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I am not sure but I believe they hedged 50% of Samira resource +/- 350,000 oz at $350-360.
In Guinea I believe they had around 160,000 oz @ $290-295 but quite a bit of that could be eaten into.
This represents a serious hedging problem ....as quoted from SMF press release.
"In 2004, we sold 59,740 ounces of gold at an average price of $347 per ounce compared to the sale of 46,588 ounces of gold at an average price of $323 per ounce in 2003."
EET sure geta a lot of mileage off of Samira Hill which they lost control of to SMF in 2000. When you read the fine print of the agreement between them EET actually gets very little of the cash flow from the project but SMF lets them get PR mileage.
Having driven all over thoses roads many times, I do not believe that Lero is within 36 km of Siguiri. My guess closer to 200km.
This is very significant. If they put out a couple more like this it will change the opinion on the project from low grade to world class.
I checked Orezone financial statements on Sedar. They say they own it and if they do not develop it they must give it back to the previous owners who I assume are Channel and Solomon. It looks like the previous owners can be diluted down to a NSR if Orezone develops. Source Q3 2004 and 2003 annual report.
Bombore belongs to Orezone.
Sanu I cannot comment about but I know the Mali deposit of Nevsun quite well and I think they will make a good go of it. The infrastructure was the problem in that area and it seems to be working itself out. Eritrea has potential but as we have seen, a lot of risk, whereas Mali is a sure bet given it's devotion to gold mining. They do not pay me to value stocks though!
It depends on whether a glass is half full or half empty on this one. What was going on in Guinea the last couple of months.... not too much production.
I am still worried about Eritrea and dumped most of what I had on the recent rise. I have been in the country and love it BUT I do not have confidence in the Government and external influences that could screw things up again. Better risk reward elsewhere.
wow this place is dead considering latest news
I have worked in Ethiopia. Does the Government still require a deposit of the value of the exploration program? I might be interested in another project there.
I have worked in or lived in West Africa most years since 1981. Both in Anglophone and Francophone countries. I prefer to chat on this site. If your friend wants to chat he should address the group. One of us will respond.
Looks like China was not the issue, on the surface at least. It is the Gov't wanting a chance at a bigger slice of the pie.
If it is not the China issue, which to me is a possibility, then the Gov't wants a bigger cut of the pie. Stay tuned. The volitility of Nevsun stock is much greater than the others involved in Eritrea, or so it seems.
As someone always looking for African workers, I feel that any of the able bodied local workers in the area of that article (Seguenega, BF)would be hired by the company if it goes to positive feasibility study and the locals would become well trained. People do not recognize what the large scale mining companies do for the local communities. It is something the industry does not advertise enough.
Unfortunately there is a lot of truth written here. It is buyer beware and I suggest everyone understand the writings of Dr Keith Barron www.straighttalkonmining.com before betting the home on juniors. For me though the key is to focus on management. What is their track record. Have they done it before? Have they been successful? Usually a good gauge.
It just keeps on coming. More good results!
Unfortunately Eritrea could take some time. I still like it but maybe not in the short term. I am holding onto my investments. Not much else to do.
I hold SMF for a potential buy out at higher gold price but do not like it because of its killer hedge position. It is hedged way out at ridiculous prices. I do not think the Moroccan connection really reduces costs much other than a couple of % on capex for construction.
I know them personally, some of them for many years so I would never comment negatively even if I thought negatively. I suspect some people may feel negative as it has taken them sooooo long to bring the Ghana property to production.IMHO.
This mine has had a history of human resource issues with senior management. One of the biggest problems going forward will be to find qualified people and when you throw in a remote location like Lero and the unstability of Guinea (ailing president) the picture is not rosy. That being said, if anyone can do it, T Schultz should be the man for the task.
OZN- great land position, management and major partner
GSC- should do well with current and upcoming production
SJD-good land position good resource,upcoming take out IMHO
JLB-millfeed for HRG and good position
BGI- good partner and experience
NSU- undervalued due to Eritrea, Mali will resolve infrastructure issue
I hold positions in the above companies. I hold positions in other companies with West African plays as well.
