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Generative Exploration Co's: GZZ, LRA, RRI, etc

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Generative Exploration Co's: GZZ, LRA, RRI, etc ... ch#1 : ch#2 : ch#3 : zc +m m :

More co's (see post#11):

Examples: Mirasol Resources, Reservoir Minr'ls, Riverside Res., Aurion Res., Lara Explor., Miranda Gold, Evrim Res.

Rx_station-small.jpg

GZZ-etc: ch#1

yrQJSG3.gif

These co's are getting very cheap, and some of them have royalties, etc to cover their expense base.

UPDATE:  Late June 2019

GZZ vs RZZ.v/ Abitibi, AEM/ Agnico & AUY/ Yamana ... since 1/2014 : 1/2015 : 7/2015 :: 2yr : 1yr /

7wOE1T2.gif

GZZ could be ready to "slingshot" higher, following RZZ, of which it owns 49%

Might this be a good time to start buying?

Sym.: Company------- : C$price: Low-to-High: ShOS: MktCap: $Cash : BkVal.: Pr/BkV : Pr./Ls: Expense: Exp/sh.

AVU : Avrupa Res------- : $ 0.160 : $0.07-$.400 : 55.48 : $8.88m : $0.29m : $0.040 : 00.0% : - $0.03 : $0,000. : $0.000
AZM : Azimut Explor.- : $ 0.130 : $0.10-$.285 : 37.64 : $4.89m : $1.44m : $0.180 : 72.2% : - $0.08 : $0,000. : $0.000
ALS : Altius Minerals* : $ 13.25 : $9.86-15.47 : 39.93 : $529.m : $15.5m : $8.750 : 151% : - $0.70 : $0,000. : $0.000
CKG : ChesapeakeGd : $ 1.540 : $1.39-$2.90 : 44.42 : $68.4m : $28.7m : $1.950 : 79.0% : - $0.11 : $0,000. : $0.000
GZZ : Golden Valley--- : $ 0.100 : $.075-$0.21 : 99.20 : $9.74m : $2.37m : $0.200 : 50.0% : +$0.08 : $0,000. : $0.000
LRA : Lara Exploration: $ 0.305 : $0.20-$0.55 : 31.21 : $9.50m : $0.81m : $0.080 : 381.% : - $0.08 : $0,000. : $0.000
NGE : Nevada Explor. : $ 0.180 : $0.05-$0.35 : 30.91 : $5.56m : $0.03m : $0.250 : 72.0% : - $0.02 : $0,000. : $0.000
RRI- : Riverside Res. - : $ 0.155 : $0.15-$0.36 : 37.00 : $5.74m : $5.90m : $0.230 : 67.4% : - $0.07 : $0,000. : $0.000
====
*Holds shares in jr co's, with project generative exploration
Cash and Book Value per Yahoo: http://finance.yahoo.com/q/ks?s=RRI.V+Key+Statistics
====

CKG : Chesapeake Gd: $ 1.540 : $1.39-$2.90 : all-data : 2yrs : 6mos :

X2YpdQQ.gif

GZZ : Golden Valley--- : $ 0.100 : $.075-$0.21 : all-data : 2yrs : 6mos / RZZ : all : 2yr : 6mos :

OFcEqka.gif

LRA : Lara Exploration : $ 0.305 : $0.20-$0.55 : all-data : 2yrs : 6mos :
yP2JBfV.gif

RRI- : Riverside Res. - : $ 0.155 : $0.15-$0.36 : all-data : 2yrs : 6mos :

HTQZUzP.gif

===

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Golden Valley vs. Abitibi Royalties / GZZ owned 51% of RZZ in 2015 : d#1 : m#2 :

RZZ-etc w/ GZZ.v ... from Beg. 2016 :

KEhR6eZ.gif

Sym.: Company------- : C$price: Low-High-- : ShOS : MktCap : $Cash : BkVal : Pr/BkV : Pr./Ls : Expense : Exp/sh.

GZZ : Golden Valley-- : $ 0.100 : $.075-$0.21 : 99.20 : $9.74m : $2.37m : $0.200 : 50.0% : +$0.08 : $0,000. : $0.000
RZZ : Abitibi Roylaties : $ 2.450 : $1.53- $5.10 : 10.92 : $26.8m : $1.67m : $2.180 : 112.% : +$1.75 : $0,000. : $0.000
===>: GZZ owns 51% : of- RZZ : $2.45>$26.8m x 51% : $13.7m :
KZZ : Nunavik Nickel -- : $ 0.045 : $0.04-$0.18 : 12.88 : $0.58m : $0.14m : $0.120 : 37.5% : - $0.02 : $0,000. : $0.000
VZZ : Uranium Valley -- : $ 0.025 : $.035-$0.10 : 11.17 : $0.28m : $0.06m : $0.020 : 125.% : - $0.01 : $0,000. : $0.000
===> : GZZ owns 60%: of - KZZ : 37% - of VZZ : ------- > $0.68m

===> : Sub-Total RZZ :: + + KZZ : and +++ VZZ : ------- > $14.4m : +$2.4m : +3.0m :

GZZ website : http://www.goldenvalleymines.com/ : RZZ : XXX : UZZ :

Share Structure (per website)
Sym.: Company ------- : C$price: -Low-High-- : ShOS : Mgmt. /FullyD : %- Co.
GZZ : Golden Valley-- : $ 0.100 : $.075-$0.21 : 99.22 : 5.988 /108.25= 6.03%
RZZ : Abitibi Roylaties : $ 2.450: $1.53- $5.10 : 10.92 :

On March 19, 2015, Abitibi Royalties entered into an acquisition agreement with Canadian Malartic GP, a general partnership, Yamana and Agnico to sell its 30% free carried interest in the Malartic CHL Property in consideration for 3,549,695 shares of Yamana and 459,197 shares of Agnico and a 3% net smelter return royalty on the Malartic CHL Property. Based on the closing prices of the shares of Yamana ($4.93) and Agnico Eagle ($38.11) on the TSX (on February 20, 2014 the day before the announcement of the transaction), the consideration received by Abitibi Royalties amounted to $35 million excluding the royalty. The Abitibi Royalties has recorded a gain of $25,246,624 on the sale of its 30% free carried interest in the Malartic CHL Property,

> http://www.goldenvalleymines.com/investors/financials/2015/GZZ-FS-June30-2015.pdf

GZZ.v versus RZZ.v ... 4-yrs-W : 2yr-D : 6mo-D : 10d / ... pd

Comparison - up to Oct. 2015

5DhZNmQ.gif

Updated: RZZ vs GZZ - to 8/3/2017 ... update :

yYggT5Q.gif

RATIO
ARlsg2E.png

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POSTED ON September 09, 2015 BY Tommy Humphreys
GlennMullan.jpg

Glenn Mullan, Chairman of Abitibi Royalties $RZZ is here.

In an efficient 30-minute interview, Abitibi Royalties Chairman Glenn Mullan laid out a map of the Canadian Malartic project, the largest gold mine in production in Canada. Mullan’s Abitibi Royalties owns a 3% NSR on portions of the mining operation including Odyssey, a promising new discovery area.

Recent share price: $2.49
Shares outstanding: 11 million
Market capitalization: $27.2 million
Cash balance: $2 million
Marketable securities: $26 million (paying $400,000+ in dividends each year)

* All figures approximate

What Glenn Mullan is saying:

– Abitibi has low overhead and a goal of decreasing shares outstanding through buybacks.

– Yamana ($YRI) and Agnico Eagle’s ($AEM) Canadian Malartic gold mine is the largest in Canada (550k oz Au production annually and 16-year mine life) with exceptional community support. Mr. Mullan lives about 20 minutes away in Val D’or.

