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are you buying Serica in London SQZ.L or the otc symbol sqzzf. SQZZF doesn't trade much. Hasn't traded for a few days.
Looks pretty interesting. Mid level producer. Not a startup by any means.
The Central Bankers threw a wet blanket on the stock markets, energy, metals, you name it. Might wait a bit for the dust to settle. Fundamentals are pretty solid unless world economy goes into a BIG recession. Still need energy to keep the lights and heat on. Still need food. Still need metals to make anything.
SD kinda greedy aren't we? you want to double eps in one qtr?
I used a conservative number for avg price of ngas in Q2. SD gets a little over 50% of revs from ngas. Oil and ngas liquids did not double in price from Q1 to Q2. Since they make up ~48% of revs, that will limit eps gains.
$1.35eps X 4 = fwd annualized $5.40 eps for a $17 stock. That's pretty good.
Production has been pretty stable. SD hasn't been drilling new wells. They have just been bringing back wells that they mothballed during the bad old days to maintain production. So capex has been limited. Another plus and they are growing cash. Should be around $200 million by now. No debt~!
SD, $17.39. Sandridge Energy earned .95/share for Q1 ending 3/31.
They got 3.84/mcf in Q1 minus a few hedges. All hedges fell off at 3/31 so Sandridge will earn all of their ngas production. In Q1 they got about 82% of Henry Hub pricing. In Q2 ngas looks to average somewhere in the $7+/mcf range. Assuming SD gets 82% of 7.25/mcf or $5.94/mcf for Q2, you have earnings in the $1.35 range plus some extra for higher oil and ngas liquids.
Most producers have lots of hedges and it's tough to figure out their earnings. SD is a clean play on ngas. The LNG plant explosion will hold down exports for the rest of 2022 but things should improve in 2023.
SD has substantial oil production so they will benefit from the higher oil prices and eventually benefit from the surge in LNG to Europe and Asia.
Looking for a conservative way to play the natural gas crisis in Europe. Vermillion, VET, has oil and gas but specifically ngas produced in Europe. They are getting those massive $40/mcf prices. It may not get a lot higher but spectacular gains for the next few quarters. Vermillion has a nice mix of oil and gas in safe jurisdictions. 52 week range is 5.51 to $25. Bought around $20.
Vermillion gets 40-45% of it's cashflow from European ngas. VET fell along with other oil names but those other companies don't have the ngas on the continent.
P/E around 4. Don't see a solution anytime soon for the Euro gas crisis. Wait until this coming winter!
Bought some Hecla Mining today at 4.34. Hecla is one of the primary silver producers in the US and has perennially disappointed me in terms of production and profits. However they remain one of the few relatively pure silver plays.
Recently I got interested in zinc as a metal that is approaching significant shortages. Hecla also produces a lot of zinc as a by product.
Their mines are in safe jurisdictions and set to produce for many years. We'll see how long I can put up with mediocre results. Stock is down dramatically from the 52week high of 7.71 about a year ago.
GCM.to/TPRFF
There is a country risk with Gran Colombia. They are trying to diversify with the mine they are building in Guyana and changed their name to GCM to remove Colombia from the name. Country is having elections and there is a hard left wing candidate that is currently in the lead. It's a two person election. So we'll find out pretty quick if Colombia heads down the anti mining path.
The project in Guyana is truly a company maker so in a couple years, Colombia may be in the rear view mirror BUT watch the news for the short term impact.
TRLEF/TCF.cn +.0165 to US$.30
Trillion Energy announced they signed the contract for a drilling rig to begin drilling their SASB project offshore Turkey in July/August 2022. They also recently closed a financing of over $10million.
Trillion is unusual because the field they are drilling has already been producing and the four initial drill sites have already been drilled and proven to have gas. There is probably some risk of mechanical failure but largely low risk drilling. In addition, the drilling will be conducted from already existing drilling platforms. The producing portion of the field already has connections to a shore based production facility owned/operated by Trillion's partner, the national gas company of Turkey. So once drilled, the wells will be brought on production within 40 days of spud plus completion time..
This short time frame should allow Trillion to reach cashflow positive status relatively quickly. Another positive is that the Turkish national energy company, Trillion's 51% partner in the project, has recently raised ngas prices to just under $18/mcf.
https://trillionenergy.com/2022/05/18/trillion-energy-international-signs-drilling-rig-services-contract/
Here is the latest investor presentation from Trillion just a few days ago.
https://trillionenergy.com/wp-content/uploads/2022/02/Trillion-Energy-Investor-Presentation-May-2022.pdf
re mglqf
I don't think Magna will awaken until they publish their 2021 results. IF they were profitable in Q4 and show the market that they represent an 80K/year producer that will be profitable going forward, they should get a rerate.
