RE:RE:To Richard Young auburn2,
I trimmed my long position in TGZ down to 50 shares several months back. Why? Richard Young is managing Teranga Gold with the first priority being to manage his cash flow, and that is all well and good. Except that withholding 40 percent of your quarterly high grade ore production does nothing to add to shareholder value in the current quarter.
So I traded my TGZ shares in favor of ORV. Why? Because ORV doesn't print shares and dilute its shareholders! And because management is aligned with shareholders as evidenced by the Samsung off take agreement and the Don Mario CIL financing with local Bolivian banks. I have posted my projections of ORV quarterly revenue and cash flow on the ORV board. IMHO, ORV outperforms TGZ by a mile in the coming year.
And unlike TGZ where 40 percent of the last quarters production was stockpiled in case of a future bad quarter, at ORV, both of their mines are doubling gold production at a total cost of less than 20 million dollars. The bottom line is that TGZ is overvalued, and most on this board expect TGZ to surge to $2 USD. Meanwhile, there are no buyers of ORV because the consensus on that stock is that it is a perennial loser.
I have no doubt that Richard Young will succeed in building his West African gold empire by 2020. So I will continue to follow this stock and consider it a buy at the bottom of its trading range. However, there are plenty of stocks that will outperform TGZ in the next 12 months, and IMHO, ORV is one of them.