I'd be looking at CGR if I was a miner who couldn't get growth. Costs dropped to $855 (US) per ounce in the 2nd Q and management thinks it will drop further. In addition, yields ticked up do to the new ground they are mining and will continue to do so based on 2013 drill results. They didn't boost their 2013 production forecast but 2014 looks to be a breakout year, I think 60,000-65,000 ounces is very doable. Based on 2013 50,000 ounce production at current gold prices CGR is selling at .5 X 2013 revenues and has stopped burning cash.
IMO, 2014 will be the year the miners come back in vogue. You can only trash an asset class for so long before serious, to good to pass up value is created. I think we are at that point with so of these produces.
If JPM is going long precious metals then the upside from here is very, very compelling.
It is not correct to say that CGR “has stopped burning cash”. You can just check Cash Flow Statement. During first half of 2013 cash position got decreased by $6.2M, while issuance/retirement of debt was $17.7M (i.e. company raised this amount of cash by taking loans). It indicates actual burning rate of $23.9M in H1 2013.
Lookin posted : How many here believe
Claude will either sell one of its assets; announce a joint venture or be acquired before the end of 2013?
They will just limp along, diluting to raise cash IMO, doubt anyone wants to acquire Claude, but who knows...
Something of the nature you suggest.....there's too many possibilities and the stock price remains too low as is the metal price itself.
As to the metal price.....this one could really turn the tide. I believe the price of gold this quarter is already averaging well above what miners were anticipating....as well as analysts.
Yet, there is still significant fear present in the gold trade, IMO.....the fear of Fed tapering has had the upper hand (imminent tapering got a setback today) IMO.....but there are multiple opposing fears that work in favor of the gold price that have taken a backseat to the tapering concern,.....permitting the gold price to be taken down and constrained without proper rationale, IMO. The fear factor imbalance working against gold is why one buys now, not sells. I'm saying I think the price of gold remains considerably undervalued given the challenges and uncertainties that make the tangible asset of greater value.
If gold rises, Claude's assets grow in attractiveness, a joint venture could bring capital to restore a higher level of investment, and a depressed stock price presents opportunity to an interested buyer of CGR. So, I'll have to go with maybe even 2 out of 3 of your speculative options.