Over 2022, I expect positive news out of the silver project to give the market assurance that they will increase production in the next couple of years. Investors in this stock will have to understand and appreciate the "mexican" way of mining. They don't drill the crap out of the deposit. They drill to define the near term targets and grades. Reserves may not rise in a predictable and regular pattern. They are focused on cashflow and profitable operations. The silver project will be a low capex mine that will start construction without the normal, pea, pfs, fs routine.
They will likely do a pea but then will make a build decision. Capex for the new mine will come from San Francisco cashflow.
We shouldn't have too long to wait. Annual report will be published in April.
Magna Gold, mgr.v/mglqf US$.5998
Magna is a profitable gold producer at about 75-80K/yr. Has about 7 years of production left. Magna is looking for near term production from nearby projects and bought several silver prospects last year. Margarita is the best near term prospect for production and today Magna reported first batch of drill results. These are very good, high grade, shallow holes. Goal is to get to production very quickly. May have to change the name to Magna Gold and Silver!
https://finance.yahoo.com/news/magna-gold-drills-12-80-120000268.html
Been surprised that market doesn't appreciate GCM increase coming from Toroparu AND Marmato. Both projects forecast 2024 production so we will have to wait thru 2022 and 2023 and probably most of 2024 before we see results. STILL both projects are forecast to produce over 200K oz of gold EACH. That would boost 2025 production for GCM to the 500K oz/yr range.
GCM.to/TPRFF Latest interview with GCM Mining discussing 2021 results and upcoming construction of Toroparu gold/copper mine.
latest interview with GCM Mining on youtube.com
Agree that not as good as having cash without debt BUT they have the money and used debt instead of dilutive shares. The fact that they qualify for $300 million in debt shows lender comfort with existing cashflow and balance sheet.
Most miners contemplating a big mine build have stock price volatility coming depending on how they finance mine. GCM is already past that. I still think they are undervalued and have positive catalysts coming in the next two years that should cause a big revaluation.
GCM.to/TPRFF GCM recently changed their name from Gran Colombian Gold to GCM Mining to signify the change from a single mine, single country company to more of a regional player.
GCM is strangely undervalued. Market cap is US$438million. But they have $300 million in CASH AND they are profitable producer of 200K oz of gold every year from their Segovia high grade mine. Their biggest problem is that Segovia is in Colombia.
Last year, GCM bought Gold X to get their Toroparu Gold project in Guyana. This mine has at least 5 million ounces of gold and could ultimately be a 10 million oz mine. GCM has raised all the money necessary to build a mine that will produce 200K of gold for well over a decade. This mine should be in production sometime in 2024 and will double GCM's total gold production to 400K oz. They are already profitable with 9 month earnings of 2.32, including one time items. The Q3 earnings of .26 or US$25million probably is better for short term forecasting. Using estimated $1/share earnings vs the $4.46 share price gets you a p/e ratio of 4+.
In addition to Toroparu, GCM has other short term catalysts. They used to own the Marmato mine in Colombia. They sold most of their interests to Aris Gold and retained a 44% interest in Aris Gold.
Aris has an all star mgmt team that thinks that Marmato has high grade gold at depths and is building an underground mine to exploit the deeper gold. Aris was founded by Neil Woodyer, successful founder of Endeavor and Leagold Mining. He recently sold Leagold to Equinox Gold ane created Aris to repeat his successful track record of creating value for shareholders. The mine should begin construction in 2022 while near term improvements are made to the existing mining at Marmato.
So GCM has two big catalysts coming up in the next 24 months. Their new Toroparu mine in Guyana will provide geographic diversity and long term production while they will received 44% of Aris production from the new deep mine at Marmato.
In addition to their assets, GCM provides shareholders with a 3+% yield on monthly dividends while they wait for the catalysts.
Here is their latest presentation:
https://www.gcm-mining.com/news-and-investors/events-and-presentations/presentations/default.aspx
I think the combination of Toroparu and Marmato will cause GCM to triple over the next couple of years. I think the market is waiting to see if Marmato works out as planned but I think the stock is a no brainer for anyone in mining stocks.
