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@MiningBookGuy@LucTenHave - I think you meant $EXK$EDR for 'Endeavour Silver', NOT $EDV for 'Endeavour Mining'.
Just wanted to clarify for those following your interesting posts relating $XAG$MIO.L$EXK$EVR, so that people aren't confused. These companies don't help themselves with easy-to-confuse names and tickers!
@tommyGold mining startup Leagold resumes trading as $LMC this morning after a nearly four month trading halt. It has just completed one of the TSXV's largest raises and acquired the Los Filos gold mine in Mexico (produced 231koz of gold at an AISC/oz of $878 during 2016) from Goldcorp.
Leagold bought the mine for US $350 million after raising US $183 million equity and US$150 million debt. Here’s the deal closing news release from Friday: @newswire/leagold-completes-the-acquisition-of-the-los-filos
CEO Neil Woodyer was awarded Mining Journal’s 2016 CEO of the Year award for his efforts building Endeavour Mining $EDV, a West African gold miner. Leagold aims to repeat the “acquire and optimize” strategy of Endeavour but with larger mines and in Latin America.
@CriticalInvestor has the full story: @criticalinvestor/leagold-mining-woodyer-giustra-are-buildingendeavour-mining-20
@MiningCatalystSometimes we have to look a little closer for TO signs. Jonathan Awde (CEO $GSV) was appointed to the board of directors $BMG on June 16th 2016. I recall we saw something similar with True Gold Mining and $EDV pre-takeover.
@JayfireCongrats @Ruffus23$EDV has been a huge winner this cycle... already. Lots of $TGZ fans on here. I'd like to add more at these levels too... Maybe we get lucky and see the 60s again. Happy hunting!
@Ruffus23SA article also doesn't mention 5:1 consolidation which is key with more etf and pensions getting involved after it goes through. Again the PDAC award means quite a bit when big guys start buying. Opens up to sustainabile/ethical funds. Gonna be Huge (extra Trump)!!!
@FundamentalAnalysisGood quotes @Jayfire I was looking at other west african plays which have the potential to grow rapidly and excluding the well known names like $EDV. I think $AKG is interesting given the large price drops but not looked into in detail. Deposit is large however and ghana based with expansion potential...ghana gave out some bad news recently. $GSC looks interesting. Then you have $PRU which is in a bit of a mess, and Brent cook doesn't like Edikan geologically but imagine once that is fixed..... $SMF is up there but a lot more expensive. and finally there is $TGZ. Other companies are really only single asset focused.....is there anything I'm missing? Which other west african plays have more then just 1 project perhaps $HUM.L is the other but liberia project is more marginal and long way away. #aufrica
@MiningBookGuy@Brendan RE: https://ceo.ca/mbgtrends?9fdc56ad699f - great $RSG.AX summary! I really haven't analyzed the numbers closely on the various mid-tiers (though I know $TGZ better than the others). But I agree with the relative comparisons, and would also kind of put $SMF in the same boat as $RSG.AX in terms of being chosen as a 'premier producer', as you say. I think #Mana for $SMF in #BurkinaFaso and #Syama for $RSG.AX in #Mali are chosen as elite assets, while #Sabodala for $TGZ in #Senegal and #Edikan for $PRU$PRU.AX in #Ghana are the next tier (though isn't it funny how all these 'core' assets are comparable, and each in a different country in #WestAfrica?)
Anyway, I would easily bet on $TGZ out of all of these for many of the reasons already discussed. But it's very interesting to compare, and $RSG.AX at least seems aggressive with exploration. I consider $TGZ and $RSG.AX to be the most 'dynamic' of these 4 choices, though $SMF could definitely surprise (they are the most tight-lipped about their plans in general).
And as another comparison to your $RSG.AX holding - I sold some $EDV on the way up, and wouldn't buy now. But I will keep holding the rest of my shares, as I think it will continue to receive a premium. ~AUfrica#mbgtrends
@FanagaloThere's been a lot of talk, and I might be wrong here but I wonder if people realize the magnitude of this. The GDXJ mess is setting up some great buying opportunities. Just take $TGZ as a case in point (I bought a good chunk yesterday - but I'm most certainly way, way too early). If $TGZ will make up 0.33% of GDXJ instead of 0.96%, and with Van Ecks holding before all of this at 71 million shares, that kinda implies that they have what, about 43 million shares for sale. There's no way that that selling is done, and I fear it's the same in many, many more names like $CNL, $SMF, $WDO, $EDV etc. When all is said and done, perhaps the mid-caps that has endured this selling might be set up for equally explosive runs as the smaller, hot explorers (but with significantly less risk)? Any more thoughts on this tiring subject?
@Excelsior@FundamentalAnalysis - Me too. I watched the $SWA#Video@MiningBookGuy made twice, spent some time on their site, got enthralled looking at #maps of the #Hounde Belt, and thought, an eventual consolidation in that area does make sense. I share his enthusiasm for $TGZ at Golden Hill, and that $ROG$EDV and $SMF and maybe even $ACA.L may have a go at $SWA or $SCA
Considering all the mergers and #takeover deals we've seen in w. Africa like True Gold getting gobbled up by Endeavour, Amara getting acquired by Perseus, Gryphon getting nabbed by Teranga, and Merrex getting acquired by IAMGOlD, then more acquisitions seem quite likely.
