Not long ago, the Gold and precious metals market looked ready to surprise some of us Gold Bulls and do a face plant into the concrete. Just as things started to look dicey, we got faked-out and called for a move into cash (http://markostake.blogspot.com/2010/03/gold-market-update-time-to-go-to-cash.html).
Now it looks like Gold has pulled off a stunningly successful "double-reverse". For those not familiar with football parlance, a double-reverse is a manoeuver designed to switch directions twice in one play. First, the play has you looking right, then left, then right again. If you don't know its coming, you get faked out of your shoes.
And so it appears with Gold and Precious Metals stocks. Just as it looked like we would get a completely surprising market reversal to the downside, the market held, gathered strength and now all signs point to a renewal of the upside hyperbolic mania that we were looking for all along.
All the market did was what it was SUPPOSED to do. Like an illusionist, it diverted our attention while it pulled of its seemingly amazing trick.
The GOOD news is that re-entry here with Gold near the $1,125-$1,130 level leaves PLENTY of upside, especially if our longer-term projection of $5,000 is met. The important thing is not to fall in love with either a market outlook or individual postions and stay with the "weight of the evidence". That evidence now is screaming BUY again.
Especially telling was the sudden surge in the Gold Bugs index on Thursday, also known as the HUI. The HUI surged a whopping 5% indicating an investor stampede back into precious metals stocks. In additon, some key chart patterns were resolved in a bullish manner. Can't fight the tape!
So, now that the market has successfully faked us out, it's time to re-enter. We did a series, a couple of weeks back on a number of promising stocks and we would suggest a review of these if you're interested in selecting some appropriate candidates. The links are provided below.
The individual stock reviews of Vista Gold, Tara Minerals, Samex Mining, Seabridge Gold, Hecla Mining, and ECU Silver Mining can be accessed by clicking on the following links:
(http://markostake.blogspot.com/2010/03/vista-gold-explorer-worth-exploring.html)
(http://markostake.blogspot.com/2010/03/tara-minerals-on-tear.html)
(http://markostake.blogspot.com/2010/03/samex-mining-grand-slam-ex.html)
(http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html)
(http://markostake.blogspot.com/2010/03/hecla-mining-at-119-years-old-producing.html)
(http://markostake.blogspot.com/2010/02/ecu-silver-mining-as-good-as-it-gets_7745.html)
(http://markostake.blogspot.com/2010/03/major-gold-producers-deliver-stellar.html)
In the days ahead, we'll cover more individual stocks of interest.
For now, ignore last week's man behind the curtain, and listen to THIS WEEK'S man behind the curtain!
There's a great opportunity looming ahead of us and lot's of time to board the train and enjoy a great ride.
Marko's Take
Please visit our new YouTube channel at http://www.youtube.com/markostaketv.
Showing posts with label Allied Nevada Gold Corp.. Show all posts
Showing posts with label Allied Nevada Gold Corp.. Show all posts
Monday, April 5, 2010
Friday, March 19, 2010
Vista Gold: An Explorer Worth Exploring
We continue our series of interesting junior precious metals companies for investors to consider.
Vista Gold Corp. (VGZ) is an international gold mining company based in Littleton, Colorado, with a 20-year history of Gold exploration, development and operations.
Vista has positioned the company to benefit from higher Gold prices and has acquired a number of impressive gold projects from 2001 to 2006. During 2006 and 2007, Vista completed transactions that resulted in the formation and successful spin-off to its shareholders of Allied Nevada Gold Corp. (ANV).
Since the spin-off, Vista has sold one project and currently holds six projects with an estimated 1.3 million ounces of proven and probable reserves, 12.8 million ounces of measured and indicated resources and 4.6 million ounces inferred. Vista has undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items and the purchase of land for the processing facilities, related infrastructure and the desalination plant.
The results of a Preliminary Economic Assessment completed in 2009 on the Mt. Todd gold project in Australia are encouraging and Vista is undertaking other studies to advance the project. Vista's other holdings include the Yellow Pine gold project in Idaho, Guadalupe de los Reyes gold project in Mexico, Long Valley gold project in California and Awak Mas gold project in Indonesia.
