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GORO. Cheap Now! Bought last hour
GORO Gold Resources Spin off
Both Nevada and Mexico are in a nice situation. Both are at a juncture where 1st half numbers dont look so good, but also both in a position to radically change how the market views them based on the cash they are going to put on the books in 2nd half 2020.
Both also have current high grade exploration opportunity's in front of them that can be moved forward with cash flow. This, assuming metal price doesn't tank. Should be a steady flow of news next couple quarters from both units. With the higher price of metals, the risk/reward looks very good for both operations should they move to spinco.
Also consider the insiders have a large position in the current company. Production numbers should be out in a couple weeks.
Upon completion of the transaction, it is expected that Jason Reid, current CEO, President and director of Gold Resource Corporation, would step down from all executive and director positions with the Company and be appointed CEO, President and director of Spinco. The Company has already undertaken efforts to identify a new chief executive officer for Gold Resource.
Translation Jason wants a shorter drive to work.
GOLD RESOURCE CORPORATION ANNOUNCES INTENT TO CREATE TWO
INDEPENDENT, STRATEGICALLY-FOCUSED COMPANIES WITH NEVADA
MINING UNIT SPIN-OFF TO SHAREHOLDERS
Colorado Springs – October 5, 2020 – Gold Resource Corporation (NYSE American: GORO), a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA, today announced its intent to spin-off its Nevada Mining Unit to shareholders as a separate, publicly-traded company (“Spinco”).
The transaction is expected to be structured as a pro-rata distribution of 100% of the Spinco shares to Gold Resource shareholders. Approximately 20 million shares of Spinco are expected to be distributed to the Company’s shareholders. Shareholder approval is not required for the spin-off, which is expected to be tax-free to Gold Resource shareholders for U.S. tax purposes.
The Spinco transaction is subject to certain customary conditions, including the approval of a Spinco registration statement to be filed with the Securities and Exchange Commission and final approval by the Company’s Board of Directors. The transaction is targeted to be completed by year-end 2020 or the first quarter of 2021.
CEO Comment
“We are at an exciting juncture in the evolution of our Company,” stated Gold Resource Corporation’s CEO and President, Mr. Jason Reid. “Significant management effort places us at a point where both of our mining units are poised to experience meaningful increases in future free cash flow: our Oaxaca Mining Unit looks to benefit from the confluence of several recently completed capital projects that are expected to positively impact our future operations, cost structure and exploration potential; and our Nevada Mining Unit continues ramping up its gold production rate as it begins to benefit from the high-grade Pearl zone of the Isabella Pearl Mine and exploring our highly prospective properties. Both individual mining units include large exploration land packages that are expected to benefit from strong demand and metal prices for our products. We believe that this the right time to separate the businesses.”
Mr. Reid continued, “By separating the mining units into two independent companies, each focused on its own unique business strategy, we believe we can provide our shareholders optionality of increased growth in Mexico and potential for a dividend yield-play in Nevada. Independent companies allow for far more effectiveness of these distinct business strategies. We believe far greater value can be created with two independent companies compared to the value that could be achieved by keeping the mining units together.”
Benefits of Stand-Alone Oaxaca Mining Unit
The Oaxaca Mining Unit celebrated a milestone earlier this year, completing ten years of commercial production with over $1 billion in revenue and $114 million in dividend distributions. Going forward, the Company’s business strategy for Mexico targets allocating more of its cash flow and capital back into operations to better facilitate growth. A stand-alone Oaxaca-focused company would be able to aggressively pursue expanding and discovering new vein systems. The Company is currently developing two dedicated exploration drifts at its Arista Mine to access and target extensions of known vein systems and discoveries of new veins in areas of the mine previously unexplored. Exploration goals following the separation would include increased exploration budgets for the Arista Mine expansion, and to identify and define additional resource potential in the highly-prospective but under-explored 55-kilometer fault corridor. To date, the Company has drilled approximately 2% of its 560 square kilometer land package in Oaxaca. The strategy going forward is to allocate more capital to exploration for growth potential, accelerating increased shareholder value.
The Company has recently completed a power grid project and a paste fill plant and is currently constructing a dry-stack tailings facility. A stand-alone Oaxaca Mining Unit would be in a strong position to further optimize the Arista underground mine’s infrastructure, including an underground ore pass and surface processing facilities including regrind circuits for increased gold recoveries. The Oaxaca Mining Unit could also target to utilize its free cash flow for new accretive regional acquisitions.
Benefits of Stand-Alone Nevada Mining Unit
Focusing on organic growth, Spinco would expect increased margins from its Isabella Pearl project and to use the expected cash flow to potentially return dividends to shareholders. Spinco would seek to replicate GORO’s legacy success in its early years as a yield-play with a tight capital structure.
Strong, expected near-term cash flow from Isabella Pearl operations could not only facilitate dividends, but also target exploration and development of the mining unit’s highly prospective property portfolio in the Walker Lane Mineral Belt. The Company currently controls over 25,000 acres in five high-grade gold properties in Nevada in various stages of production, delineation and exploration. In addition to the organic growth and targeted dividend strategy, the separation would also seek to unlock a value premium for the Nevada Mining Unit due to its location in one of the world’s premier mining jurisdictions.
Post Spin-off Companies and Operations
Gold Resource’s management team will develop detailed separation plans for consideration by the Board of Directors. Completion of the spin-off is subject to certain conditions, including the filing and approval of a registration statement with the SEC and receipt of final Board approval. The Company expects that the registration statement will be filed in the near future. There is no assurance regarding the ultimate timing of the transaction or that it will in fact be completed.
Following the separation, it is expected that Gold Resource will continue to operate and focus on its Oaxaca Mining Unit and its shares will continue to trade on the NYSE American under the symbol “GORO”. Current operations include the Arista underground mine, as well as a large prospective land position of a consolidated 55-kilometer mineralized fault corridor.