This is a personal opinion. Do your own diligence!
Guinor cannot be compared to Cassidy. Guinor has been producing for many years and has been a successful operator. I am not sure Cassidy can do anything but promote. Anything good that Cassidy could find would likely only be millfeed for Kiniero anyway. Guinor also has a large exploration package to feed their mill in the future. IMHO neither of these companies deserve ownership. Many better plays in West Africa.
thanks for this Jeepdriver.
Since then!
I would be surprised if Newmont would dig this. If so they would have already. More likely candidates are Gold Fields and Golden Star IMHO.
This board is awfully quiet. Does anyone know what happened to Clarkes visit to Eritrea recently?
The Banforo belt looks interesting. The stuff around Youga has been looked at before by others still in Burkina. If they liked it they would have kept it. The Hounde belt is a great address but I am not sure they have a serious piece of the meat.
I am not a great lover of this company however they are opportunistic and realize that Burkina is the right address for a multiple of reasons.
This effectively puts St Jude on the block for Golden Star or even Gold Fields to pick up.
More of the same from Burkina Faso! Orezone, High River, Jilbey, Semafo, Riverstone, etc. we should call them the 3.0 gm group. Everybody seems to be pulling grade in Burkina. It will definitely be the next hot spot for mine construction.
I agree the IAMGOLD Gold Fields combination makes better sense and to spin out of the rand based mines.I am not a shareholder of either though. The only positive I could see is that the Gold Fields technical team would be used for the expertise on the Russian portfolio of Norilsk, including potentially sukog log (whatever it is called). It seems the Russians are so pissed off that the GFI senior management would be dead in the waterand are thus fighting for their jobs.
I doubt EET is benefitting more than publicity. I do not think they get any of the cash from the bricks until sometime later in the projectonce some milestones are met and debts repaid.
It is amazing how quiet the Eritrea Board has become. No one got any info!!!!!
My opinion, but not sure, it was Managem that combined the Guinea hadges with their Morocco hedges in one program. I believe that Semafo Management has been trying to defer and renegotiate the hedges but again I believe that they are attached to Kiniero and Semafo not Managem.
Things have changed. It is no longer like it was. I started in West Africa in 1981. I often long to return to thoses days as life was much more simple when we did not have communication. We had to survive on our own.
First of all I do not follow Randgold so I cannot comment on the company in any way other than what you can get in public domain. I have not specifically looked at the feasibility study for Loulo but the address is good. In fact all of their addresses are good but it takes more than good addresses, it takes good management as well. Ask yourself if they have it.
Re Ivory Coast, I like the country, just not in the short term. The situation seems to be in a stalemate and holding pattern. It seems even French soldiers have taken to robbing banks now. It must be that the powers on all sides have found it lucrative to be in limbo so they are cashing in as much as possible for as long as possible. Unless the French need the cocoa they are not likely to do much but keep the sides apart. This has a cost on the whole region and the result will probably improve/help Ghana considerably. It is just that most of the region is French and Ghana is English so there are some hiccups along the way. I am dealing with some of those hiccups myself.
I have actually driven accross Guinea Bissau quite a few years ago. Not much was going on other than Russians harvesting all the timber resources. I would doubt Guinea Bissau would host much in the way of gold but it likely has bauxite deposits and some base metals that are typical along that coast. Not exactly a nice place.
I was pulling your chain man! Actually I would place Gabon in Central Africa along with the Congos, Uganda, Eu Guinea, etc.
I agree about diamonds, don't want to understand them and do not want to invest in them. And I have a good friend who is considered a diamond guru, ex DeBeers.
My experience in Gabon was not that positive so I do not invest there. Did not like the people (when compared to West Africans) nor the political atomosphere. Let alone the terrain that is difficult to get around and everything we found ended up being a sniff but not the motherlode. I am sure someone will find a commercial grade property there some day but why waste your time there when there are so many better opportunities elsewhere.