets.
As we noted earlier, needless to say, such an acrimonous end to the weekend's summit would likely result in a surge in FX volatility when markets open for trading late on Sunday, reflecting the new state of global trade flux, in which the future of the US Dollar is completely unknown, and reflecting the emerging chaos over the future parameters of trade.
So, I guess this might be the cartel's new game...(1) hold gold flat for a couple days...(2) attack the miners for a couple days...(3) then slam the price of gold. Looks like today is shaping up to be the beginning of phase (2), we shall see.
Who is continually trying to take this stock into the red everyday even on buy volume? They held it back at $1 and they are holding it back at .90.
It's a mystery to me S~P, It took me 7 years to find them though and it wasn't just dumb luck, I just think they are under the radar and haven't been discovered by the market yet. They are West African producers, sometimes West Africa gets confused with South Africa, two different animals. Extremely Undervalued.
Why do you think TGZ and GSS are priced so low? I would think that a miner with operations as those indicated would be capitalized with a valuation matching assets and anticipated revenue.
Gold Now $1226, Supply and Demand Bitches!
I posted this earlier as to what I thought was the reason...
It's all BS algo "key word" traded hype, like I've repeatedly said, gold has always done well in a rising or high interest rate environment, it's a measly .25% hike for God's sake, means NOTHING, except to the algo's and manipulators.
So currently the dollar and gold are moving sideways together. Which one twitches first? What are the mechanics involved, absent the manipulation?
Tom, Gran Columbia Gold is not my beloved, I didn't even mention it earlier, I told you it would take some patience due to their debt, I also told you it was my "long shot". GCM was up 6% today, which ain't bad but, I look at that as noise, bottom line is they've got the goods and I've got 1M shares. A half a cent = $5000, pretty good day at the office, I would say.
I really like MUX and EXK, and 3 of your others did well today and I will definitely look into them. Your picks are all well above $1, GSS and TGZ are well below $1 producing over 200k, with 300k plus on the near horizon at low AISC, there lies the difference.
Tom, I would say, if your gonna play the game, make damn sure you hold miners with great fundamentals in place...IMO nowadays company fundamentals trump charts.
Absolutely leading the pack...$GSS up 18%...$TGZ up 17% ! On the back of a Fed hike, go figure.
Gold is really spiking, now $1222!
Sam, I'm long and have too many shares to be able to sell, YOU on the other hand need to take your profits and sell NOW! These CRIMINAL SOB's in charge could make gold flat for the day in the next 1/2 hour.
By the way there is NO fundamental reason for gold to have already sold off $5 from it's highs with the almighty dollar still sliding! The F**KING JOKE of a market continues!
It's all BS algo "key word" traded hype, like I've repeatedly said, gold has always done well in a rising or high interest rate environment, it's a measly .25% hike for God's sake, means NOTHING, except to the algo's and manipulators. By the way, out of all the miners we've been talking about....GSS up 14%...TGZ up 12%, right up there with the big boys! All the other sub dollar junior miners recently discussed....zip, zilch ,nada!
Thanks S~P, I'm not seeing where Pure Gold (PGM.V) is a producer, they have had many PP's over the last couple years and show no production or revenue. They are on my watch list and I am familiar with their price action, when gold reverses they should gain back about 25%, I also try to stay away from the Venture exchange, prefer TSX in a parent company.
I have come across Caledonia Mining (CAL.TO) in my travels, they only produce about 60k oz/yr and do not have much volume, I don't know why they are valued so high at $1.80C, being a low production South African miner, could be their low share count (52M) I'll see if I can find an answer. I have added to my watch list and will check out their price action.
In my opinion I still have not come across another Junior with the value or tangible potential of TGZ and GSS.
It sure does seem like orchestrated coordination. The only thing that explains miners all moving together is that the ones on my watch list may all belong to the GDX, GDXJ which are in turn, manipulated or not, sold off or bought on any given day. I think once this rate hike, no rate hike BS is off the table tomorrow, gold and miners will resume their uptrend (its only .25% for Gods sake) at least until the fed opens their collective pie holes again!
Thanks S~P, I'll check it out.
Interesting how GDX, GDXJ have been climbing in the face of lower/flat gold.
Mandalay Resources (MND) IMO the lower stagnant pps could be attributed to short life of mine (LOM), high AISC of two mines and 58M debt. I think a return to $1 is likely but not much more in the near term.
