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News from June 2012
The action on gold/silver this week implied that $22-23 silver and $1435-1470 gold is back in play. However, even if we reach those bottoms, they are not likely to last all the way to November. In fact, I will be very surprised if gold does not rally at some point before November.
I'm hoping we see a big rally in gold before November and everything is pointing that way. Gold has been in a negative trend (although we bounced off the bottom in May) since September and the money printing... more
Added: GMV Minerals Inc
GMV Minerals has a very low market cap ($5 million fully diluted) for owning this much land (700,000 acres). Guyana is known for having gold and they own leases on several large properties. They are just now starting phase 1 drilling, soil sampling,... more
Added: Golden Goliath Resources Ltd.
Golden Goliath Resources is a relatively new project generator with a focus in Mexico. They have 10 properties on 20,000 acres and 2 JVs. Their flagship property (Las Bolas) was recently optioned to Agnico Eagle (70% interest and the operator). Golden... more
Added: Harmony Gold Mining Co.
Harmony Mining is a major with most of its mines in South Africa. It's too bad they are located in politically risky South Africa. If their mines were based in a mining friendly nation, their stock price would be double it's current price. They are... more
Added: Galiano Gold Inc.
Keegan Resources is a highly undervalued stock with a large (5 million oz) late stage project in Africa (Ghana). They own 90% and the Ghana government owns 10%. If you don't mind Ghana (currently a stable democracy with several large mining operations,... more
Added: MAG Silver Corp
Mag Silver has an excellent late stage project in Mexico. Their Juanicipio project is a JV with Fresnillo and they have a 44% interest. Production should begin in 2014 and it has a 15 year mine life. Mag's share will be 6.5 million oz of annual silver... more
Added: Medusa Mining Ltd.
Medusa Mining is a mid tier producer (my definition) in the Philippines. Most of the value is priced into the stock, but they could be a 3 bagger long term. They plan to increase production from 100,000 ounces in 2011 (10 gpt) to 400,000 in 2016. If they... more
Added: Novagold Resources Inc.
NovaGold Resources has a huge late stage project in Alaska (Donlin). A lot of the upside is built into the stock price ($1.8 billion fully diluted market cap), although cash flow will be around $700 million per year for 27 years at $2,000 gold prices. At... more
Added: Orezone Gold Corp
Orezone Gold has a late stage project in West Africa (Burkina Faso). Their first mine (Bombore) will not begin production until 2015 (240,000 oz per year). They have the goods. Current resources are 4 million oz and that does not include 215,000 meters... more
Added: Premier Gold Mines Ltd.
Premier Gold Mines is an enigma to me. They have a high market cap of $608 million fully diluted, but they have not released a PEA on their flagship property (Trans-Canada), which has 3.5 million ounces. The PEA is coming in 2012. Usually when I see this... more
Added: Orex Minerals Inc
Orex Minerals has an advanced exploration 1 million oz (1 gpt) project in Sweden (Barsele). This is a highly undervalued company if the Barsele mine gets built. This is a potential 10 bagger. They have a potential long life mine and a fully diluted... more
Added: Eco Oro Minerals Corp
Eco Oro Minerals has a late stage project in Columbia they are trying to permit. If they get their mining permit, this is a possible 5 bagger. They plan to mine 270,000 oz for 10 years. That is not a very long life of mine and they may not get a full... more
Added: Gunpoint Exploration Ltd
Gunpoint Exploration is a potential 10 bagger or a potential loser. It's hard to get an idea of the value of this company. Their 1 million ounce Talapoosa project could easily turn into a mine and push this stock much higher. It is a 1 million oz (1 gpt)... more
Added: Impact Silver Corp
Impact Silver Corp is a small producer. Many investors are Impact Silver fans. I'm not because of their low resources and small production. I see them as a 3 bagger going forward, but not much more. However, they have performed well, taking mines into... more
Added: Lara Exploration Ltd
Lara Exploration is a very good project generator. The only problem with this stock is that it is not precious metals focused. However, with the high price of gold, I would expect this company to focus more on gold. This company has shown the ability to... more
Added: Moneta Porcupine Mines Inc.
Moneta Porcupine has an excellent project in Ontario, Canada. They are close to releasing a PEA and have a 3 million oz resource. This stock looks very promising, although it is still a high speculation stock until they release a PEA and give guidance... more
Why gold is going to $5,000.
Why gold is going to $5,000.
Gold is going up for several reasons that are undeniable, and the only thing that can prevent this increase in value is an orchestrated global government manipulation (i.e. taxation or confiscation).
What are these reasons:
1) Peak oil. Oh, this is another controversial topic, with many believing we have plenty of oil. But trust me the decline rate is now bigger than than what future projects can deliver. Look for oil prices to reach $200 by the end of 2015. more
Added: China Gold Intl. Resrcs Corp Ltd
China Gold International is an interesting stock if you like copper. Their CSH open pit gold mine is producing 130,000 oz and has 4.7 million oz of resources, which makes for a very long life mine. But the key to this stock is their Jiama copper mine,... more
Added: East Asia Minerals Corp
East Asia Minerals is an odd company. The stock price went from .10 cents in 2008 to $8.30 in 2010. Then dropped from $6.75 to .27 cents in the past 12 months. They released a 43-101 resource estimate in March 2011 and the stock dropped 50%. Investors... more
Added: Mako Mining Corp.
