Pinnacle Activity Ticker
A forum of Gold and Silver Equities
Today ,it seems we have many experts calling for a return interest in gold and silver equities.Although gold and silver have come down some, from recent highs ,analysts believe that the spot price of both have a great future in 2012 .The equities are another story. They have been smashed on the rocks with some decent junior or intermediate producers making marginal comebacks ,but all told developers and explorers have been devastated. Here lies the the risk in stock investment when your only concern is Asset Value.I appreciate all the comments from the pro's but I wanted to reach out into the Pinnacle Community of amateur investors and try to make some sense out of an enormous list of gold and silver candidates that could make a lot of people here a lot wealthier in the next year,if what some pro's say comes through for us ,which is,BUY GOLD and SILVER equities,soon. I asked Frank Tabbert and he gave me a short list of Golden Goliath ,Golden Predator and Kootenay Gold. All undervalued in his opinion. If some others here at Pinnacle could put in their own companies with explanations why their pics could make us richer,I'd like to hear .Feel free to comment on bad companies as investing is just as much about insight into what not to invest in. I'm looking to draw attention to exploration companies ,developers and smaller producers,all in Gold and Silver Equities.
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Re: A forum of Gold and Silver Equities
Hey Thinker.
ECC is definitely one to watch and a legitimate discovery play with 22 holes pending. I am taking a small position next week on the hopes of an explosive rally a la GQC.
NKL's Wellgreen is a fantastic polymetallic deposit in which I wouldnt mind taking a long term position though I am not so confident in John Lee's ability to lead the company. However, there is no question that Wellgreen has the potential to be a world class project.
SMD is a tremendous bargain, it is currently trading below their book with roughly 76M in cash and equivalents. You get some great exposure to the Yukon via SMD... their portfolio includes equity holdings in ATAC (10%), Rockhaven (30%), Wolverine (20%) and Silver Range (20%).
I am not so high on WRN. I think they have some major permitting and infrastructural challenges. This is evidenced by SMD's recent divestment of their 5% royalty on the Casino deposit. I think NKL is the superior speculation at this point.
Re: A forum of Gold and Silver Equities
First of all I would like to thank scottiepimps for posting the excellent Beacon review of active Yukon explorers and miners, it is quite comprehensive. Any serious precious metals investor would do well to read the somewhat lengthy, but well worth it essay, and then do extra due diligence on the companies they find most interesting.
I own stock in all but two mentioned, one of which I recently came across, and was in the process of doing my due diligence on for possible investment.
Lets start in order of mention; Alexco reported their last quarterly results last week and the stock promptly dropped about a dollar on lower throughput and profits. This is not unusual in such a nervous and volatile market but given their assets and long term potential I think it is short sighted and a buying opportunity to add to my holdings anywhere under $4. I would also happily add more stock in Golden Predator in any pullback. I also agree that ETHOS represents one of the better potential juniors in the district, again buying on dips is appropriate in my view. Western Copper & Gold is the one that really surprised me, it only recently came to my attention in a serious way and I have it under revioew for possible purchase.
High on my list of favourite holdings is Prophecy Platinum whose Wellgreen project is developing nicely with regular news flows to keep investors informed. That leaves Silver Range Resources which I was not aware of and initially I would say it looks good, perhaps prejudiced by being a spinoff of a long time stock holding that is another of my favourite Yukon players that was hardly mentioned.
Quote: "Silver Range Resources is a spin-out of Strategic Metals Ltd. (TSX.V: SMD) which has a substantial portfolio of exploration projects and expertise in the Yukon." What an understatement, this is one of the best "prospect generators" in my extensive portfolio and at current stock prices under $2.00 an incredible long term bargain given all the prominent companies in which they hold stock. Talk about a "sleeper" this one could easily turn out to be the best of the lot, even if not as flashy as some of the profiled companies. Management has done an incredible job of acquiring promising properties and joint venturing them out to strong partners in a low risk / high reward manner, check their website for full details.
thinker70
Re: A forum of Gold and Silver Equities
http://www.beaconrockresearch.com/files/Special%20Report%20Scarsdale%20Equities%202012%20Yukon%20MineTour.pdf
Excellent summary of tours in Yukon.
