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XMFSinchiruna (27.17)

Why I Doubled Down on Brigus Gold

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June 17, 2011 – Comments (35)

I know I just posted another blog post a short time ago, but I am way too excited about this account of my visit to Brigus Gold's Black Fox Mine to wait any longer before sharing it with my Foolish community! :)

Why I doubled Down on Brigus Gold

http://www.fool.com/investing/general/2011/06/17/why-i-doubled-down-on-brigus-gold.aspx

There are a lot of unbelievable bargains out there in the gold patch right now, after the stocks have been hammered mercilessly for weeks (even as the gold price has firmly held its ground!). I am appropriately mindful, therefore, that many of you are likely joining me in pressing youir positions across multiple favorite holdings at this stage. Within that context, I want to encourage Fools to consider making room for Brigus Gold within their baskets of precious metal stocks, because everything about my recent experience in Ontario tells me that this particular company has all its ducks in a row to enjoy a sustained period of meaningful organic growth.

I've been tracking the Black Fox property for years now, including the prior frustration of missed expectations and other challenges associated with earlier chapters of the site's development under the pre-merger ownership of Apollo Gold. Since the merger in mid-2010, however, it's been a different story entirely, and I don't think the market has recognized the operational momentum that has already been generated through the company's multiple accomplishements since that time.

The phase 2 open pit is on the ore, the underground mine is on the ore with 2 mining faces with a fast-track to 12 available faces, the amazing exploration success elsewhere within the complex offers a simple path toward a steady-state production increase from the annual run-rate of 104,000 ounces per year that the company is fast-approaching, and I ran out of room in the article to even duscuss the fact that Brigus' sprawling mill property itself sits atop an historic underground gold mine that is also a high-priority exploration target with meaningful potential. As an added bonus, CEO Wade Dawe has proven his mettle as a gifted dealmaker in spades by the nature in which he built Linear Gold and transformed it into Brigus. The company's other assets and retained invesment interests must also not be overlooked, and combined these underscore the extreme low valuation presently alotted to Brigus shares. It's a deep value play, and a roaring growth play, and that in my mind is the rare combination that can separate the great stocks from the good ones.

I'd love to know what you think of the company, the mine, and my write-up, sp please be sure to share your thoughts after reading and reccing the article. Thank you as always for your readership, and I wish each of you persistent peace of mind in the knowledge that these battered-down precious metal stocks will soon be back on the market's radar.

Fool on!

35 Comments – Post Your Own

#1) On June 17, 2011 at 4:25 PM, speedybure (< 20) wrote:

Another piece of good news that hasn't been annouced is high likelihood of a larger mill. I've spoke with management it is still under evaluation. From what I gathered , should they build the mill, production at the open pit+U/G would increase anywhere from 25-40%. 

 My only concern is that they will be unable to fund the capital expenditures for Goldfields, continuing  aggressive exploration and mill upgrade and also be able to buy back 50% of the stream sold to Sandstorm Gold at $36.6m. Any thoughts on this? 

Another Good write-up Chris 

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#2) On June 17, 2011 at 4:33 PM, Jbay76 (< 20) wrote:

I mentioned this in the comments section of the original article, but want to repost here to get more answeres..so here goes..

"On a more important note, I see in their Q1 report that the total cash cost for an ounce of gold sold was $1,097.00, and that they sold their gold at an average price of $1356.00. While they state their cash costs were impacted temporarily due to construction costs for the under ground mine and processing lower grade ore, I am wondering if BRD mentioned what type of reduction in cash costs per gold ounce sold investors can anticipate and if they gave a time frame for that reduction? I assume as production ramps up, cash costs should go down.

I wonder, can one look at cash cost increases due to mine improvements like a depreciating asset?

My ability to ask these questions and understand their implications is largely due to you Sinch, many thanks!"

 

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#3) On June 17, 2011 at 4:43 PM, XMFSinchiruna (27.17) wrote:

speedybure

I think an expanded mill with production from the Contact Zone and 147 Zone in a little more than a year's time would provide sufficient cash flow to permit the company to consider a range of strategic avenies going forward. The Goldfields asset is a solid one, but it is relatively low-grade, so they may find thay have superior development opportunities or priorities emerging elsewhere as well ... which is always a great problem to have.

I have a feeling we'll see additional discoveries at Black Fox supporting a more localized growth strategy that could potentially see Goldfields deferred (my interpretation ... nothing they indicated to me), which I would consider a positive development. Maybe even a tie-up with St. Andrew Goldfields? Hmm...

