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.
NGG.v - New Guinea Gold surging today (+25%)on some high grade gold results.
ML.TO - Copper and moly play up over 8.5% today on strong volume.
ML.TO Just came out with earnings. They have had some teething troubles trying to get to production but appear to have resolved those. They will start producing in the second half of 2008 and ultimately produce 56 million pounds of copper and 10 million pounds of molybdenum and 600,000 ounces of silver per year. I am long ML.to. Do your own DD.
STP.V: Bobwins, Thanks for the heads-up on this stock. Got in at 1.29 average. This article in resource Investor is a follow-up to the one you posted earlier. The author seems to be really pounding the drum on this one.
Little-Known Oil Sands Junior Trading at Fraction of Peer Valuations
By David J. DesLauriers
31 Jan 2007 at 05:23 PM GMT-05:00
TORONTO (ResourceInvestor.com) -- Your correspondent has frequently looked askance at proponents of the efficient market theory, and pointed to numerous examples in the junior sector that belie that school of thought.
Southern Pacific Resource Corp. [TSXv:STP] could be one the most powerful examples of this and we believe that it could be a multi-bagger situation – in months, not years, making it one of the best names that we have come across in any sector, in a long time.
Your correspondent has identified multi-baggers in the past, but this situation could be a particularly outstanding value proposition with a short catalyst fuse.
Valuation
STP was C$1.25 as this article was being penned, but by the time of publication the stock had jumped to a C$1.45 close, possibly because of the recovery in the oil price over the past week.
At today’s price, and with about 50 million shares fully diluted, Southern Pacific has a market capitalization of C$72.5 million, and a full treasury.
The best way to value the company is to look at what its principal asset is worth – and the most sensible way to go about that is to look at what has recently been paid for similar assets.
The South Koreans acquired Newmont’s [NYSE:NEM] oil sands assets a few months ago for about C$300 million or roughly US$1 per recoverable barrel for their 245 million recoverable barrels, across the Proven, Probable and Possible categories. These properties, just to the east of STP’s leases, are also amenable to SAGD, and at the same stage of development.
If one applied the same US$1 per recoverable barrel to Southern Pacific’s independent recoverable resource assessment prepared by international petroleum consultants Degolyer & MacNaughton, and factored in the current exchange rate, one would arrive at a valuation of C$184 million, or C$3.68 per fully diluted share.
This is where STP should be trading right now based on what Newmont was paid in real dollars just a few months ago. Investors need to keep in mind that, to our knowledge, STP may be the cheapest way to play the oil sands, as there are almost no pure oil sands plays listed, and definitely none with a market capitalization this small.
Comparables that have completed development work on a similar scale to where Southern Pacific should be by the end of April after its current comprehensive program include the well-followed and high-flying Oilsands Quest [AMEX:BQI], previously known as CanWest Petroleum, which boasts a market capitalization of US$700 million.
In addition to what we see as an immediate C$3+ per share price target for STP based on the Newmont valuation, we envisage a very dramatic expansion in recoverable barrels when the company’s current ongoing work program is completed, and new numbers are published in just 3 months.
Adding Recoverable Barrels
Southern Pacific expects that by the end of April it will have an updated independent resource assessment.
First, it is estimated that the recoverability factor on STP’s current 156 million barrels over 11 sections will grow from 35% to 50% with the added data from additional drilling, log and core analysis and seismic. This alone could boost recoverable barrels by 43% to 223 million barrels net to Southern Pacific’s interest in the leases.
Further, STP has 14 other sections (for a total of 25) on which work is being completed and which it is anticipated will show just as well as the initial 11. All of these lands lie within the same North-South channel system of the McMurray Formation. Indeed, given the large area and the significant amount of geological mapping that has been done on the oil sands formations in the entire “Oil Sands Fairway” in this area, there is no reason to believe that this environment will not be host to more of the same. As investors will see by looking at the map on Pg. 6 of Southern Pacific’s Corporate Presentation, the company is right in the middle of what it calls the “Oil Sands Fairway,” home to ubiquitous discovery.
If one chose to budget for this, and assumed that the company would be able to demonstrate the same success on a per section basis, the result would be an additional 283 million recoverable barrels net to STP across the 3P’s (Proven, Probable, Possible).
The grand total could therefore amount to 506 million recoverable barrels net to Southern Pacific across the company’s total land position of 25 sections, when Degolyer & MacNaughton update the numbers to incorporate the new data before the end of April.
