Value Microcaps Junior Miners

[dr_airtime]

Bobby1231 - TGZ is better buy...

...EDV was leveraged bet on higher POG as higher cost producer. Still holding and hope we will see much higher prices later this year.

Teranga-->lowest quartile AISC and cash costs, 200k/year gold production ounces that accrue to equity holders (20k of 220k/year goes to Franco Nevada), 10 year mine life, Can't remember tax regime but might still be tax free --> then 25-30% corporate rate, big exploration potential on land package, Cormart literally loaded the boat (me too! but tiny in comparison) on the huge volume around $.60 so shares in strong hands (Cormart = Sprott = how could they sell Teranga compared to other producers in portfolio). Post-Tax NAV is much higher:

Cormart: $2.00 (NAV calculation not disclosed after FNV stream, need older report)

CIBC: $1.20 @ $1200 gold post FNV stream (Dec 17, 2013 report)

RBC: $1.90 NAV (Using $1400 gold long term)

This is quote from Teranga site on tax regime:

http://www.terangagold.com/English/AboutTeranga/Senegal/default.aspx

Following exploration success, the permit holder may enter into a mining contract agreement with the State, which provides the State a free carried interest of 10% of the project. Under the Senegalese Mining Code, numerous fiscal incentives are offered to mining license holders, including a minimum seven-year exemption from income tax, amongst other tax exemptions, and the opportunity to secure a lease of up to 25 years for a major project. All mining activities are subject to a royalty of 5% of the value of the mine site payable to the Government.

Foreign mining companies are allowed to expatriate profits.

Cormart still biggest buyer today. CorMart 2.0?

House Positions for C:TGZ from 20140331 to 20140331
House Bought $Val Ave Sold $Val Ave Net $Net
73 Cormark 107,500 94,805 0.882 19,500 17,550 0.90 88,000 -77,255
7 TD Sec 107,600 91,855 0.854 28,500 24,930 0.875 79,100 -66,925
27 Dundee 40,000 34,600 0.865 0 40,000 -34,600
79 CIBC 30,600 26,200 0.856 5,000 4,305 0.861 25,600 -21,895
90 Barclays 15,000 13,175 0.878 0 15,000 -13,175
124 Questrade 14,274 12,289 0.861 0 14,274 -12,289
101 Newedge 7,000 5,970 0.853 0 7,000 -5,970
3 AltaCorp 9,003 7,858 0.873 4,674 4,037 0.864 4,329 -3,821
85 Scotia 4,000 3,400 0.85 0 4,000 -3,400
13 Instinet 9,000 8,000 0.889 6,000 5,340 0.89 3,000 -2,660
72 Credit Suisse 2,500 2,185 0.874 0 2,500 -2,185
121 Jennings 2,000 1,740 0.87 0 2,000 -1,740
33 Canaccord 2,000 1,705 0.853 0 2,000 -1,705
80 National Bank 1,500 1,275 0.85 0 1,500 -1,275
22 Fidelity 200 178 0.89 0 200 -178
39 Merrill Lynch 2,500 2,155 0.862 4,000 3,475 0.869 -1,500 1,320
9 BMO Nesbitt 6,000 5,100 0.85 9,000 7,740 0.86 -3,000 2,640
68 Leede 0 4,500 3,825 0.85 -4,500 3,825
19 Desjardins 0 10,000 9,000 0.90 -10,000 9,000
57 Interactive 0 17,800 15,308 0.86 -17,800 15,308
14 ITG 0 42,750 36,770 0.86 -42,750 36,770
2 RBC 7,500 6,400 0.853 78,953 69,135 0.876 -71,453 62,735
1 Anonymous 14,500 12,550 0.866 152,000 130,025 0.855 -137,500 117,475
TOTAL 382,677 331,440 0.866 382,677 331,440 0.866 0