Eric O's Favorite Gold Miners

2410 posts / 0 new
Last post
cheekco
cheekco's picture
Offline
Joined: 01/26/2012
Hat Tips: 129
Posts: 15
THO

Thank-you for your comment EO

With Tahoe being in Guatemala pretty much took it off my screen as well.

But when I was researching it in 2010 around the time of IPO I could not help but love the team behind this company.

Kevin McArthur knows the mining industry better then anyone. As well knows the country and the politics 

that this company would be dealing with.

I do understand the risk involved that whats got me up in the air as to add more or cut my position.

__________________

ll

kjm
kjm's picture
Offline
Joined: 06/20/2011
Hat Tips: 879
Posts: 180
You got it

You got it Saskman..........pretty early stage but I like that share count. I see they changed their name from Chalice Diamonds only last year.

kjm
kjm's picture
Offline
Joined: 06/20/2011
Hat Tips: 879
Posts: 180
Here's some comments on Tho, 

Here's some comments on Tho,  Cheeko

Tahoe Resources (TSX: THO; Pink Sheets: THOEF) — Any Guatemala country risk discount has been completely wrung out of Tahoe Resources as it becomes apparent to the entire market that Escobal is a monster world class silver (+base metal and gold) deposit easily capable of producing 20 million ounces of silver at near zero cost (thanks to by-product credits). IR Director Ira Gostin freely shares management’s hope to eventually produce many more millions of ounces per year from southern Guatemala (30 million? 40 million?), which would make the country one of the world’s major silver producers — not to mention give an appreciable boost to its GDP. That in part is likely why the permitting process has gone relatively smoothly, along with the careful community relations conducted by Tahoe. Yet this is still Guatemala, one of the few countries that can give a company like Goldcorp a bad name (at its Marlin mine — the reason why Tahoe got Escobal in the first place). All things considered, we’re inclined to give Tahoe a thumbs up and we’d buy the shares when the time is right.

cheekco
cheekco's picture
Offline
Joined: 01/26/2012
Hat Tips: 129
Posts: 15
thanks kjm

For all the comments you made above ,were my reasons for buying in.

As long as politics don;t get in the way I feel it could very well be one of the worlds largest producers.

Its very nice to hear views from others. Makes me feel a little more confident.

Thanks 

__________________

ll

SteveW
SteveW's picture
Offline
Joined: 09/08/2011
Hat Tips: 3267
Posts: 812
Trading

Thought I'd mention a trading method I've been developing over the past few months. During the SVM shorting fiasco I got into selling puts and then buying some stock and have been following the stock closely.

This month I sold 500 shares at $7.76 and 1000 shares at CAD$7.60 using trailing stops at 2 brokers. I then purchased 300 shares at CAD$7.10. At its most recent $7.55 I'm not buying but I would near a $7.00 price. However I've sold $7 and $8 March puts and expect the $8 puts may be in the money. So I'll let the $8 puts that I sold in November for $1.30 get exercised giving me another 1000 shares at an effective $6.70, plus commissions.

If silver breaks out sometime then trailing stops and selling puts gives downside protection without losing upside profits.

I currently have a small holding in JAG (Jaguar Mining, that has 3 operating mines in Brazil). Its one of my few gold winners having spiked to $8 on take over rumours then moved sideways to around $6.50 recently. Getting slightly P'O from not selling at $8 I sold a covered call on my holding at the end of last month. I got $0.55 for the March $8 call, not much but its gravy unless the stock explodes in 3 weeks. I'm currently thinking of selling both puts and calls for April at $7, if I still hold the stock, since I don't expect much movement but would not object to increasing my holding at below market price.

You don't need to get so complicated. If you want to buy below market sell a put (for those stocks that have options). If its not exercised (and most aren't) at least you'll get beer money.

Thoughts, comments, critiques?

__________________

“Don't walk behind me; I may not lead. Don't walk in front of me; I may not follow. Just walk beside me and be my friend.”
― Albert Camus

Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 5653
Options

I find that it takes a certain kind of temperament to be successful at options.  A temperament that I don't seem to possess, sadly.  It seems so tempting to just sell that put and pocket what seems like such easy money.  But one has to be very careful, and be emotionally prepared if the stock happens to tank while you have a position on.   It's one thing if you approach the strike price, and you are about to get in the zone where you could be exercised. It's quite another to see the stock plunge right on past your strike price, and suddenly realize how much money you are losing in exchange for that little bit of beer money in your pocket.  