Mullan’s Golden Valley Mines ($GZZ.V) staked a significant area adjacent to Canadian Malartic in 2006 and spun out its interest to Abitibi Royalties in 2011.

– in 2014, Ian Ball, a young mining executive with close ties to Rob McEwen, joined as the company’s president. McEwen has an approximate 8.7% interest in the company. Ball subsequently became CEO in 2015.

– The Yamana-Agnico Eagle JV that operates Canadian Malartic is hosting an analyst tour later this month. Mullan is optimistic the joint venture will release exploration results from the newly discovered Odyssey Zone, which Abitibi holds a 3% NSR royalty on, prior to the site tour (while he makes no guarantees of this)

Material from Odyssey appears to be 2 g/t gold versus an average of about 1 grams in the current mine. Plus, the results are over significant 40-60 metre widths. Canadian Malartic’s 55,000 ton per day mill has an insatiable appetite for ore, and Mullan is optimistic Odyssey could host 1 million ounces of gold or more. There is no other brownfield exploration taking place at the mine.

– Odyssey will see $3-4 million in exploration this year according to an April news release. Mullan expects the exploration and development of the discovery to play out over 3-5 years.

The Canadian Malartic JV is serious about Odyssey, having converted Abitibi’s 30% free carried interest into a 3% NSR and issuing $35 million worth of stock in March 2015.

– Abitibi’s royalties on the Canadian Malartic camp, excluding any material from Odyssey, cover an area with approximately 400,000 ounces of gold which will start in approximately 2 years and run for 3 years.

– Glenn previously took Canadian Royalties’ Nunavik nickel project from discovery through to production. Though he never sold his stake, Glenn lost control of the company to a Chinese group. The control losing lesson caused him to spin out the Canadian Malartic assets from Golden Valley Mines for a 51% stake in Newco (Abitibi Royalties). “Anyone who wants to take over Abitibi will have to come through Golden Valley’s front door,” Mr. Mullan said. Mullan is also Golden Valley’s CEO.

– Abitibi is looking to grow its royalty portfolio and is evaluating royalties at all stages, from grassroots – Mr. Mullan’s specialty – to the more advanced stages, including production. The company will consider royalties in any commodity.

– One of the CEO.CA readers asked about a success fee paid to members of Abitibi’s management of about $3.5 million. Mullan explained nobody at the company received compensation from 2011-2014. The fee was comparable to what a financial adviser would have received for structuring the $35-million 3% NSR deal with Agnico Eagle and Yamana. The fee will only be paid out of cash flow when the company has the capacity to pay it, and can’t be paid out of financing proceeds.

Mullan would prefer to sell Abitibi’s marketable securities to raise cash to acquire royalties rather than issue shares.

– Abitibi is trying to cultivate a shareholder base with faith in management. “Survival is the key to success in mining,” Mullan said.

Abitibi’s long-term vision, according to the May 2015 Shareholders Letter):

  1. Share structure: It has a small number of shares outstanding. Investors who purchase shares become partners in the business. They are also treated like partners.
  2. Per share value: The company generates meaningful cash flow on a per share basis.
  3. Physical gold: The company takes a portion of its royalty income in gold bullion, which would continue to grow each quarter. This should also defer tax.
  4. A goal of share buybacks, a strategy few mining companies follow.
  5. Exploration: Provides exposure to exciting discoveries.
  6. Growing the business: Continually builds its royalty portfolio through cash flow or other creative means.

What the market will be focused on:

  • Exploration results from Odyssey
  • Leverage to gold price
  • New royalties

How to get more information:

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Here's one of the stocks I have been following - but did not buy... unfortunately

CA:NGE - a ten-bagger inside 2-3 months !!
Nevada Exploration Inc. .. update : 3yr : old-$0.00 > $0.00 : xx - at 1/22/17
NGE_zpsaie5bnve.gif
Nevada Exploration Inc. Reports New Drill Data Confirming the Presence of a Large, Gold-Bearing Hydrothermal System at Grass Valley
Nevada Exploration Inc. (TSX.V: NGE) (“NGE” or the “Company”) is pleased to announce that it has received new analytical results from eight drill holes at its 100% owned Grass Valley Project.
. . .
Wade Hodges, CEO explains: “The importance of this new data is that it increases our confidence that we are looking at a system of the size required to support a large deposit, exhibiting all of the correct Carlin-style geology, geochemistry, structure, and stratigraphy consistent with gold mineralization in this part of Nevada. With this evidence, we believe strongly that Grass Valley represents one of the most compelling grass roots exploration projects in Nevada today. Furthermore, these results provide another concrete example of how we are using our groundwater chemistry technology to lead the industry to identify and advance new covered gold projects in Nevada.”

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LARA Exploration ... update : 3yr : old-$0.00 > $0.00 : xx - at 1/22/17

AG_zpsgbileo4y.gif

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On 10/29/2015 at 12:59 AM, DrBubb said:

LARA Exploration ... update

Been looking and Lara presentations and half like the core idea, particularly concentrating in existing areas they are set up and know. But tiny volumes possibly explained by no coverage of note. How these guys get a fan base will be as important as their field activities.

 

Yes I know one should look after the other, but barely any interest out there.

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"How these guys get a fan base will be as important as their field activities."

True enough.

And in the present market, a fan base is not easy to generate.

If gold begins a sustained rise, it will get far easier

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Abitibi Royalties is the relatively new kid in the streaming space

RZZ.v / Abitibi Royalties ... update : 3yr : old-$0.00 > $0.00 : xx - at 1/22/17

> GZZ.v /Golden Valley - GZZ owns 51% of RZZ

rzz_zpsmv9knz73.gif

Mining companies are expected to feel more pain in 2016 as the price of gold could fall below $1,000, but there is one area of the sector that could continue to benefit, according to one industry executive.

Ian_Ball.jpg

Ian Ball, president of Abitibi Royalties, said in an interview with Kitco News that he expects the investment landscape next year to continue to be challenging for miners that are already cash-starved; however, one bright spot remains the royalties sector, which he expects to benefit next year as more mining companies look for alternative revenue sources to maintain their operations.

Ball said that the line in the sand for gold next year will be the $1,000 an ounce; however, he added that there is a very real possibility that prices overshoot on the downside and it would not be unrealistic to see triple-digit gold prices next year.

“It is already baked in that we are going to see $1,000,” he said. “I wouldn’t be surprised if prices fell to $925.”

Although Abitibi Royalties is the relatively new kid in the streaming space, since early June, the company has been aggressively perusing streaming agreements, taking a very nontraditional approach by launching an online royalties search program.

Through the program, for a streaming agreement, Abitibi has offered to pay the fees and taxes related to existing mineral properties and cover some exploration work. Looking back on the last six months of the program, Ball said that he is pleased with how far the company has come. He said that it have received about 70 proposals and has already signed eight royalty agreements.

The company is looking to add two more agreements. On Dec. 14, the company announced that it had entered into two binding letters of intent with Gold Valley Mines Ltd to acquire a 2% net smelter return royalty.

“The pace of submissions has slowed since we first launched the program but the quality has increased,” he said. “We are quite happy with the response.”

Ball described these agreements as “buying lottery tickets,” and the company hopes to eventually have a portfolio of about 20 or 30 properties.

> MORE: http://www.kitco.com/news/2015-12-18/Streaming-Gold-Companies-To-Benefit-In-2016-As-Gold-Falls-Below-1-000-Ian-Ball.html

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(I missed this - I was traveling when it happened)

GZZ : 10 cent placement, with warrants

November 30, 2015

Val-d’Or, Québec – Golden Valley Mines Ltd. (“Golden Valley” or the “Company”) (TSX-V:GZZ) is pleased to announce that further to its previously announced non-brokered private placement offering, it has issued as a first tranche 10,750,000 Units for gross proceeds of $1,075,000. Each Unit consists of one common share in the capital of Golden Valley and one non-transferable share purchase warrant, each warrant entitling the holder to purchase one common share of Golden Valley at a per share price of $0.14 until November 30, 2017.

