Late August Watch-list

[drbubb]

Columbus Gold (CGT.v): I bought in a pp at $0.85 in the Spring.

 

It is taking longer to develop than I thought, but still looks very promising

 

NEXT NEW THREAD: Dec. Tax-Loss Selling bargains

[drbubb]

Glencairn (GGG.v) is not a pretty chart

 

 

I'm not long it, but Frizzers has mentioned this on another thread, so thought I should discuss it here.

 

When I saw the chart, my reaction was that there must be some bad news.

It looks like it is falling to support at $0.47-48

 

There's some panicky sentiment on Stockhouse

"SUBJECT: out for good Posted By: quickmoney

Post Time: 11/15/2006 10:35

 

I kept waiting quarter after quarter for what was promised to be profitable quarters and heard delay after delay. Huge cash cost. If gold comes down in price, there really is no company left. They would have to shut down. I'm out permanently with a loss. I hate that "

 

= =

 

Management was selling (at higher prices) back in Sept:

Sep 13/06 Sep 08/06 Gareau, Michael Bernard 10 - Disposition in the public market Common Shares -30,000 $0.720

Sep 13/06 Sep 07/06 Gareau, Michael Bernard 10 - Disposition in the public market Common Shares -10,000 $0.730

Sep 08/06 Sep 05/06 McDonald, Ian James 10 - Disposition in the public market Common Shares -30,000 $0.710

Sep 08/06 Sep 05/06 McDonald, Ian James 10 - Disposition in the public market Common Shares -370,000 $0.700

Sep 08/06 Sep 06/06 McDonald, Ian James 51 - Exercise of options Common Shares 200,000 $0.300

Sep 08/06 Sep 06/06 McDonald, Ian James 51 - Exercise of options Options -200,000 $0.300

 

@: http://www.canadianinsider.com/coReport/allTransactions.php

 

THOSE WHO listened to the Co. conference call, were somewhat comforted:

 

"just listened to Glencairn's conference call this morning to get a feel for the new management.

Overall, they sound like they have their act together. Some points that I thought were particulaly interesting.

 

* Estimated gold production at this point is projected to double over the next 3 years as follows:

 

90,000 oz (2006)

127,000 oz (2007)

142,000 oz (2008)

179,000 oz (2009)

 

* Glencairn has an aggressive exploration program in place and we can expect to hear additional news on a regular basis in the months ahead as they update their estimates of total reserves. Overall, it sounds like there is potentially a lot of additional gold that has not already been factored into the current estimates.

 

* Management acknowledged that they were a bit surprised at the amount of investment that was required to bring the Libertad mine up to speed; however, most important, they had planned to capitalize this expense (rather than having to take the hit in Q3)

 

* Moving forward, the accelerated stripping and upgrades to equipment and operations are mostly completed (continued in October, but it sounds like they are mostly done)

 

@: Stockhse. BB on GGG

 

(posting dated 11/21):

 

What Happened?

• Another losing quarter. Glencairn reported a Q3/06 loss of $0.01/sh and negative cash flow of ($0.01)/sh, below our estimates for earnings of $0.03/sh and cash flow of $0.04/sh. While gold sales increased slightly to 22,787 ounces and the realized gold price was $618/oz, total cash costs rose

sharply to $555/oz compared with $344/oz in Q2/06.

 

• Cash costs were very high at La Libertad, while other operations underperformed. The main difference in the quarter related to the addition of production from La Libertad mine in Nicaragua,which contributed 6,036 ounces at total cash costs of $914/oz. The other operations fared better but

still performed well below expectations. Bellavista experienced lower recoveries due to a delay in the completion of the grinding mill, while Limon throughput and recoveries slipped.

 

What Does it Mean?

• Work is underway to upgrade operations, but it will take time: full production at La Libertad nd contribution from the Mestiza property to the Limon mine are not expected to take effectuntil mid-2008. Libertad in particular requires extensive operating and capital expenditures

($10 million) to return mining operations to a normal level

[Guest LexLurker]

STRANGE COMPANIES, strange returns.

 

Is it necessary to buy such unusual (small illiquid) companies to get those returns??