Nevada Spinco would focus on Nevada Mining Unit operations and growth. Current operations include the Isabella Pearl open-pit mine, as well as four additional high-grade gold exploration properties. To provide operating capital, the Company expects to make a capital contribution of $10 million to Spinco at the time of the transaction. Given its expected capitalization and other financial metrics, the Company expects Spinco to initially trade in the over-the-counter (OTC) public markets. Spinco would consider up-listing to an exchange such as the New York Stock Exchange or Nasdaq at a future date, based on consistently meeting listing standards, market conditions and strategic timing.
Management and Governance
Upon completion of the transaction, it is expected that Jason Reid, current CEO, President and director of Gold Resource Corporation, would step down from all executive and director positions with the Company and be appointed CEO, President and director of Spinco. The Company has already undertaken efforts to identify a new chief executive officer for Gold Resource.
While formal announcement of a new Company CEO and Board appointments will be made at a later date, the following Board modifications are anticipated:
Bill Conrad, current Chairman of Gold Resource Corporation, is expected to remain on the Board of Directors of the Company but will step down as Chairman. Mr. Conrad is expected to be appointed as a director of Spinco and named Chairman of the Board.
Mr. Alex Morrison, current member of the Company’s Board of Directors and Audit Committee chair, is expected to be named Chairman of Gold Resource’s Board.
To assist in a smooth transition, an arms-length management services agreement between the Company and Spinco will be developed. A small number of current executives, managers and employees of the Company will continue to provide management and technical support for Spinco’s operations to assist in the transition.
Post spin-off, both companies are expected to remain headquartered in Colorado.
LC I was going to top off Fiore at 1.42 end of Aug and missed it. I think we'll get our chance. If not something else good is going to tank.
Let us know your best values when you see them
DB7 Re AUMN Golden Minerals. Yes Really looking forward to seeing Rodeo move forward. Should be straight forward high grade heap leach. Development $ are in the bank now. 28 mths of $800CC production should net them about $30Million. The cash it throws should move the share price while we wait.
I talked to CEO Warren Wren a few weeks ago, he sounds confident and ready to get to work.
Its the Velerdania project I have some questions on. Looks great on paper. I think the resource and mine life will increase when you factor in the higher price of metals. Its the metallurgy that is the question. Have to see if the Bio leach performs like the testing.
By that time hopefully Barrick is hitting home runs in Argentina.
I think its cheap at $63 Million in the bank esp with the cash they have. Without any current production they trade like a new developer.
Almost forgot the $5Million they get from Hecla for the lease of the mill. Almost guarantees no dilution as they can pay the bills while they develop.
Great story to have sit in the portfolio for a few months. Rodeo going to happen fast.
Pounding the Table. AR.T ARNGF Argonaut Gold Announces C$10 Million "Bought Deal" Private Placement of Flow-Through Shares
Shares trading $3.06 Flow through at $3.86 25% Premium
Coming off some poor operations decisions in 2019, they were in the penalty box.
2020 Argonaut has made some good moves. They're transitioning from a mediocre cost producer to a low cost 300K - 350 OPY producer and than to 500k as they get underground at Magino. Its this Im speculating on.
Getting the permit to move forward with Magino was huge. Then the merge with Alio was another brilliant move, esp since they just broomed the Former Alio Ana Paula project for about $40M and royalty. This means AR got the Florida Canyon mine for less than $20M. Florida is about 80k OPY and has
Mine site after-tax free cash flow ("FCF") of approximately:
$216 million at $1,500 gold;
$326 million at $1,700 gold;
$491 million at $2,000 gold
Value proposition, Backing out the roughly $170M cash balance gives them an EV of about $500M US. The cash gives them a path to financing Magino and a guaranteed news flow. Cant be another good jurisdiction Mid tier out there that compares in value. Going to clarify these numbers with company next week.
Analyst Avg 12 mth target is $4.65 ARNGF. Compare to $6.13 for AR.T
6 Wall Street analysts have issued ratings and price targets for Argonaut Gold in the last 12 months. Their average twelve-month price target is $4.65, predicting that the stock has a possible upside of 100.00%. The high price target for ARNGF is $6.25 and the low price target for ARNGF is $3.00. There are currently 6 buy ratings for the stock, resulting in a consensus rating of "Buy."
That makes the Canadian avg for AR.T at $6.13
https://www.marketbeat.com/stocks/OTCMKTS/ARNGF/price-target/
Looking for brisk news flow. Lots of drill results, stacking cash and a production decision for Magino.
Utube below About 30Days old and before the Ana Paula sale. For the long term future mgt is suggesting here, that if the underground drilling proves to be like KL Island Gold next door, 18:00 - 19:00 they could be producing 325 and 350K low cost oz/yr from Magino alone with a long mine life. 38:00 - 39:00 you can see clearly the shared border with Island Gold above and below ground.
GOWEST GOLD: GWA.V GWSAF ADVANCING FINAL STEPS TOWARDS PROCESSING AND PRODUCTION (Something Worth Watching here. One of my horses)
TORONTO, ONTARIO - (September 16, 2020) Gowest Gold Ltd. (“Gowest” or the “Company”) (TSX VENTURE: GWA) is pleased to provide an update on its progress towards bringing the Company’s 100% owned Bradshaw Gold Deposit (“Bradshaw”) into production.
Greg Romain, Gowest President, said, “We are more confident than ever that we are on the verge of seeing the Bradshaw gold deposit as a new gold mine in the Timmins camp within the coming year. I am pleased to provide an update on critical milestones, and look forward to providing our loyal shareholders with regular updates in the coming weeks and months.”
Commercial Production Permit
Gowest has received all environmental permits required to bring the mine into commercial production, with the exception of the Mine Production Closure Plan (“the Closure Plan”), which has now been submitted to Ontario’s Ministry of Energy, Northern Development and Mines (“ENDM”) for final review and filing. According to the Ontario Mining Act, the ENDM has 45-days from September 14, 2020, the date of receipt of the plan, for final review and filing.
