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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@JamesKwantesWill reserve judgment until I see it @Brandon but it does vault $CGT into a fairly small group of companies with an FS-stage 5M-oz deposit in the Americas (although FG technically part of France)
@JamesKwantesJust spoke to $CGT CEO Robert Giustra - he's happy with today's Montagne d'Or FS & says the economics will only get better. For example, there are 960K Inferred ounces inside the pit. A 4,300m infill drill program - costing US$1.5M - on the highest-grade portion of the in-pit Inferred resource could move another 200K oz into reserves, bringing the after-tax IRR up to 20%. But the additional drilling is subject to obtaining permits. Columbus already looking at other optimizations that could improve economics before the technical report is filed on SEDAR within 45 days
"Any major mining company would be interested in this deposit."
- Columbus drills turning now at both Montagne d'Or and Eastside in Nevada
@JamesKwantesSilver Wheaton had already been doing more gold deals, but looks like Randy Smallwood's recent shot at $SSL's Nolan Watson (over the SSL CEO's "management lying" comments) was merely an opening salvo $SLW
@JamesKwantesTrue @FundamentalAnalysis about the silver royalty on Hackett River. An afterthought although $SBB mentioned it in year-end NR. Back River the big prize of course but significant value in the royalty - albeit Glencore owns the asset
@JamesKwantesSome people are still fighting the last federal election. Trudeau won, Harper lost and Harper did himself in (and I hope there's no capital gains hike tomorrow). Trump ... don't get me started
@Maggee@JamesKwantes, I read this comment a lot: Trudeau won, get over it. (Or more commonly Trump won, get over it.) While true, you have to remember that by winning they are beginning their leadership, it's not the prize just to win. Now that Trudeau won we all, whether we voted for him or not, get to be critical about everything he does. When he is criticized it's not because we are bitter that he won but because he's doing something we don't like.
@JamesKwantesI agree 100% @Maggee but I take issue with some of the petty complaints. The vital economic relationship with the United States that's he's navigating (with a madman) -- criticize him on how he's managing that, but $127K for a trip? C'mon. I am not an advocate of blank cheques for govts of any stripe; I also recognize rot across all political flavours when govts are in power for any length of time (with very few exceptions). These are early days
@RocketRedSo @JamesKwantes a 75% Capital Gains tax will make you happy I know you BC people think taxes are great or Governments should just keep spending away while our kids grandkids will pay for it all
@JamesKwantesNo @RocketRed a 75% capital gains tax will not make me happy. And I'm sorry that you have an issue with me living in B.C. Last time I checked an NDP govt was in power in Alberta and right-of-centre govt ruled BC
@JamesKwantes@Maggee I abhor the entitlement mentality and I'm old enough to remember how bad it got during previous iterations of Canadian Liberal rule, particularly under Chretien. What is happening south of the border on that front, however, is beyond the pale
@ekim@JamesKwantes sounds like it is 100% or nothing. Maybe by having no shares...he has more legal flexibility to say publically what they have been saying. If you think there is a white knight (Rio or such)..you would think you would want to try and get an up to 5% position anyway...Maybe he doesn't think a white knight is possible.
@RocketRed@JamesKwantes as soon as he is out of power the better off will we all be and what's the debt to be after JT is out but nobody these days cares about debt at some point somebody has to pay for all that debt
@JamesKwantes$CGT rebounding a bit from the Tuesday drop. Montagne d'Or after-tax IRR will be at or above 20% soon enough, and deposit also has size going for it. To the majors, size matters. Lots of value in Nevada too
@JamesKwantesHaha hope we won't have to storm the gates @2pac. The finance minister Bill Morneau knows his way around business and the markets - the family business, Morneau Shepell, is publicly listed - so that probably helped.
@ivopashovWhat is disappointing for me in this BFS is (1) high capex and (2) EUR/USD sensitivity analysis. The exchange rate assumption is 1.05 and this is so far from reality when looking at the 10 yr exchange rate. For every 0.05 difference NPV plunges by $60 mln. I would be conservative and assume 1.15/1.20 in the middle term so NPV/IRR should be in 235/14 - 170/12 range everything else being same. I guess they will reduce capex a bit but that would be 10-20%. I doubt they get the mine built for half of what they show. So that would come at well above $400 mln which is huge again (i don't include tax credits as they are a bit tricky to calculate). You can see what a penalty it is by the discount sensitivity analysis. You use 10% instead of 5% and NPV gets cut in half ($185 mln). On the positive side i assume they will convert the inferred ozs and will be able to add more ozs to the deposit with the current drilling going on. Also on the positive side is the late stage, size and good jurisdiction. As @JamesKwantes said size matters and that could spur some bidding. Big guys would prefer advanced 5 mln Ozs project with lower IRR to an early 1.5-2 mln project at a higher IRR. All being said, i would be on the safe side and calculate $300-330 mln NPV (worse exchange rate, better capex, more ozs) which still leaves about $150 mln for Columbus. The good part is that this is not the only 1 they have - Nevada has a potential to be a company maker. However, with all the fuzz around Montagne d'Ore, Nevada does not get much of an attention and this may stay like that for a long time. I am a shareholder here and am really at crossroads now.
@JamesKwantesRe De Beers jewelry arm, there is sure a lot of activity in the #diamonds sector of late as well as interest from majors. Also a major focus of the latest Resource Opportunities which went out early this morning. Diamonds one of the "empty rooms" at an otherwise bullish PDAC. Opportunity IMO $DDC$RIO
@JamesKwantesNot an investment advisor @bullionaire but you know as well as I do how the Yukon cycle works. And GPY cashed up and drilling, as you mentioned. I do believe the Yukon could well get hot again this year. Don't own it
@JamesKwantesYes, a lot of the interns and temps were let go today (was by seniority), but I'm sure they'll bring in new ones to do the grunt work. If somebody's going to figure out profitable online journalism, it ain't going to be a newspaper!
@JamesKwantesA silver lining was everybody who got laid off today made good money at the Sun, union shop with some of the best pay in the biz. Which also contributed to the need for cost-cutting when the business model failed, of course ...
@PhotoJ@murat@jamesKwantes This is the exact situation where certain cryptocurrencies would be the answer. Pay a few cents to read an ad-free, quality article. This isn't feasible with traditional payment methods due to transaction costs.