Timmons Gold (TGD) The main problem with share price is the depreciating mine life of their only mine "San Francisco". The savior may well be their new low AISC "Ana Paula" project but will cost $120M to build mine with production beginning no earlier than the end of 2019. In the meantime they are at least 90M short of that number with declining production of 25% in 2017 alone, coupled with increasing AISC. Not looking good for any big moves in the short term.
http://seekingalpha.com/article/4054083-timmins-gold-ana-paula-project-will-push-share-price-significantly-higher-next-2-years
Thanks Cork, I briefly went over all your picks under $1, mostly OTC. Most had no revenue, the highest revenue OTC was OROXF with 41M in revenue producing 40k oz. TGD 125M in revenue, producing 100k oz with no debt. I am somewhat familiar with TGD but, they have been languishing for quite awhile. MND is MNDJF OTC with 185M in revenue producing 145k oz with 58M in debt.
At a glance I think TGD and OROXF offer the most potential at under $1, I'll be taking a closer look. Like I said, not a lot of quality producers under $1 left.
Tom, the whole problem with GCM has been their debt (145M), they almost went bankrupt until last year when they restructured their debt in July with convertible debt, now the convertible nature of their debt is keeping their pps pegged with convdersions @.13 and the future dilution this will cause.
I hold them as a long shot because of their 150k production, revenue, cash flow, management and reserves. Very cheap to get in with enough shares to make a difference once they restructure their debt on better terms, which could very well happen this year. They are easily a $1 stock if all falls into place.
This is their 2017 outlook also covering some proposals to handle their debt...
Gran Colombia Gold Announces 2017 Outlook and Proposals to Improve Capital Structure
Mar 6, 2017
Mar 06, 2017 (Marketwired via COMTEX) -- TORONTO, ON--(Marketwired - March 06, 2017) - Gran Colombia Gold Corp. (GCM) announced today its outlook for 2017 along with two proposals aimed at improving its capital structure following the comprehensive debt restructuring completed last year.
2017 Outlook
As previously announced, Gran Colombia produced a total of 149,687 ounces of gold in 2016 driven by growth at its Segovia Operations. The Company started off 2017 with a total of 24,585 ounces of gold production in the first two months and expects to produce a total of 150,000 to 160,000 ounces of gold for the full year.
–– ADVERTISEMENT ––
The Company's total cash cost and all-in sustaining cost ("AISC") averaged $699 and $832 per ounce sold, respectively, during the first nine months of 2016. Gran Colombia will be reporting its financial results for its 2016 fiscal year at the end of March and expects that its full year 2016 total cash cost and AISC will remain within guidance below $720 and about $850 per ounce sold, respectively. In 2017, the Company expects that its total cash cost will remain below $720 per ounce sold. The Company also expects that with an increased level of exploration spending at Segovia and the continuation of capital investment at its Segovia Operations, its AISC for the full year will remain below $900 per ounce.
In early February 2017, Gran Colombia completed the 10,000 meters drilling campaign it commenced at Segovia in May of last year. In the second half of 2016, the Company also completed a small underground drilling program to explore the extension of the current mineralization in the upper level of the existing Marmato mine. The Company expects to announce results of these drilling campaigns shortly. In 2017, Gran Colombia plans to execute a 20,000 meters drilling campaign to further its efforts to upgrade and extend its mineral resources at its Segovia Operations. Capital investment in 2017 at the Segovia Operations will continue to focus on ongoing mine development at its Providencia and El Silencio mines along with additional investments in mine infrastructure upgrades, ventilation, health, safety and environmental initiatives, mine equipment and expansion of tailings storage facilities.
In 2016, the Company repurchased and cancelled a total of $3.0 million aggregate principal amount of its 2018 and 2020 Debentures at a discount under the normal course issuer bids launched in July 2016. These transactions were funded by excess cash flow generated in the first nine months of 2016 and deposited into the sinking funds. The Company also used the increased cash flow generated by its operations in 2016 to honor its supplier payment programs, successfully restoring the aging of its accounts payable to normal terms by the end of 2016, and fully settled its overdue equity and wealth taxes which carried very high interest rates on the amounts in arrears. In 2017, provided gold prices remain at least at the current levels, the Company intends to generate excess cash flow equivalent to approximately 10% of the aggregate principal amount of its 2018 and 2020 Debentures currently issued and outstanding for deposit into the sinking funds in accordance with their respective indentures. Sinking fund balances may be used to fund open market repurchases of debentures for cancellation, redemptions at par or repayment at maturity.
