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@BS $R is a buy below 35c CAD, as you will get rights that allow you to acquire a 5 year warrant beside your share. That is if you believe they can turn this situation around. If you don't believe that, you think it's going lower, and therefore shouldn't buy next month either.
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@ylr Got to be @madeofrubber
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@Vaughan Nope @ylr. Guess again ;)
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@ylr lol revealing your anon stauts.
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@internalaudit Does the subscription have to end up in the same registered account? I don't have enough contribution room in my TFSA to subscribe to the rights offering, haha.
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@Vaughan Oh no, it wasnt me @ylr, but not madeofrubber either.
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@Vaughan I doubt kt @internalaudit, you should be able to use a non reg account for it.
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@wiley_coyote I guess lost in all of this truly terrible news is the fact that these jokers are giving guidance of 50k oz's in 2018. Clutching at straws here...
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@BS $R look at that volume. Some people may want out, but prices have stabilized and on the other side are some very happy buyers at any price below 35c CAD
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anonymous Pretty clear Otto's Kung-Fu is terrible. There is no way to spin anything he said as remotely accurate on any time frame in the face of the stock almost getting cut in half since this post. http://incakolanews.blogspot.ca/2017/06/thoughts-on-red-eagle-rto.html
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@MiningBookGuy Gold – Just One of Those Days http://fifighter.com/precious-metals/precious-metals-updates/2017/06/gold-just-one-of-those-days/ #FIFighter #gold Great post from @JayFire, including a useful section on $R. Good thoughts for #newbies. #mbgtrends
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@wiley_coyote $R is dead money now for at least 6 months...until the paste backfill plant is completed.
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@Stocksluice @Agjackso "Good entry point at .22" LOL! Translation "I've got my stink bid in at .225... come to papa, suckers!"? ;^)
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@Newton Didn't he say "check this post in 6 months" @anonymous? Didn't say it was going straight up along the way. Chance for a "pain trade" off the one and only Otto Rock?
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@mountains_of_glory In general, I see too little credit being given to stock prices. Too much thinking you know better than the market. R performance has been abysmal. On a small, cash-strapped junior with so many variables, best assume the market knows best and sit on the sidelines. Same with $ANF (there the Q was why were the damned assays taking so long). These are different than cases like $MARL (simplistic advanced explorer) and $CGG (highly liquid subjected to GDXJ selling).
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@enviro111 $r. The so called fat finger is pure bs. This happens too often. Always during a market lull. This is pure manipulation by the Fed, bank of England, etc. No other explanation! This was a trade that should have been cancelled by the exchange! The exchange is corrupt too. The gold miners will never make any headway until this corruption is gone. This will be many years from now. Avoid gold miners. Buy zinc exploreres and miners instead. Even silver is better
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@mountains_of_glory @enviro111 Gold is the most valuable, coveted resource there is, hence they want it as low as possible for as long as possible so that they can buy up as much as possible as cheaply as possible.
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@wannabeinvestor @jagr, it is common for companies undertaking a RO to contact their key shareholders ahead of any announcements and seek confirmation about participation. In fact in Europe ROs are hard underwritten much like bought deals. often such hard underwriting commitments by the banks are in fact backstopped by firm bids to participate in the RO by large institutional shareholders. they even share in the fees, sometimes. I have always been amazed that ROs are not used by resource companies in North America. these are very common in Europe, saw a ton of these in 2009 and 2010 as part of balance sheet repair campaigns by European banks. the rights will trade, in theory these should be trading priced on the basis of the theoretical ex-rights price, TERP.
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@wannabeinvestor you'd think someone as sophisticated as Liberty Metals and Mining would have picked up any potential mining technical issues as part of their DD. surely they are buying here. the only way they ever get out of this mess is by selling/ merging the business with someone else now, but that requires exploration success to considerably extend reserves and LOM.
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@wiley_coyote Consider that they are giving guidance of more than 50k oz's for 2018? I can only infer that $R mgmt well and truly believe the paste backfill add-on plant solution will work long-term. In addition, one would think the guidance provided today leans conservative as this company can ill afford to release more news and guidance that doesn't stand up to scrutiny. Yes, wishful thinking on my part but pipe-dreams are all that's left at Red Eagle at this point!