At the Newmont valuation of US$1 per recoverable barrel, recently set and paid by the South Koreans, the result would be a valuation of C$597 million, or C$11.94 per STP share. Cut this number in half, risk adjust it any way you want, the addition of substantial recoverable barrels could catalyze something between a 5X – 10X return in STP from present levels, in the next three months.
Conclusion
We see this as one of the best opportunities that we have come across in some time. STP may be one of the last chances to play the oil sands in a pure play listed vehicle, with an early entry point at a tiny market capitalization, and with great leverage, still, to the tremendous number of recoverable barrels in the ground.
Based on the fact that all listed peers have market capitalizations in the centi-millions and billions, and given the precedent set by the South Koreans in establishing what these types of assets are worth, we believe that STP is hard to ignore, and could well become the next oil sands institutional market darling.
Indeed, we see STP as a potential re-run of Connacher [TSX:CLL] when it was all of a sudden discovered and ran from 80 cents to C$6 in a 6-month period between July 2005, and January 2006 (and as a second chance for those who missed that run).
SNFCA – Appears to have great value.
Security National Financial Corporation provides life insurance, cemetery and mortuary services, and mortgage loans.
Earned 22 cents last quarter and EPS of $0.65 over the past 4 quarters. Has cash of almost $3.50 per share. Yahoo shows cash being $5 per share but I don’t think that’s accurate. Stock is currently trading at $5.74. Low float (1.6 mm shares) and insiders own 29%.
The kicker is it has a dividend of 5%.
I initiated a long position at $5.74 Do your own DD.
The National Post article below suggests private equity cash is moving into mining with speculation of AUR.TO, IMN.TO and HBM.TO being potential acquisition targets.
http://www.canada.com/nationalpost/financialpost/story.html?id=e8e5aa20-8fb6-4b0e-975a-5a27da0e977b&...
The reuters article below talks about Lundin, Aur and Inmet and suggests that companies will be aggressively pursuing M&A deals to get to $8 to $10 billion market cap.
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061207:MTFH39622_2...
In any case 2007 should be very interesting with lots of action in metals.
NRDS.pk merger approval with Platinum Diversified announced. Stock up +0.10 to 1.17 just under the $1.20 offer price.
WWAT.ob up .07 to 0.47 on strong volume.
Great pick Bobwins. I bought TRGD after you brought it to the attention of the board. Bought it at 0.60 and watched it go down to $0.30 but kept the faith. Thanks for sharing.
Also gold is almost indestructible so a gold bug headed for the windshield should bounce right off and be OK. Its the windshield that will crack ))
Solar energy play - Anybody have an opinion on WWAT.ob? Big news out today. Also most recent quarter has large revenue growth. Currently trading at 0.39.
Do your own DD.
Kozuh, AOG's presentation available on their website claims to have ~2.3 tcfe of reserve potential in their Michigan and Indiana locations. They have had a 96% success rate in drilling and have identified 3000 drill locations. They just raised $44 million through a secondary offering. If they execute according to plan and ng prices hold up, this could be a real winner.
AOG - 3.38(+0.23) today. This ng stock has been driven down all summer but is finally showing an uptick after an upgrade. Lots of potential IMHO.
Aurora Oil and Gas Shares Climb on Morgan Keegan Upgrade and Stronger Oil Prices
NEW YORK (AP) -- Shares of Aurora Oil and Gas Corp. trekked higher Wednesday, boosted by bullish analyst commentary and rising oil prices.
Morgan Keegan & Co. Inc. analyst Subash Chandra said in a client note that the company's drilling activity picked up pace after a slow start. Plus, the company's resources in the New Albany shale hold promise and the potential "is barely recognized in the current share price," said Chandra.
The analyst upgraded the stock to "Outperform," or "Buy," from "Market Perform."
Shares of Aurora Oil added 17 cents, or 5.4 percent, to $3.32 in midday trading on the American Stock Exchange. The stock has fallen by roughly half since hitting a 52-week high of $7.44 in February.
Meanwhile, a barrel of oil gained 87 cents to $61.86 on the New York Mercantile Exchange.
NRDS.pk creeping up to the buyout price of $1.20. Stock trading at $1.08 this morning. Isn't this is as close to free money as you can get?
NRDS.Pk being bought out. Stock is currently trading at $1.04 but buyout offer is for $1.20.
TUCSON, Ariz., Oct. 24, 2006 (PRIMEZONE) -- Nord Resources Corporation (Other OTC:NRDS.PK - News) is issuing this news release in order to clarify the merger consideration that the stockholders of Nord Resources Corporation (``Nord Resources'') will receive in the proposed merger transaction with Platinum Diversified Mining, Inc. (``Platinum'') that was announced yesterday.