Capital Structure Improvements
In September 2016, Gran Colombia announced it had engaged GMP Securities L.P. ("GMP") as its exclusive financial advisor to conduct a broad strategic review process to explore opportunities to enhance stakeholder value. During the course of this process, it became evident that even though Gran Colombia has strengthened operationally since the debt restructuring was completed in early 2016, the common shares have not performed at the same pace as its peers due to the extent of leverage within the Company's capital structure and the impact of the potential debt conversions on the total number of common shares outstanding on a fully diluted basis. In addition, at prevailing gold prices, the Company's future growth may be stalled while trying to balance ongoing capital investment needs with the requirement to set aside excess cash flow toward the repayment of the 2020 Debentures at maturity. As such, after consultation by Gran Colombia and GMP with several of its large stakeholders, the Company is announcing a proposal to extend the maturity, on a voluntary basis, of its 2020 Debentures and that it will seek shareholder approval in connection with such maturity extension and to consolidate its common shares in an effort to improve its future liquidity and capital structure to enhance shareholder value.
Extension of 2020 Debentures
Gran Colombia currently has an aggregate principal amount of US$101,160,085 of 2020 Debentures issued and outstanding pursuant to an Amended and Restated Indenture dated as of January 20, 2016 (the "Indenture"). Maturing on January 2, 2020, these debentures receive interest, paid on a monthly basis, at an annual rate of 6%.
Gran Colombia believes that by extending the maturity of some or all of its 2020 Debentures, the Company can strike a better balance in the next couple of years between capital investment and cash generation for senior debt retirement to enhance stakeholder value while at the same time using its excess cash flow to systematically reduce the issued and outstanding senior secured debt. The Company is seeking approval from holders of the 2020 Debentures to amend the Indenture through a consent solicitation process (the "Consent Solicitation") to provide an option for holders to extend the maturity date of the debentures to January 2, 2024 (the "Proposed Indenture Amendments"). The extended 2020 Debentures will carry largely the same terms and conditions as the other 2020 Debentures except that the maturity date will be extended and interest will be paid monthly over the remaining term of the extended 2020 Debentures at an annual rate of 8%.
The Company expects materials regarding the Consent Solicitation will be distributed to all holders of the 2020 Debentures on or about March 24, 2017. Holders will be asked to provide their consent to amend the Indenture through the Consent Solicitation process. The Company will also be seeking shareholder approval of the Proposed Indenture Amendments pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions ("MI 61-101"). In order for the Company to proceed with the Proposed Indenture Amendments, the following are required: (i) consent from a simple majority of the aggregate principal amount of the issued and outstanding 2020 Debentures and (ii) approval by a simple majority of the votes validly cast by "minority" shareholders, present in person or by proxy at the shareholder meeting, being the shareholders of the Company other than any "related parties" in respect of the Proposed Indenture Amendments (as determined in accordance with MI 61-101) who hold 2020 Debentures and such other shareholders as are required to be excluded in determining such "minority" approval pursuant to MI 61-101. The Consent Solicitation is expected to remain open until April 24, 2017, following which the Company will announce the results. Holders of 2020 Debentures will also have the opportunity during the Consent Solicitation process to elect to extend some or all of their 2020 Debentures, conditional upon the requisite consent from holders of 2020 Debentures, Shareholder approval being obtained and the Proposed Indenture Amendments being effected. The Consent Solicitation and the Proposed Indenture Amendments are subject to certain conditions and approvals including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals. Terms outlined herein may be amended as required to receive such approvals.
