I picked some stocks with news out late in the week that I will comment on. Another of my tasks for the weekend is to clean off the open tabs on my web browser. When I find interesting commentary, I open it to get to it later, I will share some links for readers of the stuff I think are helpful to investors in mining stocks.
Premier Gold had very good news on the restart of their Mercedes mine in Mexico. Most importantly, since the restart in June it is producing positive cash flow and that more exploration is a key to increasing production. This is just one of their mines, and they all have a similar profile to unlock value with the drill rig. They are building a mining company the old school way, buy assets at good prices and unlock value with the drill rig. Easier said than done, Ewan Downie that runs the company is a very talented explorationist and has surrounded himself with a strong mining team. They are also talking about an option to spin-off assets into a new company. I like what I see with Premier Gold and see them as a must own for investors that want gold miners in their portfolio.
Westhaven Gold had disappointing news that got them a 17% haircut on Friday. To make matters worse than really poor assays results is that they had to add, but over here we have our best surface showing yet. Even after Friday’s action they still have a rich valuation and are at least 50-70% overvalued considering realistically what they have delivered with drilling. In epithermal vein systems you have to understand where you are in the system due to zonation of grade in these systems. When I first started following the company I did because they had high-grade gold, my concern was size. Drilling has only confirmed the concern and there is no reason for the company to still have a $71 million valuation.
Shanta Gold has finalized their purchase from Barrick of the west Kenya projects formerly held by Barrick. Shanta has a lot of experience underground mining high-grade veins in Africa. This is a very interesting transaction for me as the CEO of Advance Gold and a big shareholder. The ground Shanta Gold has bought includes 100% ground as well as key ground that is part of a joint venture that is owned 12.23% by Advance Gold, with the rest now owned by Shanta Gold. In June they had a corporate presentation (see page 12), in which they provide a model of the veins historically mined at the Rosterman Mine. They all dip in the same direction and these veins can go very deep in the geological setting they are present in. They are wide open for exploration to extend the vein system and it is a location that could be fast tracked to production. The Rosterman Mine ground is part of the joint venture with Advance Gold, if Advance Gold is diluted down to a 10% interest then that interest converts to a 3% royalty.
Sharing is Caring
I have some links to share to websites that I think will help investors.
Koyfin does an amazing job of providing a website that gives you the pulse of the market. I’ve heard it compared to Bloomberg terminals which are very expensive, while Koyfin provides it for free online. I’m starting to use their portfolio more now that I have started building the Rocks And Stocks Index. It is a great way for me to see the charts the way I want them. If you watch the video shows, you will start seeing the charts more in future shows. I guess the best compliment I can give to a website is that I use it and enjoy using it and most importantly it helps me do my work better.
This is a great article on conferences in general that will also affect in-person conferences and open the world to online conferences. In-person conferences, like the PDAC for mining, when they get back up and running after the Covid pandemic, they will have less people attending. On the other hand, online conferences will see dramatic increases in attendance. There is no need to spend tons of money to go to a conference, flying on a plane with everybody passing around their bugs and then into a building full of more people passing around their bugs. When you can sit at your computer or on your cell phone to watch an online conference. It is not well known, but online conferences have far superior engagement and the companies have a much easier time opening up lines of communication with their shareholders and those considering investing. At a fraction of the cost. Rocks And Stocks News will be getting into the online conference business soon, stay tuned for more details.
Another website I spend a lot of time on is CEO.CA, they provide forums on mining stocks and a good profile of the key information investors in the space need. I have it integrated into the shows I do and it has made my life much easier. They also offer a pro version where you can get depth of market in a very interesting layout. For investors in junior mining stocks, it is a crucial tool to see depth of market when trading. Plus the forum for stocks, like this one for Advance gold that give you key information about the stock and a forum where investors are talking about the company. I highly recommend checking out CEO.CA and to consider becoming a member for their pro version.
In the spirit of sharing links, don’t forget word of mouth is the best way to grow an audience and I would love it if you shared our commentary with others.
There you have it, another edition of news that caught my eye and links to check out.