Plus, I find that options mess with my emotions, in ways that I find counterproductive, for me, at least.  If I buy a stock, based on sound fundamental analysis, I find I have the strength to wait for payday as long as it takes.  I can "be right, and sit tight".  But if I buy a call option, now I have to worry about whether I will be vindicated fast enough.  Or if I sell a covered call, I want my stock to go up, but not too much!  Or not too soon! A counterproductive, emotional mish mash.  

Not to pile on, but I have other problems with options as well.  Any time I buy an option, I feel like the steady time decay is eating my lunch every day.  It must be dreadfully hard to consistently make money in that environment.  Any time I sell an option, I feel like the risk reward equation has turned against me, that I've given up too much for that stupid little bit of premium.  Oh yeah, and the bid ask spreads are horrendously wide as well.  So there's another hand picking my pocket.

I've basically taken two brief forays into options.  Both times it went base hit, base hit, base hit, (ooh, this is easy!), base hit, base hit, DISASTER!  Complete wipeout.  Even when I'm piling up the base hits, I'm sitting there thinking about how much I don't like this, that it isn't worth the stress.

Everybody has to find what works for them, and I have tremendous respect for those that can consistently profit from options, but it's not for me.

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

SteveW
SteveW's picture
Offline
Joined: 09/08/2011
Hat Tips: 3267
Posts: 812
Options

EO, thanks for pointing out the downside. 

I must admit that I have been burned but most of my losses have occurred with long calls. The entire system is slanted toward the seller who benefits from the time decay. I keep track of my total exposure if everything crashes to zero. I'm able to sleep well at night and while still learning find I am making more on options than stocks.

Still making mistakes, of course. I had sold SLW March 34 puts that went badly underwater and so bought back when I had a 50% profit on my sale rather than waiting, as it is obvious now they will expire worthless. I tell myself that its never wrong to take some profit.

__________________

“Don't walk behind me; I may not lead. Don't walk in front of me; I may not follow. Just walk beside me and be my friend.”
― Albert Camus

Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 5653
Allied Nevada

Released a PEA on the Hasbrouck project today.  135,000 oz Au (+Ag) for 5 years, for a capex of $78M.

Although the financial metrics seem decent, this really turned out to be much smaller and lower grade than I thought it would.  As compared to ANV's gigantic Milling Project at Hycroft, I think Hasbrouck can be safely ignored.  Maybe they can option it off to some junior who would be happy to have it.

http://finance.yahoo.com/news/Allied-Nevada-Announces-iw-2216689077.html?x=0

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 5653
Aurizon & Argonaut & Cream

Solid reserve replacement going on at Casa Berardi.

http://finance.yahoo.com/news/Aurizon-Reports-Mineral-iw-3407430814.html?x=0

Summary of plans for 2012, discussion of La Colorada start up.

http://finance.yahoo.com/news/Argonaut-Gold-Announces-2012-ccn-3346560226.html?x=0

More routine infill drilling from Cream.  A new 43-101 is due from Cream this quarter.  The existing one is from 2008.  I expect bigger numbers.

http://finance.yahoo.com/news/Cream-Minerals-Drills-22-ccn-4065752858.html?x=0

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 5653
Atna Resources

Further up thread I talked myself into getting more serious about Atna.  This morning it opened soft at 1.40, so I bought some.   Just checking on my way out the door and it's 1.51.  OK!  Like the Mogambo says, "Boy, this stuff is easy!"

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

HCA
HCA's picture
Offline
Joined: 08/11/2011
Hat Tips: 134
Posts: 58
ATN

Bought a chunk of ATN, averaging 1.45, had to let go of KAM, WDO & GPD,

Though so far, not a bad trade off.

I like the volume in this stock.

HCA
HCA's picture
Offline
Joined: 08/11/2011
Hat Tips: 134
Posts: 58
PG & MUX

Hi Eric,

I didn't see MUX or PG on your recent list, any reason why?