Upon completion of the merger, stockholders of Nord Resources will receive:
-- a cash amount based on the aggregate merger consideration to be
paid Platinum net of a holdback of $3,000,000. This cash amount is
referred to as the "per share merger consideration." Nord
Resources estimates that the per share merger consideration will
equal $1.20 per share. Payment of the per share merger
consideration will be made upon consummation of the merger; and
-- a contingent right to receive a pro rata share of the amount
remaining, if any, of the $3,000,000 holdback amount after the
expiry of a six month holdback period, which is referred to as the
"per share net holdback consideration." Nord Resources estimates
that the per share net holdback consideration will equal $0.07 per
share, prior to deduction of fees and expenses associated with the
escrow arrangement for the holdback, if there are no claims for
damages made against the holdback amount. Payment of the per share
net holdback consideration will be made upon expiry of the holdback
or upon resolution of all claims for damages, if there are any
claims for damages outstanding when the holdback period expires.
ADVERTISEMENT
Accordingly, stockholders of Nord Resources will receive an aggregate of $1.27 per share, prior to deduction of fees and expenses associated with the escrow arrangement for the holdback, if there are no claims for damages made during the holdback period.
The foregoing description of the Merger and the Merger Agreement is not complete and is qualified in its entirety by reference to the Merger Agreement. Nord Resources plans to file a copy of the merger agreement as an exhibit to the Current Report on Form 8-K to be filed by Nord Resources with the SEC in connection with execution of the merger agreement.
Forward-Looking Statement Disclaimer
This release contains forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this release are based on current estimates and actual results may differ materially due to risks associated with the fact that the consummation of the transaction is subject to numerous closing conditions, including, among others, (i) the approval of the transaction by Nord Resources' stockholders, (ii) approval of the transaction by Platinum's shareholders, (iii) the absence of a material adverse effect in Nord Resources' business or operations, as described in the merger agreement; (iv) the risk that the transaction may not be consummated if the conditions to closing are not satisfied or waived; (v) the risk that Platinum has certain termination rights in the definitive merger agreement including as a result of a material adverse effect in Nord Resources' business or operations; (vi) other risks set forth in Nord Resources' most recent Form 10-KSB, Form 10-QSB and other SEC filings which are available through EDGAR at http://www.sec.gov. These are among the primary risks we foresee at the present time. Nord Resources assumes no obligation to update the forward-looking statements.
Important Additional Information will be Filed with the SEC
Nord Resources has agreed to file a proxy statement in connection with the proposed Merger, which will be mailed to Nord Resources stockholders. Investors and Nord Resources' stockholders are urged to read carefully the proxy statement and other relevant materials when they become available because they will contain important information about the Merger. Investors and security holders may obtain free copies of these documents (when they are available) and other documents filed by Nord Resources with the SEC through the web site maintained by the SEC at http://www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Nord Resources by contacting Nord Resources directly at 1 West Wetmore Road, Suite 203, Tucson, Arizona 85705, Attention: John Perry, Senior Vice President, Chief Financial Officer, Secretary and Treasurer.
Nord Resources and its directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the transactions contemplated by the Merger Agreement. A description of any interests that Nord Resources' officers and directors have in the Merger will be available in the proxy statement. Information regarding certain of these persons and their beneficial ownership of Nord Resources common stock as of July 15, 2006 is also set forth in the Schedule 14A filed by Nord Resources on September 14, 2006 with the SEC with respect to Nord Resources' 2006 annual stockholders meeting. These documents are available free of charge at the SEC's web site at http://www.sec.gov or by contacting Nord Resources directly at 1 West Wetmore Road, Suite 203, Tucson, Arizona 85705, Attention: John Perry, Senior Vice President, Chief Financial Officer, Secretary and Treasurer.
CDNR.ob - losing the ob and becoming AOG
Cadence Resources Receives Approval for AMEX Listing and Name Change
Tuesday May 23, 7:00 am ET
TRAVERSE CITY, Mich., May 23, 2006 (PRIMEZONE) -- Cadence Resources Corporation (OTC BB:CDNR.OB - News) today announced that the Company's application to list its shares on the American Stock Exchange (AMEX) has been approved. The Company anticipates that trading on the AMEX will commence at 9:30am on Wednesday, May 24, 2006, under the symbol ``AOG'', pending continued compliance with all listing requirements on that date.
