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XMFSinchiruna (28.52)

Where Gold and Silver Mines Go to Die

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October 15, 2012 – Comments (22) | RELATED TICKERS: AUQ

I'm so curious to see what kind of value Mexican billionaire Carlos Slim will derive from Ocampo over the next 5-10 years. By the time gold is above $2,500, and silver over $60, I think the AuRico's mis-step in the dispensing of its flagship will be all too plain to see.

http://www.fool.com/investing/general/2012/10/12/where-gold-and-silver-mines-go-to-die.aspx

I wish the company the very best of luck with its new flagship Young-Davidson, which is an asset I've looked forward to for quite some years now, but I've come to view the retained personnel from the Northgate transaction as the primary attribute working in the operation's favor. I tried to give the new CEO a shot at turning things around, but where I'm concerned this move to sell Ocampo is the final straw, and I can no longer recommend shares of AuRico Gold in good faith.

22 Comments – Post Your Own

#1) On October 15, 2012 at 1:07 PM, SN3165 (< 20) wrote:

Sinch, what are your thoughts on Cardero PFS and current share price?

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#2) On October 15, 2012 at 5:45 PM, XMFSinchiruna (28.52) wrote:

Ok... So 3 people asked me about Cardero today. I had a talk with CEO Michael Hunter last week. I became concerned after I discovered in the last quarter's filings that the company had divested the vast majority of its investment holdings in resource equities, and in the case of the Trevali shares at least at a price well beneath the recent breakout high. That was a tough pill for me to swallow, as I had viewed those holdings as a key aspect of the stock's value proposition. Because I did not see a corresponding jump in cash holdings, my next question was where on earth all that capital went to. He laid out the trailing expenditures, and with the exception of some unacceptably high G&A expenses, I chalk it up to just an expensive year of exploration and pre-feas work.

The PFS for Carbon Creek was excellent by any measure, but amid this spate of mine closures, dialed-back Capex projections, and persistently weak pricing, the market isn't giving any love to coal development projects. Same goes for Sheini, which Hunter hopes to monetize at his earliest opportunity. Please note Desjardins increased its price target on Cardero after the PFS, and I've seen a number of bullish analyst reports.

Some of the recent weakness likely attributable to technical selling after shares dropped through prior low, while the looming need to raise capital is likely spooking some.  

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#3) On October 15, 2012 at 10:39 PM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/aurico-reports-third-quarter-production-120000718.html

AuRico Reports Third Quarter Production Results and Update on Young-Davidson

10/15/12

Sky 

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#4) On October 16, 2012 at 7:27 AM, skypilot2005 (< 20) wrote:

Fellow Fools that own PTQMF:

http://www.vancouversun.com/business/Petaquilla+board+rejects+Inmet+unfriendly/7395798/story.html

Petaquilla board rejects Inmet's unfriendly bid

 

 

Reuters October 16, 2012



http://ir.inmetmining.com/press-releases/inmet-mining-mails-offer-to-petaquilla-minerals-sh-tsx-imn-201209280822233001

Inmet Mining Mails Offer to Petaquilla Minerals Shareholders

09/28/201

 

http://www.mining.com/canadian-gold-miner-petaquilla-rejects-inmets-112-million-bid-74940/

Canadian gold miner Petaquilla rejects Inmet’s $112 million bid

Cecilia Jamasmie | October 15, 2012

http://www.petaquilla.com/newsrelease.aspx?petaquilla=Petaquilla%20Announces%20Government%20of%20Panama%20Resolution%20Rejecting%20Inmets%20Petition

Petaquilla Announces Government of Panama Resolution Rejecting Inmet's Petition

 

9/26/12

I. M. O., I need at least $1.60 without Spain.  $2 with Spain.

Sky 

 

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#5) On October 17, 2012 at 10:55 AM, kbtoys99 (< 20) wrote:

I always wondered where gold and silver mines went to die. LOL

 I'll stick with EDX and SVM and the refiner SLW, all day long.

 

Lots of bad plays in this space.