SYTA has never delivered on promised of 4G and beyond technology. For some reason first responders in US and overseas have never adopted their 4G cell unit in big numbers. When I first invested in Siyata, they had annual sales of $20 million/yr selling mostly their 3G unit overseas. Sales since they switched to the 4G product have never come close. They are doing better with their rugged hand held devices and signal boosting products than the 4G product. Been losing money for years and continuously raising money.
Glad I finally gave up a few years ago. Bobwins
new article on Seeking Alpha from Peter Arendas. His top 5 picks for mining stocks in 2022. GCM.to is his #1 pick.
https://seekingalpha.com/article/4477405-top-5-mining-stocks-watch-2022?mailingid=26219995&messageid=must_reads&serial=26219995.108557&utm_campaign=Must%2BReads%2B-%2B31st%2BDecember%2B2021&utm_content=seeking_alpha&utm_medium=email&utm_source=seeking_alpha&utm_term=must_reads
MGLQF .5949
Very cheap gold miner. 7 years left at 80K/yr without considering any new exploration. .04eps/qtr should continue.
My only worry is that Magna just doesn't get any credit from market. Mining very low grade but profitable ore. Will the market care if it gets cheaper? Maybe not. Market sentiment for gold miners is near record lows, in spite of rising gold prices, huge deficits and rising inflation.
Mgr.v/MGLQF .6783
Magna Gold published their Q3 financials on sedar. My crude estimate was off because I didn't deduct depreciation or taxes.
My estimate does come close if you are looking for cashflow.
Gross revs 32.8million minus costs of 25.1 leaves gross margin of 7.7million. Net income of 3.6 million equals .04eps
Add back depreciation of $5million and deferred taxes of .77million gives you cashflow of 9.3million or .10 for the qtr!
Annualize and you get US$.40 forward cashflow vs the current share price of .68 gives you less than TWO TIMES Cashflow!!!!
Cheap, cheap, cheap!
There is a YouTube video from Miningstockeducation.com interviewing Art that posted recently.That’s why the stock is up. Says he has financing if moving stock to Canada is successful. Also explains why some of other announced financings didn’t work.
MGLQF due to publish Q3 P&L towards the end of November. I think company is way undervalued based on likelihood of 7 to 8 years of 80K oz/yr. Here is my guesstimate of what the P&L could look like.
Company has told us that they produced 19,102 oz of gold during Q3 at cash costs of $1134/oz.
Gross revs = 19,102X estimated avg gold price of $1775 =$33,902,500
Cash costs 19,102 X cash costs of $1134 =$21,659,400
Estimated Gross Margin =$12,243,100
I doubled G&A costs to $ 2,000,000
Used financing costs from Q2 $ 500,000
Used Other misc(currency fluctuations,misc) $ 1,500,000
Estimated Net Profit before Income Tax $ 8,243,000
$8million is a huge improvement and dividing by 90million shares outstanding = .09eps
Magna seems to have turned the corner, approaching steady state production levels and reducing strip ratios.
If they actually report .09eps or anything close, they are due for a dramatic revaluation. .09X4=.36 fwd eps vs current price of US$.80.
FTCO +.13 to $7.25
Small resource of 163K oz including inferred. Very preliminary and not significant for most junior producers BUT Fortitude made a production decision for Isabella Pearl with similar info.
We know they need to increase resources and mine life so it's logical that they will proceed with Golden Mile. They are forecasting 40K/yr from Golden Mile.
Valuation is tricky. If/when they produce 80K/yr from Isabella and Golden Mile, will you value the company at that level when they are almost out of resources at Isabella and 4 years left at Golden Mile.
I would feel a lot better if I was holding FTCO if they would announce incremental increases in resource at both Isabella and Golden Mile as they proceed with the production decision and construction of Golden Mile. The increases should be MORE than the annual production so that mine life is actually extended beyond the initial 4 years.
They have stated that there is additional gold at both sites. They need to prove it by drilling and finding more resources in the near future.
That said, FTCO may determine it's more important to drill and explore the next potential mine vs extending mine life. They may be very confident in their expectations to extend mine life at Isabella and Golden Mile and figure it's more important to build a third mine. Their past history of dividend payment out of profits may convince loyal and/or greedy investors to trust them. We'll see how it plays out.
Blackrock Silver BRC.v/BKRRF +.03 to US$.8274
A little late but I should have mentioned this when I bought a couple of weeks ago. Blackrock acquired about 1/2 of the historic Tonopah silver district in Nevada in 2020 from Ely Gold Royalties, who assembled the land package from private land owners. Tonopah was the second biggest silver district in Nevada behind the Comstock lode. Production stopped because of WWII and not because reserves were gone. This is high grade. Blackrock has multiple drill holes exceeding 1,000 gm/tonne.