Re: A forum of Gold and Silver Equities
CEOs across the land should be forced to read the below message. When shareholders are forgotten they greedy buggers will lose in the end or the next wave of greedy buggers will have no deals to make.
Re: A forum of Gold and Silver Equities
Scottie; I lost my battle to keep US Silver independent of RX Gold. It's over and shareholders from USA have been dealt a bad blow.The company might be slightly stronger,with the advent of some gold (very similar company to Great Panther now)but the common shareholders value, will be reduced by 1/3rd of our shares.It's a real shocker.I believed the resolve of US Silver shareholders would win out in the end and they would vote against the merger ,no such luck.
I agree with you ,M&A is going to really become a focus,for investors. There is so much underlying corruption in the junior resource arena, that it is beginning to ruin the Venture,if not the entire sector. Options for doing good deals,options for doing bad deals. One should wonder if a good salary doesn't mean ,your suppose to work to the benefit of the shareholders..That's not enough, apparently.I 'm getting really fed up with attitudes in this sector.Total incompetence,is being rewarded and being marginally good at your job , is now demanding huge promotion and substantial increases in salaries and bonus's.It's all due a sector that has run itself into the ground, by it's own greed.The only reason these people get away with this BS, is because of investors like us that continue to support them.I'm really beginning to wonder ,if that's justified.
Re: A forum of Gold and Silver Equities
Another one bites the dust:
http://www.stockhouse.com/Community-News/2012/Aug/7/Endeavour-in-$389-million-Avion-deal
more consolidation on the way.
Re: A forum of Gold and Silver Equities
I made some comments a while back about CSL but it was not to Aarons or possibly CSL's liking as they are paying to advertise here and my blog was quickly deleted Having said that, the company does hold promise with their latest result from tenching. Of course with trenching samples, they did not state GRAB SAMPLES, so if you grab the best samples that would look good in a jewellery box, values tend to get distorted. I do however plan to take a small position. Another one to look at is Northern Gold NGM TSX.V with the appointment of a new president to move this forward. As for GPD, this one looks better and better. Another one on the CNSX is Mahdia Gold. with Sprott, Wekerle and CANACORD holding big positions. Someone trading through BMO is accumulating big time. Not trading on the venture is a huge stumbling block though.
Re: A forum of Gold and Silver Equities
I still hold Frank's 3 picks as well as ATAC and and am looking at a new player in the White Gold District, (Alix Resources ALIX .09) due to report drilling results this week. I also wonder how many are following Pinnacle's pick reported on this issue (Comstock) which is right where I bought it @ .17 but with the recent spurt to .23 shows promise of eventually paying off well if good drill results back up the trenching.
The WGD is not the only district showing long term promise. A recent press release from Duluth Metals that is consolidating the north shore of Lake Superior, (they tookover Franconia) with POLYMET being another major player, the district looks to be setting up for a bounce when the market finally turns positive. What impressed me is that this is the largest PGM's deposit outside of S. Africa and their latest resources estimates include 2.5 Billion lbs NICKEL Ind. and 4.6B lbs. Inferred. COPPER is an impressive 8 Billion lbs. Ind.& 13.5B lbs. Inferred and even 1.7M oz. GOLD Ind. plus 2.2M oz. Inferred.
Add in 3.2M oz. PLATINUM Ind. and a further 3.9M oz. Inf. PLUS 7.2M oz. Ind. and 9.7M oz PALLADIUM with much more to be explored, this could be a major development that is not properly valued by the market. This is a long time holding of mine and I sold enough around $3.00 to get my investment off the table before they consolidated with Franconia, so at the present share price it could be a smart long term BUY?
thinker70
Re: A forum of Gold and Silver Equities
Dalradian (DNA) also looks good. Took a quick glance at their PEA yesterday. I'll need to research further but the company looks really good on the surface.