ADVERTISEMENT
Pursuant to shareholder approval granted at the Special Shareholders Meeting held on February 9, 2006, and effective with the commencement of trading on the AMEX, Cadence Resources Corporation has formally changed its name to Aurora Oil & Gas Corporation.
William W. Deneau, President and CEO stated, ``The listing is another milestone in the history of our organization. We believe the exchange listing will provide the Company and its shareholders a number of benefits, such as increased visibility in the financial community, greater liquidity for our stock and a larger potential investor base that includes those who cannot invest in non-exchange-listed securities.''
About Cadence Resources:
Cadence Resources is an independent energy company focused on unconventional natural gas exploration, acquisition, development and production with its main operations in the Michigan Antrim Shale and Indiana New Albany Shale.
Statements regarding the anticipated benefits of being listed on AMEX are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although we believe that the anticipated benefits described are based on reasonable assumptions, we can give no assurance that they will prove accurate. Important factors that could cause our actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, lower than expected financial performance, fluctuations within the trading markets as a whole, a reduced interest of the investment public in energy companies, and other risks more fully described in our filings with the Securities and Exchange Commission. All forward-looking statements contained in this release, are based on management's outlook only as of the date of this release and we undertake no obligation to update or revise these forward-looking statements, whether as a result of subsequent developments or otherwise.
HYEG.ob up over 100% is running strong (on hydrogen fuel??). Congrats to those who were in it and thanks to sumtingwong for bringing it to the board. I initiated a small position earlier today.
CDNR.ob - Stock has been down over the last week in the general downtrend but their 10Q just released indicates they are on track to growing revenues significantly. They had previously stated that the AMEX listing would occur this month.
Cadence Resources Announces First Quarter 2006 Production Increases 1,013 Percent
Friday May 19, 8:18 am ET
TRAVERSE CITY, Mich., May 19, 2006 (PRIMEZONE) -- Cadence Resources Corporation (OTC BB:CDNR.OB - News) today announced financial and operating results for the first quarter of 2006. ``This quarter's performance is encouraging,'' remarked William Deneau, President and CEO of Cadence. ``We are seeing the positive impact in our financial statements, production and operational activity. As our business strategy continues to unfold, we will see that trend repeat itself many years into the future.''
ADVERTISEMENT
Financial Detail
For the first quarter of 2006, Cadence reported a net loss of $939,183 on revenues of $5.6 million. This amounts to a loss of $0.01 per common share (basic and diluted). Also, EBITDA (earnings before interest, taxes, depreciation and amortization) was a net gain of nearly $2.1 million and net cash from operations was $270,118. Comparing to the same quarter in 2005, we see a net loss of $413,145 on revenues of $690,203, which amounts to a loss of $0.01 per common share. EBITDA for the first quarter of 2005 was a loss of $83,129 and net cash from operations was -$1.1 million. Mr. Deneau commented, ``A dramatic improvement from the first quarter of 2005 is evident. Though still operating at a loss, these numbers indicate that we are moving in the right direction. This is going to be an important year.''
Production Detail
Average daily natural gas production rose to 6.6 million cubic feet per day (MMcf/d), a 1,000 percent increase over the prior-year period of 0.6 MMcf/d. Average daily crude oil production increased over the same period in 2005 to 73 barrels daily -- a 356 percent increase.
During the first quarter of 2006, Cadence participated in 25 wells (gross) of which 2 were added into production, and 20 wells (gross) are preparing for completion, expected in the second quarter of 2006.
Total natural gas production for the period climbed to 594 million cubic feet (MMcf), a 1,013 percent increase over the prior-year period of 53 MMcf. Crude oil production climbed as well, reaching 6,602 barrels for the quarter versus 1,452 in the first quarter of 2005. The natural gas was sold for an average of $8.49 per Mcf and the crude oil was sold for an average of $56.27. Each of these prices are higher than the prior-year period, while production expenses per Mcfe dropped from $4.42 in the first quarter of 2005 to $2.90 in the first quarter of 2006.
Reflecting on the production growth, Mr. Deneau said, ``The growth in our production highlights the fact that we are aggressively working to increase our reserves and production capabilities. A key ingredient is keeping our cost structure low and under control. Our proven reserves exceed 88 Bcf with implied potential reserves nearing 3 Tcf. As we continue to develop those reserves, the company's revenue stream and cash flow will improve exponentially. Our net production will continue to improve throughout the year as we bring more projects online either directly as operator or through joint ventures operated by other companies.''
