Tocvan's Resources new and updated web site.It was another quiet week for Tocvan Resources, closing at $0.54 on Friday with only 24,000 shares trading. Overall, the volume was light with Tocvan trading only 243,000 shares for the entire week. Tocvan's slight pullback in price corresponded with the day gold broke below USD $1,900, this was a physiological barrier that flushed out the short term players, but I still believe the underlying fundamentals for Tocvan remain strong and unchanged.
One has to be careful not to get sucked into the "chatter" of the markets. As my dad always said, "buy stocks based on their long-term fundamentals and not the hype, and you will make money over time". Everyone loves to dream, for example, if you made a $5,000 investment in Microsoft's IPO, you would have purchased 238 shares at the IPO price. After the splits, you would now own 68,544 shares. Those shares would be worth $10,592,104. That's a compound annual return of about 25% per year, or a cumulative return of nearly 211,000%.Unfortunately, my dad wasn't alive to buy Microsoft, but I am sure he would have been very interested in software stocks, instead he bought boring companies like Shell and Exxon because he understood their financials very well.
Resource stocks are much more complicated and returns like the Microsoft example are unlikely to be achieved, but there are larger resource companies like Newmont Goldcorp, Barrick Gold, Franco-Nevada, among many others that have provided significant returns over time. I am by now means saying Tocvan will produce returns equivalent to that of Barrick Gold, but the fundamentals are starting to come together in a way to suggest Tocvan has de-risked the long term risk if they continue to execute in a number of areas and keep control of their share structure. With only 40 M shares outstanding, Tocvan has the potential to raise capital at good pricing with little dilution, thus bringing significant value to shareholders.
It was an Interesting week for gold resource stocks with gold pulling back to USD $1,864 on Friday. It has been a tough week in the markets overall with a US Government shutdown looming in the background. Gold is still very high and down only 3.3% from last week, and only 1.3% from last month. This appears to be a small cycle in the long term cycle of gold. The 52-week gold price high is $1,972, so safe to say, gold is still very expensive. Many countries like China and India continue to buy gold at a record pace, and there is no indication they are about to stop. Supply and demand will continue to determine the price over time.
Now that the month of September is over, I am looking forward to Tocvan completing the acquisition of the land surrounding Pilar. This will set the stage for Tocvan to advance Pilar to production as the additional land mass provides space to build the infrastructure required for development. Since this will be in very close proximity to the richest gold bearing zones at Pilar, it will dramatically improve operating margins and profits. 100% ownership of this land mass will also add value to the overall land-based assets of Tocvan.
This is a large land mass totalling over 2,172 hectares that has never been consolidated for systematic gold and silver exploration. The geology and recent placer mining is confirmation that the area is highly prospective for gold, silver, and copper. Placer mining activity and underground working on portions of this new land is a solid indication that the land could hold additional future reserves, thus increasing the overall value of the resource asset of Tocvan.
I noticed that Tocvan has been working on a new web site, incorporating and updating all material in an easy to use format. Here is the website. Check it out.
https://tocvan.com/
Always good to see an advanced exploration company working on the nuts and bolts of the business during quiet periods. I suspect this has been done to set the stage for the next news cycle, i.e. land acquisition, more metallurgy results, purchase of the remaining Pilar ownership from Colibri, a maiden resource estimate, and drilling both Pilar and El Picacho.
Go Blue Jays.