Golden Reign Resources is a high speculation stock and early exploration. It is nearly impossible to determine the upside for this stock at this time. There definitely is gold on their properties (350,000 acres), based on early drill results, but it is... more
Added: Semafo Inc.
Semafo Inc. is an emerging major, with a market cap of $1.4 billion fully diluted. Long term this looks like a 3 bagger. They have solid growth going forward, likely reaching 500,000 oz of production by 2016. This looks like a steady growth stock for the... more
Added: Taseko Mines Ltd
Taseko Mines has an advanced stage project in British Columbia (Prosperity project). They have a $577 million fully diluted market cap and are forecasting to begin production in 2015 at 235,000 oz per year for 20 years (adjusted for hedging), plus a... more
Added: Torex Gold Resources Inc
Torex Gold Resources has a large late stage project (Morelos) in Mexico. They have already have found 5 million oz (2.5 gpt) and are likely to find 7 million oz. They have a $955 million fully diluted market cap, so most of the value is already in the... more
Added: Alexco Resource Corp.
Alexco Resources is an emerging mid tier silver producer. They have a fantastic property located in Canada. This was an excellent investment a few years ago before they began production, but now a lot of the value is gone. I have it rated 2.5 and... more
Added: Midland Exploration Inc.
Midland Exploration is a project generator with 600,000 acres in Quebec on 41 properties and 18 projects. They have 5 JVs, including deals with Agnico Eagle, Osisko, and Aurizon. They seem to be hitting their stride and are on the verge of growth. I... more
Added: Millrock Resources Inc.
As far as project generators go, Millrock Resources is a good one. They are cheap ($20 million fully diluted market cap) and are poised to grow. They already have 8 JVs and this number will expand over time. It is inevitable that a few of their projects... more
Added: Newcrest Mining Ltd.
Newcrest Mining is a solid company with 8 operating mines. Their problem is that they are so big ($19 billion fully diluted market cap) it is impossible to have a high production growth rate. They are forecasting production to grow at an 8% rate for the... more
Added: Newmont Corp
Newmont Mining is a solid company, although growth will be flat at around 5 million oz until 2016. They have 145 million oz of gold resources and a large pipeline (19 projects in development). Their problem is that they are so big ($25 billion fully... more
Added: Golden Predator Mining Corp
Northern Tiger Resources is a player in the Yukon. Personally, I prefer ATAC, Kaminak, Alexco, and Golden Predator. However, they have some interesting properties and are very cheap ($11 million fully diluted). The 3Ace and the adjacent Sprogge property ( more
Added: Pelangio Exploration Inc.
Pelangio Exploration is a relatively new project generator and has several early exploration projects. It looks like they have found a large mine (Manfo) in Ghana), but it is too early to tell. For this stock, you to want to wait for more drill results... more
Added: Perseus Mining Ltd
Perseus Mining is a mid tier producer (my definition). A lot of the upside is built into the stock price. It has a $1.3 billion market cap and will produce about 200,000 oz in 2012. However, production is forecasted double to 350,000 to 400,000 oz in... more
Added: Ramelius Resources Ltd.
Ramelius Resources is a mid tier producer (my definition). They are producing 100,000 oz at two mines in Australia, and production is forecasted to grow to around 130,000 oz by 2014. That should boost the stock, but they need more growth. With a fully... more
Added: Resolute Mining Ltd.
Resolute Mining is a mid tier producer with three producing mines in Australia and Africa (Mali and Tanzania). They have average cash costs ($750 per oz), no debt, and $70 million in cash. They are undervalued and I like their pipeline of projects. They... more
Added: Rusoro Mining Ltd.
Rusoro Mining has huge upside potential. No one wants to own it, because it is in Venezuela and the political risk of nationalization. However, Rusoro has made some deft moves to reduce that risk. They brought in a Russian partner to create stronger ties... more
Added: Salazar Resources Ltd
Salazar Resources has a late stage project (Curipampa). If their mine was not in Ecuador, I would like this stock. Three countries I am avoiding are: Venezuela, Bolivia, and Ecuador. Politically I think they are too risky long term. The Curipampa project... more
Added: Taku Gold Corp
The Yukon is red hot and Taku Gold has a large land package of 9 properties (150,000 acres). I wish they were better financed like Golden Predator. They began drilling in 2011 ($4 million) and will continue to drill in 2012 ($3 million). That might be... more
Added: Tanzanian Gold Corp.
Tanzanian Royalty Exploration has a late stage project (Buckreef) and numerous exploration properties in Tanzania. Production scheduled for 2014 at about 150,000 oz (they get 55%). I don't understand why this stock is over valued. Most of their other... more
Added: Troy Resources Ltd
Troy Resources is a mid tier producer (my definition). This company has reserve issues (less than 2 million oz), but it also has potential. I think it could be a 3 bagger long term, but there is significant risk that it doesn't make it. Both of their... more
Added: Yamana Gold Inc.
Yamana Gold is a strong major. I like their growth path from 1.2 million oz in 2012 to 1.75 million oz in 2014. That's more than a 15% growth rate. They can't keep that up, but it should increase their value. In fact, while most gold stocks were losing... more