All shares acquired by the placees under the first tranche of the private placement and shares which may be acquired upon the exercise of the warrants are subject to a hold period until March 31, 2016, in accordance with applicable securities legislation.

No finder’s fees were paid or are payable in connection with this first tranche of the offering.

The offering has been conditionally accepted the TSX Venture Exchange and remains subject to final acceptance by the Exchange. The proceeds raised from this offering will be used by Golden Valley for general corporate purposes.

About Golden Valley Mines Ltd.:

The Company typically tests initial grassroots targets while owning a 100% interest therein and then seeks partners to continue exploration funding. This allows the Company to carry on its generative programs and systematic exploration efforts at other majority-owned grassroots projects. The Company (together with its various subsidiaries) holds multiple property interests in gold, base-metal and energy mineral projects in Canada (Québec, Ontario and Saskatchewan).

> source: http://www.goldenvalleymines.com/news/2015/

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Here's a 2016 interview:

BUST! Time to Get Greedy in Mining & PM's, Rick Rule & Keith Neumeyer

 

Published on Jan 3, 2016

Check out Keith Neumeyer's new Mineral Bank:
http://FutureMoneyTrends.com/InvestRight

 

Two co's that Keith Neumayer helped to found; plus his new one:
Sym.: Company----- : C$-- : 2015- range- : 12/14 : 12/15 : -2015chg

FR.t : First Majestic- : $4.74 : $3.54 - $8.55 : $0.00 : $0.00 :

FM.t : First Quantum : $4.77 : $3.75 - 19.83 : $0.00 : $0.00 :

FF .t : First Mining--- : $0.38 : $0.25 - $0.60 : -N / A : $0.00 : N / A

 

FR.t versus FM.t ... update

FM-vsFR_zps0m86srei.gif

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How Would Brent Cook Invest $100k in ’16? – Invest Like Experts
Jan. 08, 2016

BrentCook.jpg

Expert: Brent Cook

Claim To Fame: Geologist & Editor of Exploration Insights, a junior mining investment letter whose portfolio returned +18% in 2014 and -6% in 2015.

Thoughts on the mining sector: “The mining and exploration sector has been decimated over the past few years and is off over 80% from its highs,” Brent Cook told Kitco News Friday.

Mining companies have experienced another tough year with more cost, production and exploration cuts as well as downsizing and mine closures, among other negative news.

The Gold Miners ETF Market Vectors (GDX), which tracks the performance of major gold mining companies listed on the NYSE Arca Gold Miners Index, has steadily been declining since 2012 and is currently at record lows.

And, as Cook put it in his year-end newsletter, “it is hard to find anyone positive on the sector…or even think there is a need for exploration.”

“This is as bad as I have seen it, and I see very few logical reasons to think it gets better anytime soon,” he added.

However, when asked how he would invest his money in the sector this year, Cook said he sees potential in three key areas.

For more on the mining sector, watch Brent Cook’s 2016 outlook interview with Kitco’s Daniela Cambone.

How would you invest $100,000 in the mining sector in 2016?

40% Mid-tier Precious Metal Producers with low cost production and legitimate exploration upside

Examples: Lake Shore Gold & Claude Resources

25% Prospect Generators with sufficient cash to last a couple of years, partners spending money, legitimate exploration concepts and honest management

Examples: Mirasol Resources, Reservoir Minerals, Riverside Resources, Aurion Resources, Lara Exploration, Miranda Gold, Evrim Resources

35% Very Early Stage Discoveries that may occur this year

What factor will affect the mining sector the most in 2016?

“Metal prices and…political uncertainty then China,” he said.

What is your New Year’s investment resolution for 2016?

“One has to be very critical and brutal when evaluating exploration results and sell if your investment thesis begins to fall apart regardless of what your purchase price was,” he said.

“The key to making money in the junior mining sector is #1--Don't lose money and #2 always fact check a company's statements and data--sometimes they make things up,” he added.

> more: http://www.kitco.com/news/2016-01-08/How-Would-Brent-Cook-Invest-100k-in-16-Invest-Like-Experts-Mining-Edition.html

PART I: Vince Lanci tells Kitco News how he’d invest $100,000
PART II: RBC's George Gero Gives His Investment Ideas For 2016
PART III: Rickards: Fed, USD, Inflation To Have Biggest Impact On Gold In '16
PART IV: Schiff Shifts More Weight On Gold For 2016 – Invest Like Experts Series

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Abitibi Royalties (RZZ.v) versus Golden Valley (GZZ.v)

RZZ and GZZ used to move together - but not so much since -- May 2014, when RZZ took off

GZZ.v vs. RZZ.v ... update : 1-year : 10d /

GZZ-vsRzz_zpsfan2b5pf.gif

GZZ continues to hold 51% (?), yet RZZ is establishing itself as an independent Royalty company, with at least one core holding

The Ratio of stock prices (Rzz -to-Gzz) has recently "blown out" to about 37:1, and is now about 34:1

At 34:1, GZZ is trading at 1/34, or just under 3% (ie 2.94%) of RZZ's price / update: $9.48/0.28 = 1/33.9

GZZ : 3yr : old-$0.00 > $0.28 : 0.24-0.495 - at 1/22/17

xlmviW0.gif

RZZ : 3yr : old-$0.00 > $9.48 : $7.41-10.75 - at 1/22/17

w88kXtL.gif

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(Not sure where to post this, so I posted it HERE with the other Canadian stocks)

The Surge in MGX Minerals* (MGXMF) has helped Zimtu Corp

MGXMF ... update : 3yr : old-$1.01 > $1.47 : $0.54-$2.12 - at 1/22/17

0OytcGh.gif

MGX was up from US$0.11 to US$1.01 (+818%) has brought a rally in Zimtu, which holds an interesting stake:

RE:Financials (Comment:

As at November 30, 2016, Zimtu owned 1,731,791 shares of MGX Minerals.

On January 14, 2017, Zimtu received 250,000 shares of MGX Mineral in connection with a property deal.
The 1,981,791 shares of MGX Minerals are currently worth $2,675,418 millions (C$1.35) or 53% of the market capitalization ($0.33). Are the 50 other stocks and multiple warrants worthless? I don't think so...
> http://www.stockhouse.com/companies/bullboard#kSRCXorszcheLSOD.99

Zimtu Corp / ZC.v... 3-yrs : Is up from $0.135 to $0.33 (+144%)

ZC.v ... : 3yr : old-$0.33 > $0.26 : $0.19-0.395 - at 1/22/17

9QHThbU.gif

======

* MGXMF recently made a positive news announcement:

03/16/2017:

Today, MGX Minerals Inc. announced lithium extraction process optimization results as disclosed by its engineering partner PurLucid Treatment Solutions in a report entitled “Phase-2 Lithium Extraction Technology Development Report“. MGX said to file a technical report on SEDAR within 45 days.

PurLucid‘s patent-pending filtration technology has “successfully upgraded“ 2 brine samples from its Sturgeon Lake PetroLithium Project in Fox Creek, Alberta, Canada.

Research and development at bench top laboratory testing has resulted in an upgrading of brine from 67 to 1,600 mg/L lithium in the filtration and pre-treatment phase of the lithium extraction process. That‘s a 20-fold increase in lithium concentration in both the first and second trials.

However most importantly, high contaminants (typical for oil field brines and one of the reasons why these “resources“ have been considered uneconomic for long time) have been removed effectively from the lithium concentrated brine. This was achieved with a low energy process. It was reported that magnesium (oftentimes a troublemaker in brine processing) has not only been removed effectively but that “substantive mass of magnesium“ has been recovered, i.e. potentially saleable.