Since they acquired the tract in 2020, Blackrock has drilled almost 100K meters. They have been steadily financing and so share count has gone up a lot. FD share count is close to 200 million shares. They just announced another $7million raise last week. First Majestic has participated in the last two financings and Eric Sprott is also a big investor.
Here is the latest presentation:
https://blackrocksilver.com/wp-content/uploads/2021/08/BlackrockSilver_Nye-County_Presentation_August_11_2021.pdf
Blackrock has moved 30% in the last two weeks. I think the stock is moving due to expectations of an initial resource estimate that is due in early 2022. This is the largest drill program over the past year and investors are expecting a big initial resource.
Apparently CEO sent an email recently in response to a question about financing that was due in September. Supposedly said that financing would be delayed again to early 2022 and would be bigger than the original $10million. Also said it would include equity. Production now not expected until Spring 2022, if then, instead of 12/21.
I sold today because an equity financing will be done below market and hurt short term share price. Track record of completing announced financings is poor. Project looks too good to be true. Something is holding up the financings. Maybe it's political situation in Turkey. Don't know. Good luck.
MGR.v/MGLQF +.113 to US$.7590
Nice pop on low volume for Magna. Gold and silver are moving up and there are LOTS of undervalued miners. Magna certainly fits the description.
MGR.v/MGLQF $.639
Magna reports Q3 production of 19K oz of gold and 40K ytd. Magna is approaching full capacity and now has three qtrs of successively improving results. 7,11,19K gold produced. Strip ratio down dramatically, which is critical for such a low grade gold operation. Almost down to PEA projections.
25K oz placed on heap leach so Q4 should be even better. 21K was placed in Q2 and resulted in 19K production so Q4 should be in the 21K to 23K range.
Magna is getting close to the magic 100K producer level but way undervalued. We'll have to wait and see how the financials look in Q3.
https://finance.yahoo.com/news/magna-gold-reports-q3-2021-110000424.html
Re MGR.v/MGLQF It's gone a little slower than I thought it would. Low grade means that strip ratio is all important and profitability has taken longer than I thought it would. Certainly appears that the "old" team knows how to extract the gold better than Argonaut.
They do need to find some gold or silver at one of their prospects to spice up the story and extend mine life. Talked about nearby gold that could easily be put into production but haven't heard much lately so maybe it wasn't as easy as they thought. Also nearby prospects are silver focused so that would be a change for them.
Most gold juniors have struggled over the past year as gold has stagnated and fallen back. Magna needs for gold to recover but mainly for them to hit their targets and turn profitable. Certainly seems undervalued but most gold juniors are.
Market seems to buy what Fed Chief Powell is pitching but I don't think inflation is transitory AND I doubt he can raise rates much even if he wants to. I think gold miners will do well over the intermediate term. You can't print Trillions and not have negative consequences. So far, there hasn't been much downside but sooner or later the stuff is going to hit the fan.
FTCO $6.94
These are excellent drill results for anywhere and especially for a potential Nevada open pit mine. Some mines in Nevada are mining gold at .6gm/tonne and still making money. BUT Fortitude is valued reasonably for a modest producer. They are profitable from their existing mine, pay a good dividend and like they say, have built several mines and paid out a lot of dividends to shareholders. Market cap of $169 million is substantial for a 40K oz/yr producer with only 4.5 years of reserves. If they didn't pay that dividend, I would say they are HIGHLY overpriced.
So they need the Golden Mile to pencil out and to get into production before the Isabella Pearl gets down to 2 years of production life. The candle is burning and they need to extend their production capacity pretty quick or those dividends are going to evaporate.
I've always admired the mgmt of GORO. They have done things differently and been pretty good to their shareholders. But again, they need the Golden Mile to show decent reserves. Isolated excellent drill holes are important but until they publish a resource estimate, it's hard to estimate the size of the resource/reserves and what production level you can expect for how many years.
I would expect them to move forward because they don't have a lot of choice. They need something built and producing in the next couple of years or they will become a nonproducer. Nevada is a great location and has plenty of potential to keep them going for a long time. Hopefully as they explore their five properties, several will become mines and they can build up production levels to 100K+/yr.
