Golden Valley Mines Ltd GLVMF

gzz

[arh0070]

Well I guess we disagree .First i dont think Abitibi has such a great president ,he may be ,he may not .He basically inherited their main asset which is the malartic mine ,the shares in yamana and agnico and the royalties .This as far as I know were all courtesy of Glenn Mullan .The royalties that they have added recently all look Mickey Mouse to me and they have spent just a few thousand acquiring them .Seems unlikely that they will amount to a hill of beans anytime soon .So basically his main job has been to sit back ,sell a few covered calls and buy back shares .
I see no reason why as Abitibi buys back its shares that half of those bought back cant come from gzz .since gzz trades at a discount to net asset value it makes sense for it to buy back its own shares ..Basically the principle liquid asset of ABitibi is the shares in Yamana and Agnico which have not been performing too well as gold shares are underperforming whilst the price of gold is pretty much in a trading pattern .It may be that if gold and the mining shares break out then they will go up ,this is a hope for the future .
With respect to the sale of properties to uranium ,gzz has something like 70 properties which is simply too much for one company to cope with and explore ;so to me the transaction probably makes sense .I dont know the degree to which these properties have been explored and would think that most have not been ,so unless someone finds a gold mine next door I would doubt that they would be worth too much as it currently stands .Any dilution to explore these properties will now occur with uranium and not gzz .
I dont know the details of Glen selling his Abitibi shares but I assume he wanted to diversify and raise some cash .Gzz obviously isnt able to pay a huge salary .
With respect to Glen he clearly is a superb geologist with many successes ,I have some concern that he has overcommited himself  .
In the interests of disclosure I have a large position in gzz and have no intention of selling though did sell some when it went up to 50 cents (wish I had sold them all) and then have bought back at a lower price .The current low prices of many small mining shares I must say is a source of great frustration right now ,if you just look at the number of notes on stockhouse there are very few which reveals extremely poor investor sentiment which is often a good contrarian indicator .arh