re: orofino
Wow, $7m market cap, with an emphasis on Colombia? You got way bigger balls than I do my friend! I wish you luck!
Eric O's Favorite Gold Miners
July 6, 2011 - 5:48pm
#143
DPH
July 6, 2011 - 7:05pm
#144
re: zman
Re: Chesapeake Gold, Metates Deposit, Mexico
Yes indeed it is a huge tonnage low-grade deposit. You are going to need some DD on this one though. Be advised that the real discovery of this one dates back to 1993, with Cambior. Job #1 on your to-do list will be to figure out why this one is not already in production 18 years later. What has changed? What will be the catalyst to get this thing moving?
Let me be clear: I am NOT trying to talk you out of this one. It may well be that with 1500 Au and 35 Ag that it's time has finally come. I am simply trying to encourage you to do the DD necessary to understand exactly what you are looking at. This is not something that just recently dropped out of the sky and looks like a lot of cheap ounces.
Here's a hint to get you started: on sedar.com, Chesapeake filed the 43-101 on the property on 6/8/2010.
As an aside, when I saw that Randy Reifel was running the company it rang a bell with me. I'm thinking "where do I know Randy Reifel from?". I checked some of my old notes and discovered that I did indeed speak directly on the phone with Randy sometime back in the 90's when he was running Francisco Gold. El Sauzal was the big project at that time. My recollection is that he seemed like a pretty good guy. Here is a recent interview:
http://seekingalpha.com/instablog/445068-doug-hadfield/151595-golden-ele...
July 7, 2011 - 10:13am
#145
Timmins Gold (TMGOF) (TMM in Canada)
Not sure what to make of this news release:
http://www.marketwatch.com/story/timmins-gold-announces-sale-of-pacific-...
It appears that nearly 20% of the stock is suddenly for sale. And that they are trying something creative in how they are going to do it. The stock is not reacting this morning, but I'm just as glad I'm out of this one.
July 7, 2011 - 10:19am
#146
Interesting article
http://247wallst.com/2011/07/07/hardest-hit-gold-stocks-searching-for-va...
Mentions some stocks that we've mentioned on this thread. Golden Star, Rubicon, US Gold. Not much nice to say about any of them.
July 7, 2011 - 10:24am
#147
sold Minera as well
Sold Minera Andes this morning. Decided I didn't really need any "McEwen Premium" at all for a while. Plenty of time to revisit the whole situation after that merger gets done. It's all just too pricey in the near term. Via my work on this thread I'm just finding too many other things that I like better.
July 7, 2011 - 10:47am
#148
Warrants a better choice
I think you will find owning the long-term (that's important) warrants associated with 4 of the companies mentioned in the article are a better buy than owning the actual stock. I have written many articles on the subject (I seem to be the only one doing so) over the past 7/8 years. I have developed 2 proprietary indexes - the Gold and Silver Warrants index (GSWI) and the broader Commodity-related Company Warrants Index (CCWI). You can get all the details here:
1. The “Secret” World of Gold & Silver Company Warrants http://www.munknee.com/2011/05/the-secret-world-of-gold-silver-company-warrants/
2. Gold & Silver Warrants Index (GSWI) Update http://www.munknee.com/2011/06/gold-silver-warrants-index-gswi-update/
3. Buying Gold & Silver Company Warrants is Easy & Profitable – Here’s How (and Why!) http://www.munknee.com/2011/06/buying-gold-silver-company-warrants-is-easy-profitable-%e2%80%93-here%e2%80%99s-how-and-why/
Enjoy and profit.
July 7, 2011 - 11:10am
#149
Lorimer Wilson
Am I reading this right? Lorimer Wilson is reading my rambling gold miner thread? Whoa, the pressure is on now. I better start checking and double checking all this stuff!
July 7, 2011 - 2:52pm
#150
another country heard from
Today’s news of a pending sale of a large block of TMM shares should remove a little gray cloud that has hung over the stock. It also will mover some 25 million shares from a holder who had it from under $1 and was sitting on some nice profits to a more likely holder(s) at current levels who would be less likely to be a seller anytime soon.
TMM had also been held back by an attempted takeover and its many other corporate successes were not being fully reflected in its share price because of this.
The stock has been building a new base in 2011 and with the sale of these shares we could see a move to a level I think is more worthy of their many accomplishments in the $4 – $5 area before years-end.
July 9, 2011 - 5:05pm
#151
Goldgroup Mining GGA
Thanks Eric for the Chesapeake Gold research, I think I am with you on this one, I am staying away.
But I really like GGA-Goldgroup Mining-also in Mexico.