Share Consolidation
Gran Colombia has an authorized capital consisting of an unlimited number of common shares without par value and an unlimited number of Preferred Shares without par value, of which 306,755,502 common shares are currently issued and outstanding. In addition, a further approximately 1.1 billion common shares are issuable through the potential future exercise of the issued and outstanding convertible debentures due 2018, 2020 Debentures, stock options and warrants. This potentially large number of issued and outstanding common shares acts as a damper on the Company's stock price and could restrict the ability of the Company to raise equity in the future to fund its business activities. Accordingly, the Company is proposing to consolidate its issued and outstanding common shares on a ten-for-one basis (10:1) (the "Consolidation"), subject to the approval of the TSX and approval of Shareholders by way of special resolution. The Company believes that the benefits of the Consolidation include, among other things, that the anticipated higher share price resulting from the Consolidation may meet investing guidelines for certain institutional investors and investment funds that are prevented under such guidelines from investing in the common shares at current price levels. Also, a smaller number of common shares trading at a higher price makes the Company more attractive to potential investors, and could further enhance the value of the common shares held by current shareholders.
Information related to the Special Meeting of Shareholders expected to be held on April 24, 2017 will be available on or about March 24, 2017.
Tom, those are the reasons I choose not to rely on TA in an arbitrarily manipulated market where charts no longer make any sense. My strategy is to closely monitor company fundamentals and stay up on current events that will propel gold forward and only use charts for historical data. IMO a solid undervalued company with good fundamentals will rise in price irrespective of gold price, within reasonable levels of coarse. True, it is a risky business but, risk can be mitigated, there just are not many quality 200-300k producers out there anymore under $1.
Tom, GSS has already tested .67-.69 twice recently, the company has achieved a lot since then, I don't think we will see .55 again. Game changing PR's should start appearing anytime, 2H is when we rocket past $1 and remain. That is the beauty of being severely undervalued under $1!
Gran Colombia Gold ($GCM) Announces High Grade Drill Results From Its 2016 Infill Drilling Campaigns at the Segovia and Marmato Operations
http://www.grancolombiagold.com/news-and-investors/press-releases/press-release-details/2017/Gran-Colombia-Gold-Announces-High-Grade-Drill-Results-From-Its-2016-Infill-Drilling-Campaigns-at-the-Segovia-and-Marmato-Operations/default.aspx
Good morning Tom, another severely undervalued miner I bought heavy is Gran Columbia Gold GCM/TPRFF. GCM is in Columbia, which makes it a little riskier but, they produce a 150k at a very low AISC of about $650/oz they currently have a convertible debt issue they are working through that is suppressing their pps. I have taken on the risk because of their outstanding revenue, cash flow, 14M oz reserves and management all at an absurdly low price of .08 (TPRFF). IMO this one will take some patience but, very positive risk/reward potential.
Dog, I'm referring to Golden Star Resources Ltd. (GSS NYSE)
Yeah, I lost quite a bit in options years ago, I found the volatility to be worse than the miners and didn't like the decay aspect, now the option space seems too crowded. The insolvency issue is not a problem with cash flow, revenue, cash on hand and good management, these I monitor closely. IMO the two companies mentioned meet that criteria.
S~P, the keys are, only severely undervalued producers with revenue and the aforementioned criteria, undervalued enough to where you can buy many, many thousands of shares with low downside risk. There is nothing like having a few hundred thousand shares, watching your stock run at $2000 or $3000 per penny rise, that is how you make the big bucks, especially when it's a multi-bagger. TGZ and GSS both have short term targets of nearly $2. GSS has some debt but, they are actively paying it down, have nice cash flow and are also expanding, building 2 new underground mines.
S~P, This is not South Africa. Senegal West Africa is the safest mining friendly district in Africa.
S~P, Teranga Gold TGZ.TO/TGCDF. Right now TGZ is trading @.80 C, TGCDF is thinly traded but, it closely follows TGZ at the exchange rate, it is now trading @.57 US, .57 is cheaper than I got in at, it's a steal. Lots of buzz on ihub/TGCDF and Stockhouse/TGZ. I am long with a boat load of shares, their new mine is already capitalized and will be in production in 2019 projecting 325k oz/year
S~P, keep in mind that even if gold remains range bound for 2017 and you get into a producer at around $1 or less that is expanding reserves, building new mines, has no debt, great revenue, cash on hand, produces +200k with near term +300k, low AISC, good management in a safe mining district, you can't go wrong. A quality company in such a position, this undervalued, is not static and will gain value even if gold is flat or moves lower. This is my low risk, high reward strategy (and it has already paid off handsomely) with miners.
Trumps the man for the job...
Cork, thanks for the "back and forth", always a pleasure, there certainly is strength in numbers. I too have quite a stack of Ag, have a few oz of Au left but, sold some last year near $1300, need to get back at it though.