The spin-off of intermediate-producer Allied Nevada has proven to be a huge home run to shareholders. ANV, which produces Gold in Nevada, has a market capitalization of more than $1 billion, as opposed to micro-cap Vista, which at current prices, has a market capitalization of UNDER $100 million!
Fellow explorer Seabridge Gold, recently featured on Marko's Take, (http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html) has yet to successfully see a project advanced to the production stage with the unbridled sucess of the Allied-Nevada spin-off.
As an explorer, Vista's earnings are fairly meaningless. More important, by far, is Vista's track record, longevity, management and financial situation.
Vista recently released full-year results. A quick review of the balance sheet reveals plenty of cash and liquid resources totalling approximately $30 million, or one-third of the Company's entire market capitalization. Offsetting that somewhat is long-term debt of about $25 million, principally in the form of convertible notes.
The convertible notes are currently "out of the money" with a strike price of $4.80 per share. The Company has been able to repurchase some of the notes in privately arranged transactions.
In September 2009, Vista successfully sold 10.3 million shares for $2.25 per share - realizing proceeds of $20.3 million, bolstering the balance sheet and providing additional liquidity to fund its ongoing exploration and development.
In the interest of full disclosure, I personally own shares of Vista Gold.
Vista was recently recommended by the excellent technician Clive Maund (http://clivemaund.com/).
Happy Investing!
Marko's Take
Other investing sites of merit that we recommend: LeMetropole Cafe (http://lemetropolecafe.com/) and StockMavrick (http://stockmavrck.com/) and Global Green Forex LLC (http://www.globalgreenforex.com/), a money management firm specializing in foreign exchange trading.
Check out our YouTube channel at (http://www.youtube.com/markostaketv).
Vista Gold Corp. (VGZ) is an international gold mining company based in Littleton, Colorado, with a 20-year history of Gold exploration, development and operations.
Vista has positioned the company to benefit from higher Gold prices and has acquired a number of impressive gold projects from 2001 to 2006. During 2006 and 2007, Vista completed transactions that resulted in the formation and successful spin-off to its shareholders of Allied Nevada Gold Corp. (ANV).
Since the spin-off, Vista has sold one project and currently holds six projects with an estimated 1.3 million ounces of proven and probable reserves, 12.8 million ounces of measured and indicated resources and 4.6 million ounces inferred. Vista has undertaken programs to advance the Paredones Amarillos gold project, located in Baja California Sur, Mexico, including a definitive feasibility study, the purchase of long delivery equipment items and the purchase of land for the processing facilities, related infrastructure and the desalination plant.
The results of a Preliminary Economic Assessment completed in 2009 on the Mt. Todd gold project in Australia are encouraging and Vista is undertaking other studies to advance the project. Vista's other holdings include the Yellow Pine gold project in Idaho, Guadalupe de los Reyes gold project in Mexico, Long Valley gold project in California and Awak Mas gold project in Indonesia.
The spin-off of intermediate-producer Allied Nevada has proven to be a huge home run to shareholders. ANV, which produces Gold in Nevada, has a market capitalization of more than $1 billion, as opposed to micro-cap Vista, which at current prices, has a market capitalization of UNDER $100 million!
Fellow explorer Seabridge Gold, recently featured on Marko's Take, (http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html) has yet to successfully see a project advanced to the production stage with the unbridled sucess of the Allied-Nevada spin-off.
As an explorer, Vista's earnings are fairly meaningless. More important, by far, is Vista's track record, longevity, management and financial situation.
Vista recently released full-year results. A quick review of the balance sheet reveals plenty of cash and liquid resources totalling approximately $30 million, or one-third of the Company's entire market capitalization. Offsetting that somewhat is long-term debt of about $25 million, principally in the form of convertible notes.
The convertible notes are currently "out of the money" with a strike price of $4.80 per share. The Company has been able to repurchase some of the notes in privately arranged transactions.