Re: A forum of Gold and Silver Equities
I would agree that these companies seem to be past their bottom.I still think a PM mining investment is premature unless of course your investment has more to do with what's happening with respect to the company ,comparatively to what's happening with spot prices. The whole market (due to Europe) seems to be on a little better sentiment but resources in general still are not defined as ready to move way up ,yet.
I believe in the long term viability of PM mining companies,so if you've got lots of cash ,I'd buy. I got 2 houses and no job.Meanwhile greedy ,.self serving hippocrites are temporarily controlling my financial fate. My own fault.
Re: A forum of Gold and Silver Equities
Hi southpen, I still like the three picks. All three watch their pennies, GPD has royalties coming in J/v deals and its CEO continues to buy GPD shares on the open market. KTN focuses on the one property and J/V's the rest as does GNG with a major AEM and incidently the only major that does early exploration work.oin a spec property. The burn rate is much lower on these companies and with GPD it is when not if and I feel is a screaming buy
Re: A forum of Gold and Silver Equities
Great lead scottie. I've been extemely vocal. The US Silver Management ,imo has acted in their own best interests,in collusion with the management of RX,to get this deal done, and the lawyers that put the break fee rules together should be recognized for unfair practice.Common shareholders are voting on a deal that was most obviously slanted in RX favor. We needed a CEO .Blasutti ,of RX is a very capable man and I would be happy to have him lead us but you don't give away 1/3rd of your shares for a CEO.This is insane. These guys have NO MILL ,they have 25,000/yr in gold resource ,with about 110,000/yr in silver resource and an estimated 2.5 year mine life on existing resources. They claim ,there is a lot more but this is NO WAY how to put together a merger,based on some insiders BELIEF in more resources.The baggage continues with 8 million in debt and another exploration property ,that has only a down payment paid.Have they ever even made a profit ? I dunno .,but it is very unclear how they will in the future,without the financial backing and the use of OUR mill. I talked with HL and RVM yesterday ,both interested in a deal with USSIF but HL would only offer cash ,which personally I have no interest in. What a f**king mess! USSIF is ,imo the most undervalued silver asset in the market today. RESERVES mean everything ,especially to pencil pushers who write these deals. BANKABLE ASSETS. Compare NAV to NAV. Opinions or sentiment should mean nothing .It's all about RESERVES and in place INFRASTRUCTURE,nothing else matters if both companies are in politically stable area's and have no environmental hazards that could cost delay and dollars. How could any PRO look at this deal and call it fair? Beyond my understanding, I guess. Rant over.Good to tell somebody that can understand. Any thoughts ,feel free ,even if you disagree.
Re: A forum of Gold and Silver Equities
southpen, are you getting taken over or taken under?
This is good news for the PM equities though, liquidity events like these mean more cash to go around to other promising juniors. Hopefully, the M&A activity picks up.
Also, check out Otto's analysis here:http://www.incakolanews.blogspot.com/
He has a few posts on the HL bid for USA. I think you'll find his insight helpful.
Re: A forum of Gold and Silver Equities
This is all a bad situation . I hate the RX deal and HL's offer is insulting but better than the only alternative. I wrote to a few companies making them aware of the proposed merger between RX /USSIF,including Atna. Wouldn't that make a fine company !
Re: A forum of Gold and Silver Equities
USA to be bought out for $1.80 a share
http://www.financialpost.com/markets/news/Hecla+Announces+Intention+Make+Cash+Offer+Acquire+Silver+Corporation/6989758/story.html
Re: A forum of Gold and Silver Equities
Different companies reach a plateau of market attention based on a wide range of factors, but the time frame from first discovery to an economic assessment and proving up resources sufficient to attract the attention of a major with the financing to actually build a mine can be 5-10 years, longer than most investors are prepared to hold. Likewise producers in a down market such as we experienced in the last half of 2011 to the present can be severely punished by the market for a variety of reasons that are hard to read and play correctly.
