There are a lot of good threads on the board suggesting gold miners, like Eric O's favorites, near term producers etc. But if you could choose only one gold miner, which would it be? What is your top pick and what are your hopes with it? Currently Im way over my head in silver miners and would like to get one or two gold miners so Im really interested to hear anyones top picks.
RRJJ
Only one...I think I would cheat a little and go with Aberdeen, AAB. It's not 100% gold and not actually a miner, but a banker to the miners with a big basket of their shares. It's very professionally managed, you get a 1.50 basket for about .90, plus a two cent divvy, constant new deal flow at the private seed stage where we can't otherwise get access.
I like Aberdeen, I've owned the warrants for a couple of years, but I wouldn't make it my no.1 pick because its shareprice can never seem to catch up to the nav. IMO it has a superb portfolio of companies but they don't all shine at the same time.
Presently, I'm shy on silver, heavy into Yukon gold so I think I will go with Kaminak. Its got everything one needs in a Yukon explorer and could easily hit $20 or thereabouts within a year or less.
This is a profitable miner already , producing 280 ,ooo gold ozs a year already in a safe jurisdcition in New Zealand. they have announced the Didipio project will be coming online.
OCEANAGOLD ANNOUNCES COMMENCEMENT OF CONSTRUCTION AT THE DIDIPIO PROJECT IN THE PHILIPPINES
OceanaGold Corp.'s construction activities have commenced and will progressively ramp up in the coming weeks on the Didipio project located in northern Luzon, Philippines. Further predevelopment studies have identified opportunities to maximize project returns. The project shows strong economics with cash costs for the first six years averaging negative $79 per ounce (net of byproduct credits using $3 (U.S.) per pound copper). Gold and copper reserves have increased significantly along with average annual gold production, which is now 100,000 ounces per annum. The board has formally approved the remaining capital expenditure to complete development of the Didipio project.
With a market cap under 770 million $ currently this one tops my gold producer list in value as far as earnings per share, in situ resources , and future growth just announced.
This is not an explorer, so wont get a rocket ride on great results or anything, but once DIDIPIO is online, it will be trading at a much higher value than today. Multiples is my guess.
Should have thrown in the caveat that I can't buy a stock over a dollar, just can't do it. Irrational, yes I know, but it also keeps the universe of prospects down and forces hard choices.
consider Fire River
start up production July 2011
full production fall 2011
est 50,000 ounces per annum
http://www.firerivergold.com/s/Home.asp
but I'd be gettin on a horse.
Bot my first Fire River shares this past Thursday.....excellent suggestion
Read through a bit on their site. Did you read any of the CEO's remarke in a letter or some sort of document for the record where he showed the level of commitment, sense of family among the management, contractors, and employees. It's an impressive press release, dated July 5, 2011.
Looks like it's 'all there' and piles of concentrate to boot.
Here's the link:
There's lots of juniors starting to crank out 50,000 oz or thereabouts. Why would I choose Fire River? Is it showing a profit, does it have a reasonable cost of production? I'm not knocking your choice, but its not the type of operation that the funds would be interested in , is it?
There's lots of juniors starting to crank out 50,000 oz or thereabouts. Why would I choose Fire River? Is it showing a profit, does it have a reasonable cost of production? I'm not knocking your choice, but its not the type of operation that the funds would be interested in , is it?
dunno, I'm new at this. All I know for sure is I subscribe to the Mark Twain dictum.
A gold mine is a hole in the ground with a liar standing in front of it.
Which is why I keep scratching around. See, I ain't got all that much riding on the deal, so I'm more inclined to look for a real long shot.
I think I have one, what they call a lottery pick. It's trading at 3 cents a share with 205 million issued and outstanding. They are developing a major gold mine in BC near Kamloops. I'm slow to mention the name, just wondering why the damn thing is so cheap.
Gryphon Gold Corporation is the one for me on TSX.
They have big enough resource and massive upside to define a large ore body in Nevada. They are starting up in October with modest production figures. They are very much under radar. They can grow big enough resource to get noticed by funds but it is still very early.
As far as explorer I would go for Papua New Guinea rather than Yukon and MIL Resources. 10 million AUD cap, 4.5 million in cash and multiple exciting prospects. Drilling to start soon on two of their many properties.
That's a tough one. If I could only choose one? Well first off, that's not something I would ever recommend. Mining is a crazy business. Any sort of doom can fall right out of the sky right on top of your head at any time.
If I could only have one I'd want a producer. A solid producer. No lottery tickets for me if I can only have one. I'd want the most production I can get for the money. I wouldn't mind if the production is high cost because I'm fundamentally bullish on gold. Higher gold will treat the high cost producers well. You actually get better leverage to profitability that way.
I don't want to pick just one, but if I had to, I'd take a very close look at Northgate Minerals.
The Australian production is high cost so the market isn't putting any value on it right now. The Young-Davidson Mine has the whole company in the construction doldrums right now. And with the news about Primero you must toss out the silver production completely due to the Silver Wheaton issues. But still, my back of the envelope calculation puts gold production at around 455,000 ounces by next summer, with a current market cap (factoring in the shares to buy Primero, and a recent upswing) of about $1.4B. That seems like pretty good value.
Thanks Mouser.....the chart is showing a pennant development.
Also TD waterhouse has an intermediate term value of 4.45 which was posted in March. That means this puppy could pop nicely at anytime. TD has always been quite conservative with valuations so an even higher number could be realized here.
Good headsup
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Thanks for all the replies. Will definitely look into some of your suggestions. And I agree with Eric Original. Only having one miner is way to risky and wasn't my intent. I have a pretty diversified mining portfolio but don't have any pure gold playus so I'd like to include 1 or 2 pure golds. But, still real interesting to hear your top picks. Thanks!
RRJJ