Gold Juniors

[JBmurc]

SOC just released PMR's latest drill results. Again they look pretty good with some very high grades. 2 holes drilled both successful, 4 to come!

Yes SOC finally getting some buyer support........Average trading volume increasing some more interest coming back just need the sellers to dry up and we could go for a decent run

[Bobcat.]

I don't actually know the management. I was recommended the stock by an ex market colleague out of London who was looking at financing them before the gold crash. Has good copper as well though so I like the play as its not just a gold punt. Very cheap here & likely to go back toward 18-20c imo.

Hoping you're right. Did you get in on TGZ yesterday? Up another 8% today.

[Daytr]

Nope haven't had a chance to look at TGZ yet, but now on my radar.
See WAF just got approval to float on the TGX. Another good sign that things are turning for the company.

[Daytr]

BC, I just looked at the TGZ deal they just did with Franco Nevada. It seems to be very expensive. The repayment for the first six years seems to be about right at the current POG, however then they have 36 more years of acquiring 6% of production at 20% of the POG at the time? Why would you do that last bit? Am I missing something?

[Bobcat.]

BC, I just looked at the TGZ deal they just did with Franco Nevada. It seems to be very expensive. The repayment for the first six years seems to be about right at the current POG, however then they have 36 more years of acquiring 6% of production at 20% of the POG at the time? Why would you do that last bit? Am I missing something?

Yes, it's a 40 year agreement. I'm looking through it again now - on what page did you see the 36 year obligation to acquire 6% at 20% of the POG? The only place I see 6% mentioned is w.r.t. Insurance - clause 6.7c.

I must admit that I'm still trying to fully understand the definition of the Purchase Price (section 2.4). Are you sure that the Deposit Reduction Date is after just 4 years (i.e. 1 Jan 2018)? Where do you read this?

Cheers,
BC

[Daytr]

Well it states that the 1st 6 years are for 22.5k toz & the remaining is 6% of production at 20% of prevailing spot price. Its a 40 year agreement so that leaves 34 years, sorry not 36. I assume the mine life is the 6 years so they will only have to pay the 6% if they find more economic gold & can afford to actually produce it & give away 6% at 20% of POG.

[Daytr]

Great quarter by OGC, BC you must be happy with the SP. Great costs & increased production. I noticed for each operation they mentioned accessing higher grade ore as for some of the reason for the better costs & production. Do you think they are actually high grading? What are the estimates of the next few quarters? Another words can they keep this performance going or is high grading mean they are going to have some lower grade to process in future.

[Bobcat.]

Great quarter by OGC, BC you must be happy with the SP. Great costs & increased production. I noticed for each operation they mentioned accessing higher grade ore as for some of the reason for the better costs & production. Do you think they are actually high grading? What are the estimates of the next few quarters? Another words can they keep this performance going or is high grading mean they are going to have some lower grade to process in future.

I commented earlier this morning on the OGC.NZX thread. I like their improved ASIC, their diversification, decreasing debt and management. Their hedging was badly timed IMO but that's about the only downside I can see. I have no info on the grading.

I continue to hold until investors (Black Rock included) have absorbed this announcement and get more interested, which hopefully coincides with a another lift in the POG later this week...now that would be timely.
BC

[Daytr]

Just be aware of gold seasonality of gold demand BC. Chinese NY coming up & physical demand may ease. Most banks are saying that shorters are waiting for end of Jan (demand season) to get in. I lightened up a bit today just in case.

[Daytr]

In the report it mentions from all operations, access to higher ore. Seems a bit too coincidental to me that you suddenly have higher grade from all operations at the same time. Many companies are high grading at the moment to try & lower short term production costs & ride through the lower price environment. Just something to be aware of as if they are high grading means they are leaving lower grades for later & means they will be eating into any stock piles quicker. I'm not knocking them as it is a great quarterly.