Gwyde
Gwyde's picture
Offline
Joined: 08/29/2011
Hat Tips: 1982
Posts: 582
Guyana Goldfields

Guyana Goldfields continues its slide after publishing the feasibility study on its Aurora project, which was not very well received.

See: http://micro.newswire.ca/release.cgi?rkey=2002247083&view=16273-0&Start=&htm=0

and http://www.miningweekly.com/article/guyana-goldfields-falls-on-feasibility-results-2012-02-25

Apparently the investing community was disappointed by the lengthy pay-back time on investments... which are largely due to an over conservative $1300 /oz for the projected gold priceno . While at the other hand the budgeted crude cost at $100 seems reasonable or even lowindecision.

What's your opinion, Eric. After two consecutive days of double digit losses, is GUY worth the gamble or will we most likely see the downside of $5 before any recovery takes place? 

__________________

Gwyde

T
T's picture
Offline
Joined: 08/10/2011
Hat Tips: 6458
Posts: 1007
Guyana Goldfields ?

... I was gonna ask you that too, E

kjm
kjm's picture
Offline
Joined: 06/20/2011
Hat Tips: 879
Posts: 180
Punishments

Three more punishments meted out today to Trelawney and Batero  and Gold Canyon for less than anticipated resource estimates. Batero really took it on the chin.

Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 5653
Premier Gold is on my list.

Premier Gold is on my list.  That recent deal with Newmont is good stuff.  yes

McEwen Mining would be on my list, except for the fact that their main producing mine is in Argentina, and I'd like to stay away from there.

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 5653
Wipeout Day

I've never given Guyana Goldfields an honest look, being in Guyana.  I'm pretty much sticking to Canada, Mexico, and Nevada.  So, no opinion.

Same with Batero, being in Colombia.

I have looked at Trelawney and Gold Canyon before, and just never got comfortable with them.  I know I had a comment about Gold Canyon on the thread before.  Something to the effect of "How do you do an open pit under a lake?".  So, I'm still not interested there.  

Given the wipeout in Trelawney, I'll probably have to revisit that one.  I saw that news this morning, and it struck me how few holes they've really drilled there, and how practically all the resource is still just inferred.  But still, if it gets cheap enough, I could be interested.  I'll need to refresh my homework on that one.

A lot of us hold a stock, knowing that a resource update is coming, thinking it's going to be big.  I do it a lot myself.  But it's amazing how often they sell off.  Sometimes it's better to sell when the ANTICIPATION is running high.  Sometimes it's hard for the reality to live up to the visions of sugar plums dancing in our heads.  Problem is, sometimes they do spike higher.  If I was better at guessing which were going to be which, I'd be rich enough now to not worry about it any more.  Plus, sometimes you can do well by buying these wipeouts.  Sometimes they just keep drifting lower.  It's such a crapshoot.

I'm feeling all warm and fuzzy for some nice steady producers right about now...

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

T
T's picture
Offline
Joined: 08/10/2011
Hat Tips: 6458
Posts: 1007
Casey on Guyana goldfields

Casey, on the ball, updated Guyana godlfields

they still like it fine.   they think the numbers will be ok  as they move forward. they are holding on. I think I might buy a position if we get another drop  in the next day or two..., stink bid.   maybe at 5 -5.15 area, a first position. 

Gwyde
Gwyde's picture
Offline
Joined: 08/29/2011
Hat Tips: 1982
Posts: 582
Guyana Goldfields

Eric Original wrote:

I've never given Guyana Goldfields an honest look, being in Guyana.  I'm pretty much sticking to Canada, Mexico, and Nevada.  So, no opinion.

Doesn't Canada share the official "head of state" with Guyana? wink

__________________

Gwyde

Gwyde
Gwyde's picture
Offline
Joined: 08/29/2011
Hat Tips: 1982
Posts: 582
RE: Punishments

Trelawney has always been rather expensive in terms of Market Cap/Oz valuation (data according to GoldMinerPulse). Being so far stretched leaves no room for any minor disappointment.

__________________

Gwyde

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Syndicate contentComments for "Eric O's Favorite Gold Miners"