Gold Juniors

[Bobcat.]

SOC just announced $4M of further funding through a convertible. Pretty attractive deal compared to what other juniors are getting at the moment.

Yes, it is good news for SOC but I'm surprised it's not been met with more buyer interest -- still trading flat at 16.5c.

Re PGI, JBMurc - I remember you sold out around 6c to buy in again lower - are you again a holder?

[Daytr]

SOC will trade on drill results, not things like this even though it is good news. Basically means they wont need to tap shareholders for funds for quite some time to come. Exploration funded through JVs & this will keep the office running basically. Next drill results shouldn't be far away.

[JBmurc]

Yes, it is good news for SOC but I'm surprised it's not been met with more buyer interest -- still trading flat at 16.5c.

Re PGI, JBMurc - I remember you sold out around 6c to buy in again lower - are you again a holder?

I only sold just over half my holding round 6c still got a few ..wish I had sold the lot the way the market has treated them of late ,,, I would have been stoked to been buying now

Much the same for SOC sold a good amount at their recent high to be temped back not much lower and to now see them at stupid low levels I never dreamed would go ...

[Bobcat.]

Daytr,
Your MLX and NST are doing well today. I've had them on my watchlist for a couple of weeks now but instead invested in Rox Resources (RXL), which I have wanted for a while and the timing Friday seemed good (after announcing two nickel sulphide discoveries and seeing the sp hover around the company's SPP issue price of 3.2c).

Both their Camelwood and Cannonball prospects look very promising, and with about $3m in cash post-SPP, they are well positioned to operate without much financial impediment.

Your thoughts?

http://www.asx.com.au/asxpdf/2013121...gl2490q12f.pdf

[Daytr]

I'm out of both at the moment. Was looking at getting back into NST but the announcement beat me this morning. Will wait until the heat comes out of them again & get back in.

RXL seem cheap enough I just don't like the prospects for the nickel price for some time to come. Nickel is always tricky to process & capex is generally high. With all the pig iron around I can't see the price of nickel back above say $16k/ton for some time so hard to get excited about that one I'm afraid.

[Daytr]

Yeah they are having great success with the drill bit!

[JBmurc]

looking forward to PGI DEC Qtr results.... market not valuing PGI gold hedge at all ..

what you reckon guys I'm no expert on hedging but does sound like PGI has some downside protection on the further falling Gold price (if not actually pay off all their debt quick smart)...also PGI always predicted to produce Gold eqif for round $650per oz now recoveries haven't been as good as hoping but with fine tuning of late pushing recoveries much higher costs must be coming down ...PGI could well be the turn-round story of 2014 IMHO gold falls to $900 PGI closes out hedge for enough money to fully pay of all debts and some ...and continues to produce Gold eqif for a solid profit

--post from speculator on HC---
I think the hedge that PGI hold is now becoming a bit of a trade of sorts, as in, buyers know that if the POG drops massively, PGI will be well within its rights to fill the hedge, wipe of its debt and be sitting on a functioning gold producing plant while, lets be honest, the vast majority of gold stocks will simply go belly up due to their costs being so high.

I think the hedge still has approx 100k ounces to be filled, with a price of $1320, at current POG, sold, it would provide PGI with about $10.2 million, which of course, would not be enough to pay off the loan, but if gold does drop further, I mean really drop, the viability of filling the hedge becomes a reality. i.e, at $1000 US per ounce, we are looking at $32 million, at $900 US, we would have $42 million.

[Daytr]

JB, is that an AUD gold hedge or USD hedge?

VXR I picked up at half a cent has got some buyers this morning, think something up. No announcement yet. They seem to be getting back on track & I think will be back over 2c before long.

[JBmurc]

JB, is that an AUD gold hedge or USD hedge?

VXR I picked up at half a cent has got some buyers this morning, think something up. No announcement yet. They seem to be getting back on track & I think will be back over 2c before long.

USD I know going of AUD/USD cross rates the hedge worked out round $1470oz AUD

[Daytr]

So lets go people.
Pick your best gold stock for 2014 same as I'm doing on HC.

Pick the best performing gold stock for the end of 2014 in percentage terms.

Price will be compared from the close on 31st Dec 2013 compared to the close on 31 Dec 2014.

Rules.

1) Stock must be ASX listed.
2) Only one pick per participant.
3) No reason or commentary to be entered into otherwise risk disqualification.
4) Just post the stock code, nothing else required.
5) Picks close as at midnight 31 Dec 2013 AEST.

My pic is SOC