Short term, these results don't mean much until the resource estimate is published and the build decision is made. Also FTCO is fighting the overall decline of mining stocks. FTCO has done well to hold pretty steady while GDX and GDXJ have steadily fallen for the past year.
worldwide natural gas prices are soaring to the $30/mcf range. CNQ is a big gas producer. However Canada has not built much LNG export capacity so not sure CNQ is going to benefit from world prices. US prices have risen to $6/mcf due to the worldwide shortages but even there our export capacity is almost maxed out so we can't just sell more at $30/mcf. Most export LNG deals have set pricing due to oil link or some other fixed mechanism.
yeah, not sure why the sudden upsurge. Company has not delivered on promised big announcement in early September about drilling/financing.
The opportunity is there but company has struggled to line up financing.
Ngas pricing in the rest of the world is going thru the roof! $30/mcf???? yikes. We are short on storage but the LNG export plants are maxed out or our prices would be going thru the roof too. Ngas is close to $6/mcf, which is really high.
TCFF has to sell to Turkey so they can't lure financing based on higher world prices( like Asia!) Still surprised someone in Turkey doesn't step up with $15million and get a royalty on every mcf. The situation with TCFF seems almost too good to be true. All that capital poured into platforms and previous drilling makes it seem like a minimal risk situation but TCFF can't get the $15-20 million in the door to start the ball rolling. Once they drill one or two successful wells, they should be able to finance future drilling.
I don't have much invested but enjoying the ride.
Yes, pretty typical response after a 30 percent one day pop. The price is going to keep sliding until they convince investors that they have the money. Even then, they have to prove that the gas is there and they can hook up and produce. And they have to pray Turkey is relatively stable.
Definitely high risk,high reward situation.
Trillion Energy TCFF/TCF.CN +.051 to US$.215
Trillion Energy started out 2021 at around .05 and soared to US$.52 in early March 2021 after their story was told on some investment sites. Since then, the stock has steadily fallen, hitting a near term low of .14 a few days ago.
https://mk0tupejabahidi1sv4j.kinstacdn.com/wp-content/uploads/2020/10/Trillion-Energy-International-Inc.-Investor-Deck-Feb-2021-1.pdf
The corporate presentation tells the story well. Trillion owns 49% of the SASB ngas field offshore Turkey in the Black Sea. Their partner is TPAO, the Turkish national energy company. The SASB field was developed 2007-2011 by investing over US$600 million and has produced 41BCF since then.
SASB has 4 offshore production platforms in shallow water. During development, 6 wells were drilled, tested but never produced. Trillion intends to redrill those wells and put them into production. One of the wells tested over 7MMCFPD! 2P Reserves are 41BCF so Trillion's share is 20BCF. In addition to these wells, there are 7 more that have 80% chance of successful production near the platforms.
Trillion was founded by Art Halleran. Halleran also cofounded premier ngas producer in Colombia Canacol Energy. He has been working without a salary, preferring to take stock options in lieu of a salary.
Trillion needs somewhere around US$10million+ to drill the first 6 proven wells. The wells can be hooked up to the existing platforms and there is already pipelines to an onshore facility ready to accept the new production.
They had the financing lined up just as COVID struck. COVID has delayed the financing and also delayed permit approvals from the Turkish government.
So this company has 41BCF in reserves and could be in production as early as 1/22 IF they can close on a financing and get the first 6 wells producing. After that, they plan to use the cashflow from the first 6 wells to finance the next 7 that are high percentage prospects. In addition there are other prospects near the 4 platforms that could keep growing production in the future.
But so far, the financing has been slow to materialize. And this has caused investors to have doubts and slowly drained the share price to the recent .14 level. The company published Q2 reports and said there would be financing news in early September. This has generated a rising stock price, including today's 30% gain.
Trillion looks very undervalued, even at .215. They could be worth a couple of dollars under ideal circumstances and possibly more. BUT they still don't have drilling money yet. AND Turkey is a risky country to invest in. BTW Turkey is paying above market rates for ngas, currently over $5/mcf. So if they can get into production, they can sell all the production at above market rates.
I think this story sounds very plausible and we should find out if it's a hit or a miss very soon.
Bobwins
If you accept the definition of an expert as someone who lives more than 90 miles away, then I accept.
DYNR gave me a headache. Amazing earnings of .24 for Q2 2021 and it looks like it could get better as trial mining production increases to 300tpd from 200tpd. Annualized, DYNR is selling for 1X fwd eps!