I'm fairly agnostic on the matter of the Sandstorm royalty, since I am also a Sandstorm shareholder, but if they deem a 50% buy-back a suffucuent priority, there is no question in my opinion that they will have sufficient cash flow to make it happen.

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#4) On June 17, 2011 at 4:44 PM, XMFSinchiruna (27.17) wrote:

JBay, see article comments for a response to your question on costs. :)

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#5) On June 17, 2011 at 6:19 PM, skypilot2005 (< 20) wrote:

I made my initial purchase of Brigus on Oct 28 2010.  I increased my holdings five fold on May 17 of this year.  I am sure the purchases coincide with Sinich's musings.  I think I've read information regarding a reduction in their costs.  I'll check my notes this weekend and report back.

Speedybure:

Thanks, for your heads up on Sandstorm.  I started buying on May 20.  My average  cost is under $1.09 / share.  I have quite a "chunk" now.  

Do you know how many shares you need to have before they "comp." you a room at the annual meeting?

:)

Sky Pilot

Official Web Link Assistant to Sinch.

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#6) On June 17, 2011 at 8:23 PM, TMFRosetint (94.64) wrote:

Hey Sinch,

 This is an unrelated question, but I was wondering if you could explain to me why gold has increased so much since 2000? It has increased from ~$300 per ounce to $1,500 per ounce, but M2 has only about doubled according to the St. Louis Fed. 

Is there a supply/demand imbalance, or is it because it's more expensive to extract now due to high fuel prices? I know you obviously don't think it's unwarranted, but I wanted to get your thoughts on the matter.

 I'm not trying to "bash," I'm really just curious because I can't come up with dollar depreciation alone making up the difference. 

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#7) On June 18, 2011 at 8:12 AM, skypilot2005 (< 20) wrote:

On June 17, 2011 at 6:19 PM, skypilot2005 (< 20) wrote:

"I'll check my notes this weekend and report back."

Here's what I have as part of MY notes:

Production Hedge situation is now more favorable.

Cash Costs will decline as the underground mine ramps up production.

Take this for what it is worth = 0.  I am just trying to help add value to the discussion.

 

Sky Pilot

Official Web Link Assistant to Sinch

 

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#8) On June 18, 2011 at 3:57 PM, Gonzhouse (24.82) wrote:

Sinch,

Nothing like a first-hand visit and first-rate write up to get the juices going for Brigus. Fortunately I have some investable cash as I've taken a small portion of my Great Panther holdings and been playing the bounce:  buy at around $2.60 and sell at $3.25.

I won't do that with Brigus;  this is buy-and-hold. 

A big thanks to you and TSIF  for Sandstorm as well;  picked up Warrants and Stock.  The warrants convert in 2014 at a lock-in of USD 0.60; a slam-dunk currency play with a precious metals kicker.  Life is good!

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#9) On June 20, 2011 at 8:45 AM, Jbay76 (< 20) wrote:

Gonzhouse

How did you get the warrants?

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#10) On June 20, 2011 at 9:27 AM, XMFSinchiruna (27.17) wrote:

HallShadow

I appreciate the question, but please understand that it would require a lengthy tome to offer a comprehensive response. In a ridiculously shortened form, I will state that the it's a fallacy to expect a matching percentage increase in the gold price to the percentage increase in M2.I had an old blog post I was going to point you to, but the link is failing just now. I'll try to find it.

Focus more on the supply/demand fundamentals for gold, particularly the scant per capita ownership vs. the historical norm, and you will start to get a picture of what is supporting the price increases. There are countless other factors in play, most of which I've written about before, so I would also encourage you to spend some hours using the CAPS search tool with TMFSinchiruna inserted among your relevant search terms.

It's not too late to understand gold, and I wish you the best of luck in your research endeavours. 

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#11) On June 20, 2011 at 9:29 AM, Gonzhouse (24.82) wrote:

 Jbay76

Yes.  They expire April 2014 and convert to stock at a fixed price of USD 60 cents.  The stock is currently trading at about $1.22 so each warrant costs about 62 cents.

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#12) On June 20, 2011 at 9:34 AM, XMFSinchiruna (27.17) wrote:

Gonzhouse

I think Jbay may be looking for a ticker symbol.