Operations Detail
By the end of the first quarter, 2006, Cadence's Antrim Shale leasehold totaled 85,288 net acres, nearly doubling the prior-year period's total of 45,965. The company's major leasehold increase occurred in the New Albany Shale, growing 351 percent to 374,810 net acres from 83,076 net acres. Mr. Deneau commented, ``We are excited to have established a substantial acreage position in such a terrific new area of development potential.''
About Cadence Resources
Cadence Resources is an independent energy company focused on unconventional natural gas exploration, acquisition, development and production with its main operations in the Michigan Antrim Shale and Indiana New Albany Shale.
Statements regarding the plans for the future growth are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although we believe that the drilling and acquisition plans described are based on reasonable assumptions, we can give no assurance that they will prove accurate. Important factors that could cause our actual results to differ materially from those included in the forward-looking statements include the timing and extent of changes in commodity prices for oil and gas, drilling and operating risks, the availability of drilling rigs, changes in laws or government regulations, unforeseen engineering and mechanical or technological difficulties in drilling the wells, operating hazards, weather-related delays, the loss of existing credit facilities, availability of capital, and other risks more fully described in our filings with the Securities and Exchange Commission. All forward-looking statements contained in this release, including any forecasts and estimates, are based on management's outlook only as of the date of this release and we undertake no obligation to update or revise these forward-looking statements, whether as a result of subsequent developments or otherwise.
CPTC.ob, an old favorite of the former RB VM board is up over 15% on significant volume today. Its been moving up steadily the last three weeks.
MILL.ob - They just completed a deep well in the Applachian basin. Looks like it is going to produce. Awaiting production data. Stock could move depending on results. Do your own DD.
NRDS.Pk - Up 26% this morning.
NRDS.Pk - Arizona Copper play I've mentioned on this board before. Hitting a new 52-week high. Its got a low float and excellent potential. Annual meeting next month may shed more light on their financing for re-starting the Johnson Camp mine.
Also check out CDNR.ob. Don't know if its been mentioned here before but its a company rapidly ramping up with gas reserves in Indiana and Michigan. They drilled 150 wells in 2005 with 95% success. They are drilling 200 wells this year. Current proven reserves are 88bcf. They have 2.7 tcf in potential reserves based on a Schlumberger study. They are changing their name to Aurora Oil and Gas and an Amex listing next month is likely. Stock is up since last year but lots more appreciation to come, in my opinion.
I am long on both of the above stocks. Do your own DD.
Timmage, Good call on TCLL.
NRDS.pk: Talked about NRDS here last February. Stock hasn't done much since then but it is starting to get noticed. Nice move higher both yesterday and today.
NRDS moving up today with increasing volume. Stock has been inching up the past week. 10-K expected shortly and hopefully will be off the pinks soon.
Although this is my first post I’ve been a reader at VM for quite a while. Great job Bobwins and hweb. This forum and your posts are a great service for all investors. Keep up the good work.
Here are two stocks that in my opinion have significant potential. PMHX and NRDS. They are both on the pinks but are likely to be listed soon. PMHX has filed for an AMEX listing which is expected within the next 2 months. NRDS is working to complete and file their 10K.
PMHX is a rapidly growing managed care management company with revenues of $129.5 million and earnings of $0.68 for 2004. Revenues grew 95% YOY. With 8.43 million OS and $21 million cash in the bank (~$2.50 per share) this stock currently trading at $7.40 seems like great value. Management is acquisitive and supposedly have several accretive acquisitions in the pipeline.
NRDS is an Arizona based mining company that was once NYSE listed. Although not technically a value stock (no earnings yet), NRDS’s Johnson Camp Copper projected is expected to produce 20 million pounds of premium grade copper per year at full production at an average cash cost of $0.53/lb.
They also recently completed a GP survey at their Coyote Springs property. This property is located adjacent to a Phelps Dodge major copper resource (250 million pounds of Copper per year) property in Safford, Arizona. NRDS has also acquired the Mimbres property, a 4.6 sq. mile copper prospect in New Mexico. Additionally Nord Resources owns 7.1% of Allied Gold, an Australian company with some high potential gold projects in Papua New Guinea.
At its current pps of 0.35 cents, Yahoo shows a market cap for NRDS of $7.5 million. I don’t believe that’s accurate because there’s been some dilution. 10-K for 2004 is expected to be filed shortly. With copper prices at or near highs, NRDS looks promising. Needless to say, do your own DD for both stocks.