They have a 150 million market cap, with 35 million in cash and 0 debt. They just announced production for sometime in 2012, and have a forecast of 200,000 oz in 3 three years.
They have 4 projects, near 1 million ozs, and have a JV with Goldcorp in one project. They are also calling for low production costs, in the 400oz range.
I have a small position and I am thinking of adding, seems like a gift a these levels, am I missing something?
Also, why are you selling shares in some of your small cap holdings, I say just ride it until these penny and 1 dollar stocks hit some serious numbers, trading them will drive one insane.
July 9, 2011 - 6:17pm
#152
zman--I like your thinking.
I'm liking your thinking on GGA. Haven't done my own DD yet, but it seems like the sort of thing I like.
- Production definitely on the way. Under construction. The numbers are "in the bag".
- Got the money in place to do it.
- Seems like value on the basis of overall market cap.
- Still some blue sky appeal on other projects.
I'm kicking a post around in my head along these lines, with some more names to drop for consideration.
As far as "why are you selling shares in some of your small cap holdings", all I can say is that overall portfolio management, otherwise known as risk management, remains paramount. Just because something "seems like a gift" doesn't mean you bet the farm. It doesn't mean you bet your kids college fund.
I started this thread as a sort of travelogue of my thought processes. Starting with the feeling that I was somewhat overweight in the mining sector. I had more miner exposure and more risk than I was comfortable with and was looking to try to figure out where to cut something back. Simultaneously with this effort, the mining sector hit some new lows that I found irresistible. Sure as hell couldn't sell, even though I felt overexposed. As the GDXJ hit prices in the 32-34 range I felt the urge to be a buyer instead.
So, since this thread started, I bought miners in the GDXJ 32-34 area (Great Basin, Aurizon, San Gold, Richmont Mines, Wesdome, and Golden Band) and got even more overweight, and then I sold miners in the GDXJ area of 35-36 (Brigus, Timmins, Levon, Kaminak, US Gold, and Minera) to get back to baseline. That in itself is a pretty good short term trade, but that's not what it was really about. It ends up I still have about the same overall exposure to miners, made a few bucks in a short term trading sense, but now I feel better about the group as a whole. Not feeling so much urgency anymore to lighten up.
Note that I agree with you when you say "trading them will drive one insane". You are correct. For me I look at these last couple weeks as a periodic housecleaning of my portfolio. Pull the weeds and water the flowers. Not a level of trading activity that is normal for me. I have no intention to keep on churning my account like this on a regular basis.
July 10, 2011 - 2:23pm
#153
Junior Miner Life Cycle
I've been thinking about this a lot lately. Here's a link about it. There's a few different takes on it, with some commentary:
http://www.worldofwallstreet.us/2011/04/brent-cooks-life-cycle-of-a-juni...
So I've been kicking some names around in my head, trying to figure just where they are in the cycle. Don't take my word for any of this. Do your own DD and decide for yourself.
In that first part of the cycle where all the great news keeps coming out and the stock is running up, it seems to me that Queenston, Trelawney, Rainy River, and Kaminak are all somewhere along that upslope. I'm not good at figuring out which ones are early on the slope and which ones are late on the slope. That's for you to decide.
What about Rubicon? Looking at how it cratered after the release of the PEA suggest to me that it has passed the first peak and now has entered the doldrums. The stock might go nowhere for years at this point, even though the project really looks as good as ever. Definition drilling, money raising, permitting. These things can take years. A lot of junior mining investors get bored by this kind of phase. There's not much "action", plus the financing needs also weigh on the stock.
I'm kind of thinking Levon Resources is in pretty much the same boat now. There's been an awful lot of dilution lately, and when the first 43-101 resource calculation came out recently the stock just yawned.
So who has bottomed out and might be ready to start back up toward the second peak? Detour and Northgate have had their big projects under construction for a year or so, and the stocks have been dead money the whole time. Stinko. DYODD, but I'm starting to take a serious look at both of those.
There's no single right way to play the miners. A lot depends on the skills and emotional makeup of the investor. For me, the ones that are somewhere on that first upleg just make me too nervous. There's too much unknown for me. I'm much more comfortable later along the curve. I like these construction period stocks. I know exactly what kind of production I'll get (if everything works out) a year or two down the line. There won't be any ten-baggers this way. Less upside, but less risk as well.