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#13) On June 20, 2011 at 9:44 AM, Gonzhouse (24.82) wrote:

Sinch,

The latest from BRD  "Brigus Gold Corp. (“Brigus” or the “Company”) (NYSE Amex: BRD; TSX: BRD) is pleased to announce that exploration drilling on the southern portion of the Black Fox Complex continues to return excellent gold assays over significant widths within the new 147 gold zone (“147 Zone”), including 3.96 grams per tonne (“gpt”) over 50.00 metres (“m”) that included 6.82 gpt over 20.00 m. In addition, bonanza grade gold mineralization of 2078.73 gpt over 2.00 m that included 4165.15 gpt over 1.00 m, and 61.78 gpt over 4.0 m that included 243.43 over 1.0 m was intersected in the footwall side of the 147 Zone."

 4,165.15 gpt:  seriously?  Did they drill into a jewelry store?

JBay:  symbol for Sandstorm warrants is SNXXF. 

 

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#14) On June 20, 2011 at 10:13 AM, XMFSinchiruna (27.17) wrote:

Gonzhouse

Saw that this morning ... those are great hits! And 4,165g/t over 1m ... that's a serious nugget!

I wish you could all have been with me in the exploration lab where the drill cores from the 147  and Contact Zones were laid out. There was so much visible gold in those cores!

I'll ask their VP of exploration, Howard Bird, for a pohotograph of this latest core segment that produced the 4,165g/t ... I'm curious to see what that would look like.

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#15) On June 20, 2011 at 10:15 AM, XMFSinchiruna (27.17) wrote:

Again, this is what 136g/t looks like in a brecciated quartz:

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#16) On June 20, 2011 at 10:37 AM, TSIF (99.96) wrote:

TMFSinchiruna thank you again for sharing the info. Having someone truly onsite is very valuable.  The picture is impressive.  While core sample data may be more more meaningful analytically, the photo adds a visual to what the real goal is. 

Gonzhouse, I'm not sure how I helped, but thanks for the callout. I did do some deep diving on a few of Sinch's calls.  I flagged Sandstorm in the hopes of a lower entry as I was expecting a pullback, but Sandstorm didn't participate in the pullback, so I'm left out of the recent run. Great Panther did have a pullback that worked for me.Sometimes I win and sometimes I lose. Overall, I should probably do less market timing.  Good call. 

Overall on Sandstorm, they are currently fully deployed.  If any of their holdiings drops the ball and fails to execute then this could hurt them in the short run.  Overall management appears to have the risk/reward balanced.  Good luck. 

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#17) On June 20, 2011 at 10:51 AM, Jbay76 (< 20) wrote:

TMFSinchiruna

Thanks for reading between my lines.  I was not aware that warrants had ticker symbols. And that's A LOT of gold BRD is finding!!!

 Gonzhouse

Thanks for the ticker info.  Where does one look to find warrant information on a company? Since you mention the warrants expire in 2014, does that mean you have until then to buy them or you have to hold them that long before selling, if selling them is your intent?  Not saying it is, but only for the sake of this exercise.

Thanks

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#18) On June 20, 2011 at 11:27 AM, Gonzhouse (24.82) wrote:

 Jbay76

 The link below takes you to Sandstorms Investor's Center - Stock information page.  They show 2 classes of warrants:  one expiring in April 2014 at 60 cents and the other in October 2015 at 1.00.

Warrants can be sold just like stock (but the market is usually thinner).  I will buy warrants for the same reason I buy Call options:  a way to lock in a price on a stock that gives me time to get funds together for stock conversion when the warrant or option expires (sort of a stock lay-a-way). 

http://www.sandstormresources.com/s/StockInfo.asp

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#19) On June 20, 2011 at 11:41 AM, XMFSinchiruna (27.17) wrote:

Jbay76

Take your time. Before investing in warrants, I suggest spending at least a handful of days researching the topic and familiarizing yourself with how they work, etc. They can be a powerful tool, but they are not for anyone who may lack a complete and comprehensive understanding of them.

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#20) On June 20, 2011 at 1:53 PM, kdakota630 (29.86) wrote:

TMFSinchiruna

Hate to bug you, but was just wondering if you'd heard anything through the grapevine about Copper Fox's feasibility study.

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#21) On June 20, 2011 at 3:45 PM, Jbay76 (< 20) wrote:

Gonzhouse, Sinch

Thanks for the info.  I will take some time to learn the process in more detail.  What strikes me is that just yesterday I randomly decided to explore the world of options trading, selling covered calls etc.  No real reason I can tell other than a hunch/intuiton that now is the time to do so.  And then this comes up, an applicaiton I had never considered.  This has been a "aha" day in many ways!