This represents the final step towards receiving the Commercial Mine Production permit for Bradshaw. Working with its professional environmental partners, Golder Associates and Blue Heron Environmental, the Company has conducted extensive consultations with Indigenous Communities, the City of Timmins, and government officials related to its planned operations and the Closure Plan. Based on the input from these various groups, Gowest recently completed the final revisions to the Closure Plan, which provides details for how the mine will be operated and closed, and how the site will eventually be reclaimed once mining activities are completed.
Site Operations
Gowest is commencing the start-up of the ore-sorter in preparation for sorting the mixed development ore currently stockpiled on surface,which will be trucked to Northern Sun’s Redstone Mill for processing. The Redstone Mill operators have advised that they are finalizing the necessary upgrades and that the circuit will be ready to receive the Bradshaw material in a few weeks.
As previously reported, approximately 28,000 tonnes of gold-bearing mixed development ore has been collected and stockpiled on-site from the Company’s ongoing Advanced Exploration Bulk Sample program.The Company also plans to mine approximately 15,000 tonnes of stope ore as part of the bulk sample.
The Company also notes that the vent raise permitting is complete, and construction required for production mining is well underway.
Financing Update
As previously reported, the Company still requires additional funding to meet its operational objectives. Gowest is working with interested parties to complete one or more financings, which are needed to take Bradshaw into production. The submission of the Closure Plan and receipt of the Commercial Production Permit are critical milestones for such financings.
F.V Math typo correction. They cash flowed $10.5M and not $12.5m Q3. $10.5m Annualized is $42M
Adding $200 to their Q3 Avg realized price of $1720 Gold is conservatively justified.
The extra $200 x 52,000 oz/yr is another $10.4M, added to the $42M is $52M in CF or the $1M/mth I mentioned.
So currently trading at 3X current annualized CF (buying about $1.60/shr)
with probable upside on POG and probable near term growth and expansion makes the case Fiore is still cheap.
F.v Fiore The Gift that keeps on giving Now $1.70 and my latest DD tells me to hold for further extended appreciation.
Hope you followed me in on April 13th at about .53 cents when I called F.v a Solid low risk no brainer now, and timing for share price growth is right now! Link back for that DD
Now After the run to $1.50, Looks like the consolidation is done and the market is measuring the future. Q3 numbers were based off $1725 gold and Fiore pulled $12.5M in cash flow even with light Covid Headwinds. Add in an extra $200 an ounce and Fiore will cash flow $1Mllion per month from the current $166 Million MC valuation. More than enough to pay for the 6 drills turning and to get Gold Rock to Feasibility and ready for production financing.
Additional near term catalyst will be Prj 2 Gold Rock drill results and a reserve resource update for the Pan Mine. The thing here is, if they can prove up enough extra reserves at Pan, they will extend the mine life and allow for a expansion of production volume. This gets Fiore instantly reevaluated.
News flow after that gets the Prj 2 Gold Rock resource update and the feasibility study in H2-21. Their Guiding to bump the M@I from 400k oz to 700K with a 30% better grade than Pan Mine helping make the Goldrock Feasibility stronger than the PEA. Considering the PEA was 55k OZ production from 362K oz resource, the projected 700k number should allow for a nice production bump and to more than double current production probably in late 2022. Costs should be lower since grades are higher and many costs will be shared with the Pan Mine. They are guiding for a bump in production from these 2 mines from the current 50k oz to 150k OPY from the Pan Mine expansion and the Gold Rock production start. Prj 2 Gold rock is actually a satellite project attached to prj 1 where they will share G@A, electricity, ADR plant and other infrastructures
Throw in the possibility of some M@A or a Deal with Hecla on the 2 Million oz high grade Golden Eagle project.
Things Looking great for the near term even at $1.70. Its really quite a story and to think they got these 3 property's out of Bankruptcy all for $5 Million about 5 years ago. Fiore still cheap now at $1.70 with $1900 gold compared to any other smaller producer.
Great in depth presentation from the CEO
https://www.redcloudfs.com/fiore-gold-fiscal-q3-update/
CM28
Bob Moriarty Thoughts on IKN Inka Kola Tell me how you really feel Bob.
http://www.321gold.com/editorials/moriarty/moriarty081020.html
AR.T ARGNF Argonaut Gold Still Cheap at $800M MC
Q2 2020 Results, Pre ALIO Merge
$23.4 million of free cash flow amidst two month shutdown of mining, crushing and stacking activities due to COVID-19
AISC down to $1,080 Lowest number in a couple years.
Post Merge
Slide 16- Cash Balance $65M plus the new July equity finance $90M US =$155M This plus H2 CF (50 - $80m) going to push their future development and provide share price catalyst.
H2 2020 Post merge Free Cash Flow Guidance (Includes Alios Florida Canyon Mine) At $1,900 gold, we expect to generate between $49 million and $79 M FCF
The Case For Growth
Longer term AR.T has 3 High Horse Power development projects that can move AR from a marginal cost producer to a low cost intermediate producer at 300 - 500K OPY production.
Slide 14- The 3 dev projects avg sub $700 AISC, a combined $1.5B in NPV at $1900Au, combined 5M oz high grade Reserve and 2 projects with a 15+ year mine life and
The Magino Ontario property, has a 5 million ounce resource in only the upper 300M. Its adjacent to the Island Gold project Slide 17, currently Alamos formerly Richmont's, where they found a High grade and very deep discovery. Drills going deeper now Results = 2020 H2 Catalyst
2020 SP Catalysts
Stacking Cash
Magino production Decision due 2nd half.
Magino drill results and EIS sibmmital
Cerro del Gallo permit decision
https://s22.q4cdn.com/115151820/files/doc_financials/2020/q2/Q2-2020-FINAL1.pdf
Argonaut with the higher gold prices looks to be a great growth story.
If they can execute positively, I think they can move from a cheap, show me the money producer, to a fairly valued mid tier cash machine.