But the headache part is the financing they've had to do to survive while fighting a court battle. Lots of preferred shares with a couple million zero cost warrants means diluted share count is higher than current outstanding. They had to expand max share count to 40 million so when the dust settles, share count could be substantially higher than current 17+million.
AND the biggest headache is the he said she said lawsuits flying back and forth across the Mexican border. They won in Mexico and lost in the US. 50% of their prize mining asset is at stake. I couldn't tell which way it will end up.
I do think the mining asset is legit. High grade gold but the resource report is from 2011 and needs updating. If you count inferred resources, they have a million oz of gold in the ground. 274K is indicated so that's better than many junior explorers and represents 10 years of production at current rates before they even get into the inferred. There is no talk on the website about going beyond trial mining so the lawsuits are probably holding up any significant investment in a mine/mill without clear title to the property and the project. This has been going on for many years and I don't see a clear ending.
This looks like a stock that will be substantially higher in a year. Even if they lose the fight and have to take Goldgroup back as a 50% partner, they have a substantial mine that's worth more than their current $17 million market cap. But legal uncertainty makes it difficult to promote the stock and get recognized for their actual results.
This has lots of potential upside but not my favorite way to gamble on gold. Gold already has plenty of variables without introducing lawsuits that don't have a definite end date.
FTCO $7.50 has done quite well since being spun off from GORO at year end 2020. It has several things going for it. 1. Nevada location. In gold mining, Nevada is the promised land. Safe jurisdiction, good permitting, friendly to miners. 2. Goro has been a producer for many years. Mexican operations are a mix of base metals and gold/silver. They operate similarly, in that reserves aren't a big priority. BUT like you said, they need to come up with another mine pretty quick or production could come to a nasty end. Looks like they promised a resource estimate in 2021 for one of their projects. That will be the key. Since these are open pit, they are pretty simple and within driving distance of the existing mine so they can build pretty quick, as long as the gold is there. 3. Dividends. Stock price has responded to 5% dividend. I can remember paying over 10% to customers holding a 6 month cd! Now the bank would pay .1%. I'm sure the mgmt knows that lowering or cancelling the dividend would be a disaster for the stock, so they are motivated to find/build the next mine. And they have a track record of finding/building mines so I think they deserve some leeway. GORO always had a loyal fan/stockholder base so I'm guessing that most stockholders are ex Goro holders. 4. Low share count. Since it was a spinoff, they didn't have to inflate share count to finance mine. I'm guessing they could finance the next mine with mostly debt due to production and profits at Isabella Pearl but timing is crucial. As they approach end of reserves, bankers will be leery of going out too far. Need good resource report on next mine this year. Even so, it's likely to be another small mine. 100K+ oz in the ground.
Overall, I think FTCO is a decent junior gold stock. They produce gold now and are profitable AND they pay a dividend. That's way more than the normal junior gold explorer, who has nothing but promotion to show you. In comparison to many gold stocks, FTCO has a limited upside due to low reserves and low likelihood of finding/building a BIG mine. Mgmt has been relatively conservative at GORO and I would expect the same here. Their primary promise is to produce gold at a profit and pay a good dividend. Size will likely stay small and they won't swing for the fences. Good luck
Same mgmt team that ran Timmins Gold successfully for many years. Same mgmt, same mine, same grade. Expect similar results. You are right about costs. They need to be lower but lower stripping rates will do wonders for costs. We'll see how they do over the rest of the year. I expect continued improvement.
Magna Gold, MGR.V/MQLQF +.06 to US$.8151 Still extremely low market cap(US$72.9 million) for a producing gold miner with mine/mill paid off.
Guiding for 55K to 65K production for 2021. Exit rate 2021 guidance is 7500 oz/month. That's 90K/yr run rate. Very low grade but mine has operated for about 10 years with those low rates and was extremely profitable when current mgmt ran it as Timmins Gold. Let's see if they can get strip ratio and costs down to old levels and recreate the glory years.
Magna Gold Achieves Full-Scale Commercial Production at San Francisco on Schedule
Tue, June 29, 2021, 4:00 AM
MGLQF
+7.96%
TORONTO, June 29, 2021 /PRNewswire/ - Magna Gold Corp. (TSXV: MGR), (OTCQB: MGLQF) ("Magna" or the "Company") is pleased to announce it has achieved full-scale and steady state commercial production at its 100% owned flagship San Francisco Mine, located in Sonora, Mexico. Commercial production was achieved on schedule on June 1, 2021, as outlined in the Company's press release dated April 13, 2021. Furthermore, the Company is on track to achieve and reiterates its earlier stated 2021 guidance of 55,000 – 65,000 oz of gold ("Au") production.
