RE: RE: FAU, ETC Techs Thought this might interest some on this site. You will notice MTO mentioned here.
This blog was from another American blog I sometimes follow… his name is ED and I believe he is from California. The date is ’09. I have made updates in the SP and have put them in BOLD. The ideas here were common place at that time for these companies.
Quoting ED (unedited)!
“There are a lot of junior miners out there with widely varying chances for success. There are not enough hours in the day to research them all. I think that this board could be more useful to us all if members felt free to offer their opinions on what they may see as real hot properties out there.
The following list comprises miners that are interesting enough to me that I have researched them quite fully, and thought about them. Not included are the dozens of companies that I checked out but rejected.
Gold Resource Corp. The star. Extensive contiguous properties with very high grade outcropping all over the place. The mill is being started up as we speak. They have a high grade open pit manto deposit blocked out and stripped and fully permitted which will last a year or more and is projected to pay off all their investments on infrastructure and mill to date. The feeder vein has not been proven but there is a promising high grade intercept on which they are following up. Nearby there is a vein deposit which is not proved up to NI 403 standard but which obviously has enough very-high-grade ore to keep the mill busy for several years more at least as a cash cow. While these two deposits are being mined they can drill out some of the multiple remaining deposits, which have all been sampled at surface and in an existing artisanal adit. There is a lot of room for future expansion. Management has developed six successful mines in the past. I could go on and on but this is an outstanding company with great land. Their shares are still cheap and I recommend them to anyone.
SP ’09 4.00 now 14.00
Golden Predator. Outstanding initial results on their (scattered) properties, but they are mostly in Nevada and California, the land of fruits, nuts, and flakes. Good luck. I wouldn't touch them with a ten foot pole. Disclosure: I live in California, where the weather is great but the business climate is like Alaska's meteorological climate. California has one remaining mine of any significance that I know of (The Original Sixteen-to-one) and the government has been trying to shut them down for years. Picture a safety inspector that has never been in a mine before. Ooh! It's so SCARY! They are more or less out of business now. There is a perfectly good developed mine at Sutter Creek that makes its money doing tourist tours.
’09 .60 now .33
Rubicon, Aggressive managements exploiting excellent orebodies with large expansion potential. Stock price reflects the present value.
’09 .90 now 2.50
Silvercorp. Owns the cash-cow Ying mine with ten years or more of very high grade ore just waiting. Cash rich. Recent acquisitions not very accretive. One excellent prospect out in the sticks (Na-Bao) that they have on hold and I don't know why. An excellent recent acquisition attempt at Fire Creek, Nevada, failed. I do not fully trust management's ethics due to acquisition activities in China that left me somewhat suspicious of self-dealing, but they sure know how to mine precious metals. Their future depends on how they deploy the Ying cash flow. I think they are fairly priced but very interesting.
’09 1.25 now 4.60.
Metanor. Good ore bodies, steady management. Soon to be profitable. Underpriced.
‘09 .40 now .20
Lakeshore, Great Basin. Growing companies in proven districts that will gain value rapidly as long as the POG keeps rising. Not very interesting at lower gold prices.
’09 1.10 now .77
RocMec. The jury is out. I dreamed about them last night. They had a buy two, get one free sale on their dragon machines. The details of the deal were cloudy. I don't know about those guys, but their system is in the right place at the right time.
’09 1.75 now .10
All the above companies are essentially high grade vein miners. I don't look at the big low grade operations because I think their high energy usage makes them vulnerable to peak oil, which I believe is here, and rising power costs due to government actions. Further, underground mining is safer than it used to be, and risks involving explosives, gases, and so forth have been greatly reduced by modern practices. Plus, smaller-scale underground mining is less offensive to environmentalists' delicate sensibilities (They don't have to do the mining).
There it is… the relation between POG and POO…
Disclosure: GORO is my only PM investment as of today, because I don't think it is that vulnerable to a falling gold price. My target is $40.00 within three years at today's price.”
Good luck,
Ed,
(Check out the chart on GORO… Although optimistic and a little long to wait - four years later 14.00 – almost 30.00 at one point notice how the chart signaled a top by breaking trend - not a bad gain from 4.00).
GWH