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#22) On June 20, 2011 at 5:43 PM, silverminer (30.62) wrote:

kdakota630

no little birdies have whispered anything into my ear recently, but nor can I claim to have been keeping close track since I've had so many new companies come onto my radar recently. 

The stock has held up extremely well during this selloff, though. I remain resolutely long, of course.

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#23) On June 20, 2011 at 9:31 PM, skypilot2005 (< 20) wrote:

On June 20, 2011 at 10:37 AM, TSIF (99.92) wrote

“Overall management appears to have the risk/reward balanced. “

http://www.sandstormgold.com/s/Management.asp

I’ll just say that management is solid.  Read the first sentence in each bio.  What experience could they have in common?  Let’s see……

I can’t answer because I have a legally binding - ironclad no compete - clause in my contract as Sinch’s Web Link Assistant.

Sky Pilot

Disclosure:  I own a good “chunk” of Sandstorm.

Nolan Watson
Position: President, CEO and Director

Mr. Watson is the former Chief Financial Officer of Silver Wheaton Corp., a mining company listed on the Toronto Stock Exchange and the New York Stock Exchange. In that role, Mr. Watson helped raise over US$1 billion in debt and equity to fund Silver Wheaton's growth. Mr. Watson is a Chartered Accountant, holds the designation of Chartered Financial Analyst charter holder and received a Bachelor of Commerce degree, with honours, from the University of British Columbia. He has won numerous awards for his professional and charitable achievements including the Early Achievement Award by the Institute of Chartered Accountants of British Columbia and Canada's Top 40 Under 40 award. Mr. Watson is also President, CEO and Director of Sandstorm Metals & Energy Ltd. and the Chairman of the Audit Committee of the Board of Bear Creek Mining Corp.

David Awram

Position: Executive Vice President and Director Until July 2008, Mr. Awram was the Director of Investor Relations for Silver Wheaton Corp., a mining company based in Vancouver and listed on the Toronto Stock Exchange and the New York Stock Exchange. Prior to his role with Silver Wheaton he was Manager, Investor Relations with Diamond Fields International Ltd. Mr. Awram graduated in 1996 from the University of British Columbia with a Bachelor of Science degree in Geology. Mr. Awram is also the Executive Vice President and a Director with Sandstorm Metals & Energy Ltd.

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#24) On June 21, 2011 at 9:07 AM, Jbay76 (< 20) wrote:

skypilot2005

You're a lucky guy.  With bio's like what one would find by clicking on the link you provided, there is nothing more to say about SNDXF and you don't have to worry about your legal issues :D.  They definitely appear as a company designed to succeed.  Even their B.O.D. is spot on....

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#25) On June 21, 2011 at 10:12 AM, kdakota630 (29.86) wrote:

silverminer

I've had so many new companies come onto my radar recently.

Good ones?  Or are you still making those decisions?

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#26) On June 21, 2011 at 10:32 AM, XMFSinchiruna (27.17) wrote:

kdakota630

Great ones, many of which came to my attention thanks to e-mails received by members of this community in response to the call for target companies for the microcaps series.

I was doing such a good job raising cash a month ago to protect from any potential panic selloff scenario, but the values out there became too deep for a Sinch to ignore, so essentially I am back to all-in mode. Without seeking to make any calls about a bottom, recent action has the feel of a near-term exhaustion of downward momentum, and so the next step for me is to gradually rebuild a reasonable cash position yet again on the upswing while permitting several of my recently acquired bargains to run for the long-term.

You know what was amazing to see? The resilience of AUQ (formerly GRS) throughout the recent sector weakness! Looks like I chose a top pick for 2011 that was both strong out of the gate, and resilient in the face of adversity. I am pleased with the selection thus far.

 

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#27) On June 21, 2011 at 1:46 PM, Gonzhouse (24.82) wrote:

Not only AUQ but Great Panther and Copper Fox.  Panther and Fox (interesting theme:  investment based on predator status) haven't held up as well but really look like long term winners as silver prices inexorably go up.  I've also enjoyed and invested in a number of microcaps mentioned here:  risk/reward profile definitely higher so don't go crazy.  But some will make the jump from microcaps to mid-caps or more.

The Sandstorm guys are in a career rut, not question.  But I don't think they need help or advice (I wish I had that kind of rut going).