I also thought, @MiningBookGuy if you feel that strongly about it, and it as one of your top positions, then OK OK - Geesh - I'll get some.... :-) #FOMO (you got me haha!)
As mentioned above, I felt over-exposed to the #developers and wanted a good #Exploration play in #WestAfrica. I'd been looking at $CDV.AX Cardinal Resources and few others since my Gryphon shares got gobbled up by Teranga, so Sarama Resources fit the bill nicely.
@MiningBookGuy@Ruffus23 - is a $TGZ 5:1 consolidation just speculation on your part? or did i miss it?? please let me know if you found evidence of that coming or spoke with management. i think it would be a huge positive, a parallel to what $EDV did prior to their big run a couple years ago.
@enviro111If I were $EDV I would look at $SMF as a takeover. The stock has gotten real cheep as a result of the $GDXJ FARCE. They are the best of the bunch by far. A market cap of $US700 million. Net cash of $US250 million and free cash flow of $US60 million/yr. $TGZ is the second best. It is cheap too due to the $GDXJ FARCE. $250US million mCAP, and 80 millionnet cash. No free cash low, though. $AKG has a $US 450 million Mcap, no net cash and low margins. I think it is higher priced because it has a US ticker symbol? $ROXG has a $US450 mCAP, 10 million net cash but no free cash flow. High margins and good grades. The rest are development scenarios. I think $swa is better than $SCA. $AVK is interesting. These might be targets of $SMF when its stock recovers. I cannot comment on $RSG.AX. I avoiding $PRU.
@Ruffus23smf would be good but expensive takeover target. i think tgz makes sense. i think edv is in position where there will start constructing one mine a non-stop for foreseeable future. one of their main strengths is their mine construction, always ontime and on budget. that said, i htink they are at capacity for mine management though as they had to see off one of their mines a few years back to focus on their main mines. i guess this is growing pains from mid-tier to million plus tier.
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@GoldfingerSomeone who never asks me for stock advice just asked if they should sell their long term holding in $EDV shares. This is the kind of question I get near bottoms. Needless to say I recommended they not sell. $GDX$GDXJ
@MiningBookGuy@Jayfire@FundamentalAnalysis - i find it very interesting to figure out which companies are getting a 'premium', which ones are not, and why.
$ANF is 'losing' this premium as we speak...will they even be able to get it back? Is there something weird going on with so many parallels between $LUM and $ANF, but only $ANF is tanking?
$EDV definitely did NOT have it...and then the good stuff came rushing in! I think it was a combination of a new financing, share consolidation, new european investors (individual and institutional), new cornerstone shareholder (Sawiris), and comparisons starting for $RRS.L#Randgold. It is the ultimate mid-tier example to me for the last couple years.
I 'hope $TGZ continues to copy $EDV and gets that 'premium'! (but i really don't know if they can pull it off). At least we know $TGZ checks some of the $EDV boxes right now, and maybe more soon.
All of this applies to smaller juniors as well. But I'm just using these as examples since many people in #mbgtrends follow them, and I have interest as well. #Premium
@PaulHi @miningbookguy - thanks for the comments on $MOD.AX - interesting. Like @FundamentalAnalysis am quietly building a holding in $SSL and watching for some bargains to come out of all this. Much reduced holding in $MARL largely for old times sake and the slight chance of something unexpected happening and not wanting to miss out. IMO the merger was a good thing for $MARL but it makes $SSL the more interesting play while $MARL quietly ticks out its last days. There are more possibilities on TSX/TSXV than I can get my head around but I quite like $KL and $EDV as sound companies. Surprised that for such a high profile company $KL doesn't seem to get attention on #mbgtrends. Very interested to hear people's opinions if somebody can see an issue.
@JayfireI own $KL, got shares as a consequence of the Newmarket merger. It's one of the best mid-tiers out there along with $BTO and $EDV... I'm expecting weakness due to the looming GDXJ sell down, but other than that this is probably as good as it gets in the mid-tier space. Also comforting to see a large shareholder like Sprott coming in and swooping up more shares too when there's weakness.
@Ruffus23edv has huge growth potential i have been with them since 2013 or so. i was lucky and unloaded a bunch of edv a few weeks back to buy tgz. tgz stayed stagnant while edv fell 15% or so. bought a bunch back today.
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@Brendan@Excelsior thanks. it's funny but two years ago when I was looking for mid-tiers to buy, I thought $edv and $tgz were pretty similar - I actually thought they should merge. The performance since has been stark. Teranga is trying to figure out how to be more like endeavour. I also think $tgz should look at a buyback - at these prices it makes a lot of sense
@Excelsior@Brendan - Agreed on the share buyback. It would be helpful longer term, but I also wouldn't be offended if they made an offer on $SWA or $SCA to compliment their #GoldenHill property in the #SouthHounde belt.