The next phase of development hopes to validate these initially promising results in order for MGX and PurLucid to advance to commercial test deployment in case an agreement with a major oil company can be accomplished and the extraction of saleable lithium products succeeds at competitive prices.

more at http://www.stockhouse.com/news/newswire/2017/03/06/mgx-upgrades-petrolithium-brine-to-1600ppm-li#RcgWEYYrwTyOp4zk.99

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THESE Stocks did very well !! Average gain over 124%

Some spectacularly well; ( GZZ, LRA , RRI ) - these were the 3 stocks I liked most.

And at their highs, ALL were well above the initial prices

Sym.: Company------- : C$price: Low-to-High: ShOS: MktCap: $Cash : BkVal.: Last !! : +%chg : HighC$ :
AVU : Avrupa Res------ : $ 0.160 : $0.07-$.400 : 55.48 : $8.88m : $0.29m : $0.040 : $0.090 : - 43.7 % : $ 0.25
AZM : Azimut Explor.-- : $ 0.130 : $0.10-$.285 : 37.64 : $4.89m : $1.44m : $0.180 : $0.310 : +138.5% : $ 0.68
ALS : Altius Minerals*- : $ 13.25 : $9.86-15.47 : 39.93 : $529.m : $15.5m : $8.750 : $12.21 : - 7.85 % : $14.06
CKG : Chesapeake Gd: $ 1.540 : $1.39-$2.90 : 44.42 : $68.4m : $28.7m : $1.950 : $3.570 : +131.8% : $ 6.50
GZZ : Golden Valley--- : $ 0.100 : $.075-$0.21 : 99.20 : $9.74m : $2.37m : $0.200 : $0.350 : +250.0% : $0.495
LRA : Lara Exploration : $ 0.305 : $0.20-$0.55 : 31.21 : $9.50m : $0.81m : $0.080 : $1.010 : +231.1% : $ 1.58
NGE : Nevada Explor.- : $ 0.180 : $0.05-$0.35 : 30.91 : $5.56m : $0.03m : $0.250 : $0.345 : +91.67% : $ 0.72
RRI- : Riverside Res. - : $ 0.155 : $0.15-$0.36 : 37.00 : $5.74m : $5.90m : $0.230 : $0.475 : +206.5% : $ 0.60
====
Average Gain of these 8 stocks: +124.8% to yesterday's close - to the High, much better

I owned only one (GZZ), and did well with that, but could have held on longer

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Chesapeake Gold Corp. may be a good buy, if it falls back to support at/near C$3.00
CA:CKG ... update
CKG_zps2nppq3xu.gif

 

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Mike Ballinger likes Junior Miners

Why I use precious metals ETFs for trading and penny stocks for long-term holding
 
The Gold Report
|2 days ago

image: http://www.stockhouse.com/getattachment/971af253-0dc3-4a9f-9472-6327e6cba746/G_1.jpg

G_1.jpg
 

To the extent that the market represents the sum of all of the collective opinions of every investor everywhere, I must declare myself to be a card-carrying misanthrope, carrying with me a complete revulsion of the current state of the financial markets into battle each and every day and night that markets are open for "trading" (if that what you must call it). I further wonder whether or not my current approach to stock investing is much different from the way my father used to view a Jimi Hendrix guitar solo or my mother contemplating the meaning of the rips in my perfectly torn blue jeans.

As I age, I am slowly coming to the realization that markets are now the eminent domain of a demographic far younger than I, a group far less concerned with the traditional means of securities analysis and more inclined to trust algorithms, pattern-recognition technology and "word clouds." As a group, these young centurions place their speculative dollars in new high-tech, social media endeavours rather than resource exploration. They feel more comfortable investing in a brand new legalized investment called marijuana just as our forefathers went after Seagram's or Anheuser-Busch after Prohibition ended in 1933.

The new wave of entrepreneurs that dominate the financial services landscape care not about "GAAP" or "sound money" or "deficits" or "inflation" because they have never had to worry about accounting "principles" because when the banks are in trouble, they just CHANGE them. To them, all money is "sound" because central bankers have no problem printing it to avoid "bad times." "Deficits" mean nothing because we have a military that protects everyone so the money represented by the American Military Machine can only be "sound." "Inflation" has been non-existent for years because the government has told us that it is running at 0.3% and that is the only proof we need.

So, with our superb banking systems, with the U.S. military as our Divine Protector, our rock solid "fiat" currencies, and our no-need-to-be-balanced-budgets, we can buy U.S. or French or Japanese or British stocks at nosebleed levels because all of the problems that caused stocks to fall in the past were "baby boomer" problems and don't apply to today's markets.

A brand new and supremely-qualified U.S. president has vowed to "Make America Great Again" and this youthful group of stock market newbies has taken his clarion call to arms and are striving to own every share of every stock ever created with all of the inherited, printed money that their grandfathers could ever bestow. The "cash is trash" mantra is being eaten, lived, and breathed every moment of every day as the word "savings" is stricken from Webster's and Funk and Wagnall's at an alarming rate.

If you look at a chart of the TSX Venture Exchange held up beside a chart of the Canadian Marijuana Index, you can see how "pot" has outperformed the resource sector, driving home my admonition that the new drivers of the speculative market for junior stocks are not the same demographic that drove Diamondfields from pennies to hundreds of dollars per share in the 1990s. One of my friends that loves the mining and exploration sector told me recently that he has never made more money in penny stocks than in the last two years—all in marijuana deals! "The younger generation understand the future of marijuana legalization just as they did the importance of Facebook and Google and now Amazon." he explained. "They have a hard time understanding gold or silver but they sure do 'get it' when it comes to how their peer group favors pot over Jack Daniels."

Accordingly, the charts tell me that the mining industry would be well advised to begin marketing to the Millennials with diagrams of the metals required to build a harvester or a Zippo lighter or an iPhone you will use to pay for that $300 ounce of weed that we used to get in the school parking lot for $25 in the 1970s. Perhaps of benefit would be illustrating how the purchasing power of currencies has been eroding by using an ounce of weed as the measuring stick rather than a loaf of bread or a gallon of milk.

Whatever the case, this Millennial Money Machine is completely ignoring the resource sector by and large and it is being felt and seen everywhere I turn. Will I join the CRUSH of investors charging into "Aurora Cannabis" at $2.58 sporting a market cap of $824 million any time soon? Not likely, but then again, teaching this "old dog" new investing tricks is going to be a tough task for the best of them.

I read tonight that a company called Canopy Growth decided to change its stock symbol to "WEED" in early February, resulting in an immediate pop in the stock from $10 to over $13 in seven trading days. This gave me a brilliant idea. I intend to change the name of "Stakeholder Gold" to "Big Bud Resource Corp." and change the symbol to "BONG" followed by Gem International changing its name to "Jamaican Red Diamonds" and change its symbol to "GNJA." Once accomplished, I will advertise on Facebook, Twitter, Snapchat, Instagram and on the roof of UBER vehicles and on TV during shows that have lots of vampires and zombies. I will hire Cheech Marin and Snoop Dogg to become spokesmen for the Canadian exploration industry based upon metal content used in pipes, bongs and lighters.

image: http://www.stockhouse.com/getattachment/d140e6d3-9232-4fdb-b37f-a1787f54694b/G_2.jpg

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In gravitating back to my beloved precious metals, I have been made to look like an idiot once again by failing to pay attention to the vice-grip that the bullion banks have in place on paper silver, with the recent "breakout" above $18.50 being soundly rejected with July Silver now down 10 out of 11 sessions to $17.28.

