Value Microcaps Junior Miners

[Lone Clone]

WEX, OGC, KRR

Nevada gold/silver explorer Western Exploration aka WEX has been a real disappoint, taking forever to get exploration underway on their Aura project. Now we finally get a preview of their 2024 exploration programme focused on Gravel Creek, where there is an existing resource which they are trying to extend and upgrade.

But even here that are problems. They refer us to an 'attached power point' to see the figures, but I can find no sign of that power point anywhere, including on their website. I sent an e-mail expressing my dismay, so we'll see what the reply is.

As to the written content of the PR, that is more hopeful. They have come up with a new geological model for Granite Creek, and plan to drill 4km to try to expand upon the 2023 discovery hole outside the Resource. If the new model proves out, it should add considerable to the Resource, as well as opening up new areas for expansion.

Maybe if this all works out, the share price will make it back up to my buy point. Fortunately my stake is small.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34662280

The IPO for a stock controlling 20% of Oceanagold aka OGC's Didipio Au/Cu mine debuted on the Manila Stock Exchange today. It opened around the offering price and then declined a bit.

This article does contain one tidbit I hadn't come across before, that the IPO was the result of Philippine regulatory requirements. If you recall the hassle the authorities put OGC through regarding the permits for Didipio, that does seem plausible, a bit of a quid pro quo.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34665817

Australian Au/Ni miner Karora Resources aka KRR released its Q1 financial results. We already knew Q1 was poor in terms of production due primarily to weather-related issues, but it turns out the financial results were much better.

Due to the higher gold price and resumption of nickel sales, KRR achieved record quarterly revenue, and they managed to eke out a profit on Q1, and if you take out non-cash items, a substantial profit. As well, in spite of lower production cash costs for gold production actually dropped to $1193/ oz Au thanks to the nickel byproduct revenue. (I expect these costs to drop substantially through the year as production volume improves.)

KRR remains in excellent financial shape with a cash stash of $87.5M and no debt, and reiterated their 2024 guidance. Meanwhile, we await the merger with Westgold going through.

https://www.siliconinvestor.com/readmsg.aspx?msgid=34665839

Although he still thinks gold likely needs to complete its intermediate term correction, Saville notes two bullish indicators for gold stocks: 1) the HUI/gold ratio has broken out to a multi-month high; 2) the recent rise in the gold/oil ratio, a proxy for gold miner's profitability. Hence he is leaning towards thinking that gold stocks will just bounce around rather than declining with the PoG before the latter resumes its rise and the gold stocks join in the party.