CM28
Traderfan Re GWA.v GWSAF Gowest Gold Ignor last post
Been a failure for me to date, but I think the worst is in the past. Development ore on surface. If all goes well, they should run the Bulk Sample Q3. On site Ore sorter should net 10GPT, and their expecting their mining license any week now
All year, Company has been guiding these milestones for Q3. Covid is slowing progress but Guidance still the same. Last I checked its still early Q3.
Its real simple over there. 1.2 M oz resource 6+gpt .5M reserve 4.5gpt.
Several million in underground mine development, ore sorter set up. Development ore on surface is worth about 4 Million today. Feasibility study showing $895 AISC at 50K oz per year production is still accurate.
The failure was due to the failure of the milling contract during the bottom of the market at which point there was a sustained low price for gold and minimal financing for the sector. This was the equivalent of a car going through an intersection and being broad sided. It cost them 2 years in time, a call on the loan and even worse, Dilution.
They pulled through and are on the home stretch now. The final permit and the mill are nearly ready. The recent $10 Million from the insiders should tell you something. They are developing as we speak. I think the final financing is ready. $10M should get the bulk sample run. Then GWA gets revenue on that and with the mining license should keep running.
Ill agree with shareholders they should be talking and promoting more as opposed to stretching out news.
Now on the potential? GWA currently sits at a $25M MC.
Sprott values insitu at $100 per ounce of resource $120 M
that coincides with what we saw for insitu during last gold bull.
On site development value? Several Million
with $1800 - $2000 gold and 50K production, 895 AISC GWA will cash flow
between 4 & 5 Million per MONTH! From there they have the milling and resource capacity to ratchet to 100K fairy easy with a few CAPEX dollars. 100K ox producers were going for 1 Billion MC all day long in the last bull.
Interest? I think GWA is unknown, mgt has some dents, is unproven. The big guys are waiting for the last boxes to be checked.
On the pattern? My account looks good. Im happy with most of my pics even the losers as I had good reasons to be there. You dont win them all, esp the sub producer catagories. Other astute investers here have posted about the losers during the long tough bear. As to GWA, while things were moving forward nicely I posted positive. When GWA got broad sided I posted GWA was in trouble and put them on the shelf for a couple years. I went away and came back when things looked positive. I suggest you do your own DD and take responsibility.
Its a speculation. They do it or they dont. Place your bets or dont.
Since its better to chase producers now I dont post much on my speculations.
Checkmate28
Traderfan Re GWA.v GWSAF Gowest Gold
Been a failure for me to date, but I think the worst is in the past. Development ore on surface. If all goes well, they should run the Bulk Sample Q3. On site Ore sorter should net 10GPT, and their expecting their mining license any week now
All still the same
CPT MATT Re GORO & AR.T. I saw this coming and sold GORO for AR in June, Link back for reasons but still same story. AR still a screaming value right now.
There about to post earnings for Q2 and their going to be ugly. Mexico was closed 2 of 3 months due to Covid. Nevada was mostly running development ore on the way to Pearl, so nothing positive there. ZT Charges this year plus $14 Silver most of Q2 going to weight it down.
After Q2 gets digested, GORO is a great buy esp with the selloff. Q3-Mexico running at 1600tpd with higher price of metals is going to produce some good Nov numbers and Q4 even better. The opened up Pearl zone in Nevada is getting larger and larger. GOLD Silver Zinc way up. My guess is GORO will make the message loud and clear that Q3 will be greatly better.
I think this low starts a nice sustained move up for GORO
Drill results could factor in too.
SGI Hats off on that trade Dr Air
Even better to have some good fore thought!
Bobwins quote
no gave up on SGI.v. It's still cheap but will need to prove they can reliably produce 80K + smoothly introduce the open pits to get to around 100K. Could get lumpy and market won't reward them for that until there's a reliable pattern of achievement. Always liked the big resource and the availability of second mill to expand operations but will pass for now.
Douginil If there is any silver lining to being a bag holder is that you can use some of the losses to shelter some of your profits.
I went threw the same pain and thought I could outsmart the bear with hard work. Learned good properties and good mgt doesnt get a good company through a bad market.
For me the silver lining I received was the education I got.
I listened to all the top notch, smartest billionaire permabulls reasoning out how PMs can not go lower, the banks are in trouble. I had some nice bags due to my stuberness and the education I got from the mass Pros.
I remember the few negative signals I got up front and made a note to know who they were. Just didnt make sence to see people selling against all these pera bull calls.
There were a few on this board who sold and bailed. Posted it right here. One was the coin dealer. Additionally Gann, Moriorty, and Avi Gilbert were dead on. Posted they sold just before the top. These same guys called the 2015 Bottom right before the 6 mth bull in 2016 where I had many multi baggers. It was good to load heavy with new purchases while 95% hated the PMs and their was no competition for the shares.
I also noticed the banks are an accurate barrometer. They used to use $1200 gold with all their feasibility studys. I thought, How could that be when gold was going to the moon? The banks/Fed they dont know anything. Opps!
Last 3 years Ive read articles about the major banks bashing gold while making strong purchases. Then come out with 2 - $3000 gold predictions. This time I was smart enough to clearly see it.
Add this, Just wait until earning come out and the generalist see where Q3 and Q4 earnings are going with no Covid Shutdowns and maximum PM prices
while it seems a correction is coming, it seemed we would make several attempts with corrections to blow through the hign. We blew right threw.
The generalist are just starting to catch on.
Were going to do it! Gold over 1900
I spoke with Warren Rehn a couple weeks ago. I like his plans, believe he will execute and have been adding shares.
There is no sale for a smelter only the lease of their current mill to Hecla.
They recently signed an LOI to sell Santa Maria but $4.5 Million over 2 years is not enough to get Rodeo going. The Rodeo numbers will impress the market but the mine life is limited. For AUMN its the perfect vehicle to get some hard fast cash to get Velerdana back up while Barrick does their job in Argentina.
I expect the Velardena resource and economics to grow as the PMs increase in price. Dont count out M&A as AUMN is not afraid to pull the trigger on a good deal.
Basically we have a low risk no brainer hard growth story here. Going to look good on the NYSE when it hits $2
Hecla Nice move. Up over 300% since the Covid lows.