My only bragging rights are in the June Gold pit, where the recent $1,250-1,260 breakout has held soundly and is this evening is sitting at $1,272.20 back within striking distance of the April 17 high at $1.297.40. I really can't explain what is happening with this divergence between gold and silver other than the seasonal weakness inherent in the months of April and May, but what is astounding is the sheer volume of Commercial shorts in silver and the unfathomable blind eyes of regulators as to position limits and spec/hedge classifications when it comes to determining exactly who holds those silver shorts. The word "shenanigans" now a popular one in the blogosphere has long been my term for collusion, manipulation and fraud; no word better serves the current state of the paper markets in "good ol' Chicago."

image: http://www.stockhouse.com/getattachment/70d2adce-3645-4b1c-9766-3161a59a5041/G_3.jpg

G_3.jpg

At the end of the day, the companies I own are the ones that I show in the list at the bottom and while the ones I TRADE are the ETFs GDXJ (VanEck Vectors Junior Gold Miners) and JNUG (Direxion Daily Junior Gold Miners Bull 3X), the ones I OWN as long-term investments are the penny stocks contained in the list below. The reasons I invest in these companies is that while they may have more risk than buying a Fortuna Silver or a B2Gold, the ascension from "explorco" to "developer" carries the biggest "lift" when investing in them. The chart included below shows the "Life Cycle of a Deposit" and relative to the four companies in the list, Stakeholder Gold Corp. (SRC:TSX.V) and Gem International Resources Inc. (GI:TSX.V) would fall into the "exploration" or "pre-discovery" stage while Western Uranium Corp. (WUC:CNQ) falls into the "feasibility-development" stage.

However, Canuc Resources Corp. (CDA:TSX.V) falls into the unique position of being valued at a "pre-discovery" market cap ($20 million) but because of the underground workings present at San Javier, is actually well beyond the discovery stage by way of the 43-101 report confirming the presence of extremely high-grade silver-gold mineralization in the breccia zone identified through underground sampling. Accordingly, the "lift" that accompanies a discovery has not yet been assigned to CDA but once the delineation program begins later this month, an initial resource calculation will be established that will bypass the time and work required to take it through the discovery stage and well through feasibility (due to the underground adits already in place) in advance of actual mining. (Mind you, it will take a lot of drilling and money to get there but nowhere near as much as if you were a grassroots explorer.) That is why I have CDA ranked #1 on my list and it is why I believe that the drill program will result in an immediate lift in valuation to "advanced exploration" levels north of US.$75 million in market cap later in 2017 (from the current U.S.$15 million today).

image: http://www.stockhouse.com/getattachment/fe469e8c-e881-41b2-851a-fefba92a9965/G_4.jpg

G_4.jpg

Finally, there is yet another YouTube John Titus production out there that is worthy of listening to IF you are prepared for outrage and disgust. The link can be accessed by clicking here and to summarize, it deals with all of the covert activities of the U.S. Justice Department as it essentially "pardoned" the big U.K. multinational bank HSBC despite having mountains of evidence on it for its role in aiding and abetting money-laundering, drug-smuggling and terrorist activities in the world of international finance. If you need an impetus for launching household items such as pencil sharpeners and beer steins through windows or screaming maniacally at one's pet and/or spouse with intermittent but equal consistency, take the 45 minutes and walk with Mr. Titus through the presentation as he CLEARLY paints a landscape that depicts the global banking cartel for exactly what it is—a SYNDICATE—a criminal organization that transcends national boundaries and Rule of Law. Make sure you give yourself an hour or so to cool off because I did NOT and now my beloved Fido is shaking like a leaf out in the woods somewhere while the other inhabitants of this residence are in hiding underneath the tool shed.

Read more at http://www.stockhouse.com/opinion/independent-reports/2017/05/03/why-i-use-precious-metals-etfs-for-trading-and-penny-stocks-for-long-term-(1)#idtVhMMo2cbg4T1T.99

CHANGES:

Gold: $1267.85 up $1.95 2017-04-28 10:57:20 AM
Silver: $17.23 down $.10
GTSR: 73.58 (↑)
Copper: $2.5857 up $.0180
Zinc: $1.1849 up $.0139 (down 12% from Feb top)
GDXJ: $32.33 up $.64
JNUG: $4.57 up $.20
SRC.V: $.49 up $.005
CDA.V: $.44 down $.01
GI.V: $.05 unch'd
WUC: $1.70 up $.09
Read more at http://www.stockhouse.com/opinion/independent-reports/2017/05/03/why-i-use-precious-metals-etfs-for-trading-and-penny-stocks-for-long-term-(1)#idtVhMMo2cbg4T1T.99

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Gold Royalty and Streaming co's
peter_1.jpg

R/S agreements are long-lived and unique, offering diversification benefits unavailable from single project mining juniors. At any given time, a successful R/S player’s investment portfolio might have cash flow schedules extending 20 years (from existing cash flowing deals, plus ones expected to go cash pay in the future). That’s why many believe that R/S companies are the best risk-adjusted way to play precious metals bull markets…. and survive bear markets.

R/S companies invest in all stages of mining, from early-stage through production and (importantly) expansion. They invest with the goal of an attractive return on capital (base case), plus valuable optionality on a strong or even spectacular outcome. R/S managers can fine-tune their investment portfolios based on market cycles (i.e. enter into more bullish or more conservative transactions). On new deals they can steer away from jurisdictions experiencing an increase in (geopolitical, environmental, permitting, geological, etc.) risks.
Read more at http://www.stockhouse.com/opinion/independent-reports/2017/05/05/is-metalla-royalty-next-franco-nevada#Ov9uUt6JLKSY0Lho.99

=====

Is Metalla Royalty the next Franco-Nevada?

(ah, no!)

On April 28th, Metalla announced the imminent closing of its first currently cash paying precious metal stream. The Company is investing US$1.86 M (net of initial streaming cash flow of US$138,136), in exchange for 15% of the silver (“Ag”) produced at the New Luika Gold Mine in Tanzania, successfully operated by Shanta Gold Ltd. since 2012. Metalla management estimates the stream will generate between 19k-22k ounces of silver per year through 2026. The Company is required to pay ten percent (10%) of the prevailing spot price for each ounce produced.

Management is paying US$1.86 M (C$2.48 M) for an annual (un-discounted) cash flow stream of roughly US$325k (C$430k), assuming $18/oz. Ag and 20k ounces/yr. However, Metalla has considerable upside in the form of higher prices and increased production. For example, if both production and the Ag price were to increase just 3% per year, ending in 2026 at ~26,000 ounces produced, net to Metalla, (on an Ag price of ~$23.5/oz.), un-discounted cash flow in 2026 would be about US$550k (C$735k).

As a frame of reference, if silver were to increase 12% per year, it would reach ~$48/oz., equal to the high tick of 2011, generating cash flow of ~US$1.1 M (C$1.5 M) in 2026. NOTE: {the all-time, inflation-adjusted high tick on silver was about $150/oz. in 1980!} I don’t mean to suggest that this particular deal is a company maker, I’m merely pointing out the tremendous upside (a valuable call option) on precious metal prices embedded in properly structured agreements.

peter_3.jpg

Two things come to mind. First, C$430k per year nearly covers the cash burn of the Company, affording management the flexibility and breathing room to cherry pick the best opportunities. Second, a 10-20x cash flow multiple on C$430k suggests C$4.3 to C$8.6 M in market value. That’s from just one modest-sized stream. The Company fully expects to execute 2 – 4 R/S deals per year, in the US$2 – $10 M zip code. Not all will be cash flowing from day 1.
>more at http://www.stockhouse.com/opinion/independent-reports/2017/05/05/is-metalla-royalty-next-franco-nevada#Ov9uUt6JLKSY0Lho.99

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On 1/11/2016 at 6:01 PM, DrBubb said:

How Would Brent Cook Invest $100k in 16? Invest Like Experts

.Friday January 08, 2016

BrentCook.jpg

Expert: Brent Cook

Claim To Fame: Geologist & Editor of Exploration Insights, a junior mining investment letter whose portfolio returned +18% in 2014 and -6% in 2015.

