Gold Juniors

[shasta]

ORR closed on the day's high at 55c, chart looks great but there is no volume available so it's for investors right now not traders. I hold these and mentioned them recently on this thread. Since I got in they've had great first drill results on their second project (apart from the main game gold project) which is nickel/copper at good grades and over a wide area.

KBL - I decided after checking out a number of announcements and write-ups that it's far too high risk for me, management is almost certainly not top tier and there are a number of issues including the CN's. Anyone know what the AISC is? And what is the achieved price per ounce for their sales? Just as a matter of interest.

Unit cost of production for the quarter was $1,299/oz Au (including Ag credits and
streaming costs). This is an increase of 18% from the March quarter (reported at
$1,097/oz). The increase in production costs are a direct result of the cracking in
the Pearse haul road in early June which has now been rectified. The unit cost of
production for the months of April and May averaged $909/oz Au (including Ag
credits and streaming costs), this is a decrease of 17% from the March quarter

[shasta]

Continued production from the Pearse Open Pit is expected to deliver some 7,500 ounces of gold and 100k
ounces of silver during the September quarter with 5,500 ounces of the gold derived from concentrate and
2,000 ounces of gold in bullion from the CIL plant.

Very coy with the sale prices but seems there production is back up to normal levels

[SCHUMACHER]

ORR closed on the day's high at 55c, chart looks great but there is no volume available so it's for investors right now not traders. I hold these and mentioned them recently on this thread. Since I got in they've had great first drill results on their second project (apart from the main game gold project) which is nickel/copper at good grades and over a wide area.

KBL - I decided after checking out a number of announcements and write-ups that it's far too high risk for me, management is almost certainly not top tier and there are a number of issues including the CN's. Anyone know what the AISC is? And what is the achieved price per ounce for their sales? Just as a matter of interest.

LOL KBL management dont need to be absolute top tier. to be fair they have turned the company around , now we need market to value it which is what all the recent coverage is all about - Greg Starr has turned around KBL fortunes since January and they have some outstanding assets, Mineral hill, Sorby hills (4.1 million ounces silver ) including a production processing plant with a $30 million spend over years - they will return to former glory and i will be holding a truckload- i think the problem is some have been burnt so they will be risk adverse however i see KBL as an opportunity - different strokes for different folks aye?

Their gold production is not hedged to my knowledge so at market prices - The total mine life of Mineral Hill exceeds 10 years and if KBL can continue to produce positive cash flow, will be in the area for some time yet.

so as gold increases so does their bottom line - as much as i like their GOLD - Silver would have to be one of their sharper plays with Sorby hills , Aussies largest silver deposit

I think all of the above underpins the rediculous market cap which will soon be back up 100% on todays close GLTU all the best Schu

cheers Schu

[denpal]

KBL - I don't like the description of "unit costs' I would like to know the industry standard AISC. I also want to know the achieved gold and silver price per ounce bearing in mind 73% is in concentrate form, so I can then see the margin.

[JBmurc]

I'm no expert on KBL ....as to my small spec purchase in the opts today ...but on the basics of what attracted me...at this early stage

-micro-cap only worth 8.2mill ....
-has own new upgraded CIL plant 350ktpa (only one for 80kms radius ...)
-Is a producer with large cash-flows to Mktcap....
-Silver exposure ... silver always outperforms in Gold bull markets ....it returns to the mean Ratio SILVER:GOLD 45 ...we will see $40oz+ AUD

Also -denpal I see in KBL last presentation(april) they give a est future AISC 900-1000oz AUD ..


Of course there is issues ..... creditors paid in shares recently(may keep a cap on SP for a time) ... eliminate of its 6 mill debt to keep creditors happy etc ...unproven new mgmt....poor results from old mgmt

High risk high reward....

[SCHUMACHER]

I'm no expert on KBL ....as to my small spec purchase in the opts today ...but on the basics of what attracted me...at this early stage

-micro-cap only worth 8.2mill ....
-has own new upgraded CIL plant 350ktpa (only one for 80kms radius ...)
-Is a producer with large cash-flows to Mktcap....
-Silver exposure ... silver always outperforms in Gold bull markets ....it returns to the mean Ratio SILVER:GOLD 45 ...we will see $40oz+ AUD

Also -denpal I see in KBL last presentation(april) they give a est future AISC 900-1000oz AUD ..


Of course there is issues ..... creditors paid in shares recently(may keep a cap on SP for a time) ... eliminate of its 6 mill debt to keep creditors happy etc ...unproven new mgmt....poor results from old mgmt

High risk high reward....

Pretty good summary JB

Think shareprice now underpinned by their future plans / gold price increases and recent placements at current levels should see a price appreciation when the pro's decide to move it higher

Denpal - thanks for your questions , its most certainly risk appetite but the rewards could be 100% + in a matter of days, weeks, or months and KBL actually made an EBITDA of over 4 million last quarter so with no more operational interruptions i think we should be looking rosey going forward- im all for turnaround stories as these sorts of issues can happpen in terms of slippages or flooding - it will be interesting to see what they do next with Sorby Hills Silver deposit as Mineral Hills will take care of itself now - they plan to continue to expand their GOLD exposure to generate more cash and pay back the debt which they state they will be debt free by end of this year so 4 months away - quite an accomplishment IMO

PS The upgraded CIL plant 350ktpa is a very good thing as KBL can generate additional revenue by accommodating other mining companies processing requirements - nice one IMO

Also, Feel free to discuss KBL on the thread i stated and ill try and bring updates on their progress as they come to hand - i will eventually make contact with company to get some further reassurances in terms of Sorby Hill and finacial projections 6 to 12 months out from now

cheers Schu

[Joshuatree]

Haven't enough time or energy to follow folks posts /ideas atm so sticking to my investments.

Snippet on Burey BYR

[SCHUMACHER]

Haven't enough time or energy to follow folks posts /ideas atm so sticking to my investments.

Snippet on Burey BRY

JT - Dyslexic ol' chap LOL
Dont you mean BYR ???

[Joshuatree]

Yes thanks; doing more and more of that sort of thing. Have cataracts which I'm going to have to do something about soon. Fred hollows foundation do them for a few $; specialists here cost $thousands,what a rort ; must be a cheaper way to do them.

[Stock Rooster]

Looking forward to a bit more action this week... Maybe a few more price sensitive announcements...

Gold and Gold mining juniors have held up well even as share indexes have raged higher after Brexit..

If they have held up this well they could really run if we see a 10% plus correction occur on the indexes and some genuine fear enter the market