Here is a short list of producers I think are grossly undervalued that when market sentiment turns positive, plus improving production results and new reserve additions should see a nice bump up in stock prices; CGA Mining CGA/TSX; Crocodile Gold CRK/TSX whose production has increased nicely since buying 2 mines from Aurico? LAKESHORE GOLD LSG/TSX production increasing/costs going down. Golden Star Resources GSC-V making a strong comeback in production after falling from over $6.00 to under $2.00 Primero Mining P their update in Aug. is likely to bolster the share price. Barkerville Gold BGM announces recent new high grade results.
Doing this from memory on recent press releases, will prepare update for later posting.
thinker70
Re: A forum of Gold and Silver Equities
How mnay annual ounces / production is ATN looking at? What year also?
Currently producing about 35K-40K ounces.
Looking to add up to 100K (total up to 140-150K) ounces from Pinson starting Q4 2012.
Re: A forum of Gold and Silver Equities
How mnay annual ounces / production is ATN looking at? What year also?
Re: A forum of Gold and Silver Equities
I think the fundamentals of both gold and uranium are the most compelling of any other resource market.
However, I think the timeline for a uranium catalyst is firmer than that of gold.
Consider the fact that CCJ has a $1B warchest and the fact that the HEU agreement ends 2013. This would seem to set a firm timeline for a re-valuation.
That said, you can also find opportunities within gold equities. I like GPD, ELG, ATN because they have near term production catalysts and the ability to finance - good management, 1 yr payback, institutional support, etc.
Re: USA/RXE, I promise to take a look this coming weekend. I am not particularly interested in silver.
Re: A forum of Gold and Silver Equities
What do you think will be a better short term buy ,Uranium co's that we've discussed or Gold companies,we've discussed ?. Your probably going to say both,you own them all or most and that's really the best answer but I'm really trying to figure out which way the economy will go (changing daily) ,which will be a very real indicator of Gold OR Uranium equities ,Wouldn't you agree?
Politics is running the economies right now. I would be pissed off if I were a German on the issuance of more debt to ingrades like Italy and Spain. even though the German economy was made better with the inclusion of many countries that really should never of been given equal staus,as Germany,I still think that Germans will have to work longer and harder to support this mess they,ve got themselves into.
Your pics on these uranium and gold stocks have been primo,scottie. i would add OIL and NG to the porfolio and believe that's all that's needed. You never told me what you think of the RXE-USA deal? I really need some input. I'm becoming a strong opponent of the deal. Too much digression.
Re: A forum of Gold and Silver Equities
Hey Southpen, I'm not too sure about the others you suggested on your uranium forum.
I like Tigris and European Uranium because they are trading at cash and is significantly derisked.
I like URRE because they have the personnel and expertise. This can be said about other junior operators like EFR and URZ as well, though URZ seems overvalued.
In terms of resource, I think UEX clearly has the best but there are others with intriguing resources such as FIS and KIV.
So I guess you can say I'm focused on the best... the best value, best operaters, best resource. Everything else poses too much risk.
Re: A forum of Gold and Silver Equities
If you own all 3 ,your in good shape.I still think patience is required with gold stocks.Every gold hawk from Doug Casey to Eric Sprott believes this resurgence should start ,now yet nothing happens.i think these guys made their moves and them selves are becoming impatient.
We are still in an election year where both candidates want the economy to be centered around everything anti gold. The best you'll here anything from Wall street is that we should have 10% of our porfolio in gold OR gold assets.If the small funds follow the big funds and the big funds follow the Banks,we still have a ways to go. Still ,if I have the cash I'll buy into 1 of the 3 you have , soon,ATN 's getting high in respect to the other two ,but right now my favored one..There is so much out there For Sale,not just the gold stocks but Uranium,Rare Earths and Copper -Coal-Silver-NG- and now even Oil, amazing.
What do you think about some of those big share structured Uranium co's I put on the Nuclear board,.?
Re: A forum of Gold and Silver Equities
I cant disagree with you, Southpen. GPD is riskier than the other two, for sure. But all three are significantly de-risked as compared with gold juniors as a whole.