July 10, 2011 - 5:07pm
#154
One last batch of lottery tickets
I've become rather enamored of the Ontario-Quebec area of late. In the course of finding company after company just for fun I've succeeded in digging up a few lottery tickets for your consideration. I'm pretty much done with that process now, but I realized I've got a few more names to pass along. As always, Caveat Emptor, DYODD, and Don't Blame Me when they go belly up!
http://www.vantexressources.com/
http://www.yorbeauresources.com/en/
http://www.visiblegoldmines.com/
http://www.abcourt.com/index.html
A couple of these seem interesting. A couple of these look worthless. You'll have to do your own homework to figure out which is which!
July 10, 2011 - 6:00pm
#155
sandstorm 20%
Buy some Sandstorm Eric and then you won't mind so much. On the other hand if SSL likes Metanor then thats's a good thing.
July 11, 2011 - 10:18am
#156
Vantex
I bought some Vantex after I found out that McEwen was a large holder, shares have been disappointing so far, I think I will just ride out this lottery ticket for now, who knows, some day this could turn into an investment!!!
July 11, 2011 - 10:39am
#157
Claude Resources
Looks like they want to consolidate 100% of the Amisk project.
http://www.canadianbusiness.com/article/33109--claude-resources-moves-to...
July 11, 2011 - 4:01pm
#158
Ticker:NUGT
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"History Says Gold Stocks Could Double in Eight Months" That was the DailyWealth headline on June 15. I recommended buying shares of GDX – a basket of big gold-producing companies. I hope you took my advice… On the day that issue of DailyWealth was published, gold stocks hit their lowest level of 2011. Since then, gold stocks (as measured by GDX) are up 10%. But you haven't missed it yet, at all… --------------------------------- Your upside potential is still huge. In today's DailyWealth, I'll show you a way that you could potentially make much more than 100% gains, relatively safely, in gold stocks… Let me explain… Last month, I wrote that the last two times gold stocks were this cheap, they doubled within eight months. Here's the chart from June 15:
 To measure whether gold stocks are cheap or expensive, I rely on John Doody's excellent gold-stock value indicator in his Gold Stock Analyst newsletter. The latest issue of Doody's letter just came out, and gold stocks are cheaper today than they were in his last issue, according to his value indicator. With such extraordinary value in gold stocks right now, I want to share an idea I wouldn't normally write about here… Under normal circumstances, this investment idea would be too risky… it would be much more volatile than I'd usually recommend. But this is not a normal circumstance. Gold stocks are cheap. It's time to step up and take some risk. Here's what you need to know… historically, gold stocks are about twice as volatile as the price of gold… When gold goes up 10%, gold stocks go up 20%, and vice versa. Because of this, gold stocks typically give you some leverage with the price of gold in a gold bull market. This relationship hasn't held up lately… but I expect it to return. GDX is a safe way to buy a basket of the big gold companies. But there is a leveraged way to play GDX – its symbol is NUGT (like "nugget"). NUGT is a double-long fund. For every 1% gain in GDX, NUGT should go up 2%. At this point, NUGT is still pretty small… But it's an exchange-traded fund (ETF), so it can create shares as needed. The fact that this ETF is small means that "gold fever" has not at all translated into "gold stock fever" – yet. Gold stocks are super-cheap relative to the price of gold. Two things can correct this… Either gold stocks soar, or the price of gold falls dramatically. Your risk in this trade is a big fall in the price of gold. The last two times gold stocks were as cheap as they were on June 15, they doubled in eight months. It looks like it's happening again, with gold stocks up 10% in just three weeks… and nobody paying attention. Buy gold stocks today, if you don't already own them. The more conservative way to do it is through GDX. If you're willing to take on some risk and volatility, consider shares of NUGT. |
July 11, 2011 - 5:06pm
#159
NUGT & DUST
DUST is the sister fund of NUGT. Double short etf. I find it to be pretty useful. Suppose I don't really want to mess with my individual names, but think we are in for a pullback? Buy a little DUST and leave my miners alone for a bit. Then sell it again.
Or basically, get positions established in all the names I want, and then just let them sit. But gear my overall exposure up or down with NUGT & DUST without having to trade a lot of names. Eazy Peazy way to hit the gas or the brake without churning my account with a lot of trades, transaction costs, etc.
July 12, 2011 - 2:52am
#160
Medusa Mining
www.dianomioffers.co.uk/uploads/product_2559_pdf_link.pdf
Interesting. Some thing i came across, i have NO shares in it!
July 12, 2011 - 7:08pm
#161
Wesdome Gold Mines (WDOFF) (WDO)
Here's a promotional spot that they put out on KWN recently. It's advertising, so take it with the appropriate grain of salt. But still, it's killer.
http://kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2011/6/16...
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Stumbled upon another lottery ticket for your consideration last night. Lots of ground and activity in the Timmins Camp. DYODD!!
http://www.monetaporcupine.com/s/Home.asp
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