Thoughts on the mining sector: The mining and exploration sector has been decimated over the past few years and is off over 80% from its highs, Brent Cook told Kitco News Friday.

Mining companies have experienced another tough year with more cost, production and exploration cuts as well as downsizing and mine closures, among other negative news.

The Gold Miners ETF Market Vectors (GDX), which tracks the performance of major gold mining companies listed on the NYSE Arca Gold Miners Index, has steadily been declining since 2012 and is currently at record lows. And, as Cook put it in his year-end newsletter, it is hard to find anyone positive on the sector even think there is a need for exploration.

This is as bad as I have seen it, and I see very few logical reasons to think it gets better anytime soon, he added. However, when asked how he would invest his money in the sector this year, Cook said he sees potential in three key areas.

For more on the mining sector, watch Brent Cooks 2016 outlook interview with Kitcos Daniela Cambone.

How would you invest $100,000 in the mining sector in 2016?

40% Mid-tier Precious Metal Producers with low cost production and legitimate exploration upside

Examples: Lake Shore Gold & Claude Resources

25% Prospect Generators with sufficient cash to last a couple of years, partners spending money, legitimate exploration concepts and honest management

Examples: Mirasol Resources, Reservoir Minerals, Riverside Resources, Aurion Resources, Lara Exploration, Miranda Gold, Evrim Resources

35% Very Early Stage Discoveries that may occur this year

What factor will affect the mining sector the most in 2016?

Metal prices andpolitical uncertainty then China, he said.

What is your New Years investment resolution for 2016?

One has to be very critical and brutal when evaluating exploration results and sell if your investment thesis begins to fall apart regardless of what your purchase price was, he said.

The key to making money in the junior mining sector is #1--Don't lose money and #2 always fact check a company's statements and data--sometimes they make things up, he added.

> more: http://www.kitco.com/news/2016-01-08/How-Would-Brent-Cook-Invest-100k-in-16-Invest-Like-Experts-Mining-Edition.html

 

PART I: Vince Lanci tells Kitco News how hed invest $100,000PART II: RBC's George Gero Gives His Investment Ideas For 2016PART III: Rickards: Fed, USD, Inflation To Have Biggest Impact On Gold In '16PART IV: Schiff Shifts More Weight On Gold For 2016 Invest Like Experts Series

Trying to find Brent Cooks comments for this year.

 

His picks for 2016 were well above average

 

(Watching the slide in LRA did well in that, sold too early on "speeding ticket" last year, but not so early to current price).

 

Just popping in looking for inspiration ?

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Canadian exploration stocks - still in a summer slump

On 10/8/2015 at 12:43 PM, DrBubb said:

Generative Exploration Co's: GZZ, LRA, RRI, etc ... ch#1 : ch#2 : ch#3 :

More co's (see post#11):

Examples: Mirasol Resources, Reservoir Minr'ls, Riverside Res., Aurion Res., Lara Explor., Miranda Gold, Evrim Res.

Rx_station-small.jpg

GZZ-etc: ch#1

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These co's are getting very cheap, and some of them have royalties, etc to cover their expense base.

Might this be a good time to start buying

CKG : Chesapeake Gd: $ 1.540 : $1.39-$2.90 : all-data : 2yrs : 6mos :

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GZZ : Golden Valley--- : $ 0.100 : $.075-$0.21 : all-data : 2yrs : 6mos / RZZ : all : 2yr : 6mos :

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LRA : Lara Exploration : $ 0.305 : $0.20-$0.55 : all-data : 2yrs : 6mos :

yP2JBfV.gif

RRI- : Riverside Res. - : $ 0.155 : $0.15-$0.36 : all-data : 2yrs : 6mos :

HTQZUzP.gif

 

These charts don't show any "impulse action" ... yet

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gzz might be a buy in here, near 25 cents

 

gzz / golden valley ... from 1/2011 : 5-yrs :

f9fiCrx.gif

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Golden Valley vs. Abitibi Royalties / GZZ owned 51% of RZZ in 2015 : d#1 : m#2 :

(charts) All: GZZ : RZZ : SOI : MZZ : IZZ / 1-yr: GZZ : RZZ : SOI : MZZ : IZZ :

Sym.: Company------- : C$price: Low-High-- : ShOS : MktCap : $Cash : BkVal : Pr/BkV : Pr./Ls : Expense : Exp/sh.

====: 11/24/17 update :

GZZ : Golden Valley- : $ 0.270 : $0.24-$.495 : 122.7 : $33.1m : $0.00m : $0.172 : 157.% : +$0.00 : $0,000. : $0.000
RZZ : Abitibi Roylaties : $ 8.000 : $7.41- $10.8 : 11.41 : $92.3m : $0.00m : $2.990 : 268.% : +$0.00 : $0,000. : $0.000

===>: GZZ owns 49.1% of RZZ : $8.00>$92.3m x 49% $45.3m : (5.61/11.4: 49.1%)
SOI : Sirios Resources : $ 0.285 : $0.25-$0.56 : 120.1 : $34.2m : $0.00m :
===>: GZZ owns 3.33%: of SOI : $.285>$34.2m x 3.3% $01.1m : (4.00/120.1: 3.33%)
MZZ : Val-D'Or Mng. -- : $ 0.115 : $0.07-$0.17 : 18.35 : $2.02m : $0.00m : $.0136 : 845.% : +$0.00 : $0,000. : $0.000
IZZ. : Int'l Pros.Ventures $ 0.350 : $0.16-$0.36 : 22.96 : $8.03m : $0.00m : $0.877 : 977.% : +$0.00 : $0,000. : $0.000
===> : GZZ owns 44.5%: of MZZ : 18.2% IZZ:$1.46 --- > $2.36m : (8.16/18.4: 44.5%) (4.17/23.0: 18.2%)
===> : Sub-Total RZZ :: + + MZZ : and +++ IZZ : ------- > $47.7m : $0.00m :

GZZ website : http://www.goldenvalleymines.com/ : RZZ : MZZ : IZZ : SOI :

GZZ Ownership - Per AUG. 2017 Presentation : http://www.goldenvalleymines.com/investors/presentations/GZZ-31-Aug-2017Cdnv2.pdf
Sym.: Company ------- : C$price: -Low - High-- : ShOS : %Pct.: xGzzSh: MktCap: Aug.17 Pres.

Book Value: 09/30/17: ---------------------------------------------------------- : $40.0m : (Sep.17)
=== : 08/28/17 Prices :

GZZ : Golden Valley-- : $ 0.310 : $0.24- $.495 : 122.7 : 100.%: 122.7 : $38.0m : $39.1M :
RZZ : Abitibi Roylaties : $ 9.300 : $7.41- $10.8 : 11.41 : 49.1%: 5.605 : $52.1m : $51.3M :
SOI : Sirios Resources: $ 0.380 : $0.25- $0.56 : 120.1 : 03.3%: 4.000 : $1.52m : $1.60M :
MZZ : Val d'Or Mining : $ 0.090 : $0.07- $0.17 : 18.35 : 44.5%: 8.164 : $0.73m : $0.70M :
IZZ. : Intl Pros. Vents. : $ 0.10E : $0.16- $0.36 : 22.96 : 18.2%: 4.171 : $0.42m : $0.40M :
================== > ------------------------------------------------------ : $54.8m : $54.0M :
Cash held, etc-------- : ---------------------------------------------------------- : $7.80m : (Sep.17)
OTHER Assets:
abt.3% NSR Chechoo: gold royalty: 3% at gold > $1,200- $2,400 -- : $06.8m? (20% SOI)
Grassroots Expl. Proj :
Active Option Agrmts :

GZZ / Golden Valley Resources : GZZ :
ySHpmEf.png

 