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@Jagr Pipe dreams and a potential but unlikely law-suite. Thanks for feedback Wannabe. However, what caused $R to call or probe for a RO? Was it the flaw, the (un)foreseen ground, technical conditions? It's fine to call for extra money, and RO seems to be the most fair one as compared to PP, but my question is the apple and the egg. WHEN was the negative info given to these guys? Did they have time to sell stocks BEFORE this info became public on June 26? And, lastly, DID they sell stock while in possession of this negative info? To be clear: I am afraid that we might have a case of insider trading, fraud, illegal activity at $R. i.e. R as in my R's.
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@Highheat What $R did was a friends & family long fade before delivering the death blow to investors. Jesse Livermore said in that situation get out ASAP and I sold 4 different times this morning each at a lower price. Wish I would have dumped the entire position at the open.
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@internalaudit Does this mean friends and family have sold and moved on to other mining companies and are not going to buy back at this lower price range?
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@wiley_coyote You are right on the money there @highheat...seems evident now that for the past 6 weeks or so there have been quiet whispers in the hallways and dining rooms of anyone associated to $R that it was a good time to sell. And sell they did, 2000 shares at at time. For a month a half. Bollocks.
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@wiley_coyote @internalaudit imo guidance from $R would suggest this company is moving forward, albeit with a drastically different mining method. Therefore all the numbers are going to change wrt all-in costs to produce etc. I doubt very much that friends and family are jumping back in.
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@internalaudit @wiley_coyote So we retail investors will find out how the RO turns out in the next month or two? I guess from there we can find out whether or not they sold high and bought low.
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Anonymous @Newton read my post again
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anonymous There may be a future opportunity here, but unfortunately, I won't be around to partake. I have lost all faith in management. They clearly misread the mine situation and information appears to have "slipped out" well prior to today's release. I wish there was more accountability in these markets.
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@nicholaslepan I have typically tried to keep my cool about the junior mining space but the rash of bad news $R $CDB and a couple of other companies that have diluted the living day lights out of my positions. All is fair, keep calm and invest on but seriously, one grumpy camper right here. Get out while you can, anything can happen.
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@Chiel I don't know about you guys but I think $R management has lost all credibility. Personally I'm avoiding this stock.
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@Goldfinger The ignorance regarding technical analysis displayed on this board is remarkable. The chart illustrates the "fundamentals" (see $R) as best understood by market participants with all available information (past information, the only info we have). The astute investor can sometimes find situations which the mass of market participants have not fully appreciated, this must be what @BDMinefinder is referring to. The chart isn't a crystal ball, it's a record of price/volume etc. history in a given market, and perhaps most importantly (for those commenting here) a chart and its various technical indicators are only as insightful as the person looking at them. And at the end of the day do what works for you, the TA vs. FA dialogue is older than all of us and frankly it's been retired a long time ago (most hedge funds use both). $NXE
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@HRA-Coffin I have nothing but respect for Ian Slater @nicholaslepan but $R's mine was never going to be easy and the capital structure was going to work against it. I found some of the estimates at what it might trade at that floated around on this site a year ago to be just silly.
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@Andrew No kidding. $R
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@wannabeinvestor what I do not get it $R actually has readiness to double its milling capacity with minor capex. in a way this reminds me of $RMX where I had the pleasure of closing out at a loss of ca 50%.
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@Stocksluice Wasn't Stracon, $R's main mining contractor, also a major/significant stockholder that sold their position earlier this year? I couldn't find anything on SEDI, but $R trades on the Lima Exchange, and given Stracon is a South American company, they may have sold there. Anyone know anything at all about any of that?
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@Stocksluice BTW, I've invested in $R for the long term, because I like their management (still giving them the benefit of the doubt and not jumping to any premature conclusions), and I like their prospects. There is a lot left to explore on their property, which has seen prolific past production.
