Corona Gold Corporation T.CRG

3Q Financials -- Trading 50% Below Cash in Bank/Investments

[rhysler]

Financial statements (to Sept. 30, 2013) were posted on SEDAR a couple days ago and dated Nov. 13, 2013. Some important points:

-- CRG had cash and cash equivalents of $10,239,512 as well as current liabilities of $24,265.
-- CRG had common shares worth $9,803,653 and warrants worth $134,601.
-- CRG total of cash, shares and warrants = $20,177,766
-- Of the shares, the main 3 holdings are Hummingbird Resources PLC ($4,030,988), Treasury Metals Inc. ($1,710,558), and Sabina Gold & Silver Corp. ($1,258,400). You can see names of all 15 investments, $ Cost, and $ Fair Value on p. 14 of the report.
-- In the three months ended Sept. 30, CRG did a little bit of selling (Sabina at a loss of $34K; Hummingbird for a gain of $28K; Falco Pacific for a gain of $1.6K); they wrote down value in MacDonald Mines (loss $12.5K) and Atacame Pacific Gold (loss of $42K) and even increased their holdings of African Petroleum by buying shares worth $151K (...must really like this one as they lost 500K on it in a matter of months after their first purchase; now they've averaged down bigtime at what they must think -- or hope? -- is the bottom.

Based on the above figures, as of Sept. 30, 2013, CRG had $0.478 in cash / share and $0.458 of investments / share (based on 21,411,901 shares outstanding). Total of CRG cash and investments / share = $0.936. For the sake of interest... CRG closed at $0.465 on Sept. 30, 2013. As of mid November CRG last traded at its 52-week low of $0.42 cents.

If you check Canadian Insider, you'll see that insider James Kalman purchased about 150K shares in June 2013 at roughtly $0.51. CRG itself hasn't bought anything recently.

Overall, I'm still holding on to my "investment" (speculation?) in CRG. In my opinion it's worth more than what it is trading for these days. But I'm unsure that there is any catalyst on the immediate horizon that can turn things around. Maybe Hummingbird attracts a takeover offer like  B2Gold's acquisition of Volta Resources; maybe CRG actually start buying their own shares; maybe Dundee Corp. (owns 23% of CRG) just takes it over for a slight discount. Anyway, as lacklustre as CRG has been, it's losses are significantly less versus most gold-related. Not much consolation but it could've been even worse...

[RockLobster1]

thanks for your post, a very good review... It has been smart to hold 50% in cash but maybe now is the time perhaps to employ it... I will also hold on... but agree I dont know what the catalyst will be other than renewed interest in junior miners.

[Method]

Just reran the NAV at y'days close assuming the portfolio hasn't changed since the end of September and NAV fd is $0.92 so even at 0.50 its a discount of 46%.  I follow some other names trading below cash and investments and the average discount is 22%. 

[rhysler]

Fellow Coronans -- Financials for year end Dec. 31, 2013 have appeared on SEDAR in the last few days. It would appear that CRG did little in the 4th quarter in terms of buying/selling. Thus, all you really need to know is contained in the first part of the Outlook statement on p. 4 of MANAGEMENT’S DISCUSSION AND ANALYSIS (“MD&A”) FOR THE YEAR ENDED DECEMBER 31, 2013. It says, "As at

[Method]

Many thanks for the update!  I wasn't expecting the financials until mid-March at the earliest.  They haven't filed this early for as long as I can remember.  It makes me wonder if something is up. Ryan Gold (RYG.V) also filed that day.  Recall that Ryan is also de facto controlled by Dundee and who's CEO is also the same trades at about a 16% discount to its cash