Ratio: gzz to rzz
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SIRIOS RESOURCES INC.- Management’s Discussion – Quarterly Highlights – September 30, 2017
Financing activities
On August 2, 2017, the Company completed the closing of a flow -through private placement for a total of $5,000,000.
It was composed of 11,111,111 flow -through shares at a price of $0.45 each.
Budget and upcoming work - Cheechoo Project
Diamond drilling 17 560m at $250/m / To come: Oct.17 – April 18 : $4,390,000
CHEECHOO Property
The Company owns 100% of the property which consists of 145 claims, covering 75 km2 divided in two non-continuous blocks. It is located 320 km north of Matagami, in Quebec, and 9 km east of the Eleonore gold mine of Goldcorp Inc. The main block of 124 claims, located in the 33B12 NTS sheet, is adjacent to the east of the Eleonore mine. The second block of 21 claims is located in the 33C09 NTS sheet and at around 20 km west of the main block, on which drilling programs are held. Golden Valley Mines Ltd. retains a net smelter return royalty ranging between 2.5% and 4% depending on the gold price and 4% net return for all other minerals extract of the project.
Notably, the gold royalty will be 3% for a gold price per ounce between $1,200 and $2,400.

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RZZ / Abitibi Royalties Inc ... update

: GZZ :

gvLOCk0.gif

Abitibi Royalties Inc. TSX-V: RZZ

Abitibi Royalties' objective is to capture the upside potential inherent to the various stages of the mining sector, while limiting the risks related to the difficulties in assessing the rate of success and accurately predicting the costs for exploration, development, and mine operation.

Royalties are a right to receive a percentage of the production from a mine. However, royalties may have various structures and they may be created for different reasons and at different stages from exploration to development. Our team has a long history of developing a variety of such structures specifically during the early stages of exploration. This acquired experience makes Abitibi Royalties unique in the universe of royalty companies.

Abitibi Royalties was initially spun out of Golden Valley Mines (TSX-V: GZZ) and listed as a public company in 2011. The flagship royalty in this portfolio is 3% net smelter return (NSR) royalty on the eastern portion of the Canadian Malartic mine (owned and operated by Agnico Eagle and Yamana Gold), which includes the Barnat Extension and Jeffrey gold deposits. The NSR also includes the exciting new Odyssey North discovery that was announced in 2014.

> http://abitibiroyalties.com/corporate/aboutus/

 

B) Per share value: The Company generates meaningful cash flow on a per share basis.

Despite our royalties at the Canadian Malartic mine being in the development phase and without production until next year, we think it is important that the Company generate cash today (which we will do for a third consecutive year in 2017) while it aims to generate larger amounts in the future. It forces a certain discipline on management, in that they have to make do with current resources and cannot just rely on equity markets for funding.

c) Physical gold: The Company takes a portion of its royalty income in gold bullion, which should continue to grow each quarter. This should also defer tax.

This is something we have not done for the simple reason that our previous royalty revenue from the Gouldie deposit at the Canadian Malartic mine did not give us this option. The first time we will be able to take our royalty income in gold bullion will be in 2018. Building an ever-larger stockpile of gold would give shareholders more leverage to the metal, which not only doesn’t take a salary or stock options, but has also outperformed the majority of senior gold miners during the past 15 years.

d) Share buybacks: The share count goes down, not up. Few, if any, mining companies follow this strategy. We aim to be different.

One of the reasons why gold bullion has outperformed the majority of gold companies is that it cannot dilute itself. Only mining companies can do that through the unrestrained issuance of new shares. As you will read in this letter, one reason I think the sector has underperformed most investors’ expectations is that shares have been issued by gold producers in their quest for growth by paying high premiums versus the value they receive and by junior explorers who issue shares on unattractive terms in order to fund their exploration programs.

e) Exploration: Provides exposure to exciting discoveries.

The good news is that we have a meaningful royalty on a significant discovery at Canada’s largest gold mine that appears to have all the right ingredients to keep getting larger and move towards production. This has been the driving force behind our share price and the reason we have outperformed our peers and gold. The story is no different when you look at the histories of American Barrick, Goldcorp or Franco-Nevada. They were all driven by great discoveries. However, when a mining company touts the “value” of their logistics system to shareholders, you know the days of high returns are probably over.

Truly great gold discoveries are rare and becoming increasingly so. Without a great discovery, it becomes hard to separate yourself from the crowd. We should feel lucky knowing Mother Nature has been good to us.

f) Growing the business: Continually builds its royalty portfolio through cash flow and other creative means.

In mining, “growth” is now a dirty word. Large investors want free cash flow at all costs. Many of these investors were previously beating the drum for more production, more reserves and more leverage! It’s funny how the pendulum can swing from one extreme to the next. The fact is good projects and mines generally deliver excellent returns in both good and bad metals markets.

==

> LETTER: May 2017 : http://abitibiroyalties.com/investors/letter-to-shareholders/may92017/

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Ian Ball of Abitibi Royalties: Leveraging Exploration at a Major Gold Mine

Ball, who's president and CEO of Abitibi Royalties, talks about how an extensive drill program at the Canadian Malartic mine is helping his company.

Abitibi Royalties Investor Presentation March 2017

Abitibi Royalties (TSXV:RZZ) isn’t a typical gold stock, but President and CEO Ian Ball believes it’s worth a look. Speaking via phone, Ball described his company as “the only royalty company right now where the main driver of value is exploration,” and suggested that Abitibi’s other attributes — such as its declining share count and investment portfolio — only add to its appeal.

The company’s key assets are the net smelter return (NSR) royalties it holds on the Canadian Malartic mine. Located in Quebec, it began producing in 2011 and is now one of Canada’s largest gold mines. Originally the mine was owned by Osisko Mining, but major miners Yamana Gold (TSX:YRI,NYSE:AUY) and Agnico Eagle Mines (TSX:AEM,NYSE:AEM) took over the company in 2014, and launched the Canadian Malartic Partnership to operate the mine.

Exploration at Canadian Malartic is ongoing, and Abitibi holds NSRs on several parts of the property. Those include a 3-percent NSR on the eastern portion of the mine, where the Jeffrey zone and Barnat extension are located, and a 3-percent NSR on the Odyssey North discovery. Abitibi also has a 2-percent NSR on an area located 300 meters south of the main pit.

“Royalty cashflow is expected to begin next year with the commencement of production at the Jeffrey zone,” said Ball. “It got its major approval in the second quarter, and they’ve now started to prepare the area for mining.” Production is set to begin at the Barnat extension in 2019, and Abitibi will receive additional cashflow at that point.

An ongoing drill program at Canadian Malartic offers further upside — according to Ball, Yamana and Agnico Eagle have completed about 25,000 meters of drilling each quarter for the last six quarters. “It’s something that is extremely positive [for Abitibi],” he said. “If we were to do that work as an exploration company it would be quite expensive.”

He said Abitibi has royalties over “quite a few” of the areas where drilling is now focused. In particular, he’s interested to see new results from the Internal zone, which is located at Odyssey North. “Some of the best drill holes that we’ve seen from the property are coming from the Internal zone, and that seems to be the primary focus for Yamana and Agnico Eagle at Odyssey North,” he explained.

Ball is also eager to see how work at the eastern part of Canadian Malartic progresses. Parts of a past-producing mine in the area are covered by one of Abitibi’s NSRs, and he said that Yamana and Agnico Eagle have “started exploration with the view to evaluate it for mining again.” The mine produced around 2.5 million ounces from about the 1930s to the 1980s, and Ball believes it’s “potentially the next catalyst for when results start coming in.”

Yamana and Agnico are drilling at targets near the main pit at Canadian Malartic as well. “[They’re] tracking known zones to see if they can expand the mine … basically trying to extend the known mineralization,” Ball explained. An exploration update from the two companies is due soon, and details about the companies’ current work should be included.