 

Have to be very savvy

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#6) On October 17, 2012 at 1:47 PM, ubernut (23.90) wrote:

AuRico Gold Inc Sells Endeavour Silver Shares

http://www.reuters.com/finance/stocks/EDR.TO/key-developments/article/2624463

"AuRico Gold Inc announced that it has sold its approximate 11.1% equity interest in Endeavour Silver Corp. (Endeavour), consisting of approximately 11million Endeavour common shares, on an underwritten block trade basis, for gross proceeds of $95 million (approximately $97 million). The syndicate was jointly led by CIBC, BMO Capital Markets and Dundee Securities Ltd." 

they can sell if they want but I think I am going to hang on to my shares if not buy more.

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#7) On October 17, 2012 at 3:18 PM, XMFSinchiruna (28.52) wrote:

Kbtoys99,

SLW is not a refiner.  

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#8) On October 17, 2012 at 9:53 PM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/colossus-minerals-first-underground-drill-100100134.html

Colossus Minerals' First Underground Drill Holes Return Better Than Expected Widths and Grades While Surface Drilling Encounters More High Grade in Lower Limb

10/16/12

Sky 

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#9) On October 18, 2012 at 9:20 AM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/aurcana-reports-record-quarter-silver-120000167.html

Aurcana Reports: Record Quarter of Silver Production, Up 54% at La Negra Mine, Shafter Update and Appointment of Investor Communications Manage

Marketwire - Oct 18, 2012) - Aurcana Corporation ("Aurcana" or the "Company") (TSX VENTURE:AUN)(AUNFF) is pleased to report a 54% increase in silver production from the La Negra mine for Q3 2012 of 376,687 ounces compared to 244,243 ounces in Q3 2011, making it the largest quarter for silver production in Aurcana''s history.

Total silver Equivalent increased 67% to 718,063 oz. for Q3 2012, compared to 430,090 oz. in Q3 2011. Year to date silver was up 40% to 1,037,210 oz. in 2012 YTD, compared to 742,026 oz. in 2011 YTD.

Wow.

Sky

re.:

http://www.fool.com/investing/general/2012/09/14/ride-this-qe3-rocket-to-2000-gold-and-50-silver-.aspx?source=iaasitlnk0000003

Ride This QE3 Rocket to $2,000 Gold and $50 Silver

By Christopher Barker

9/14/12

For silver, Aurcana(NASDAQOTH:AUNFF.PK) could perform beautifully if the company delivers a smooth ramp-up at its new Shafter mine,..

Sinchi,

Thanks

Sky

Official Web Link Assistant to Sinchi 

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#10) On October 18, 2012 at 6:29 PM, skypilot2005 (< 20) wrote:

http://www.vancouversun.com/business/Takeover+target+posts+improved+results/7407966/story.html

Takeover target posts improved results

 

 

The Canadian Press October 18, 2012


Petaquilla Minerals Ltd., which is facing a hostile takeover bid by Inmet Mining Corp. said Wednesday that its Molejon gold mine in Panama has reported improved results and increased revenue.

The gold miner reported revenue of US$25.9 million for the quarter ended Aug. 31, up eight per cent from the prior quarter, while cash costs per ounce of gold equivalent fell 14 per cent to $524.

Adjusted earnings before interest, taxes, depreciation and amortization amounted to $12.7 million, up 182 per cent from the prior quarter. Peta-quilla said the mine produced 18,459 gold equivalent ounces for the quarter, up two per cent from the prior quarter.

The company attributed the improved results to its move to terminate hedging contracts that required it to deliver a specified amount of gold and silver ounces each month below then-prevailing spot prices.

Petaquilla said that by selling gold and silver at the prevailing spot rate, it expects to realize significant increases in price.

Inmet said Tuesday it was standing by its $112-million hostile takeover offer for Peta-quilla. Inmet has offered 48 cents per share in cash in a bid to consolidate the area around its Cobre Panama project.

Petaquilla has said the Inmet offer failed to provide adequate value to shareholders and had been unanimously rejected by the company's board.