In September 2009, Vista successfully sold 10.3 million shares for $2.25 per share - realizing proceeds of $20.3 million, bolstering the balance sheet and providing additional liquidity to fund its ongoing exploration and development.
In the interest of full disclosure, I personally own shares of Vista Gold.
Vista was recently recommended by the excellent technician Clive Maund (http://clivemaund.com/).
Happy Investing!
Marko's Take
Other investing sites of merit that we recommend: LeMetropole Cafe (http://lemetropolecafe.com/) and StockMavrick (http://stockmavrck.com/) and Global Green Forex LLC (http://www.globalgreenforex.com/), a money management firm specializing in foreign exchange trading.
Check out our YouTube channel at (http://www.youtube.com/markostaketv).
Wednesday, March 17, 2010
Samex Mining: A Grand "Slam" Ex?
We are getting ever so close to the final precious metals launch into the stratosphere. In fact, we believe that yesterday's $20 rise in the price of Gold will prove to be the "foreshock" to the earthquake ready to rattle investors. With that in mind, we're continuing our series on promising junior mining companies.
Today's featured company is a very speculative play called Samex Mining (SMXMF-OTCBB or SXG.V). This company was first brought to my attention, as was ECU Silver Mining, (http://markostake.blogspot.com/2010/02/ecu-silver-mining-as-good-as-it-gets_7745.html) by Bill Murphy's must-read LeMetropole (http://www.lemetropolecafe.com/).
But if you're not a reader of LeMetropole, which you should be, you may not know about this incredibly promising company.
Samex is an explorer, which is different than a miner in that explorers chiefly find promising deposits. How they dispose of those finds can vary. Some like Vista Gold Corp. (VGZ) have spun-off projects to shareholders. Vista spun-off a company called Allied-Nevada Gold Corp. (ANV), which is a first-class producer in, where else, Nevada!
Samex explores the Andean Cordillera of Chile for rich deposits of gold, silver and copper. This area is one of the most bountifully mineralized regions on Earth, where many of the globe's largest deposits have been discovered.
Normally, I tend to avoid companies that operate in areas that may be considered geo-politically risky. Just ask the shareholders of Crystallex (KRY), who had their fabulous Venezuelan deposits expropriated by Hugo Chavez. KRY sold for more than $5 per share in 2007, now languishing at about $.30 and is engaged in a war of words with the Venezuelan Government. It would a shareholder want to "kry"!
Chile is no Venezuela and is known for mining friendliness. Since the 1990’s, Chile has been the first port of call in terms of investing in South America and, as a result, numerous foreign companies have developed the country’s burgeoning mining sector. Chile is recognized as the mining capital of Latin America and can be credited with initiating the investment surge to make Latin America the world’s primary mineral target.
As an explorer, earnings as a barometer of value are entirely irrelevant. The value is highly qualitative - more a function of the quality of managment, properties owned and the company's ability to maintain funding as it completes its program.
Samex has been steadily reporting rich finds. The company's latest press release elaborates (http://www.samex.com/news/aa-news-2010/NR1-10-Jan21.pdf).
While Samex is not particularly well capitalized, it was able to realize proceeds of nearly $1.2 million in a warrant offering in November, 2009. Thus, the company, despite its very low stock price of about $.30 is still able to access capital markets.
Anyone considering investing in Samex has got to look at it as a high risk/potential high return proposition. This company is not for the feint of heart - as is ANY explorer.
For disclosure purposes, I am an owner of Samex shares and believe that the high potential rewards MORE than justify the risk. I would NOT recommend it to anyone... just those who are looking for an excellent roll of the dice and perhaps some diversification in a portfolio of juniors. I would NOT place Samex as a core holding as I might view either Seabridge Gold (http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html) or Hecla Mining (http://markostake.blogspot.com/2010/03/hecla-mining-at-119-years-old-producing.html).
Finally, I want to thank our new partners at "Stock Maverick" (http://www.stockmavrick.com/), a fabulous website for penny stocks like Samex, although with a broader mandate to cover promising companies in sectors not just limited to commodities and natural resources, as we are at "Marko's Take". Check it out for some excellent ideas!