I Have some shares left over from the Aurizon merge.
Was too lazy to do anything and kept for the silver exposure.
CPTMatt Re GORO I was on the trigger at 9:30 waiting for $3.75 LOL!
A few things. The financial numbers are going to be ugly. Mex Silver production was down 55% Mex Golds way down. Price of Silver was low. ZTC Xinc Treatment charges are extremely high this year. Nevada operations were just running development ore basically H1.
Having said that, there going to be pushing a run rate of about 86k OPY AuEq Half 2 with heavy base metal credits. They will have much better Silver prices but high ZTC's. POG is high and costs should be very low in Nevada as they process the Pearl Zone.
I may be all wet here, but Im modeling about $25M per quarter Cash Flow at current metal pricing. That should get us a serious rerating. With the cash they will push exploration in NE. We'd be hoping they can expand the resource to the point they could leach more gold and still keep the mine life.
Ive notices other silver companies not hit to hard after bad production Q2. Think people are taking a mulligan on Q2 knowing its only temporary.
AR.T Halt! Im impressed. These guys are moving fast.
Argonaut Gold Inc. Announces C$110 Million Bought Deal Financing
Not for distribution to U.S. news wire services or dissemination in the United States.
TORONTO, July 06, 2020 (GLOBE NEWSWIRE) -- Argonaut Gold Inc. (TSX: AR) (the "Company", “Argonaut Gold” or “Argonaut”) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 43,138,000 common shares (the “Common Shares”), at a price of C$2.55 per Common Share for gross proceeds of approximately C$110 million (the “Offering”). The Company has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about July 23, 2020 and is subject to Argonaut Gold receiving all necessary regulatory approvals.
Argonaut intends to use the net proceeds of the Offering for the advancement of the Company’s Magino project and for general corporate purposes.
SGI.V I bought a few at .75 before the big hit. Looking for them to get through the couple mths development ore and put up some numbers
Wanted to make a trade today. Since Im more active on the Canadian shares, I forgot about the US holiday. Can we trade today? If so are my Cad prices effective EOD today or Mon?
Argonaut Gold. Things going very well after closing the Alio Merger 2 days ago. Today they Announced the Updated Life of Mine Plan for the former Alio Florida Canyon mine.
Played out well these last 2 weeks.
Todays news gives the bolt on former Alio Florida mine a life of mine a $491 million Free Cash Flow at $2,000 gold over the 9.5 year mine life. The mine has a million oz gold Resource in the Probable catagory. Thats about $52 million a year in FCF to Argonaut just for this former marginal Alio producing mine. I could make the case that this mine alone will support AR's current $500M market cap with $2000 gold
Lots more catalyst coming these next 6 months.
Do we sell short term or do we hold?
Long term AR looks like a monster!
CM
Fiore Gold F.V FIOGF Now up over 200% on some of my March share purchases.
Its a hold for me. I think its still a solid buy for those looking for solid low risk growth plays in the sector. If I didnt have a solid position I would pick some up.
Link back or follow this link for the DD that still holds true.
[url][/url][tag]https://investorshub.advfn.com/boards/read_msg.aspx?message_id=154961866[/tag]
ORV.T ORVMF Someone finally noticed this laggard, Quiet 60% move up in just the last week.
60k+ OPY Au production and 6Million Ibs Copper out of Spain, 2 Mills, 2 mines and as a kicker, a High Horsepower 12,000tpd, Heap Leach project in Argentina they are looking to JV. This comes with LOM AISC at $519/Au oz,
The 60k Oz production is very profitable alone, but they always find a way to spend it on development. Eventually Im hoping the cash flow surpasses the spending and gives ORV the long awaited breakout.
Im near certain when the future of producing the Bolivian stockpile is crystalized, Orvana will get a big rerating.
Stockpile mineral resource (Measured):
2.1M tonnes
Au 1.85 g/t, Cu 1.9%, Ag 49.32 g/t
Metal contained: Au 127k oz, Cu 89M lbs
This in addition to a tailing project of similar size will give Bolivia another 6 - 7 Years of mine life.
All this netting todays MC of only $33 Million is laughable.
CEO Juans buying 700K shares and the fact they dont dilute, gives me the confidence their going to make something here, and that the jurisdictional risk is worth it. Dont see much downside risk here.
CM
Best article Ive seen on Silver in awhile. Ive been waiting for the other side of Peak Silver supply to manifest into higher prices for a couple years. Hoping the extended down cycle allows us a larger bull cycle to make up for our efforts and misery for those who were in to early.
https://goldsilver.com/blog/update-new-silver-supply-is-drying-up-faster-than-death-valley/
Argonaut Gold and Alio Gold Receive Mexican Anti-trust Approval
T.AR, T.ALO | 9 hours ago
TORONTO and VANCOUVER, British Columbia, June 22, 2020 (GLOBE NEWSWIRE) -- Argonaut Gold Inc. (“Argonaut” or “Argonaut Gold”) (TSX: AR) and Alio Gold Inc. (“Alio” or “Alio Gold”) (TSX, NYSE-A: ALO) are pleased to announce the receipt of the clearance decision from the Comisión Federal de Competencia Económica (“COFECE”) with respect to the pending merger between Argonaut Gold and Alio Gold. COFECE approval was the final government agency approval required before completing the merger, which is anticipated to occur between June 29, 2020 and July 3, 2020.
CPTMatt They only use this as if or when needed. Its just a line of credit. They issue Shares At The Market as needed. Had the same large ATM last few years are were prudent.
db7 GORO had an ATM financing before. That one must have expired.
Great deal for GORO. At anytime they can sell shares at the market price.
They may need it now, since they probably have very low revenues due to Covid closure and fixed costs.
Only 70m OS. For 10 years GORO has been very careful not to dilute wastefully.
Id like to see them get through the 3rd quarter, get the market excited about mining the high grade Pearl, hit the ATM while share price is 7-$8
and drill everything!