Shares in Petaquilla were down a penny to 58 cents on the Toronto Stock Exchange on Wednesday, while Inmet shares were up three cents to $47.73.”

Fellow Fools help me.

Inmet wants to give me 2 years of current earnings for my shares & 14% income growth.

Let me ponder this…. Hmmmm……

OK. 

I think these Canadians @ Inmet  think we are unable to do math down here in the U. S. of A.  I say to Inmet, “Good luck with your Panama mine’s tailings. Ey.  Come on.”

Sky

Proud and competent at math U. S. citizen

I own a "chunk" of Petaquilla 

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#11) On October 19, 2012 at 1:57 PM, drdrab (< 20) wrote:

Here is a clip of Pataquilla CEO Joao Manuel discussing the Inmet offer.

Adds a bit if colour to the issue. He makes a pretty good case for holding out. I don't think this man is too impressed by the way Inmet was handling things. Doesn't sound like he is willing to be pushed around.

 http://watch.bnn.ca/tuesday/#clip787809

 

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#12) On October 21, 2012 at 10:47 AM, skypilot2005 (< 20) wrote:

Sinchi,

Did you see this?

PLGTF

 

PLG.TO

http://www.pilotgold.com/news/pilot-gold-announces-newmont-mining-subscribe-units

10-17-12

 

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has received a notice (the “Notice”) of intention from Newmont Mining Corporation (“Newmont”), to subscribe for units of the Company (“Units”) at a price of C$1.65 per Unit on a private placement basis (the “Placement”).  Pursuant to a participation right granted by the Company to Newmont in connection an arrangement agreement among Newmont, Fronteer Gold Inc. and the Company dated February 3, 2011, Newmont or an affiliate has the right (the “Participation Right”) to subscribe for and purchase Units on the same terms as the bought deal financing announced October 12, 2012 (the “Offering”), such that Newmont is able to maintain its current shareholding of 16.15% of the common shares of the Company after giving effect to the Offering.

Sky

Long on fellow "Pilot", PLGTF 

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#13) On October 30, 2012 at 7:58 PM, Horiemon (< 20) wrote:

Alexandria Minerals Corporation Announces $2,500,000 Financing

http://www.marketwire.com/press-release/alexandria-minerals-corporation-announces-2500000-financing-tsx-venture-azx-1719607.htm

Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) is pleased to announce that it has engaged Laurentian Bank Securities Inc. to act as lead agent (the "Agent") on a brokered private placement (the "Private Placement") consisting of an aggregate of up to $2,500,000 Flow-Through Units (the "Flow-Through Units") consisting of "Quebec Flow-Through Units" (the "QFT Unit") and "National Flow-Through Units" (the "NFT Unit") at a price of $0.125 per QFT Unit and $0.115 per NFT Unit.

Each QFT Unit and NFT Unit will consist of one "Flow-Through" common share of the Company and one half of one (1/2) non-transferable common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder to purchase one additional common share of the Company (a "Warrant Share") at a price of $0.18 for a period of 18 months from the completion of the Private Placement.

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#14) On October 30, 2012 at 10:54 PM, skypilot2005 (< 20) wrote:

Horiemon,

Nice "catch".  The release isn't even up on their website yet !  

.18 is well above my average cost.

Nice.

Sky 

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#15) On October 31, 2012 at 8:32 PM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/petaquilla-minerals-ltd-adds-significant-140829562.html

Petaquilla Minerals Ltd. Adds Significant Additional Resources of 502,800 Gold Equivalent Ounces at its Molejon Operation Complex-Palmilla Deposit

10/30/12

Sky 

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#16) On November 02, 2012 at 6:22 PM, skypilot2005 (< 20) wrote:

http://finance.yahoo.com/news/petaquilla-responds-inmet-claims-regarding-120000457.html

“In short, Petaquilla continues to believe that MPSA will not be able to locate the tailings facility for its Cobre Panama Project in the proposed locations without Petaquilla''s agreement.”

