THE CALANDRA REPORT: Sample & Subscribe
RZZ | FNRG | New Orleans | PLG | PTM | NUG | SYRX | BTT
July 23, 2014
I am not the only one to notice the quiet accumulation of Abitibi Royalties (TSX:V.RZZ, Stock Forum). EVEN TODAY, WEDNESDAY.
I am getting notes from a bevy of Canadian. The CHL Malartic joint venture partner (with Osisko, et al) appears close to a transaction, or a watershed event that will shine more light on its lucrative arrangement at Malartic in Quebec.
That's Canada's largest gold mine. We note a royal flush as an aside -- as one former insider is selling a portion.
I am waiting to hear back from
Chad Williams, who was a board director of RZZ until the annual general meeting in June. With CEO
Glenn Mullan of parent Golden Valley Mines (
TSX:V.GZZ,
Stock Forum), Chad helped to engineer the Abitibi coup that I believe ultimately will see the royalty holder go to the highest bidder or sit on the sidelines as shareholders receive NSR (net smelter returns) cash and a working interest in CHL Malartic property that is mineraiized. Chad is a former gold CEO from Toronto, where he runs a mining consultancy, Mr. Williams also is a board member of
Golden Valley Mines and a longtime and helpful member of our
TCR family. His recent sales look to be about 15,000 shares.
See filing.
Just so that I am on the record here -- Glenn Mullan and his wife, a MasterChef contestant in Canada and Korea, Jackie Koh, are family friends.
?
(Photo: Glenn Mullan and investors, executives at Malartic gold refinery in Quebec, Canada. I have other photos of Osisko executives touring us through CHL Malartic, the joint venture, and explaining via slides why the RZZ joint venture properties near the Osisko gold mine and plant are potentially valuable to the life mine and operation of the plant.)? ?
That bio: RedHill BioPharma, our Tel Aviv gastrointestinal candidate, deserves a look-see Wednesday. It is out with a second-quarter
2014 update. The unstated indication for one of its trial drugs is likely related to a gastrointestinal side effect -- nausea, depleted nutritional values? At any rate, RedHill has clinical-trial compounds, diagnostics or licensing pacts for Crohn's Disease, chemotherapy side-effects, GI disorders, nausea, diabetes and other auto-immune disease indications. The company, says chief operating officer/biz dev. exec
Guy Goldberg, did not put anything about a multiple sclerosis application in this release "because we are still running that trial and do not yet have results." I think RDHL (in USA, and trades in Tel Aviv) has enough compounds in tubes and trials to be actionable. The clinical trials could face delays of course -- as some of these indications and conditions (placebo) make it a challenge to round up human candidates.
New Orleans: I have to believe there are 50 resource companies out there that had the SF door shut on their late November plans to exhibit at the annual and slumping show for individual investors in San Francisco.
Welcome to New Orleans in October. That Oct. 22-25 conference, which I attend each year, is lining up its 40th show. Former Federal Reserve Chairman Alan Greenspan is on the card this year.
A New Orleans partnership with a large North America newsletter publisher is a first and could double the number of wealthy investors, financial planners, asset managers and special-situation seekers attending. This year looks to take us across the resources spectrum (from gold to graphite and everything in between), into the energy sector -- with a selection of alternative technology companies such as Forcefield Energy (OTC:FNRG, Stock Forum) and solar-cell developer Natcore Technology (TSX:V.NXT, Stock Forum).
[Happy Birthday this week to CEO Chuck Provini as Natcore engineers its Australia partnership and -- TCR speculation -- a possible media coup in the world press-- stay tuned.]
I guarantee one thing: the list of New Orleans exhibitors will be double what it is currently -- now that Hard Assets in San Francisco and NYC got charred and exited. See: Gone, Baby, Gone. N.O. likely will be getting a lot of yes in coming weeks. I hope to see a triumvirate of companies, for example, telling us more about their search for Pacific Rim properties using Asia capital and advanced geophysics.
PLATINUM GROUP METALS: For me, the question is when does the share price rising overtake the fully diluted rising?
Platinum Group Metals (TSX:PTM,Stock Forum) owns up to 571 million shares in the wake of two 2013 equity financings that raised $355 million (slides 3 and 4) for its South Africa mine building and exploration activities.
