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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.
@NewtonInteresting point that some royalties are paid after earn-in, prior to production. Can be offset against production royalties. Other creative things, too now about cash-flow neutral. Possibly positive in 2018. $emx unique again!
@Excelsior@Iwantmymoneyback - Yes, I agree that $NSU has done some good work in Eritrea (although their earlier years are plagued by allegations of slave labor used to build their mine by government contractors, at the will of crazy dictator government), and in general Eritrea is an absolute cesspool and isn't #SouthAfrica (which was the focus of that discussion above). I am very familiar with their Serbian assets acquired during the Reservoir Minerals takeover, and those are fantastic assets. Nevsun should knock it out of the park with those old Reservoir assets. ( I sure hope so as a shareholder in $EMX who has royalties on some of them. :-)
As for $SBGL and their frontman Neal Froneman, I have all the respect in world for him as a force of nature, and love the way he stood up to the Union BS and Government in South Africa, but even he would tell you the place is a mess right now. Yes, their acquisition of $SWC was to acquire even more of a presence in the #Platinum and #Palladium markets, but it was also to diversify outside of #SouthAfrica. :-) Here are some thoughts I had on Neal's leadership from back in 2015:
>On December 6, 2015 at 6:39 pm,
"Here’s an interesting update on $SBGL Sibayne Gold CEO Neal Froneman. I like that he stood up to the unions and government in S. Africa and asked for some common sense and a reality check on reasonable raises before the whole mining industries implodes in S. Africa.
"Neal is also going after PGM mining very aggressively in this low price environment, with their after their acquisition of Anglo Platinum’s Rustenburg mines, and their takeover offer for Aquarius Platinum. It will be interesting to see their 2 pronged approach with Gold/Silver and Platinum/Palladium mines in production for 2016.
"At least he is a CEO that is getting things done in a tough market, and he’s taking bold action. Apparently people in the industry are starting to notice."
Neal Froneman elected as Mines and Money CEO of 2015
Westonaria, 4 December 2015
> On August 15, 2015 at 3:20 pm,
'Here’s a Repost on the subject of Gold and PGM mining in #SouthAfrica. This is a pretty good article that condenses down some of Sibanye Gold CEO Neal Froneman’s statements about the friction and challenges facing mining companies in SA:"
Froneman speaks out on miners’ frustration
BY ALLAN SECCOMBE, 07 AUGUST 2015
(the link was taken down)
> On August 15, 2015 at 3:20 pm,
"Here’s a related article on the frustration between mining management and the political posturing in #SouthAfrica. Sounds like major change is coming and they are teetering on the brink of survival:
Mining chiefs talk straight — finally
AUGUST 11 2015
** Here's a newer article that still has a link up:
$SBGL Sibanye shelves projects ‘on antibusiness rhetoric’CEO Neal Froneman warns shareholders in SA, China, the US and Europe have become increasingly unhappy with #SouthAfrica
26 APRIL 2017 - 05:19 ALLAN SECCOMBE
@hoo datSprott doing a placement of $DYL.AX@25 c with 50 c warrant, unfortunately $DYL.AX is trading @24c lately Sprott's financings have been at market or over market prices. $EMX and $AMM being recent examples.
@NewtonTo earlier conversation of #royalty companies being boring with @lukejackson and @miningBookGuy, I have to ask about $emx. They seem to get up to some exciting adventures that aren't just discovery-driven. Eg. Their project in Russia
@NewtonInteresting to note that $EMX finding it harder to acquire royalties directly. Crowded market. Strength of their ability to create them other ways with strategic investment and project development.
@Newton$EMX focused on copper and gold. Wow, 48% of properties are available for partners. A bunch of them were found to meet demand in past boom, given back during bear market, and now ready to go again. Nice.
@Newton$200K/month for $EMX from royalty in Nevada at present. Another in Turkey stands to become first paying royalty created organically within company. And the Malmyzh properyt has 14 porphyries on it BTW.
@RRXAs for valuations that might come into a publicly traded company’s treasury (Eurasian Minerals) in a Malmyzh found-sock transaction, opinions are up and down the scale. Mr. Bowens says he believes Malmyzh, the project, is worth “north of” $500 million USD in a transaction for the porphyry copper (with gold) there. He bases the figure on stated resource levels of copper and gold, filed according to international and Canadian 43-101 standards. (See Sedar filing of May 2015*)
Mr. Bowens, educated at Colorado School of Mines, says Malmyzh at current copper prices is profitable. A scoping study on Malmyzh was completed in 2014 and shows a 30 percent IRR or internal rate of return at 60 rubles to a USD. That study is thick and private. The IRR runs at a 10 percent discount to an Net Present Value of $1.7 billion USD.