Also, since $EDV didn't merge with $ACA.L then you never know.... they may make a move on $TGZ while it is on clearance sale, after their share consolidation.
@ExcelsiorWith all the discussion recently around $GDXJ it seemed like a good idea to check out what $SGDJ had under the hood at present. #Gold#Silver#Miners#Juniors
Security Symbol Weight
OCEANAGOLD CORP. $OGC 8.62%
ALAMOS GOLD INC. CLASS A $AGI 7.57%
IAMGOLD CORP. $IAG 7.50%
ENDEAVOUR MINING CORP. $EDV 6.71%
OSISKO GOLD ROYALTIES LTD. $OR 4.90%
COEUR MINING INC. $CDE 4.76%
CENTERRA GOLD INC. $CG 4.67%
NEW GOLD INC. $NGD 4.46%
TOREX GOLD RESOURCES INC. $TXG 3.86%
ELDORADO GOLD CORP. $EGO 3.85%
FIRST MAJESTIC SILVER CORP. $AG 3.71%
GUYANA GOLDFIELDS INC. $GUY 3.52%
SILVER STANDARD RESOURCES INC. $SSRI 3.41%
FORTUNA SILVER MINES INC. $FSM 2.65%
CHINA GOLD INTERNATIONAL RESOURCES CORP. $CGG 2.64%
KLONDEX MINES LTD. $KDX 2.58%
PRETIUM RESOURCES INC. $PVG 2.43%
SEMAFO INC. $SMF 2.15%
SILVERCORP METALS INC. $SVM 2.10%
ASANKO GOLD INC. $AKG 2.00%
NOVAGOLD RESOURCES INC. $NG 1.99%
HARMONY GOLD MINING CO. LTD. $HMY 1.46%
MAG SILVER CORP. $MAG 1.43%
RICHMONT MINES INC. $RIC 1.39%
ALACER GOLD CORP. $ASR 1.34%
TMAC RESOURCES INC. $TMR 1.30%
ENDEAVOUR SILVER CORP. $EXK 1.13%
TERANGA GOLD CORP. $TGZ 1.00%
SEABRIDGE GOLD INC. $SA 0.90%
LUNDIN GOLD INC. $LUG 0.81%
SANDSTORM GOLD LTD. $SAND 0.80%
ARGONAUT GOLD INC. $AR 0.71%
PREMIER GOLD MINES LTD. $PG 0.67%
GOLD STANDARD VENTURES CORP. $GSV 0.58%
CONTINENTAL GOLD INC. $CNL 0.41%
STATE STREET INSTITUTIONAL TREASURY PLUS MONEY MARKET FUND $TPIXX 0.02%
CASH AND EQUIVALENTS -0.03%
@Ruffus23ebola has appeared in congo again. think it impacts the miners? seems they had everything under control last time though shares were a wee bit impacted. if anything if works to the miners advantage as the governments have to be even more miner friendly to attract investment. sad but true!
@MiningBookGuy@Goldfinger - thanks, this is helpful! Now is this different for 'cornerstone shareholders' that are increasing their stake?
I have 2 examples that I own:
$EDV - notice La Mancha in SEDI:EDV , which represents Naguib Sawiris. it actually says "3-10% Security Holder of Issuer" on the most recent buy...but I believe this is well over 20%, because there are less than 100M shares outstanding
$TGZ - notice David Mimran or Tablo Corporation in SEDI:TGZ (*note - this tag not working, can access in the TGZ room on top left), which I believe I duplicates for David Mimran. I believe he's still just under 20%, with ~21M shares reported to SEDI, but ~107M shares outstanding.
So in these cases, I'm not sure what $EDV decided so that well over 20% is 'ok', while I also wonder if Mimran will be 'careful' about staying just under 20% with $TGZ for the reasons you just gave.
I am sure there are other case-studies, and I find this really interesting considering how much influence cornerstone shareholders can have.
@GoldfingerRBC on $EDV:
We expect a slight positive reaction from Endeavour’s shares to the construction update on the company’s flagship Hounde project which is now over 85% complete, on budget and on schedule to pour first gold in Q4/17. Hounde is expected to have a positive impact on Endeavour’s overall all-in sustaining cost profile given benefit of lower cost production relative to existing assets. The project is also expected to benefit from a renewed focus on exploration which has resumed and is currently testing higher grade targets in order to sustain a higher level of production during the early years of the project.
Project is nearing completion and on schedule and budget, with less than $120M remaining to be spent of the $327M total capex
Long lead items including SAG and ball mills are on site with installation in progress
Mining has commenced with 600 Kt expected to be stockpiled ahead of first production (73 days based on annual capacity of 3.0 Mt)
Near mine exploration drilling of various high grade targets has resumed in early 2017
We estimate annual attributable production (90% EDV) of 165 Koz at an average mine-site sustaining cash cost of $790/oz over an estimated mine life of 12 years. Production during the first five years of operation, we forecast average annual gold production of 205 Koz at a sustaining cost of $695/oz. Hounde currently represents 35% of our operating value for Endeavour. #Africa#Gold