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#28) On June 21, 2011 at 9:12 PM, skypilot2005 (< 20) wrote:

On June 21, 2011 at 9:07 AM, Jbay76 (48.15) wrote:

skypilot2005

You're a lucky guy.  With bio's like what one would find by clicking on the link you provided, there is nothing more to say about SNDXF and you don't have to worry about your legal issues :D.  They definitely appear as a company designed to succeed.  Even their B.O.D. is spot on...."

 Here's some additional information relative to Sandstorm you may find interesting:

I think this quote is from hyperinflation but, I am not 100% sure.  I've thrown up some relevant links below it:

"Sandstorm recently announced the proposed spinoff Sandstorm Base Metals and Energy whose business model will mirror that of its brother company but focus on base metals, oil & gas. Each shareholder of Sandstorm resources will receive 1 for 1 of the new company. Though it will dilute the brother company by 1/36th ( in order to give some financing to Sandstorm base metals & energy), the new company already has 500k of working capital in addition to an option on the Eagle Lake Uranium project. This will give investors two royalty companies which focus on a range of commodities."

 Note:  The above, has already occured.

http://www.sandstormmetalsandenergy.com/s/NewsReleases.asp?ReportID=408872&_Type=News-Releases&_Title=Sandstorm-Resources-announces-proposed-spin-out-of-Sandstorm-Energy-Base-Me...

 

http://www.sandstormmetalsandenergy.com/s/Home.asp

 

http://www.sandstormmetalsandenergy.com/i/PDF/2011-Q1.pdf

 

http://www.sandstormmetalsandenergy.com/s/NovaDX.asp

 

http://www.sandstormmetalsandenergy.com/s/RoyalCoal.asp

 

http://www.sandstormmetalsandenergy.com/s/TerrexEnergy.asp

 

http://www.sandstormmetalsandenergy.com/s/ReservesResources.asp

FYI:

Sandstorm Metals & Energy ticker is: STTYF.PK Yahoo (The Spinoff)

Standstorm Gold is   SNDXF.PK  Yahoo

I think with my brokers, I didn't have to use the PK

#4 has decided to go back to work ( for 5 minutes, anyway. :)) so, that will increase my cash flow by a couple K, per month.  I am going to start piling some of the Metals and Energy up, too.   It closed at .49, today.

Sky Pilot

Official Web Link Assistant to Sinch

 

 

 

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#29) On June 24, 2011 at 3:01 PM, Ruhaan (96.97) wrote:

okay this is probably going to be a dumb question. However, thought I would ask and may be people like me who do not know much in this space would find it helpful. Between RBY and BRD, which one would you consider a better buy at this point. I know you own both. However given a scenario when you can keep one or the other which one would you rather keep and why?

If anyone else besides Sinchy would like to join, you are more than welcome. Just make sure you support your reason.

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#30) On June 24, 2011 at 10:04 PM, TSIF (99.96) wrote:

Certainly not a dumb quesiton, and this may be the right forum to ask it.  Unfortunately many questions go unanswered because they are not seen by the right person(s).  Sinch attracts a "crowd" of informed "Fools".

It's difficult to make investing advice as everyones situation, (timeframe, risk/reward, etc) are all different.

I own both, but Sinch and the others on this thread have more data and probably stronger opinions.  I'm certain they have stronger positions.  If any words of caution are used they appear to cut cut up. 

Ruby has been somewhat disappointing after releasing their core samples the end of November.  The method(s) for measuring, infeering minerals can vary by the souce. Ruby's method was questioned by some standards and the 35% share price decayed away rapidly.  In most cases sample reports cause spikes and drops. Some people trade them. If you are long you ride through them and buy on the dips if you can.  Currently Ruby is sampling the area with the other method, (real extraction from a large sample).  The results from that should be out any day now.  If they confirm the core sample Ruby should get a 20% or more jump.  If they don't then there could be lingering weight on the shares.  

Another consideration in a miner is their likelihood of getting their permiting and what the infrastructure, (power, access, process capability) is.  Ruby should also be getting final permitting soon. Power is being expanded in their mine area, but is still not direct and generators may be required.

Overall, Ruby is advanced for a JR miner, has sufficient funds to go to market, has not diluted shareholders too much, etc. 

Another consideration with smaller miners is the potential they could be bought out.  Ruby has some potential, but I am not aware of any direct fits/overatures.

So Ruby is stable, has excellent prospects and has a few catalysts very soon on the horizon as it finalizes samples and starts production. 

BRD is already producing, has the means to expand, has funding and according to the experts in this thread is also being overlooked, so decent upside.  They will need to pay off their debt with the early take and they need to get their cost down.  It also appears they have some dependencies on others for the processing that could be a bottleneck.  Overall, however, could be a sleeper.