What you need to keep in mind is GPD is trading at half the market caps of both ELG and ATN... though GPD shares a very similar profile and is about a year behind the other two in terms of development and production.
Another thing is that GPD is most capable of scaling operations and reducing costs amongst the three because production will be coming from one mine site. It's also my feeling that GPD has the most blue sky exploration potential.
I like owning all three... ATN to produce up to 150K oz starting the end of this year, GPD to produce 40K oz starting next year and ELG to produce up to 150K starting the end of 2014. All three could be producing in excess of 150K in 2015 and beyond.
Re: A forum of Gold and Silver Equities
Top notch ,scottie . You've brought ,imo 3 gems for PD to seriously consider long term investment in .I like ELG and ATN better than Golden Predator ,mainly because they have reserves and production with just as clear a road to a lot more. GPD is still an exciting prospect ,down the line.I guess it all depends on how much cash you can have sitting idle ,for now.
Re: A forum of Gold and Silver Equities
Cash costs (in Sweden) are on the higher side but they can make operational improvements (reduce ore dilution) to bring it down to about $800-$850 at their Bjorkdal operations. What I like is that their Lupin mine is a brown-field project with infrastructure and permits largely in place. Cash flow from Bjorkdal will subsidize exploration and development at Lupin and Ulu, their Nunavut projects. They are also close to other major mining operations.
The leadership is also top shelf. Pat Downey, the President and CEO has a wealth of experience in cold weather mining as he was formerly the President and CEO of Viceroy Exploration before its gold assets were sold to Yamana.
Looking at the Directors, you'll see names like Robert Buchan, the founder of Kinross and current Chairman of Allied Nevada. He is also the founder of Elgin Mining.
ELG also has direct access to financiers like HSBC (Mullen) and Sprott Lending Corp (Sinclair). This access to financing is important in today's market environment. Additionally, capex is relatively low to restart their Lupin Mine (~$50M to restart 1ktpd operation for about 80,000oz/year) and would be paid back in less than a year @ $1,600 PoG. The mine is expected to start producing in 2014.
Again, how many juniors can payback capex in a year or less? Not many...
Re: A forum of Gold and Silver Equities
Gold -Ore is Elgin. excellent little company,scottie. I followed these guys a while back.As soon as I saw Sweden as the home of the operating mine ,all past research came back to me. The cash costs over 700/oz is becoming a new reality.they will have no environmental problems with their mill and it's IN OPERATION. I see the operation in Sweden (best place in Europe), as very good ,other than the fact that it's so far away from future targets .It causes more expenses in management but other than that,having a gold mine in Europe could turn out to be a HUGE windfall,in the very near future. As (almost ) always,good pic,another for my watchlist
Re: A forum of Gold and Silver Equities
http://www.elginmining.com/
http://www.elginmining.com/i/pdf/Presentation_May_2012.pdf
http://www.elginmining.com/s/BoardOfDirectors.asp
Re: A forum of Gold and Silver Equities
ELG Elgin Mining ??? Coal ? The website displays astro turf ? ATN is looking good scottie.I would have liked to have seen a merger between them and US Silver,but I guess the management of US had other idea's. They would have been a perfect fit .Same sort of companies with focus on the two most important PM's
Re: A forum of Gold and Silver Equities
Currently holding GPD, ATN and ELG.
All three have near-term, visible paths to expanded production (with ATN and ELG already producing on a small scale of about 40K oz per year) with low capex. All three have strong institutional support and experienced management teams (ELG's Directorship is particularly impressive).
DYODD
Re: A forum of Gold and Silver Equities
How about the Fed lending some commercial banks money at 0% and instead of putting that money into lending to business's ,they buy treasuries at 1% . It works well for both the FED and the banks. The Fed needs a buyer for treasuries,( Asians are becoming disinterested)and the Banks need to raise the amount of securities they have , to off set their riskier ventures, (that's a law),but I really think they're suppose to have capital from somewhere else . So goes a system that been on this course since 1971 (Nixon) and ballooned in the 1980's (Reagan)