If I may chime in here with some rudimentary calculations....
According to their last presentation; phase 1 @ AISC of 781/oz @ 190,000oz production & 197 million shares outstanding gives us 0.404/ share x 15 (multiple) = $6.06/ sh.
Phase 2 @ AISC of 798/oz @ 410,000oz production gives us 0.837/sh x 15 = $12.54/ sh.
I'm excluding any outstanding warrants and additional capex with phase 2; but its still a considerable multiple to where we are now. Oh, and those number assume a $1200 POG.
I've unloaded the rest of my "trading" shares I bought back at 1.15. I'm still holding on to my initial core position. Took some more GG off the table, as well.
Good resistance at 1200 for the POG. If it could close above that and consolidate; this may be the start of a new bull run. But still couldn't resist on locking in some more profits.
I took a nibble at 1.59. Lawsuits are coming out of the woodwork keeping downward pressure, but I figure the market had almost 2 days to absorb this news. After 3pm will get interesting which is why I kept some powder dry.
Worst performing miner due to some Mexican tax notice. Currently have no position, but seems like a solid Co that was unjustly sold off. Anyone have any thoughts?? Thinking of starting a pos, tomorrow (Just for a trade). TIA.
I sold 20% of my IAG & GG holdings today. I did get burnt on some biotechs which I liquidated yesterday.
Win some, lose some.
Jobs report will probably show an increase of 500,000 part time jobs will probably send GLD in a tailspin. LOL.
Yep, same here. My 1.15 limit order finally triggered. Should be good for a short term trade. Will add more in the sub dollar range, if it gets there. IAG, along with the rest of the miners I hold, are not going away any time soon. I will sell into any bear market rallies while keeping my core positions.
Thanks for that fine, sophomoric analysis, Mr. Meatball. But you forgot to mention what happens if POG were to fall to $900. Can you guess which Co sells off more precipitously?
And Stockmaven has a point. Perhaps if Letwin made an "average" amount of mishaps, IAGs production costs may not be as high. But I still believe the fall in the POG had a much bigger impact on IAGs S/P than Letwin's mishaps.
If you go on any "active" PM message board, they all blame management for their S/P decadence.
They don't realize that a 4 year bear market in commodities could have that "affect".
IAG is a high cost producer which is probably why its valuation is more subdued.
UBS has warned that the seven-year cycle in equities is rolling over, we could see a sharp 30% correction in stocks and that as per the headline of their ‘Technical Outlook 2016′, it is time to “buy gold”.
In their just released research note entitled ‘The 7-Year Cycle in Equities Is Rolling Over … Buy Gold!’, analysts Michael Riesner and Marc Müller believe the bear market that has dominated the price of gold since 2011 is nearing a bottom, with the “basis for the next multi-year bull market” now taking hold:
“Gold we expect to move into a major 8-year cycle bottom in 2016, as the basis for a new multi-year bull market.”
“Gold has been trading in a cyclical bear market since 2011. In 2016, we expect gold and gold mines moving into an 8-year cycle bottom as the basis for the next multi-year bull market. Initially, we see gold profiting as a safe haven and as of 2017, gold could profit from the US dollar moving in a major top and starting a bear market.”
Some feel this may be the final year of the gold bear. I bought more GG around 10.43 from a limit order that I've had for a while. I never thought it would trigger. I did unload 25 percent of those shares above 15. I still have my 1.15 limit on IAG for a short term trade.
I nibbled on some NSU yesterday, which is more of a copper play, mostly due to their balance sheet & divvy.
If IAG touches their 52wk low, I will add more to my meager holdings.
Finally a "gamble" that paid off @ least in the short term.....
But ya know what they say; "even a blind squirrel finds a nut every now and then".
Well someone got a bargain, especially when we're in our final stages (fingers crossed, this time).
I will look to buy more this week if the price remains this depressed.
I agree. Get the hell out, pronto. If VZ is so broke, let them mine Brisas themselves.
First, give us our settlement. THEN, negotiate the transfer of our mining date, for lets say, an additional $200 million. If they want to retain GRZ just as a consult, then charge them another $200/hr with all monies paid up front.
Sorry for this ignorant question......but would they be able to "re-hedge" oil, since its now below $40bbl? Let's say hedge only around 50%, JIC it does drop to the 20 handle.