American Bonanza is a very undervalued near term gold producer at $0.37 a share. They will be starting production in August/September of 2011. They are fully funded, no hedges, and fully permitted. They also own millions of shares of other gold miners such as Balmoral Resources which just had some of the best drill results I have ever seen from the Fenelon, QC property that American Bonanza sold them for the shares. Do your own DD but this is a hidden gem.
American Bonanza (T.BZA)
Thanks for the tip, I'm going to look into this more but it looks like a great story.
I might buy some of their shares. It does seem undervalued.
Check Gryphon Gold Corporation as well. It is in a very similar situation with production starting in Sep 2011 and extremely undervalued as well.
Actually a lot of emerging producers are undervalued atm.
They have 10 million needed for startup and will start producing using leach pads from september (at least they plan to). The remainder of the money is to be funded internally as they have quite a bit of unprocessed mined ore that will need crushing and placing on heap leach pads. They are to start producing i.e. production phase 1 and profits from first few months will be used to finish off the startup i.e production phase 2 in feb 2012 (slide 13 of presentation). Production phase 1 which is planned to start sep 2011 is fully funded for. They are similar also in cash costs per oz (but Bonanza gold will have better cash cost when Gryphon eventually (in 1-2 years) moves to process sulphides which are generally more expensive to process). Production of 40-50 000 oz is also comparable although I feel Bonanza Gold are few months ahead in terms of startup. The market cap is about 30 million CAD and they have 2 million oz at the moment with a lot of upside for 5+ million oz deposit. On the other hand Bonanza gold has all deposit categorized as oxide which is more environmentally friendly as no cyanide is needed. Overall, both have good upside, both in mining friendly jurisdictions and that is why I thought I will mention GGN.
Hey, thanks for sharing American Bonanza's story. After doing some DD and seeing some other posts regarding that company, I went it and bought a few shares. I think with the operation and production plan that they just may hit the market at the right time in relation to gold price. To me this is a no brainer since they have plenty of cash on hand with the ability to strike new deposits in depth. It can only head North from here.
Also watch Romios Gold (RMIOF)(RG.V), I heard they have a possible monster deposit that they are currently drilling and we should start hearing results in the next 2 months.
yep, they rushed a third drill to the site and it went right to work which to me sounds like a significant development
I loaded up best I could
With Romios Gold being next door to NG's Galore Creek. This could possibly be a huge takeover target someday. They have a massive exploration property package and we saw what massive exploration companies can do (i.e. prophecy platinum, duluth, etc.).
On another note, American Bonanza is the best value in my book with a huge IRR and it only gets better as the price of gold rises.
Andrew Cook announced in a BNN Market Watch interview that Bonanza is one of his top picks.
It's the last segment of Market Watch, so if you go to the bottom of the page and select Part 4, then you'll hear his opinion of BZA about halfway through the interview.
What is not to like here? American Bonanza up 44% in the last five trading days.
i have a small position in this ... bought if after it made the huge jump a few days ago. Do you see this stock going down quite a bit before it ramps back up ? Suggestions? thanks
I noticed a 'top story' yesterday on fox news website. An old underground mine in Cali reopening. Now ads. Is the tectonic shift to mainstream starting to creep forward at a faster pace. Thx for headsup on this one, I managed to pick up a few last month. I saw these guys at a convention down in Orlando early this year. Should have bought back then. Oh well.
Thanks for the reminder, I added to my position yesterday. I think it is obvious most junior producers got crushed in the last few weeks; however, with the price of gold holding steady at 1600+ we are indeed in a position to make a very nice run. Looking forward to the start up of the mill in November. This will be an exciting year for American Bonanza. My advice...Get in while you can at these levels.