Gold Juniors

[Daytr]

Considering the sell off in gold, gold stocks have held up quite well and in most cases are bouncing.
Lets see what gold does tonight!

[JBmurc]

Yes Glad I sold my RMSO for 6.4c av last week now trading @ 5c .....did put the bulk of the funds into RMS 13.5c and now thinking selling 12.5c and sitting back ...if PGI announce US Gold toll treatment it sounds like they will they should go through the roof....good buying here

From the PGI Quarterly,
PGI “has reached agreement in principle to acquire a controlling interest in +1.0 million oz Au high grade refractory deposit in North America, with the potential to produce concentrate grading approximately 100g/t Au. A binding HOA with respect to the development is expected to be formalised by the end of February 2015.”
GPM in Albania is using clean, 40 g/t, Au concentrate in an Albion process and achieving a recovery rate of 93-96 % Au. (http://www.albionprocess.com/EN/downloads)
PGI should be able to achieve this rate with their 100g/t concentrate. That would mean PGI could produce 930000 oz Au over the life of the new project. At 1200 USD /oz. This is a revenue of 1116 million USD. (1.1 billion USD)

PXG just announced 6 mill raising 5 mill from major interests (NGF/Zijin ?) other 1mill for S/H's fully underwritten ....great investor support here for good reason ....

[Daytr]

Not that Resolute (RSG) should be classed as a junior with 315k of production, but anyway I have been loading up in the last few days as its been sold off after announcing write-downs & obviously gold under pressure. With China out I suspected the market might have a crack at gold, but the Chinese start returning today/tomorrow, although quite a few will take the week off. Gold should see some pick up in demand so I expect we may have seen the lows in this move.
RSG has a market cap of just over $200M & I think is the cheapest producer on the ASX on a per ounce production basis.
What I liked in the recent report was that they have announced a substantial reduction in costs for 2015 whilst maintaining production guidance & have reduced capex outlay by deferring the Syama expansion.

[JBmurc]

Well Should get your RSG cheaper come monday Daytr ..... Happy to keep holding my three...

PXG--just raised 5mill + another 600k from S/H's 10mill+ in cash ...NGF toll treatment final agreement anyday now.. the best exploration
grounds in PXG W.A tenements results to come...should hold above 9c ...

PGI-perfect movement in gold price for PGI with 1200oz USD hedge for the next 2yrs gold goes to 1100oz US PGI could close out hedge for 8mill+ profit ... low cost of production ....working on securing more gold ore to toll treat ...

RMS ....Growing cash balance / some hedging

[babymonster]

Will get some rsm when it goes below 11c

[Daytr]

Yeah I'm pretty loaded already with RSG, but have capacity.
Hopefully take advantage of some lower priced all Aussie producers.

[macduffy]

There's a recent article in The Bull reminding readers that the AUD price of gold is still around the $1550oz mark given the weakness of the AUD/USD.

Here's what they say about my old (poor-performing) favourite SLR:

Silver Lake Resources Limited (SLR) had two operating mines in Western Australia along with two major exploration projects. On 24 February the company announced it was placing its Murchison Goldfield Operation into care and maintenance, due to the declining gold price. Silver Lake most recently reported AISC of AUD$1,298, which hardly qualifies as a low cost producer. Costs could have contributed to the closing of Murchison. The Half Year Results recently reported focused on the remaining Mount Monger operation, which saw a 52% drop in revenue.

Although Silver Lake does have a 2 year growth estimate of 44.5%, a look at the actual EPS figures for each year paints a less rosy picture. For FY 2014 the company reported a loss of $0.258 which is expected to turn to a positive EPS of $0.019 by 2015 with a scant increase to $0.022 in 2016. The share price is down about 90% than since the beginning of the decline in the price of gold. Here is the chart.



While Silver Lake may be the highest risk investment of the four shares in our table, analysts have a somewhat mixed consensus Overweight rating on this stock. Three analysts recommend Buying the stock; 1 has an Overweight recommendation; 4 are at Hold; and 1 analyst recommends investors sell the stock.

http://www.thebull.com.au/premium/a/...d-miners-.html

[Daytr]

Yeah real shame they were the darling of the market a few years back. I used to deal with them & go to their parties in Kalgoorlie.
Great times, but they were never the smartest tools in the shed imo.

Today I've picked up some EVN, who are smart by the way & have hedging that's in the money & are a 400k+ producer.
Reasonable costs that should be reducing with the lower price of fuel.
Main reason its off is NCM has been selling out of the 30% stake.

Also holding RSG which I think is very cheap along with Troy.

Stopped myself out of my BDR as I just didn't like it, well not compared to others. Call it a gut feeling.

[JBmurc]

Really think PGI will fly much like RMS did for me at the start of the year ...likely news to come next few weeks

-Refinance deal = Mac bank gone ? Close out hedge 80koz (If gold heads lower could = 8-9mill profit)

-Recent Gold plant upgrades to increase Gold/Silver yields >>>

-New Major investors looking to join the register

-Potential new feed/ import concentrate deals

[babymonster]

With the POG is looking weak, might not be a good time to invest in goldies.