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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.
@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.
@leafsHi JamesKwantes, I am subscriber to your newsletter and always appreciate your insighte on mining bussiness and companies. I have a question on $WGC, winston gold, why did it tank so much in recent weeks. Considering the progress it has made on its property, why is it trading only 7c? it should be trading way north of 10c. Any insight on this would be appreciate it...
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@JamesKwantesOn the Sierra Leone diamond, it's a fascinating story but I don't think that's a US$50-million diamond. Time will tell #diamonds
@JamesKwantesWould sure be nice to see $DDC remain in Canadian hands, given the historic assets and the way in which Canada helped bust up the De Beers cartel with the 1990s discoveries that laid the foundation for an industry #diamonds
@JamesKwantesOn Washingtons, fair point @tommy - Kyle anyway, don't know about the old man. But was also thinking of other players with that comment, eg Rio Tinto. With 60% operating ownership of Diavik, they must also be in the mix here (even if they don't show up in the articles) $DDC
@JamesKwantesSome talk about #Tanzania lately, esp. in @MiningBookGuy's excellent $aufrica. Another with strange insider activity is Jim Sinclair's Tanzanian Royalty Exploration Corp. $TNX. Director William Harvey buying tiny amounts and then selling the next day (at a loss) SEDI:TNX
@JamesKwantesHi @leafs and @dmax sorry for the late reply on $WGC. I don't cover it in the newsletter and it looks like a small, boutique high-grade operation where the plan is to go direct from drilling to production, bypassing economic studies. That path is fraught with risks; it's possible to do but most who try will fail. Not familiar with management here. I would avoid. Also it looks like shares outstanding is actually at 80.8M, not the 46M that it shows here
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@JamesKwantesI believe I responded to this in index but apparently I didn't tag it, and ... anon. Gren was at PDAC, I spoke to him but not about Westhaven. The pattern is doing small raises for drill programs and paying as you go, but what Westhaven really needs is a bigger partner to come in and fund a larger program, IMO
@JamesKwantesHearing that North Arrow Minerals CEO Ken Armstrong will be on BNN tomorrow at 8:30 am PST with the inimitable Andrew Bell. Some renewed interest in the space as the $DDC takeover talk continues #diamonds$NAR
@JamesKwantesThe Alberta Securities Commission created a fake investment company, "Maplestock," and organized and advertised a (well-attended) seminar featuring the fake front man as an anti-fraud education tool http://cawidgets.morningstar.ca/ArticleTemplate/ArticleGL.aspx?culture=en-CA&id=799496 "Halfway through his lunch-time seminar pitch in Calgary, the featured speaker abruptly changed his tune. "I'm not Jonathan Fisher," he said, disavowing the identity he'd assumed as a senior partner of Maplestock Investments. "Maplestock is a fake company," he continued, stepping away from the hotel lectern emblazoned with the slogan "Profit Like The Experts."