If they had another project producing in Nevada, or much more ounces in the Pearl zone, they could justify pushing more Pearl gold in the pits.
As it stands, when grades improved, they were planing to reduce the tonns laid on the Pearl pad so as to milk the mine to steady 40 50 opy production over the 8 year period. This would drastically reduce costs as grades increased, therefore raising the CF.
That sounded boring to me. Technically they could mine out Pearl in a couple years with maximum production, making a killing but would then have nothing to produce in NE. until they had another property ready.
Im hoping they drill hard, get the NI43101 resources and Feas studys ASAP, then turn Nevada into a Hi Grade 100 ounce producer. Add that to Mexico and GORO is a Mid Tier with sector leading costs this cycle . They'll need the ATM for that.
Any thoughts?
GORO Very Nice news Securing more Hi grade Nevada Heap Leach for the future.
Very High grade and they wont need to build an ADR plant. CAPEX and permitting time should be minimal as the ADR is the highest lead time item. Op Costs should be extremely low as the'll be sharing costs with Isabella Pearl and Hi grades will help.
Between High grade Camp Douglas and the new Golden Mile property, I think they are stacked for progress and news flow. The cash flow coming from Mexico at 2000 tpd with high PM prices along with large CF coming from Isabelle Pearl should allow them to push a lot of drilling. Ill sacrifice the divy to get this done sooner.
One of the reasons I sold here, was I did not see a turbo charged growth path. Its a different look now. I see them concentrating on cranking out the Nevada operations and milking Mexico for awhile.
Gold Resource Corporation Acquires High-Grade Golden Mile Property in Nevada Walker Lane Mineral Belt
GORO | 7 hours ago
COLORADO SPRINGS, CO, June 15, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Gold Resource Corporation (NYSE American: GORO) (the “Company”) today announced the acquisition of the Golden Mile property located in the Bell Mining District, Mineral County, Nevada. The 9,334 acre property contains surface and near surface high-grade gold in two established mineralized zones. Historic third-party drill intercepts from Golden Mile include: 10.70 meters of 8.76 grams per tonne (g/t) gold from surface, 36.60 meters of 10.26 g/t gold from 15.20 meters downhole, and 6.10 meters of 46.53 g/t gold from 18.29 meters downhole. Golden Mile is an advanced exploration property with district-size potential for expansion of known mineralized zones and new discoveries. The property also adds considerably to the Company’s prospective exploration land package by more than 51%. This fifth high-grade property solidifies the Company’s Nevada Mining Unit as controlling a dominant land position in this region of the Walker Lane Mineral Belt. Gold Resource Corporation is a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada, USA. The Company has returned $114 million to its shareholders in consecutive monthly dividends since July 2010 and offers its shareholders the option to convert their cash dividends into physical gold and silver and take delivery.
Golden Mile acquisition highlights include:
100% ownership
9,334 acre advanced high-grade gold exploration property
Two established mineralized zones
Open pit heap leach project potential
Surface and near surface high-grade gold drill intercepts*
Drill intercepts including 36.60 meters of 10.26 grams per tonne gold*
Proximity to Company’s producing Isabella Pearl mine, 23 miles
Sold my GORO and bought Argonaut on Fridays Magino permitting news. (GORO thoughts below plus others) Was having trouble finding a solid high value no-brainer, growing producer with low-risk that hasn't moved up yet.
At PDAC in March, one mission I had, was to figure out why the market didn't like Argonaut.
My findings were:
Mine life of El Castillo dwindling down to 2 years,
a recent Q4 local blockade and some up trending costs. Even with that, they were cheap but not a no brainer.
Whole new game now, AR.t has a good short and long term plan.
Short term is the merger with Alio Gold (Former Timmins Gold) They were burdened with higher costs. Now I like there Nevada Canyon Florida Heap Leach Project. Its expected to add about 70k opy to ARs 175k. They added a 2nd pad that will share costs with the 1st pad and help bring the mine costs down while AR.t is focusing on bringing down costs with their 2 current operations.
Longer term AR.T has 2 High Horse Power development projects that can move AR from a marginal cost producer to a low cost intermediate producer at 300 - 500K OPY production.
Together Magino and Cerro Del Gallo offer 7+Million oz resource with combined economics of sub $700 AISC with a 15+ year mine life and a combined $960M in NPV. Add on AR's 3rd development project Ana Paula and you get a combined 5M oz high grade Reserve ready for any Feasibility study. Thats some potential, and not inclusive of the bolt on Alio program or AR's current producing assets.
When I saw the Magino news it took me about 1 Minuit to get some bids in. The Ontario property, offers a 5 million ounce resource in only the upper 300M. Its adjacent to the Island Gold project, currently Alamos formerly Richmont's. Remember when Dr Air posted the news of Richmond's High grade and very deep discovery there. I immediately took a position since I knew that was going to be a story with a future. That mine carried Richmont's stock to multiple bags and a buyout by Alamos. Now Magino BORDERS Island Gold! Another tid bit no ones thinking about. They have current pending deep drill results (halted by Covid) plus are currently drilling. If they hit, Good chance people going to put together high grade deep results plus recent permitting = future large low cost mine. Magino production Decision due 2nd half.
Between these two projects alone, Argonauts long term future is sealed. My guess, they fund one of the other projects and JV Magino. AR will be a target as well.
With $1700 gold, lots of problems get solved and Argonaut has some real leverage. By EOY, The'll have the cash on the balance sheet that will help secure additional financing to move another project forward.
I spoke with IR couple weeks ago. I came away with the following: even with Covid closure, they should still hit bottom end of 2020 guidance 175k OPY since the pads were still leaching. They have their chit together on costs, we should see $90M cash in the bank end of year and the Alio will close and the merge will help both companies.
GORO I see a bad Q2 no matter how I look at it. Low silver price and high ZTC Zinc Treatment charges are neg but will hardly make a difference since they have hardly produced anything Q2, LOL!