Aside from Canadian Malartic, Abitibi has a stable of other royalties that Ball has described as “potentially valuable lottery tickets.” Speaking earlier this year, he noted, “we’ve only spent $195,000 to buy 18 of them. If none of them work out it’s not a big deal. But if one of them works out it’s a real positive.”

Ball also pointed to the fact that Abitibi has a declining share count and an investment portfolio that includes “large shareholdings in Agnico Eagle and Yamana.” He noted that a lot of work is going at Yamana, saying, “they have two mines that have relatively short mine lives, but they’re making new discoveries that there that I don’t think are being appreciated by the market.” He added that while the company’s third mine has had operational difficulties, “it seems like they’re getting that figured out now.”

====: 11/24/17 update :
Sym : Company--- : us$Last: 12mo-L-High: Sh.OS: mktCap: Owned: -Pct.- : $-Value : C$-Cost- : Yield
AEM : Agnico Eagle-: $44.69 : $35.05-51.86 : 231.7 : $10.35B: 444.2k : 0.19%: $19.85M : C$16.9m : 0.98%
AUY : Yamana Gold-: $02.67 : $02.21-03.65 : 948.5: $2.550B : 3550.k : 0.37%: $09.48M : C$17.5m : 0.75%
==== > ----------------------------------------------------------------------------------------- : $29.33M : C$34.4m :
==== > -------------------------------------------------------------------------------- x1.271 x$29.33M =C$37.3M :

YRI / Yamana ... update : 3-yrs :

HhMHl12.gif

AEM / Agnico Eagle ... update : 3-yrs :

IzE3Q1J.gif

“I [also] think people aren’t recognizing that the copper price has improved, and Yamana produces a fair bit of copper from its Chapada mine in Brazil. Yamana I think is one of the companies that has been trading at a discount to its peer group … we’re cautiously optimistic on the Yamana situation and how we see that moving forward,” Ball continued.

> https://investingnews.com/daily/resource-investing/precious-metals-investing/gold-investing/abitibi-royalties-exploration-major-gold-mine/?as=1&nameplate_category=Daily

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Gold Mine Development Companies

PRDeLvR.png

Sym. : 10yr : 2yr /

SSP.v : 10yr : 2yr / Sandspring Res. : C$ 0.29 : 4.185 : $0.069 : 114.14 : cad$33.10M
VGZ- : 10yr : 2yr / Vista Gold Corp. : US$0.72 : 2.186 : $0.329 : 099.41 : usd$71.58M
BTR.v: 10yr : 2yr / Bonterra Res.--- : C$ 0.62 : 2.232 : $0.278 : 189.65 : cad$117.6M
SA---- : 10yr : 2yr / Seabridge Gold- : $ 11.05 : 2.267 : $4.874 : 057.47 : usd$635.0M
EOX.t : 10yr : 2yr / Euromax Res.--- : C$ .265 : 5.821 : $0.046 : 135.33 : cad$35.86M

ATM.v: 10yr : 2yr / Atacama Pac.--- : C$ 0.71 : 0.615 : $1.155 : 083.62 : cad$59.37M
IDM.v : 10yr : 2yr / IDM Mining Ltd. : C$ 0.11 : 0.914 : $0.120 : 359.10 : cad$39.50M
ATC.v: 10yr : 2yr / ATAC Resources C$ 0.48: 0.629 : $0.763 : 139.63 : cad$67.02M
RUP.v : 10yr : 2yr / Rupert Res.----- : C$ 0.85 : 7.309 : $0.116 : 101.11 : cad$85.95M
INV.t- : 10yr : 2yr / INV Metals------- : C$ 0.81 : 0.977 : $0.829 : 092.59 : cad$75.00M
NCA.t : 10yr : 2yr / NewCastleGold : C$ 0.80 : 5.717 : $0.140 : 203.43 : cad$162.7M
FF.t-    : 10yr : 2yr / First Mng. Fin.- : C$ 0.57 : 1.182 : $0.482 : 552.12 : cad$314.7M
BSX.t : 10yr : 2yr / Belo Sun Mng.-- : C$ 0.45 : 2.842 : $0.158 : 465.59 : cad$209.5M
CGT.t : 10yr : 2yr / Columbus Gold : C$ 0.75 : 2.628 : $0.285 : 152.80 : cad$114.6M
MAX.t: 10yr : 2yr / Midas Gold Cp.- : C$ 0.69 : 2.658 : $0.260 : 186.31 : cad$128.6M
FPC.v: 10yr : 2yr / Falco Resources: C$ 0.97 : 2.135 : $0.454 : 180.15 : cad$174.7M
LGD.t : 10yr : 2yr / Liberty Gold---- : C$ 0.41 : 2.259 : $0.181 : 150.78 : cad$61.82M
ER.t-- : 10yr : 2yr / Eastmain Res. : C$ .325 : 0.842 : $0.385 : 193.01 : cad$62.73M
ALG.v: 10yr : 2yr / Algold Resour.- : C$ .145 : 1.119 : $0.130 : 167.25 : cad$24.25M
LYD.t  : 10yr : 2yr / Lydian Int'l ------ : C$ .355 : 1.132 : $0.314 : 699.62 : cad$248.4M
AMM.t: 10yr : 2yr / Almaden Min'l-- : C$ 1.15 : 1.815 : $0.634 : 100.44 : cad$115.5M
PGM.v: 10yr : 2yr / Pure Gold Mng : C$ .485 : 7.084 : $0.068 : 191.61 : cad$92.93M
CNL.t : 10yr : 2yr / Continen'l Gold : C$ 3.11 : 1.225 : $2.539 : 188.22 : cad$585.4M
HRT.t : 10yr : 2yr / Harte Gold Cp. : C$ 0.50 : 2.807 : $0.178 : 498.59 : cad$249.3M
ITH.t- : 10yr : 2yr / Int'l Tower Hill : C$ .475 : 1.042 : $0.456 : 162.39 : cad$77.14M
GZZ.v: 10yr : 2yr / Golden Valley : C$ 0.27 : 1.572 : $0.172 : 122.74 : cad$33.14M

=====

MUX : 10yr : 2yr / McEwen Mining /Golden Valley : C$ 0.27 : 1.572 : $0.172 : 122.74 : cad$33.14M

... update

PuOKx9Y.gif

VGZ / Vista Gold ... update

jB0XeN0.gif

ATC / xx

w6x2r47.gif

sa

P8f5QAI.gif

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On 11/27/2017 at 3:50 PM, DrBubb said:

Gold Mine Development Companies

PRDeLvR.png

Sym. : 10yr : 2yr /

SSP.v : 10yr : 2yr / Sandspring Res. : C$ 0.29 :

VGZ- : 10yr : 2yr / Vista Gold Corp. : US$0.72:

BTR.v: 10yr : 2yr / Bonterra Res.--- : C$ 0.62 :

SA-- : 10yr : 2yr / Seabridge Gold-- : $ 11.05 :

EOX.t: 10yr : 2yr / Euromax Res.---- : C$ .265 :

ATM.v : Atacama Pac. - : C$ 0.71 :

IDM.v : IDM Mining Ltd. : C$ 0.11 :

ATC.v : ATAC Resources : C$ 0.48 :

RUP.v : Rupert Res.--- : C$ 0.85 :

INV.t- : INV Metals---- : C$ 0.81 :

NCA.t : NewCastleGold : C$ 0.80 :

FF.t-- : First Mng. Fin.--- : C$ 0.57 :

BSX.t : Belo Sun Mng.- : C$ 0.45 :

====

MUX / McEwen Mining ... update

PuOKx9Y.gif

VGZ / Vista Gold ... update

jB0XeN0.gif

sa

P8f5QAI.gif

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