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@wiley_coyote Moral of the story is that mines are long plays. Really long. They f'd up, no question about it. Never should have declared commercial production when they did, and quite frankly, they should have released more info about the true conditions at the mine before today's epic announcement. Pretty clear they've known about this for awhile...
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@tim_oliver @stocksluice - Stracon is a Peruvian Company. I have nothing else to add.
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@HRA-Coffin @wannabeinvestor - (and everyone else that isn't used to looking at underground mines) the size of the mill is borderline meaningless unless you have the stopes to supply it. I don't know the exact problems $R has but ground control and stope availability sound like they are both issues. You cam double the size of the mill but its only going to help if the mining method allows you to pull enough ore out of the ground every day at a reasonable cost to fill it. Sounds like they are hoping paste backfill does the trick for them at which point they will probably increase the number of stopes and then maybe increase the size of the mill. The stopes and ability to deliver ore to the mine mouth have to come first.
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@mattthetalker @stocksluice I suspect they knew the potential for problems for as long as the slow decay of price has been playing out - but they probably took a wise path of second opinion and verification of results before announcing. I am half underwater today - the story seemed to be valuable at twice today's price - so I watch, and wait.
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@tim_oliver @HRA-Coffin, @wannabeinvestor - $R San Ramon has a five-year mine life as it is. Nobody in their right mind would expand the mill unless and until they find a lot more mineral.
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@Stocksluice From $R's website: San Ramon Gold Mine The San Ramon Gold Mine (a single shear zone within the Santa Rosa Gold Project) trends east-west, dips 70o to the north, extends over 2 kilometres, is up to 50 metres in width and is mineralized from surface. Cash Cost US$596. All-In Sustaining Cost US$647 Post-tax project economics IRR 53% and payback within 1.3 years (at $1,300 Au) Process - SAG mill (P80 125 micron), floatation and CIL circuit Straightforward metallurgy with 96% recoveries – Au/Ag dore Mining method - Shrinkage stoping with delayed fill Dry stacked tailings - 60% used as backfill Opportunity to ramp up 2000 tpd with near mine, drill ready regional exploration targets (~2km) Excellent infrastructure (water, roads, grid power, local staffing) Exploration Potential The San Ramon Gold Mine deposit is open at strike to the east and also at depth, as reserves have only been delineated to 250m in depth. Deep drill holes (~600m) confirm mineralization, but currently Red Eagle Mining lack the drill density at depth for resource estimation. The San Ramon Gold Mine deposit appears to plunge eastward onto ground recently acquired from AngloGold Ashanti. Exploration success on strike and at depth will increase the mine life at the San Ramon Gold Mine.
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@Stocksluice Clearly AISC and IRR will have to be revised.
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@tim_oliver $R "opportunity to ramp up to 2000 tpd" my ass. Why stop there? How about 10,000 and get er done in a year?
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@wannabeinvestor were you a holder @tim_oliver?
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@wannabeinvestor thought they designed the operation based on the expectation of being able to expand the reserves significantly.
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@wiley_coyote I guess all we (the longs) can do now is try and look at the positives. Seems like they will raise the capital they need via the RO. Which means the plant will be constructed and eventually this company will pull gold out of the ground once again. So perhaps by Xmas 2018 I am able to celebrate unloading my Red Eagle shares at a mere 5%-10% loss!
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@Stocksluice FWIW, my sense of things is that $R has invested a whole lot more in Santa Rosa, land acquisition and licensing, community relations, etc., and $XR, than is evident in their current market capitalization. I thought this stock was a bargain @.60, guess I'm thinking it is twice the bargain now. I suppose we shall see if 'the market has spoken' or if 'the market has over-reacted' soon enough. DYODD and GLTA.
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@wiley_coyote Yes @Stocksluice that is the silver lining in all of this. A smaller operation that did not have nearly as much invested as $R does may very well fold its tent and that would be that. Red Eagle didn't die today...they just gave many, many shareholders a rather rude slap in the face. If you weren't long before, you better get long now. This company ain't going anywhere but sadly neither is the SP.
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