Top 5 Junior Mining Picks
TGR: Will Red Eagle ultimately win control of CB Gold Inc. (CBJ:TSX.V) in its battle with Batero Gold Corp. (BAT:TSX.V)?
TL: Yes, there will probably be an amicable solution in the next 12–24 months. Red Eagle will likely have to acquire the remaining shares of CB Gold in a private transaction with Batero.
TGR:What impact is the weak Colombian peso having on Red Eagle?
TL:The impact will be huge. The U.S. dollar versus the Colombian peso exchange rate is about 3,150:1. Red Eagle based its feasibility study on an exchange rate of 1,900:1, so it gets about 60–65% more pesos for each dollar.
Some 30 or 40% of the company's operating expenses will be paid for in Colombian pesos and this means Red Eagle could shave off about 50% of those expenses, which could reduce the all-in sustaining costs by at least $100 per ounce ($100/oz). That would be an impact of $4–5 million ($4–5M) per year based on the 40,000–45,000 ounce (40–45 Koz) per year production rate. My hope is that the company will try to lock in at least a part of its currency exposure because it's prudent to hedge against the Colombian peso while it can get value.
Lepouttre Plays Santa Claus, Gives Away Top 5 Junior Mining Picks
https://www.stockhouse.com/opinion/independent-reports/2015/12/14/lepouttre-plays-santa-claus-gives-away-top-5-junior-mining-picks
[ Source: Brian Sylvester of
The Gold Report (12/14/15)
https://www.theaureport.com/pub/na/lepouttre-plays-santa-claus-gives-away-top-5-junior-mining-picks ]