Gold Juniors

[Daytr]

Oceania is taking a bath today, down 7%. Both Troy & Regis have done the same of late. Valuations on some of these goldies were a bit rich for mine considering the pog hasn't done anything. If equities correct sharply like I suspect they will, gold stocks won't be unscathed IMO, however should be quick to bounce. I think a real opportunity could present itself under that scenario.

[Daytr]

Well its last quarter was pretty good, however next quarter won't be, due to various factors including a maintenance shut down. The market cap is over a Bln. So was getting a bit rich for mine.

[Bobcat.]

OGC is still on track to meet their forward guidance. Some punters missed an earlier report in April regarding lower grade gold and planned maintenance shutdown. I'm waiting for a few more to be sold off before coming in again on this darling of a stock. Targeting $3 NZD.

"Looking ahead at Didipio, the operation will be mining and processing lower gold grades and mining less ore
as a result of increased pre-stripping from Stage 4 of the pit. In the second quarter, there is a shutdown of the
process plant for planned maintenance.

The Company expects to mine more ore and at higher gold grades at the end of the second quarter through to the end of the year. Throughput rates are also expected to steadily increase during the year through debottlenecking to achieve the planned 3.5 Mtpa rate by the end of the year.

Looking ahead at Reefton, the Company expects to mine and process higher grades beginning in early third quarter. Additionally, the final cutback at Reefton will be completed early in the third quarter.

Overall, the Company expects to achieve its production guidance for 2014."

[Daytr]

Spot on BC & at a Bln. plus market cap, I think that is all pretty well priced in IMO.

[Daytr]

Well it'll put it out there, again! Its Thursday night & I expect to see a rally. Fed & GDP is now out of the way & I also think we will see US equities under pressure.

[Daytr]

ROL trading 45c! After an increased takeover offer of 49c! Now they are talking!

[Daytr]

One junior I do like the look of at this point is ALK, starting to look pretty cheap IMO.

[JBmurc]

Tears of gold

GOLD’S seemingly new BFF, Deutsche Bank, has put out another note that will have the gold bugs shedding tears of gratitude.

It is arguing that short-term traders seem to be stepping aside as they wrestle with multiple and complex geopolitical influences; rather, the higher prices are the work of investors taking a long-term view. Deutsche is also sceptical about the figures for Chinese imports via Hong Kong (which have eased), pointing out that gold may be moving through Shanghai and Beijing.

Meanwhile, the World Gold Council’s latest bulletin puts the recent decline in demand in perspective: the 25 per cent drop in gold prices in the June 2013 quarter sparked the big run on the metal and what we are seeing now is not a retreat, but a return to calmer waters.

Moreover, the council argues, mine supply has now peaked, will plateau for another year or so, and then head downwards. Deutsche says it’s not just the physical metal. “Perennially unloved gold stocks have remained very well bid this year. This demand is much harder to dissimulate,” the analysts write.
By coincidence, Peter Strachan at Perth’s StockAnalysis has done an analysis of local gold stocks. He thinks some of the higher-cost producers could offer the best leverage if the gold price heads north, and cites Perseus Mining (PRU) — which Strachan adds has never lived up to its early cost predictions for the West African mines — as well as Norton Gold Fields (NGF), Kingsgate Consolidated (KCN)and Resolute Mining (RSG).
At the other end of the production-scale financials, lower costs achieved by the likes of Kingsrose Mining (KRM), Medusa Mining (MML), OceanaGold Corp (OGC),Troy Resources (TRY) and Doray Minerals (DRM) may offer comfort to the investor, but the low-cost factor needs to be offset against reserve life, political risk and other development costs.
West African explorers like Gryphon Minerals (GRY) face an increasingly difficult task, says Strachan. New taxes, corruption, civil wars and now Ebola render new developments difficult to finance and staff.
Azumah Resources (AZM) looks cheap considering its resource size, but Strachan thinks it will struggle to raise capital for its Ghana project where “fiscal terms are punitive and the general level of corruption leaves most producers struggling”

http://www.theaustralian.com.au/bus....-1227027307792

[Daytr]

Not too much to argue with their JB. Another way of putting it though is the high cost producers need a higher gold price, short & simple as their share price reflects their current risk vs the POG. I.e if the POG went down & not up then they would be the first to fall, so its all about risk reward. Miners are a fairly risky investment at the best of times. Not sure about DB being gold's new BFF either. Maybe just trying to look good whilst they are being investigated for metal market manipulation by the German regulator! haha

[JBmurc]

Not too much to argue with their JB. Another way of putting it though is the high cost producers need a higher gold price, short & simple as their share price reflects their current risk vs the POG. I.e if the POG went down & not up then they would be the first to fall, so its all about risk reward. Miners are a fairly risky investment at the best of times. Not sure about DB being gold's new BFF either. Maybe just trying to look good whilst they are being investigated for metal market manipulation by the German regulator! haha

Yes as to why RMS trades at 25% of it's NTA .....like many ASX producers the market is still very cold to the sector

With no true direction in the Gold price it's really a wait and see ...If we do get the seasonal rise in Gold I really think we could
see this magnified in the producers like RMS as the market get greedy on how undervalued many trade at these days