Of the two, I personally prefer Ruby in the short run, if I could only chose one, but I would recommend taking a half position in each if funds are limited. 

I'm sure you'll get different answers on which others would choose, but it appears this thread should get you somethings to consider and I look forward to reading the other replies.

I think a basket is best, and giving advice doesn't come natural to some people. I've often said that at least in the short run, I should pay someone to run a mirror account shorting my preferred calls!!!  ;)

Good luck,

TSIF

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#31) On June 24, 2011 at 10:43 PM, TSIF (99.96) wrote:

" and the 35% share price decayed away rapidly"

And the 35%  share price gain from the initial report of the samples in November decayed by March.  Another report in March also generated a 27% spike that decayed by April.

I'm hopeful the next report causes a nice spike followed by permitting that holds this time!  ;)

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#32) On June 25, 2011 at 8:11 AM, skypilot2005 (< 20) wrote:

On June 24, 2011 at 3:01 PM, Ruhaan (91.55) wrote:

"okay this is probably going to be a dumb question. However, thought I would ask and may be people like me who do not know much in this space would find it helpful. Between RBY and BRD, which one would you consider a better buy at this point. I know you own both. However given a scenario when you can keep one or the other which one would you rather keep and why?

If anyone else besides Sinchy would like to join, you are more than welcome. Just make sure you support your reason."

 This is NOT meant to diminish TSIF's opinion in anyway:

Between the two, I like BRD:

http://www.fool.com/investing/general/2011/06/17/why-i-doubled-down-on-brigus-gold.aspx?source=itxsitmot0000001&lidx=1

http://www.fool.com/investing/general/2011/05/26/mining-for-ideas-inside-sprotts-golden-portfolio.aspx?source=itxsitmot0000001&lidx=2

Here are some “links” for Rubicon:

 

 

http://www.fool.com/investing/general/2011/06/15/wall-streets-best-hidden-stocks.aspx?source=itxsitmot0000001&lidx=1

 

http://www.fool.com/investing/high-growth/2011/04/05/new-gold-buys-new-gold.aspx?source=itxsitmot0000001&lidx=5

 

http://www.fool.com/investing/general/2011/04/01/a-sober-reawakening-for-rubicon-minerals.aspx?source=itxsitmot0000001&lidx=6

 

I hope they help in your research.

Fool On

 Sky Pilot 

 

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#33) On June 25, 2011 at 10:02 AM, TSIF (99.96) wrote:

Thanks Sky Pilot, I absolutely love differing "opinions". It's one reason I'm here on CAPS.  The last link you provided from an article by Chris in April explains very well the issues Rubicon had on interpreting their samples. Much clearer than my babbling, I don't think I saw that one.

  That Rubicon will present the findings from the bulk samples soon and which direction things "might" go is a little newer.  It looks like they are holding out until their annual meeting this Wednesday, June 29th.   "Waiting" brings in all sorts of varying opinions. I've been trying to determine whether to "buy into it" or hold.

The area is certainly fertile since gold prices stabilized at current levels long enough to attract funding. 

Good luck!

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#34) On June 26, 2011 at 10:38 PM, Ruhaan (96.97) wrote:

Thanks TSIF and SkyPilot -

Personally, I have invested some of my gains from SLW (thanks Sinchy), into RBY. To me even though RBY is not producing its mcap is close to a billion when compared to BRD. I guess production is not the only variable. Since the value of the miner is what and how much they hold in the ground and how profitably they can extract it. My question from apples to apples comparison point of view is this:

who among RBY and BRD seems to be holding more reserves based on there extraction capacity. That eludes me. Theres just too much technical jargon that is hard for me to decipher.

From the Risk perspective, I see more risk in RBY since its not producing any and its valued so richly. If it disappoints in its report, it can be catastrophic for the stock. On the other hand, if its F2 gold system does contain what it claims and more, I believe Gold Corp will be lining up for RBY's assets before it can achieve production status. That will be a way for GG to snap up a definite cash producing stream with no risk at very good price.

Just my 2 cents.

Ruhaan

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#35) On June 30, 2011 at 8:32 AM, Jbay76 (< 20) wrote:

RBY is under the gun right now.  Even though they had a positive preliminary economic analysis, the market shot them down another 20%.  Here I give a brief review of that report plus the link, not to toot my own horn.

I own RBY but intend to get BRD before doubling down on RBY.

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