Gold Juniors

[JBmurc]

Gotta love that BC!

Yes a Gold Explorer valued the same as my poor old PGI Gold/Silver producer market must believe they have one large resource and will be able to make a dollar from it one day

[Daytr]

Well they already have 1.6M ounces in resources, this is a new strike zone & they estimate it could run for 15kms!

Yes a Gold Explorer valued the same as my poor old PGI Gold/Silver producer market must believe they have one large resource and will be able to make a dollar from it one day

[JBmurc]

Well they already have 1.6M ounces in resources, this is a new strike zone & they estimate it could run for 15kms!

Whats the average grade on the GOR resource ? Cash --

my last Explorer investment PXG had targets of 4moz resource in the heart of the W.A Gold Fields by early 2014 $20mill in cash E.V only 17mill

Can't say with the current sentiment in the PM sectors and known In-all costs of many Aus producers well over $1000oz that I'd be keen
on Buying up PM EXplorers or really any explorers when I can pick up Profitable PM producers for the same money and get a 100mill plant for free

[Bobcat.]

I've sold out this morning at 11c but will surf this one again if sellers take the sp down toward 9c again. I like its potential.

[JBmurc]

I've sold out this morning at 11c but will surf this one again if sellers take the sp down toward 9c again. I like its potential.

Think that's a smart move when you look at how undervalued the PM sector/PM prices ....If we see this continuing many PM project's won't get the funding needed to continue doesn't matter how great your ground is if the numbers don't stack up....current PM prices and average all-in costs to produce gold in this part of the world round $1200per oz USD (going from OGC asx peer review) I just don't get the excitement round PM explorer's at present unless they have a mining plant to go with it...PXG one of the better ASX explorer plays market values close to $1 per oz E.V
--then you see the like of OGC buy a high grade 10g/t au equ 1moz for $7 per oz au equ

[JBmurc]

According to analysts from JP Morgan 30% of WA's gold is being produced at a cost in excess of the POG, and a further 30% is considered marginal, ie some 60% of WA's gold stocks should be avoided (IMHO), this fact likely to become all too clear during the next 24 days as the 2013 Q3 reports start thudding on analyst's desks.---This was when POG is USD1311, AUD1390...

[Daytr]

JB, I haven't seen too many producers with total costs that high. I assume they have taken the data from financial reports so you would hope is accurate. This is why you are selective about what gold stocks you buy. If some of this production is shut down then that is a positive imo as I don't invest in those stocks & it means there is less production. South Africa is where they are really struggling, but yes I am sure there are some that are struggling in Aussie as well.

According to analysts from JP Morgan 30% of WA's gold is being produced at a cost in excess of the POG, and a further 30% is considered marginal, ie some 60% of WA's gold stocks should be avoided (IMHO), this fact likely to become all too clear during the next 24 days as the 2013 Q3 reports start thudding on analyst's desks.---This was when POG is USD1311, AUD1390...

[JBmurc]

JB, I haven't seen too many producers with total costs that high. I assume they have taken the data from financial reports so you would hope is accurate. This is why you are selective about what gold stocks you buy. If some of this production is shut down then that is a positive imo as I don't invest in those stocks & it means there is less production. South Africa is where they are really struggling, but yes I am sure there are some that are struggling in Aussie as well.

Well there out there in large numbers it's really only a matter of time before we see many hitting the wall >>and having to come to S/H to stay afloat esp if Gold stays or goes lower ....

I'm currently going over some PM producer ann reports,, I really don't think many investors understand is how slim profits are for many PM producers currently....all in costs for the likes of NCM is round $1400oz EVN $1430oz SLR $1325oz OGC $1000 PGI $800-900

Fact is many a PM producers Mgmt like to talk up mining costs being low but once you include the all in costs to mine they go up $300-$400per oz............or look at there profit numbers Qty you see it far from good ...then in many cases micro-jnr start up producers are having to pay back debt leaving nil to neg margins even if they were making a slime profit.....

[Corporate]

Good discussion JB. Through your review of goldies did any standout as profitable in this market?

[JBmurc]

Good discussion JB. Through your review of goldies did any standout as profitable in this market?

Well as you could understand it's a very murky subject so very few PM producers give us a "All-in-costs-to produce per oz"
which just adds to the distrust from the market ....think this is slowly changing esp. from the guys that are profitable
Going from the recent OGC presentation page 9 -http://www.oceanagold.com/assets/documents/Presentations/131001-OGC-Corporate-Presentation-October-FINAL.pdf

Worldwide Avg. all-in Industry costs per oz USD =1100oz ...

I'm bias but I do like OGC,PGI both making a nett profit long as Gold stays north of 1000oz

other's making a profit I've come across -MML,NST,TRY