Magna Gold Corp. logo (CNW Group/Magna Gold Corp.)
Magna Gold Corp. logo (CNW Group/Magna Gold Corp.)
In the first half of the year, the Company completed the necessary pre-stripping and substantially lowered the mine strip ratio from ~8:1 to ~3:1, which is continuing to trend downwards towards the life of mine ("LOM") average of 2.5:1. Moving forward, the Company anticipates further decreases to the strip ratio and increased recovery rates which will lead to cost improvements.
At San Francisco, the Company anticipates a production run rate of ~6,000 Au oz/month in Q3 and looks to exit the year at a run rate of ~7,500 Au oz/month.
Highlights
Completed all necessary pre-stripping to achieve 2.9:1 strip ratio at full-scale commercial operations, which is expected to trend downwards through LOM.
Completed construction of new leach pads and began stacking fresh ore at a steady-state rate of 900 metric tons per hour.
Optimized grind size and leach kinetics improving recovery rates to ~70% with further improvements anticipated over the LOM.
Continues commitment to health and safety, achieving over 3.5 million man-hours without a lost-time incident.
Arturo Bonillas, President and CEO of Magna stated: "We are all extremely proud of the Magna team for achieving this tremendous milestone on schedule. Achieving full-scale commercial production in such a short period of time is a testament to the hard work and quality of our Mexico-based operations team and as a company, we have demonstrated our ability to execute on all our target deliverables. Production numbers are trending upwards month-to-month, and we anticipate exiting the year producing ~7,500 Au oz/month. We are continuing our systematic exploration efforts as we look to grow the Company into a mid-tier producer."
About Magna Gold Corp
Magna is a Mexico focused gold/silver production company focused on acquiring, exploring, developing and operating quality precious metals properties in Mexico. It is committed to advancing its 100% owned flagship San Francisco Mine and other highly prospective mineral properties located in Sonora and in Chihuahua. The primary strength of the Company is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production. Magna employs community members and services in its operations.
As of August 8, 2020 (NI 43-101 F1 Technical Report Pre-feasibility study for the San Francisco Gold Project), San Francisco operations are estimated to have measured and indicated resources of 99,700,000 tonnes @ 0.446g/t Au containing 1,430,000 ounces of gold, and inferred resources of 11,374,000 tonnes @ 0.446 g/t containing 171,000 ounces of gold. The total proven and probable reserves is 47,629,000 tonnes @ 0.495 g/t Au containing 758,000 ounces of gold. Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
Good news. Magna would be on track to become a 90K producer if they can produce 7500 oz/month as they are guiding for Q4 exit rate. Still way undervalued. Mine/mill is paid for. How many 90K producers can say that. Grade is low but mine produced profitably at that grade for many years when it was Timmins Gold.
Magna Gold Achieves Full-Scale Commercial Production at San Francisco on Schedule
Tue, June 29, 2021, 4:00 AM
MGLQF
+7.96%
TORONTO, June 29, 2021 /PRNewswire/ - Magna Gold Corp. (TSXV: MGR), (OTCQB: MGLQF) ("Magna" or the "Company") is pleased to announce it has achieved full-scale and steady state commercial production at its 100% owned flagship San Francisco Mine, located in Sonora, Mexico. Commercial production was achieved on schedule on June 1, 2021, as outlined in the Company's press release dated April 13, 2021. Furthermore, the Company is on track to achieve and reiterates its earlier stated 2021 guidance of 55,000 – 65,000 oz of gold ("Au") production.
Magna Gold Corp. logo (CNW Group/Magna Gold Corp.)
Magna Gold Corp. logo (CNW Group/Magna Gold Corp.)
In the first half of the year, the Company completed the necessary pre-stripping and substantially lowered the mine strip ratio from ~8:1 to ~3:1, which is continuing to trend downwards towards the life of mine ("LOM") average of 2.5:1. Moving forward, the Company anticipates further decreases to the strip ratio and increased recovery rates which will lead to cost improvements.
At San Francisco, the Company anticipates a production run rate of ~6,000 Au oz/month in Q3 and looks to exit the year at a run rate of ~7,500 Au oz/month.
Highlights
Completed all necessary pre-stripping to achieve 2.9:1 strip ratio at full-scale commercial operations, which is expected to trend downwards through LOM.