CDE also had a lousy 4th quarter report, that is part of the reason they fell so far.
Dollar Tumbles To Session Lows On Mnuchin Devaluation, Trade Deficit Warning.
First, the dollar dropped following comments from commerce secretary Wilbur Ross, who said that he expected to start renegotiating NAFTA within two weeks and that Japan will be high on the list for trade agreements.
Now, in a second salvo against the strong dollar on the same day, Bloomberg reports that during his first appearance at next week's G-20 meeting in Baden-Baden, Germany, Treasury Secretary Steven Mnuchin plans to drive home the message that the U.S. won’t tolerate countries that engage in currency devaluation to gain an edge in trade, a statement which would clearly refute Mnuchin's recent praise for a stronger dollar, and provides further evidence that the Trump administration's preliminary focus will be on getting the dollar weaker, not stronger, which may in turn impact the Fed's decision-making, especially if indeed Yellen hopes to hike rates three (or more) times in 2017.
http://www.zerohedge.com/news/2017-03-10/dollar-tumbles-session-lows-mnuchin-devaluation-trade-deficit-warning
Dollar Tumbles To Session Lows On Mnuchin Devaluation, Trade Deficit Warning.
This is what transpired today...
First, the dollar dropped following comments from commerce secretary Wilbur Ross, who said that he expected to start renegotiating NAFTA within two weeks and that Japan will be high on the list for trade agreements.
Now, in a second salvo against the strong dollar on the same day, Bloomberg reports that during his first appearance at next week's G-20 meeting in Baden-Baden, Germany, Treasury Secretary Steven Mnuchin plans to drive home the message that the U.S. won’t tolerate countries that engage in currency devaluation to gain an edge in trade, a statement which would clearly refute Mnuchin's recent praise for a stronger dollar, and provides further evidence that the Trump administration's preliminary focus will be on getting the dollar weaker, not stronger, which may in turn impact the Fed's decision-making, especially if indeed Yellen hopes to hike rates three (or more) times in 2017.
http://www.zerohedge.com/news/2017-03-10/dollar-tumbles-session-lows-mnuchin-devaluation-trade-deficit-warning
Dollar Tumbles To Session Lows On Mnuchin Devaluation, Trade Deficit Warning.
And this event today...
First, the dollar dropped following comments from commerce secretary Wilbur Ross, who said that he expected to start renegotiating NAFTA within two weeks and that Japan will be high on the list for trade agreements.
Now, in a second salvo against the strong dollar on the same day, Bloomberg reports that during his first appearance at next week's G-20 meeting in Baden-Baden, Germany, Treasury Secretary Steven Mnuchin plans to drive home the message that the U.S. won’t tolerate countries that engage in currency devaluation to gain an edge in trade, a statement which would clearly refute Mnuchin's recent praise for a stronger dollar, and provides further evidence that the Trump administration's preliminary focus will be on getting the dollar weaker, not stronger, which may in turn impact the Fed's decision-making, especially if indeed Yellen hopes to hike rates three (or more) times in 2017.
http://www.zerohedge.com/news/2017-03-10/dollar-tumbles-session-lows-mnuchin-devaluation-trade-deficit-warning
BIG rebound day for miners on sliding Dollar $GSS $MUX $EXK all up over 9%.
Dollar Tumbles To Session Lows On Mnuchin Devaluation, Trade Deficit Warning.
AhHa...
First, the dollar dropped following comments from commerce secretary Wilbur Ross, who said that he expected to start renegotiating NAFTA within two weeks and that Japan will be high on the list for trade agreements.
Now, in a second salvo against the strong dollar on the same day, Bloomberg reports that during his first appearance at next week's G-20 meeting in Baden-Baden, Germany, Treasury Secretary Steven Mnuchin plans to drive home the message that the U.S. won’t tolerate countries that engage in currency devaluation to gain an edge in trade, a statement which would clearly refute Mnuchin's recent praise for a stronger dollar, and provides further evidence that the Trump administration's preliminary focus will be on getting the dollar weaker, not stronger, which may in turn impact the Fed's decision-making, especially if indeed Yellen hopes to hike rates three (or more) times in 2017.
http://www.zerohedge.com/news/2017-03-10/dollar-tumbles-session-lows-mnuchin-devaluation-trade-deficit-warning