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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.
@rackerDundee’s Joe Gallucci is impressed with Lower Zone drill results from Nevsun $NSU's Timok project, and refreshed a BUY, Top Pick rating and C $7.00 target on the base and precious metals miners. Results included 686.0m at 0.89% Cu. A $20 million 67,000 meter drill program at the Lower Zone (60.4% to NSU, 46% after delivery of FS) is ongoing through late 2017 culminating in a maiden resource estimate.
@Excelsior@ocotilloredux - Well that's a very good point about the $NSU#Eritrea boat anchor, but Bisha is a very profitable mine and it is hitting it's stride with #Zinc at present. You know I'm a big fan of $AZ$WLDVF Arizona Mining though and think it is an ideal takeover target :-)
@NewtonThanks @hRA-Coffin. I recall these were deeeeeep holes. From the $nsu release: "The HSE mineralization forms a single coherent zone at depths ranging from 400 to over 800m below surface." that's doesn't seem so deep, but it is also just upper zone. Rest of deposit goes deeper (2km?). News today of 150M+ intervals with that +4% #copper and +4gpt #gold pretty exciting. Maybe old news but striking to me.
@greg@Newton, it was striking to me too. Nice gold mine along with copper.Despite world class assets,Nevsun seems to fly under the radar, probably Eritrea and 4 year Cu plunge? I like the 4% dividend while waiting.Owned it 3 years. Also,I'm a new HRA subscriber.....
SEDI_botNevsun Resources Ltd. $NSU just filed 2 reports. View full report: SEDI:NSU
@Excelsior@hunter and @MiningBookGuy - Great posts following up on the $SWC and $SBGL merger, and the strengths of both companies. #MBGTRENDS They are both Tier 1 and the combined company will only add to the juggernaut that Sibanye has become.
Neal is a standout CEO, and knows how to play the game well between the economic/social/environmental/governmental strategy and success. This merger with Stillwater was incredibly strategic for Sibanye, and I don't think anyone really saw it coming that follow the #PGM space. For years everyone has postulated on who Stillwater would acquire next, but surprise! In tandem with the other 2 PGM acquisitions they've finalized this year, Sibayne is now one of the larger movers in the #Platinum and #Paladium space.
I've held Stillwater earlier this year and have traded in and out of it since 2010, and feel like I've had a pretty good handle on their story, and this deal sure caught me by surprise and unfortunately I sold out of the position previously. The low pricing environment making acquisitions still favorable, and Neal's frustrations with some of the S. #African labor and government red tape had him looking to diversify, and Montana is like apples and oranges to S. Africa, and a much safer jurisdiction many times over.
The move to diversify to "safer" jurisdictions by the larger companies... Like what we've seen in $NSU Nevsun diversifying outside of Eritrea to Serbia, or $OGC OceanaGold diversifying into the US with the Romarco #takeover, will continue. This trend of larger companies in riskier jurisdictions making acquisitions that balance out the jurisdictional diversity is a theme we'll see more of, and it good news for M&A activity.
The converse is true with companies in safe and stable jurisdictions with flat growth profiles looking to diversify into higher risk jurisdictions for the upside opportunity in permitting times, tax incentives, and economics. It's a 2 way street that should be positive for #Mergers and #acquisitions to continue into 2017 at a faster clip.
@newstrackerThe Balkans – Putin’s murky plot to cleave Balkans from West
- The Sunday Times report that Russia may have plans to annex parts of the Balkans.
- Russian military exercises in Serbia serve to heighten tensions in the region. Rio Tinto $RIO.L have are large #lithium, borates project in #Serbia.
- Nevsun $NSU also have the Timok copper-gold project. Neither company will feel entirely comfortable operating behind the iron curtain though Nevsun is more used to working in controversial areas.
@newswireNevsun Appoints Two New Directors and Announces 2017 CEO Succession Plan @newswire/nevsun-appoints-two-new-directors-and-announces-2017-6b556$NSU$NSU The company has appointed Ian W. Pearce and David S. Smith as independent directors. President and Chief Executive Officer, Cliff Davis, has advised he will be retiring during 2017. The company has employed executive search firm Korn Ferry to look for Davis' replacement.
@ocotilloreduxOne thing I should have mentioned a couple weeks ago is that Nevsun has failed to make a copper concentrate in Q4 at Bisha and the zinc recovery/grade metrics did not improve materially either. This could be one dead parrot within six months with NSU NAV being close to the resale value of Timok plus cash on the balance sheet. I am real surprised that this potential outcome has not made daylight by any analyst. I have no position here. ~zinc$NSU
@gregI sold $nsu two weeks ago (after owning 3 years) for the reason above. May buy back if issues resolved.
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@ocotilloredux$NSU milled 579,000 T in Q4 grading 5.7% Zn, 0.8% Cu but only recovered 63.6% of the zinc to a concentrate grading 38.8% Zn. Both of those figures are some of the poorest in the business. There was no revenue from copper in the zinc concentrate so the income statement should be interesting shortly. If I were a conspiracy theorist perhaps they knew this was coming hence the timing and overpayment for Timok to deflect attention.
@ocotilloredux@theGalvanizer My experience over the years means I listen to absolutely nothing BMO has to say. They are some of the worst, conflicted analysts going. I even recall going to an analysts dinner in Saskatoon where the BMO sell side analyst did not realize I was taking the piss out of him for some of his calls while the Jarislowsky Fraser buy side analyst was pissing himself laughing since he was smart enough to catch on. I have all the time in the world for TD's Greg Barnes though.
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@DJSThanks so much for the heads up, @ocotilloredux! I owned $NSU until mid-last year when I sold it for a good profit to redeploy the proceeds into opportunities with more upside. I was thinking hard about getting back in given its recent drop and just would never have suspected that they had not been able to make any Cu concentrate last quarter. Plus, all seemed normal with Brent Cook and Gwen Preston continuing to recommend $NSU. As you said, I would have thought that this would have been identified by a decent analyst out there, and at a minimum would constitute a "fatal flaw" of the type Brent keeps reminding us that he is the best at finding... To me, this is the latest confirmation that the quality of information available on CEO.ca is better than the best newsletters and analysts out there combined!
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@ocotilloredux@DJS If they can't get their act together at Bisha, the auditors may be after them shortly to take a writedown.
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@greg@ocotilloredux;@DJS; I was fortunate that my broker gave me a heads up to sell 2 weeks ago for the exact reasons discussed about the zinc con. Thanks for bringing it up, hope your posts help others.
SEDI_botNevsun Resources Ltd. $NSU just filed 1 reports. View full report: SEDI:NSU
@GoldfingerLots of mining companies report quarterly earnings next week, including Newmont Mining $NEM on Tuesday, Hudbay Minerals $HBM and Iamgold $IAG on Wednesday, Eldorado Gold $ELD and Nevsun Resources $NSU on Thurdsay, among many others. $gold