RE:Why I soldfirecracker74 wrote: I am a 75 year old retiree with a disabled daughter to care for. I lost a bundle on TV buying at $1 and selling at about .35. My hope was to recover some of those losses. At my age I no longer have the risk tolerence I once had. The prospects of massive dilution causes me to pull away. In the long run I still expect TV to go up a lot. I just don't need the anxiety of worrying about the dilution at my age. For younger people with more risk telerence I still recommend TV. I will likely regret selling TV down the road, but my mental health requires me to become more conservative. I really didn't own that many shares. The only stock I own now is Great Panther. Great Panther reported .05 in earnings yesterday and sells for .90 U.S. GPR/GPL has $67M in cash and $46M in debt and is running about $15M positive cash flow per quarter. If gold goes back above $2,000 Great Panther will likely earn .30-.40 in 2021. The issue there is mine life, but they are doing a lot of drilling and mine life is expected to increase. Good luck with Trevali and I will still keep posting now and then as I am still interested in Trevali.
firecracker74,
Very sorry to hear about your losses in TV. However, a big thank you from me on your sage advice on USA. Your posts on USA convinced me to dump USA in favor of GPL/GPR and that GPL/GPR was the far better silver stock play. And given that GPL is now my second largest holding, I am in complete agreement with you on the merits of holding GPL/GPR.
If your main concern is about stock dilution, then I would suggest taking another look at Orvana Minerals which happens to be my top holding as a long term buy and hold investor. I like stocks that have been innoculated against banker gold price suppression, and ORVMF/ORV.TO is one of the stocks that have this attribute. Their 2300 tpd processing plant is able to simultaneously process gold copper skarn ore with gold copper oxide ore and achieve 93 percent gold recovery while producing a copper gold concentrate with its flotation plant. So the bottom line is that although the bankers are sitting on the price of gold, the copper and silver by product revenue more than compensates for the gold price suppression. What's more is that their property in Spain has recently had monster gold grades in exploration.
At their second operation in Bolivia, they laid off most of their staff, and are currently doing a pilot test plant on their Oxide Ore Stockpile which I estimate at north of 350k gold ounces equivalent which will go into production in fiscal 2022. The news that came out of their latest news release is that revenue from the Don Mario OSP will include Au, Ag, Cu, and Zn!
The second stock that I would recommend a strong review of is Mandalay Resources. This is a gold miner with two producing mines Bjorkdal in Sweden, and Costerfield in Australia. They have a hedged gold price because they are repaying a $59 million USD loan, and because they hedged half their gold payment obligation in Australian dollars, they profited $10 million USD from their gold hedges in Q4 2020. So this stock is a totally counterintuitive gold play where institutions control 80 percent of the stock float and are trying to squeeze the last retail investors out by marking down the MND stock price on a daily basis.
On top of that we now know that the recent drilling results at Costerfield show that it is another Fosterville mine at depth, so although the stock made a profit of 17 cents in the most recent quarter, there is much more high grade gold at depth to come. The second mine, Bjorkdal in Sweden, is a second Fosterville on account of the very high grade gold intercepts discovered in recent drilling. Bjorkdal is a low risk operation in that it processes 1.3 million tons per year of ore through its processing plant achieving a 90 percent recovery without the use of cyanide. The high grade Aurora gold veins coupled with the high grade gold ore discovered in the Lake Zone should allow Bjorkdal to double gold production on higher gold grades alone. So the fact that a Fosterville X 2 stock is trading at $1.60 USD and $2.04 CAD shows that this stock is insanely undervalued. So here is a stock that should be trading at $14 USD per share or $20 CAD per share in Canada that is on sale at a 90 percent discount to fair market value.
MND happens to be my third largest buy and hold position in the precious metals market.
I won't go into the details, but other low risk gold stocks are TVIPF, TVI Pacific which is bringing the Balabag gold project on line in the PI--higher risk but also higher reward as the current stock price is only 3 US cents per share. Another low risk stock is Starcore International which is owned by a Mexican millionaire and is trading at low market valuation relative to its intrinsic value.
ganndolph