Gold Juniors

[Bobcat.]

SOC hit my bid at 11c and then climbed off that double bottom. Is this the end to its slide? I sure hope so...since I have now accumulated quite a bundle.

Great potential, and I would say that a report reminding the market of that fact is well overdue. Climb, baby, climb.

[Daytr]

I had a couple of sneaky bids in today but didn't get hit. The next 24 hours gold could go either way so I wasn't any rush to get on board & gold stocks didn't pull back as much as I thought they might today. I lightened the load a little on SOC yesterday. I was too overweight for too long so took a small loss on my last parcel bought. Still have a reasonable stake, but just want to diversify more funds into producing companies at this point. Will stick tight now with the rest of my SOC stake & hopefully the PMR results wont be too far away.

[Bobcat.]

I bought into SLR today. I've had some before but sold out just before they peaked late October. Technically, I'm picking January's support at 54c to hold. Fundamentally, they look fine to me. Others' thoughts?

Fundamental strengths:
- Dec quarter had a record production (35% higher than 2012)
- an update to its 2014 guidance (from 180-200koz to 205-220koz).
- Operating efficiencies at Mount Monger and improved recoveries
- JORC reserve of 1.7moz AU with base reserve of 6.4moz
- $14m operating cash flow for the Dec quarter
- Cash and bullion reserves of $17m
- Reduction in debt ($52m in June'13 to $8m in Dec'13) and now almost debt-free
- post merger with Integra, now a bona-fide mid-tier producer
- Extensive ground coverage and on track to produce over 300koz in 2015 and beyond

Weaknesses:
- drop to 3.1 g/t gold from 4.2 g/t in the previous quarter
- ASIC relatively high (which is why the sp dropped to 35c in Dec when Gold was sub-1200USD)
- no hedging (although given Gold's price technicals of late, this could be a good thing for now).

[Daytr]

I have joined you on that trade BC. Seems they have had some issues of late but have put that behind them & are on to better things. All in sustaining cost forecast of A$1016 is pretty reasonable imo. I like the fact they have some reasonable other prospects to look to develop as well. I really want to get back into RSG & should have last week when it traded around 60c. Will keep sniffing on that one. Lets PM on targets for SLR. Cheers Daytr

[Daytr]

I have joined you on that trade BC. Seems they have had some issues of late but have put that behind them & are on to better things. All in sustaining cost forecast of A$1016 is pretty reasonable imo. I like the fact they have some reasonable other prospects to look to develop as well. I really want to get back into RSG & should have last week when it traded around 60c. Will keep sniffing on that one. Lets PM on targets for SLR. Cheers Daytr

[Daytr]

I have joined you on that trade BC. Seems they have had some issues of late but have put that behind them & are on to better things. All in sustaining cost forecast of A$1016 is pretty reasonable imo. I like the fact they have some reasonable other prospects to look to develop as well. I really want to get back into RSG & should have last week when it traded around 60c. Will keep sniffing on that one. Lets PM on targets for SLR. Cheers Daytr

[Daytr]

I have just topped up again on SLR at 45c. Must admit I didn't think it would get this low. I have averaged in at 50c & will now sit tight. As long as the POG holds up it shouldn't be long before we see a bounce back. Shorters have had a field day on this one having dropped around 40% in value in the last week or two! All in sustaining costs forecast of A$1016 gives it a very good margin at the current price of A$gold. EBITDA should exceed A$70M pa, could be higher, could be lower dependent on the POG.

[Bobcat.]

I have just topped up again on SLR at 45c. Must admit I didn't think it would get this low. I have averaged in at 50c & will now sit tight. As long as the POG holds up it shouldn't be long before we see a bounce back. Shorters have had a field day on this one having dropped around 40% in value in the last week or two! All in sustaining costs forecast of A$1016 gives it a very good margin at the current price of A$gold. EBITDA should exceed A$70M pa, could be higher, could be lower dependent on the POG.

Likewise at 46c. I too have confidence in this stock lifting this year (for reasons stated in my earlier post above). Being dropped last week from the S&P/ASX 200 had a bigger impact on this stock's sp than I'd anticipated, but its value remains. IMO, as evidenced by the following, this stock has been oversold:

1. These SLR prices have not been seen since the PoG was under 1250USD around Christmas. It is now at ~ 1340USD.
2. From their Dec Quarterly Report, SLR's value has improved: http://www.asx.com.au/asxpdf/2014012...78sscx0d90.pdf
3. Charting has RSI well under 20% with OMV over the past week more than 50% higher than its average over the past 3 months.

It's now the largest part of my portfolio.

BC

[Daytr]

Could be good timing BC, gold is showing some afternoon strength. First time for quite a while that we have seen gold positive in Asian trading.

[Bobcat.]

Looking to double bottom SLR @ 35 cents are we BC?

I doubt it. But I'm buying on the way down (an exception to my usual approach, which proves the rule!). Happy with the number I have but if it gets to 40c I buy more. It closed today at 44.5c.

Meanwhile, I also now have again bought into ALK @ 34.5c. Another nice stock, with support confirmed at 34c but with resistance (previously support) at 39c (13% higher). More upside than downside at these prices for quality diggers.

Other stocks looking to be dipping nicely (OGC, RXL, RSG, OZL, PGI and SOC).