Completed construction of new leach pads and began stacking fresh ore at a steady-state rate of 900 metric tons per hour.
Optimized grind size and leach kinetics improving recovery rates to ~70% with further improvements anticipated over the LOM.
Continues commitment to health and safety, achieving over 3.5 million man-hours without a lost-time incident.
Arturo Bonillas, President and CEO of Magna stated: "We are all extremely proud of the Magna team for achieving this tremendous milestone on schedule. Achieving full-scale commercial production in such a short period of time is a testament to the hard work and quality of our Mexico-based operations team and as a company, we have demonstrated our ability to execute on all our target deliverables. Production numbers are trending upwards month-to-month, and we anticipate exiting the year producing ~7,500 Au oz/month. We are continuing our systematic exploration efforts as we look to grow the Company into a mid-tier producer."
About Magna Gold Corp
Magna is a Mexico focused gold/silver production company focused on acquiring, exploring, developing and operating quality precious metals properties in Mexico. It is committed to advancing its 100% owned flagship San Francisco Mine and other highly prospective mineral properties located in Sonora and in Chihuahua. The primary strength of the Company is the team of highly experienced mining professionals with a proven track record of developing properties in Mexico from discovery to production. Magna employs community members and services in its operations.
As of August 8, 2020 (NI 43-101 F1 Technical Report Pre-feasibility study for the San Francisco Gold Project), San Francisco operations are estimated to have measured and indicated resources of 99,700,000 tonnes @ 0.446g/t Au containing 1,430,000 ounces of gold, and inferred resources of 11,374,000 tonnes @ 0.446 g/t containing 171,000 ounces of gold. The total proven and probable reserves is 47,629,000 tonnes @ 0.495 g/t Au containing 758,000 ounces of gold. Mineral resources are inclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
ON BEHALF OF THE BOARD OF DIRECTORS
Arturo Bonillas
President and CEO
Re: Fortuna
Used to own it until last year when Argentina appeared to establish capital controls that I thought would hurt FSM's abilities to withdraw capital from the country. I think Argentina wasn't as bad as I thought. Their Lindero mine was going to greatly increase cashflow but before the market could see the impact of the new mine at full production, they bought Roxgold, which will muddy the waters some more.
Obviously FSM has taken a pivot towards gold. Lindero and Roxgold are mostly gold. Roxgold diversified their production but not at a cheap price. I have been high on FSM mgmt for quite awhile because their legacy mines in Peru were built on time and under budget. I thought the same would happen with Lindero but many delays, cost overruns and additional cap raising was necessary and the startup wasn't smooth.
I haven't taken a close look at the new combined mgmt but I would examine closely. I don't think Argentina will hold FSM back but they jumped into Africa big time and that isn't lowering risk.
I haven't looked closely at financials in quite awhile. Should improve with Lindero but presentation indicated that Roxgold won't contribute much until 2023. Might be a tad early until the dust clears and Africa and Argtentina are clearly winners.
RE GCM.to/TPRFF No doubt undervalued but investor wary of Colombian location. I also think Aris Gold success or failure with the Marmato underground mine will have a big impact on Gran Colombia. Aris has an all star board and mgmt and should be successful. GCM owns 44% of Aris, which is looking to become the next Equinox Gold. A successful startup of the underground mine will boost Gran Colombia's near term outlook. Slated to startup late 2021.
Ely Gold being acquired.
ELYGF/ELY.v +.1874 to US$.9868
C$1.46 = US$1.18 so should go up another .10 prior to merger or you can take Gold Royalty shares at .245 Gold Royalty for each ELY.
Gold Royalty to Acquire Ely Gold Royalties for Up to C$84 Million
9:48 am ET June 21, 2021 (Dow Jones) Print
By Adriano Marchese
Gold Royalty Corp. has agreed to acquire Ely Gold Royalties Inc. by way of statutory plan of arrangement for a maximum aggregate cash consideration of 84 million Canadian dollars ($67.4 million).
On Monday, the precious metals-focused royalty and streaming company said it agreed with Ely Gold that each shareholder will have the option to received either C$1.46 a share in cash or 0.245 of a Gold Royalty share.
The company said the maximum aggregate cash consideration is C$84 million and a maximum aggregate number of Gold Royalty shares issued of around 41.5 million.
"Shareholders of New GRC will benefit through their participation in a larger, well-funded, and more diverse company that has the ability to acquire royalties in a variety of high-return projects globally," Chief Executive, President and Chairman David Garofalo said.