Q3 AND 4 a different story, since Mexican operations should be at full tilt with $18 silver. In Nevada, the pic GORO just put out tells a nice story. You can see where they stripped the top off the Pearl portion of the mine showing the dark high mineralized pearl zone. They will be mining the 3-4 gram pearl starting now, loadng the pads and therefore have something to look forward to later H2.
https://stockhouse.com/companies/bullboard?symbol=goro&postid=31095457
My guess, they come out with a pretty PR to show the eminent Nevada High grade, higher volume production coming. This could help keep people aboard as a dismal Q2 gets announced. Definitely might be a buying opp coming there. Nevada production and exploration results are going to be transformational over the next year along with the higher price of PM'S helping Mexican operations. Ill get my GORO shares back.
Orvana Minerals ORV.T ORVMF is a good chance at a 10 bagger over next year or 2 IMO. Should continue cranking cash out of Spain operations while they develop an oxide stock pile in Bolivia with high economics. Do your DD on the economic study's and consider the fact, that the banks are giving ORV very low interest non dilutive loans, and best of all the CEO Jual Gividia has purchased about 700k shares on the open market over the last 9 months or so. Nice to know since I have more purchased shares than him. Iv'e been waiting to long for the breakout, but nice to know CEO Juan must have confidence that things are going to work out well.
https://web.tmxmoney.com/article.php?newsid=8149115124739478&qm_symbol=ORV
60k+ OPY Au production, 6Million Ibs Copper production, 2 Mills, 2 mines and as a kicker, a High Horsepower project in Argentina they are looking to JV. All this nets a MC of only $20Million. They have spent about +$20 million per year in CAPEX the last few years working on a transformation. They expense much of their development, making their AISC high. They dont dilute either. At some point the cash has to start stacking big relative to MC and the shares are going to rip.
GWA.v GWSAF Gowest Gold been a failure for me to date, but I think the worst is in the past. Development ore on surface. If all goes well, they should run the Bulk Sample Q3. On site Ore sorter should net 10GPT, and their expecting their mining license any week now. If they finish financing and get producing, their $20M market cap should rip as well. 1.2M Oz resource at +6GPT from Frankfield that sits in Timmins ON on about 1% of their land package.
Based off the Reserve and Feasibility study, they show a 50K OPY operation at $895 AISC That's $40M in CF once they make that happen
Based off the PEA with the 1.2M oz resource, everyone knows its a 100k operation all day long once they get going with the drilling and move some resource up to the reserves category.
Just waiting on $ and final permit to de risk.
Some pretty good ideas I think.
All IMO of course
Checkmate28
bbotcs Re GORO Remember there still leaching in Nevada even during shutdown. I've been down emotionally on GORO short term esp with the price of Silver and Base metals being down. Silver over $17 will be a big boost for the Mexican operations. This coupled with entering the Pearl zone in Nevada going to give us a big lift and get GORO back on track with the other good growth stories.
In the mean time Fiore just keeps going. Up 200% off the covid bottom.
I picked up Defiance Silver, Golden Minerals and Impact Silver all up big. Got the DEF at .06 and sold them at .19 now trading .22
Tough finding something to buy right now without chasing. Working on a few ideas but not done with the DD and dont want to put something here thats priced high now.
CM28
GORO Q1 Numbers out. Cant say Im excited here waiting for the break out Q that just doesn't happen.
Production volume about the same as last year. Was expecting more volume out of the new Nevada mine. COVID wont effect them in NE but will in Mexico
Still planning on a big bonus in Q4 when they hit the 4 gpt's of ore in the Isabella Pearl zone.
Cash balance is up about $10 million but they borrowed $10M from their ATM. The good here is they have plenty of money to run some increased exploration which they should do, plus CAPEX was down several $M and should continue to stay down since their done with the build out in Nevada.
The bad is Q2 should be effected negatively due to COVID and the price of Silver. We'll see how market views this tomorrow.
https://seekingalpha.com/filing/4962305?utm_medium=email&utm_source=seeking_alpha&mail_subject=goro-gold-resource-corporation-sec-filing-quarterly-report-10-q-may-5-2020&utm_campaign=rta-stock-filings&utm_content=link-1
Gold miners going to catch a bid when earnings from full 1st qtr finish coming out and market sees how cheap they are. This assuming Covid closures get opened real soon. Only place Covid is not shut down is Nevada. Studied hard before PDAC(early March) Came out with a clear favorite and hit it hard after a couple conversations with CFO Barry O'shea
Fiore Gold F.V USA FIOGF NEVADA Heap Leach. Originally a DrAirtime pic. Didnt like it before because didn't look like they could get past 40k OPY anytime soon. Time has changed things. Its a Solid low risk no brainer now and timing for share price growth is right now.
In mid March I was buying this at about a $25M EV (MC about $35Mill with $10M ca cash. About half the mid Feb High.
2019 Cash costs $899/oz 42K OPY
Todays price of gold $1650
Guiding for 45-50K oz gold production in 2020 with the new crushing circuit. Production will be heavier 2nd half as they reduce the strip ratio to near 1.1:1 for higher production at lower cost.
There in the 2nd Half fiscally now and cash costs should be back near $900 soon.
They produced 4000 oz in Dec. Should be higher H2 but lets use 4k/mth or 48,000
POG $1650-$900CC = $750/oz after mine costs
48,000 production x $750/oz = $36 Million (They'll burn this on the Development of Gold Rock of better yet I think there going to put together a M&A with a local production ready project to boost production even this year.
This makes Fiore Cheap even at todays price with just the Pan Mine
Proj 2 Gold Rock Preliminary Economic study just out would bring company over 100k oz/yr, 8 yrs of permitting done, grades 60% higher than Pan Mine.
should have a production decision by EOY for production end of 2021. Since the property touches the south end of the Pan Mine, its actually like project expansion and will share some infrastructure. Being heap leach and run of mine with no crusher in the beginning, they should be up and going in less than a years time. GORO did it from scratch in less than a year in Nevada with a crusher and an ADR plant. Fiore skipping the ADR and just loading the carbon tubes.
