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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.
@JagrI believe $K should buy $ALG to monopolize Mauritanian gold: I am speculating that Kinross with A) 300 Mill proceeds from the Chilean Cerro Casale sale to Barrick and Goldcorp, and B) with Kinross's announced 375 mill investment for 2017 at Tasiast, they would be crazy (?) not to buy Algold. ALG's Kneivissat, Legouessi and Tijirit interests are some 25-40kms away from Tasiast. #ALG Mcap is 30 mill. Maybe Kinross could get ALG for 50-60 mill. What am I missing? More Mauritanian info: https://minerals.usgs.gov/minerals/pubs/country/2013/myb3-2013-mr.pdf
@zadman@kjm maybe i'm way off but if Mark finds anything of interest, I think $K comes in with a large equity investment well above the market to give $ADZ the cash to drill the hell out of everything. Then when they turn up the goods, they cut us all a fat check for the balance of the shares they don't already own. Or is this thinking way out to lunch @HRA-Coffin ?
@FundamentalAnalysisIf I was running a large cap like $K, $G...I'd be strongly thinking about taking out all of west africa. Discounts are ridiculous. They should make a run for $AVK, $HUM.L, $TGZ, $SMF, $RSG.AX etc all at once lol.... imagine the value they could pick up. Regardless of jurisdiction especially for a diversified company $1 profit in africa is the same as $1 in america and I'm sure they could arbitrage away some of the value...it would end up being accretive to a major. Kinross has about $1.6bn in liquidity. $1bn in cash I think, and not a massive amount of debt on the other side. Why are the majors waiting....kinross for example I remember looking at that a while back....they definitely have a crap growth profile and a lot of marginal ounces.
@MiningBookGuy@FundamentalAnalysis@Excelsior & others - EXCELLENT continued #Africa#WestAfrica discussion! lol, #mbgtrends rapidly becoming #goto place for #Africa#gold talk, who knew?? :P
@Excelsior - haha, nice #MiningSnacks tag, creativity in tagging encouraged!
@FundamentalAnalysis - you mentioned $K as an example for consolidating #WestAfrica. Unfortunately, they are the prime example of what NOT to do...but what we as seekers of juniors look for, with the case of #RedBack Mining during the last cycle peak in 2010-2011. $K's #Tier1#Tasiast IS a main focus...but requires a huge amount of capital, and they can only do so much.
So it's clear that $K is a leader in buying 'small stakes' in various mining companies around the world. This still includes #WestAfrica (with $ORG, the #RedBack guys in their new company, being a prime example with the #IvoryCoast#exploration assets). They and others can still build stakes and minimize risk. Another example is $GFI with $CDV.AX in #Ghana, building a stake on the open market I believe ...that's a #miningsnack right there!
Anyway, the activity is there, but we haven't had big M&A, and for the M&A out there, it's been the mid-tiers taking advantage of the situation (with the 2 key ones I keep going back to being $BTO with #Fekola and $SMF with #Natougou, arguably the #1 and #2 acquisitions of this cycle ANYWHERE in the world...TBD)
Ok, probably enough out of me because I've got some other things to take care of. but thanks again for stimulating talk here, and #WestAfrica (and further #Africa) excitement is likely just beginning! glad that #CEO.CA is quickly becoming ground-zero for these types of discussions! :)
@VaughanInteresting point from joe on optionality plays in the light of $G acquisition in Caspiche ($XRC): as an investor you might think that the buyout of an optionality play by a major might signal majors are interested in optionality. But the flip side to the acquisition was the divestiture of otionality by $K and the risk minimization on optionality by $ABX.
@GoldfingerRBC raises Kinross $KGC$K price target from US$4.25 to $US4.75 and says the following:
Organic growth projects expected to support stable production profile to 2019. Our production forecast remains ~2.5–2.7 Moz of gold annually from 2017-19 (Exhibit 3). We expect production improvements at Round Mountain, Bald Mountain and Tasiast to offset the suspension of mining at Maricunga and declining grades at Kupol/Dvoinoye vs. guidance of 2.5-2.7Moz at $925-1,025/oz). The Tasiast Phase I 12 ktpd expansion remains on budget and on schedule for full production in Q2/18. The Phase II expansion at Tasiast adds an estimated 300-400 koz of incremental annual production to maintain 2.5 Moz of production in 2020.
@Jagr@Jagr The logic is not with me: Algold More Than Doubles Inferred Mineral Resources at Tijirit, Gold Grade up by 25% BUT the stock goes down 25%.... $ALG$ALGDF, still hoping for Kinross $K to buy ALG out in Mauretania..... now is a good time. Week ago the market cap was 30 now its 23 million.
@0KibFew other observations: 1) US$1.8 bn Mcap $CDE owns a 5.4% stake in $SVB, most of which was acquired at 50c and 68c (5-7x current stock price), 2) Chairman Brian Edgar, owns a 3.2% stake, and he previously was a lead Director at Redback mining, which was bought by $K in 2010 for US$7 bn+, 3) The breakeven price for SVB is $13/oz Ag, so even at current spot, the IRR would be in double digits and project would have a positive EVA, 4) #Sprott, through a subsidiary, participated in a SVB capital raise in 2016, at prices 50% higher than current spot, 5) Land package totals some 52000 acres, with site infra including paved roads, grid power, 5 water wells and railway connectivity. #Silver
@HRA-CoffinJust for the record Thomas, the deposit that GRP owns in Washington State has nice size but is decidedly not what either $ADZ or $K is looking for. Adamera is looking for sediment hosted gold and, secondarily if they happen to trip over it, epithermal veins. GRPs deposit is something quasi-Carlin which doesn't have the grade of the better Carlin trend deposits but, unfortunately, is refractory as most of them are. Not an easy nut to crack and probably a bitch to permit.
@RunningWithTheBull$OSK sold $BTR only when Kinross $K came in with a private placement. $K is the major with Mad Money and are prepared to spend silly money if they really want something. $OSK has done a deal with $SEK Management in a past transaction and maybe they know that they can play ball at a later date. $SEK wants to drill baby drill🤑🤑🤑 And this led $OSK to investing in $BFD. It's all a game of Monopoly. In it to Win It🤓 I am long these companies, not just the weekend, and of course not K.
@HRA-CoffinAgreed DanO. One problem Mark has had from day one is that the historic data has been lacking. He knows the generalities but there is surprisingly little specific useful info on, say, Overlook and Key West and Key East. $K never wanted to share until recently, and not much even now. Seems like Echo Bay was never that forthcoming with public info and they mined them before Kinross took them over. I was surprised how little was in the public record. Mark has gotten his hands on some things privately but has had to infer a lot. I think the next release will go into what the stratigraphy in the oversight hole(s) looks like in relation to the stratigraphy around the Overlook ore zones so people will have more context. He commented the other day that he probably should do that. $ADZ
@HRA-CoffinWho knows Rocket but the number isn't unrealistic if the grade is there. I personally hate the idea of Kinross thinking they are the only game in town, because they might try to lowball things. That said, with a milland tailings in place that is currently idle a million ounces could be extremely valuable to them. The potential margin is large for them because of existing infrastructure that is already a sunk cost. Even a relatively small deposit, well under a million ounces, could be worth tens of millions in that scenario. I also would not discount the potential for a third party to come in that wants to buy a resource or buy all of $ADZ AND buy the Kinross mill. $K might not love that scenario but if it gets them out from under the environmental liability of reclaiming the mill and tailings area and gets them a nice cheque on top of it they might go for it. That's why I like the fact Mark is thinking big picture and not just thinking "mill feed" now. There are lots of ways this could play out with some exploration success.