+ Watch XRA
on My Watchlist
The price of gold continues to rise and newer mining practices makes XRA mines more viable.
One of the worst stocks I have ever seen.
Exeter Resources sold an incredibly promising Argentinian mine to fully fund its Chilean project. It now has sufficient water to mine it. The project should start producing in the fourth quarter of this year.
Exeter Resources has a huge late stage project in Chile. Undeveloped giant gold deposits are rare and Exeter Resources has one: 25 million oz (although low grade at .5 gpt). And it is in the right location, next to a large producing mine that has infrastructure. Plus, it is a low cost surface mine that includes 6 billion pounds of copper and 43 million oz of silver (1 gpt), which will reduce costs. I really like this project, although it has one big risk: a merger. Because the deposit is so big, once they get closer to production a major will likely buy them out. However, this is a two phase project and there is a possibility they could build phase I by themselves. Phase I is a $335 million capex open pit heap leach project with a 5 year mine life at 200,000 oz per year. Phase I could begin production in 2014, but probably 2015.Phase II is a huge $5 billion capex project with a 19 year mine life at 700,000 oz per year. Again this will be a low cost mine because of offsets of silver and copper. Can Exeter get $5 billion in financing? Probably not, and the reason why the stock is so cheap. They will likely need a larger company as either a partner or as a merger. My guess is that Exeter shareholders will not get a good deal. The current fully diluted market cap is only $125 million and future reserves are valued at $6 per oz. My projection is that Exeter could have a $3-5 billion market cap if they build and operate the project, and only $200-$300 million if they merge with a major. It's too bad they likely are not going to build the mine, because it could be a 20-30 bagger. My guess is that a major or large mid tier is going to buy the gold in the ground for very cheap (around $15).
Wow. All the CAPS fellows have had their asses handed to them by these dudes. XRA doesn't seem too eager to put in the cap-ex to shift that gold out of the ground. But, they've got the money to wait for a few years and they must be looking for the math to get sexy enough for one of the streamers (SAND, SLW) to front them the build money at a favorable per ounce price. So, I'll thumb it up. But, in actual fact, I'll wait for it to drop more before throwing in skin.
This stock has not enjoyed the recent boost in its price so I think there is definitely room to run in weeks to come. Gold, copper and silver -- is there anything more HOT in these QE times?!
Rich resources make this a prime takeover candidate.
They have 8.7 billion ounces of gold sitting in a mine that they fully own. You do the math.
Bullish on precious metals
excellent mining region for gold..argentina and chile
Exeter is developing its Caspiche gold-copper porphyry project (100%) in northern Chile and the Cerro Moro high-grade gold-silver project (95%) in southern Argentina. Caspiche is one of the largest gold-copper-silver assets discovered in the last decade, and its significance should draw the attention of numerous interested parties."
Great properties in Argentina and Chile
Large resource base of gold, silver and copper on various projects in Chile and Argentina.
Not covered by any newsletters that I am aware of. Found this one at the 2006 Money Show Orlando, FL presentation. Impressed with their results and management team.
holding my breath on book value.
In summary, Exeter has a number of highly promising projects and significant news stream in the coming months:Caspiche Project – has a potential to become a low grade world class gold-copper deposit in a mining friendly Chile. Current target - 10Moz gold. Cerro Moro – this project is located in a mining friendly area of Argentina. Many high to bonanza grade vein systems have been identified. The project has a potential to become an ultra-low cost mine with a current target for 2-4Moz of gold. Don Sixto – most advanced project that is plagued by an erratic provincial government regulation. The Company places high hopes that 2008 will see positive legislative changes, allowing Don Sixto to proceed to final feasibility. The project has a resource of 1.25Moz gold and a potential for 100,000 oz gold production per year. Several more South American properties in joint ventures with Rio Tinto and AngloGold with drilling scheduled to begin in a few months.
I need a great stock with a lot of up side potential. This stock to me is cheap and under valued. So with a little thought it I thought it would be good on my stock pick list. Check it out and see what you think about it.
ON the WAY UP !
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