Petaquilla Responds to Inmet Claims Regarding Panamanian Land Rights

11/2/12

http://finance.yahoo.com/news/panamanian-government-affirms-petaquillas-rights-211853105.html

Panamanian Government Affirms Petaquilla's Rights to Land Sought by Inmet

10/22/12

Sky

Long and Strong PTQMF 

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#17) On November 02, 2012 at 10:30 PM, skypilot2005 (< 20) wrote:

I. M. O., some great ideas for companies to invest in:

http://seekingalpha.com/article/955921-sandstorm-gold-s-ceo-discusses-q3-2012-results-earnings-call-transcript

 

Sandstorm Gold's CEO Discusses Q3 2012 Results - Earnings Call Transcript

 

 

10/26/12

Sky 

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#18) On November 02, 2012 at 11:01 PM, skypilot2005 (< 20) wrote:

For example:

“And then secondly, in terms of Rambler, looking out 12 to 18 months, how likely do you guys think it is that Rambler looks to build a separate gold mill to bring forward gold production from the 1806 zone?”

“On to Rambler and really that project, I mean that’s kind of an ongoing question of debate for both of them that they’re thinking of, I mean the key Rambler right now is just to make sure that they can get after that operation element, the daily tonnage that they want to just on the copper zone. If they can manage that, and also get back into the 1806 zone, certainly I think that’s something that they’ll look into, I know they’ve done more intuitive and more kind of initial studies as to how the new grinding facility and crushing facility would look like, but it is something that I am sure that they’re looking at actively and we’ll announce anything like that if it made any progress on that.

Is it a possibility? Absolutely, certainly it is a possibility and it should be something that they are considering because both zones are going to be strongly economic for them.”

Sky 

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#19) On November 06, 2012 at 12:29 PM, Horiemon (< 20) wrote:

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2012) - Alexandria Minerals Corporation (TSX VENTURE:AZX)(FRANKFURT:A9D) is pleased to report on the results of its first metallurgical study from its Akasaba Gold project in Val d'Or, Quebec.

Highlights of the study, which was completed by SGS Canada Inc., at Vancouver, British Columbia, include:

Whole Ore Cyanide Leaching Tests recovered 95% of the gold from the underground sample and 91% of the gold from the open pit sample.Combined gravity and cyanide leach of gravity tailings also yielded encouraging results, recovering 92% of the gold from the underground sample and 90% from the open pit sample.The samples are acid neutralizing, and not expected to generate acid.

 http://www.marketwire.com/press-release/alexandrias-metallurgical-study-indicates-95-recovery-of-gold-at-akasaba-tsx-venture-azx-1722243.htm

 ------

IT sounds impressive, even if I don't understand a lot of the technicals in the article 

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#20) On November 12, 2012 at 12:56 PM, skypilot2005 (< 20) wrote:

Formerly named Yukon-Nevada Gold Corp.:

http://finance.yahoo.com/news/veris-gold-corp-reports-record-113000123.html

11/12/12

Veris Gold Corp. Reports Record Net Income of US $9.0 Million and Positive Cash Flow of US $3.8 Million for the Third Quarter 2012

Randy Reichert , Co-CEO and COO states, "The Q3 2012 results are a huge milestone for the Company since assuming the Jerritt Canyon operations.  The positive cash flow and decrease in cost per ounce demonstrates that the operation is now running at profitable levels and the period of rebuilding the operations is quickly coming to a close.  We look forward to successive quarters of increased production and decreasing cash costs."

Sky 

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#21) On November 15, 2012 at 8:39 AM, msubulldogs (< 20) wrote:

TMFSinchiruna ,

 Wow! I wasn't prepared for the negative results for IAG this quarter (See:   http://seekingalpha.com/article/1006941-iamgold-s-ceo-discusses-q3-2012-results-earnings-call-transcript?part=single)

You've been a big fan of IAG... I'd love to hear your perspective.

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#22) On November 30, 2012 at 9:02 PM, Horiemon (< 20) wrote:

Sinch's blog posts have really slowed down...

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