Happy investing!
Marko's Take
For new readers, we also have a YouTube channel, which is more oriented toward World Events and Politics, as opposed to pure investment issues. It can be accessed here: http://www.youtube.com/markostaketv. We will be filming 5 new segments this coming Saturday and start releasing them on a weekly basis, along with our partner, Phoenix Film Group, http://www.youtube.com/phoenixfilmgroup.
.
Today's featured company is a very speculative play called Samex Mining (SMXMF-OTCBB or SXG.V). This company was first brought to my attention, as was ECU Silver Mining, (http://markostake.blogspot.com/2010/02/ecu-silver-mining-as-good-as-it-gets_7745.html) by Bill Murphy's must-read LeMetropole (http://www.lemetropolecafe.com/).
But if you're not a reader of LeMetropole, which you should be, you may not know about this incredibly promising company.
Samex is an explorer, which is different than a miner in that explorers chiefly find promising deposits. How they dispose of those finds can vary. Some like Vista Gold Corp. (VGZ) have spun-off projects to shareholders. Vista spun-off a company called Allied-Nevada Gold Corp. (ANV), which is a first-class producer in, where else, Nevada!
Samex explores the Andean Cordillera of Chile for rich deposits of gold, silver and copper. This area is one of the most bountifully mineralized regions on Earth, where many of the globe's largest deposits have been discovered.
Normally, I tend to avoid companies that operate in areas that may be considered geo-politically risky. Just ask the shareholders of Crystallex (KRY), who had their fabulous Venezuelan deposits expropriated by Hugo Chavez. KRY sold for more than $5 per share in 2007, now languishing at about $.30 and is engaged in a war of words with the Venezuelan Government. It would a shareholder want to "kry"!
Chile is no Venezuela and is known for mining friendliness. Since the 1990’s, Chile has been the first port of call in terms of investing in South America and, as a result, numerous foreign companies have developed the country’s burgeoning mining sector. Chile is recognized as the mining capital of Latin America and can be credited with initiating the investment surge to make Latin America the world’s primary mineral target.
As an explorer, earnings as a barometer of value are entirely irrelevant. The value is highly qualitative - more a function of the quality of managment, properties owned and the company's ability to maintain funding as it completes its program.
Samex has been steadily reporting rich finds. The company's latest press release elaborates (http://www.samex.com/news/aa-news-2010/NR1-10-Jan21.pdf).
While Samex is not particularly well capitalized, it was able to realize proceeds of nearly $1.2 million in a warrant offering in November, 2009. Thus, the company, despite its very low stock price of about $.30 is still able to access capital markets.
Anyone considering investing in Samex has got to look at it as a high risk/potential high return proposition. This company is not for the feint of heart - as is ANY explorer.
For disclosure purposes, I am an owner of Samex shares and believe that the high potential rewards MORE than justify the risk. I would NOT recommend it to anyone... just those who are looking for an excellent roll of the dice and perhaps some diversification in a portfolio of juniors. I would NOT place Samex as a core holding as I might view either Seabridge Gold (http://markostake.blogspot.com/2010/03/seabridge-gold-how-to-buy-gold-for.html) or Hecla Mining (http://markostake.blogspot.com/2010/03/hecla-mining-at-119-years-old-producing.html).
Finally, I want to thank our new partners at "Stock Maverick" (http://www.stockmavrick.com/), a fabulous website for penny stocks like Samex, although with a broader mandate to cover promising companies in sectors not just limited to commodities and natural resources, as we are at "Marko's Take". Check it out for some excellent ideas!
Happy investing!
Marko's Take
For new readers, we also have a YouTube channel, which is more oriented toward World Events and Politics, as opposed to pure investment issues. It can be accessed here: http://www.youtube.com/markostaketv. We will be filming 5 new segments this coming Saturday and start releasing them on a weekly basis, along with our partner, Phoenix Film Group, http://www.youtube.com/phoenixfilmgroup.
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