3rd Proj Golden Eagle in Washington but 1.7M oz @ 2gpt on the resource is a cash cow but permitting at least 5 years out. New updated resource report coming out in a few mths should have even higher numbers since old report was done at $750 gold.
GORO Hitting on 7 cylinders now as Mexican operations got shut down. The good thing though is things are moving forward in Nevada.
What Im waiting to see is the Q1 numbers that will give us a glimpse of the future. Q1 is the 1st full quarter of Nevada production with gold near $1600 avg Q2 not going to be so good esp with Mexico shut down and the lower price of silver. The elephant in the room here is when GORO gets to the Pearl zone later in the year. At 4 gpt, there going to produce lots of cash and costs will drop. GORO with the 2000 tpd out of Mexico and the 350Oz/mth coming out of the Pearl zone is going to take GORO to $10 assuming Silver gets back past $16
PS Lots of drilling coming out of both these companies can increase mine life and production numbers
Got a couple more DD'd Gold miners and some cheap silver companies looking for the multibagger pop when silver bumps to $18 - $20
Checking out for now
Checkmate28
Boys and Girls men women and children. Looks like GORO is on a flight path up for several quarters, as they move to full Q's of commercial production at better grades with lower CAPEX expenditures. They can finally use the Oaxaca revenues to pad their savings account and increase the divys.
GORO Great News! The increased Divy was our warning. Next quarter can only get better as they commission the ADR plant to pour their own gold bars, and run a full quarter at commercial production numbers. The increased price of silver should weigh in this quarter as well. Just doubled the divy could easily double it again in the next couple quarters.
October 29, 2019 NYSE American: GORO
GOLD RESOURCE CORPORATION REPORTS RECORD THIRD QUARTER GOLD
PRODUCTION WITH NET INCOME OF $3 MILLION, OR $0.05 PER SHARE
COLORADO SPRINGS – October 29, 2019 – Gold Resource Corporation (NYSE American:
GORO) (the “Company” or “GRC”) reported record gold production results for the third quarter
ended September 30, 2019 of 11,165 ounces of gold. In addition, the Company produced 477,297
ounces of silver, which along with base metal revenue generated $40.1 million in net revenue and
$3.0 million, or $0.05 per share, in net income for the quarter. The Company recently increased its
2019 global gold production outlook 42% to 38,400 ounces, as the Isabella Pearl mine in Mineral
County, Nevada continues its production ramp up†
. The Company also maintains its 2019 Oaxaca
Mining Unit (“OMU”) silver production outlook of 1.7 million ounces†
. Gold Resource Corporation is
a gold and silver producer, developer and explorer with operations in Oaxaca, Mexico and Nevada,
USA. The Company has returned $112 million to its shareholders in consecutive monthly dividends
since July 2010 and offers its shareholders the option to convert their cash dividends into physical
gold and silver and take delivery.
Q3 2019 HIGHLIGHTS
• $3.0 million net income, or $0.05 per share
• $8.8 million cash and cash equivalents
• $40.1 million net sales
• $9.3 million mine gross profit
• Record gold production of 11,165 ounces
• 477,297 silver ounces produced
• $197 total cash cost per gold equivalent ounce sold, after by-product credits (OMU)
• $520 total all-in sustaining cost per precious metal gold equivalent ounce sold (OMU)
• $4.2 million gold and silver bullion
• $20.6 million base metal by-product credits, or $1,888 per precious metal gold ounce sold
(OMU)
• $0.3 million dividend distributions, or $0.005 per share for quarter
• Nevada Mining Unit’s Isabella Pearl mine reached commercial production levels in
September
• No ATM share sales since July 30, 2019
2
Overview of Q3 2019 Results
Third quarter OMU production totaled 7,462 ounces of gold, 473,810 ounces of silver, 492 tonnes of
copper, 2,459 tonnes of lead and 6,057 tonnes of zinc. Through the first three quarters of 2019,
OMU production numbers total 21,881 ounces of gold, 1,304,975 ounces of silver, 1,407 tonnes of
copper, 6,916 tonnes of lead and 17,949 tonnes of zinc. Third quarter production from the
Company’s Nevada Mining Unit (NMU) totaled 3,703 ounces of gold. Since producing first gold in
April 2019, the NMU has produced 5,381 ounces of gold through September 30, 2019.
The Company maintains its 2019 OMU annual outlook, targeting 27,000 gold ounces and 1,700,000
silver ounces†
. In addition, the Company’s NMU targets 6,000 ounces of gold production for the
fourth quarter of 2019†
. This fourth quarter production target paired with 5,381 gold ounces
produced year-to-date, increases the Company’s global 2019 annual gold production outlook to
38,400 ounces†
.
The Company sold 10,887 precious metal gold equivalent ounces at a total cash cost of $197 per
ounce (after by-product credits) at its OMU, benefiting from strong base metal production and sales.
OMU average realized metal prices during the quarter included $1,490 per ounce gold and $17.08
per ounce silver*. The Company sold 4,044 gold ounces from its Isabella Pearl mine at an average
realized price of $1,481 per gold ounce*. The Company recorded net income of $3.0 million, or
$0.05 per share, and paid $0.3 million to its shareholders in dividends, or $0.005 per share during
the quarter. Cash and cash equivalents at quarter end totaled $8.8 million.
“Our Oaxaca Mining Unit’s strong operational results, coupled with our continued ramp up of our
Isabella Pearl mine, which recently declared commercial production, resulted in record gold
production for the third quarter,” stated Mr. Jason Reid, President and CEO of Gold Resource
Corporation. “The Company is on a trajectory to increase its future global annual gold production
by more than 100 percent. We are also on a trajectory of shifting the Company’s primary revenue
distribution to gold with continued excellent exposure to silver and base metals. In addition, we
have become a multi-jurisdictional mining company with two producing mining units and a vast
property portfolio. These and other positive results enabled the Company’s Board of Directors to
increase the monthly instituted dividend 100 percent with last week’s October dividend declaration.”