Mike Jones'South Africa mine developer will be a platinum (and other metals) producer sometime in the next 12 to 15 months. Maybe sooner. I see the share price steady at $1.30 CAD these next few months.
Catalysts for further gains include mine-life extension for the joint-venture (20 years at present); gradually declining output of South Africa platinum; merging of two or more RSA platinum producers; more exploration successes; a PLG/PTM takeover offer. I saw a report today that the third largest national producer of platinum, Zimbabwe, might see production cuts.
See: Platinum Group Metals' latest slide deck. I own the shares. Mr. Jones also has a Utah/Nevada gold and silver prospector in his shed: West Kirkland Mining (TSX:V.WKM, Stock Forum). I plan to see the property in September after the Precious Metals Summit in Colorado. I do not own WKM shares.
Reports on these TCR 6 companies Tuesday: NuLegacy Gold (TSX:V.NUG, Stock Forum) with further assays from Nevada, mostly mediocre but well presented; and another country heard from -- Pilot Gold and its gold and copper data from northwest Turkey.
On NuLegacy, Albert Matter, the financier who started the Nevada prospector, tells me today: In terms of this latest round of drilling, please remember that most of the holes were significant step outs (from 200 meters [650 feet] to 900 meters) from the current Iceberg deposit ... an exploration target of 90 million to 100 million tons of 0.7 to 1.0 gram of gold/ton material that has numerous intercepts of 20/30 and 40+ meters of 1, 2 and even 3+ grams of gold/ton...and Roger Steininger’s view is that the deeper intercepts indicate at least one additional horizon of mineralization that could be peripheral to another larger deposit.
One thing won't change here at TCR: I will stick with resources for 70 percent of our original research reporting. That includes candidates such as American Sands Energy (AMSE) in Utah. AMSE is a combination of property, heavy oil sands and technology. It is a fifth of the price of a Utah neighbor, U.S. Oil Sands (USO in Canada) with three times the resource, maybe more.
Possible purchases REST OF this month: Looking at RedHill BioPharma (NSC:RDHL, Stock Forum); Apollo Minerals (AON in Australia); and Riverside Resources (TSX:V.RRI, Stock Forum). Also, more Stellar-Diamonds (STEL on AIM) -- the chart on that poor-pence Sierra Leone operator's stock is the kicker.
Let’s not forget my own Ruffled Resources basket of equities on Motif Investing. It has coal, gold, copper, uranium, silver and more and it cost $9.95 to purchase, re
Some 30 percent of our (and my) TCR original and on-site reporting will show special situations in biomedical -- recently RedHill BioPharma for gastrointestinal applications, and, sadly, Stellar Biotechnologies -- which needs to change its name to Keyhole Limpet Bio to reflect its amoeba status on the equity food chain; in novel alt.energy solutions such as Natcore Tech (NXT in Canada); in computer systems -- solid Sysorex Global Holdings; and in actionable (albeit sometimes questionable) start-ups that could reap returns that exceed most of our wildest imaginations.
On that note, a candidate there, although I still find it shaky and marked by capital potholes, is casino-hotel-resort wanna be Cabo Verde Capital (CAPV in USA) -- see earlier TCR reporting. Or Stellar-Diamonds, which just got a tout in London's Evening Standard tabloid. Or Apollo Minerals in Australia. These are examples of companies the size of a molecular compound that could bulk up literally in a month.
Regarding most of them, I own 'em. So I drink my own smoothies most of the time. I have yet in terms of this report to purchase Apollo, Forcefield Energy, Cape Verde Capital and RedHill Bio. I own Kaizen Discovery (KZD in Canada) as that company employs advanced geophysics and Japanese capital to spec-out various gold-copper-iron ore properties or property purchases.
What we're looking for this week or next: our TCR 6 member Colt Resources to publish fresh step-out assays from its tungsten project in northern Portugal. (GTP in Canada and COLTF in USA) ... Bitterroot Resources (BTT in Canada) to weigh in on its Michigan platinum assays in a last-gasp attempt to salvage the company -- talk about a crazy shot in the dark: 4-cent stock years ago had the verve to touch $1 and more; at this point, I wait for the vaporware and only hope it is clear cut: we have something or we have nothing.
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