FORT BRAGG, California -- Metals equities and underlying commodities are closing the complex's best week since early September 2012.
NUGT: A well regarded market strategist reminds me that metals equities, and specifically for our purposes (
NYSE: NUGT,
Stock Forum), (
NYSE: CEF,
Stock Forum), (
NYSE: GDXJ,
Stock Forum) (and the silvers), have come a LONG LONG way down since that early September 2012 peak. I had to look again to see the high on NUGT (split justified) a year ago was $97. It just went over $10 for a moment and will consolidate one for 10 in the next week. I am holding all of my NUGTs, which are in the black, or gold.
Strange movers: Crushed
Sandsrping Resources (
TSX: V.SSP,
Stock Forum) is up 30 percent or so in recent days. I consider the Guyana gold-copper developer's property one of the lowest-cost potentialities (
per ounce, with credits) in Latin America right now. I own the stock and have seen Toroparu in upper Puruni twice on the ground and three times from the airplane window seat. At some point, someone out there will believe the company's claim that 'initial payback' on Toroparu could occur in less than three years.
I believe good old Colorado and Utah ranchers
John Adams and Richard Munson on this point; and yes, the two SSP founders and execs are members of the
TCR family. ... Jaime Lopez's
Tolima Gold Inc. (
TSX: V.TOM,
Stock Forum) is also a mover with no news this week. Once again, depressed beyond Prozac, and no truth to speculation that Tolima is changing its Canada ticker to THOM. I own shares of the Colombia prospector, which controls properties in Tolima and near Otu, not far from
Gran Colombia Gold Corp.'s (
OTO: TPRFF,
Stock Forum) Segovia mine and 28-plus veins.
CEF: Central Fund is a sensible and straight way to own gold, silver and the possibility of a premium. It is my money market for excess cash I would prefer to keep in metal, as in an actual eastern Canada repository (60% gold and 40% silver). The Stefan Spicer family has run it since 1960 or so.
NRE: I met for a second time with the Nova Scotia principals of
Namibia Rare Earths (
TSX: T.NRE,
Stock Forum) (
OTC: NMREF,
Stock Forum).
Gerry McConnell and Don Burton are marketing in the western USA. The developer of a heavy rare earths property (200 sq km) in Namibia explained further its joint venture strategy, possibly with rare earths sands processor
Solvay SA in France/Belgium. Short term, NRE likely will continue its ascent as the company approaches the release of its metallurgy review of an accelerated recovery and refining process for its proposed xenotime
(yttrium orthophosphate) concentrate. I have been buying regularly.
I will be reporting more on NRE next week. The company's shares are difficult to purchase; ownership is monopolized by about eight or nine groups, including financial figures who hail from here in California. Aside from a block of 4.5 million or so shares, that is -- a block that is for sale via Dundee in Toronto.
At any rate, I expect a higher price this month for the shares than its current 21 cents Canadian. Investors are sensing a next leg up in rare earths after a furious span of gains four years ago. Avalon, a pioneer led by pace setter
Don Bubar, is no longer a shining star, and many other companies are seeing their obese cap-ex strategies DESTROY their market capital.
See:Avalon Rare Metals Inc. (
TSX: T.AVL,
Stock Forum)
article.
As I told
Don Lay this week, Winnipeg-based president of another rare earths company,
Medallion Resources Ltd. (
TSX: V.MDL,
Stock Forum) (which appears to be doing okay with an Oman sands processing strategy), "NRE is a layup at this price, with these (California investors) owners, and with this team." Don Lay was at an NRE presentation in San Francisco.
Atico Mining Corp. (
TSX: V.ATY,
Stock Forum), one of our
TCR 8, came out with a convoluted financing plan that I need to study. I
dislike the debt portion of the strategy to raise enought cash, as much as $20 million), to purchase El Roble in Colombia. It seems, every time I hold my breath on a debt-linked strategy for financings, such as senior secured notes ($6 million worth in this case) and converts ($2 million), I nearly suffocate. Seafield Resources is one recent example; that looked great on paper several months ago.
I am gagging now; Keith Carradine I am not. As I said, I need to review Atico's terms -- and am on the road to northern California for a two-day soccer tournament for our daughter's team.
(Our son is with Mom, on his way to look at colleges in southern California; who knew? The potentiality, that is.
Pas moi.)
Gold Standard Ventures’ – (
NYSE: GSV,
Stock Forum) recent financing includes a publicly traded mining company/prospector, I believe. I do not know which one it is, but I do know the unnamed company might be willing to raise its stake above 4.99 percent of the Nevada Railroad gold project developer. I continue to believe that
Dave Mathewson, GSV geologist and Nevada aficionado, will make us rich beyond our dreams WORKING ON THE RAILROAD.
CEO
Jonathan Awde, a member of our
TCR family, tells us, "Hopefully we will get them to 9.9% or be able to announce it (name of the company). Trying. The important thing is that we got money in the door in a very tough environment and have a new significant, strategic shareholder who has done an incredible amount of dd." GSV trades in USA and in Canada. In USA, the threshhold for revealing ownership is 5 percent of a company's equity; in Canada, I believe, it is 10 percent. Carl Pescio of Allied Nevada is a large owner of GSV shares.
SOLVISTA Gold Corp: (
TSX: V.SVV,
Stock Forum) BOUGHT MORE of this extremely depressed Colombia prospector's stock and one of our
TCR 8. "We should be back drilling soon, so hopefully will have more good news to share," says CEO Miller O'Prey. I have it on good word --
Jeff Brooks, SVV geologist, that Caramanta's various porphyrys will continue to show good to very good gold grades (with other metal credits).
I just hope that next time the company reports, it sticks with gold-only for the headlines, and not gold-equivalents. Stay tuned also on Guadalupe, SVV's thin-vein property in Antioquia, Colombia.
Finally: Hearing from many folks that they intend to subtly protest the Colombia bureaucracy surrounding mining and prospecting by NOT attending this year's Medellin feria in September. I will not be able to attend, not as a protest -- just catching up, I believe, on Canada, Africa and other reviews.
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