There is a reason why IAG is cheap. I have learned from a long time of investing that cheap stocks tend to stay cheap.
1) NGD - MGMT (Olliphant) is the very best. Mines are expanding, they will be a 800oz producer next year. Mine life is the best in the industry and AISC is among the lowest.
2) AUY - Too much debt but they have huge leverage and will do okay. Management is just okay (Maronne). They do produce around 1.3M (going forward) ounces and their growth prospects look fairly solid. They will survive their current balance sheet problems and paying down debt wont' be an issue when gold rises.
3) IAG - Tod Hoffman runs the show. Their mine life is decreasing. They have very high AISC. They continue to show bad decisions. I don't think you are going to see much in the way of real discoveries or growth due to their high AISC. They are a bit hamstrung at this point. They should do well with gold over $1300 but they have soooo many issues. 3/4 of their 800k ounce production comes from 2 mines.. Those 2 mines have mines lives of only 6-7 years and 8 years respectively. So they are going to have to replace 600k ounces in a fairly short amount of time. Westwood will help this but they have to prove that they can get their act together for future "seismic" events. Read cave in.... So when Westwood gets up to full speed you will have Rosebel and then, right after, Essakane...
I bought some DUST (which I hate) and some Seabridge Puts. I can't understand the story behind seabridge and I am not sure why it is so darn high. therefore I bought a bunch of puts. THey are really helping out today....
So here is the correction that everyone has been waiting for. I like starting to get back in heavier at a 30% drop from the top. Looks like this could be just the begining of the long sought after correction. My own musings are that the baby bull ran for about 2 mos longer than most thought it would. I think that this correction could take a full month and a half. Its funny though, you see all of the new bears coming out of the woodwork. Many calling for new lows.... The direction is their friend. Clive Maund is probably giddy today.....
that is exactly why it is time to move to another miner. He is does strange and dumb things. He will lose all of the money from the Niobec sale.
The guy is a horrible CEO and things will not change. This company will lag others when gold resumes (presumably) its uptrend.
Why do you say test new lows? Are you looking at Citi's report? This market ran like crazy and a good healthy pullback is what was needed. Well here it comes. Who will buy?
Everyone is still calling for a major drop in gold. It just isn't happening yet. Will see if they raise rates and if that does anything. It should drive the dollar higher but that will put pressure on exports that will drive the dollar lower??? In any case the long drop in gold appears to be over. There is at least one prognosticator calling for a new low by the end of the year. Talk about letting your model rule your senses....
Iamgold Corp. Iamgold reported yet another off quarter despite producing about 191,000 ounces from four mines at AISC of $1,084 per ounce. Main assets Essakane and Rosebel’s costs were lower however free cash flow was negative as Iamgold loses money on just about every ounce it produces. Although Essakane in Burkina Faso performed well, producing 88,000 ounce at AISC of $1,116 per ounce, lower grades in the quarter and a need for waste stripping hurt costs. At Westwood in northern Quebec, rehab work is continuing but there’s still a need to spend about $50 million in development work with production not expected until 2019 at the earliest. Iamgold has a declining production profile, mediocre pipeline and thus cash preservation as well as harvesting existing mines remain priorities. We do not see much here. Sell
its dilution just the same. Its just treated different from a tax standpoint.
After you stop pooping out the crayons you have eaten.. You can also sell options. So you can be one of the slimy wall st club. Really!, its called "sell to open".. Try it. we know you can do it!!! Thats a good boy, your a real good boy.....
Yeah!!!, Zolly's back!!!
Im starting to forget what that other moniker you go by ... Dolf.. somehting? Anyways, welcome back. We missed your cut and paste. Its extremely enlightening. Now be sure now to eat the crayons!
I did semester at sea with my wife and kids (wife is a professor) and while in Capetown we were told not to walk the very short distance to the pier/mall. Of course a lot of the, "i know better", students did and over 88 people got mugged.
SA does have a huge crime/corruption problem. Way worse than when it was in 97 (last time I was there). There are a lot of mines having issues. I really like to stay in the Americas and specifically North America for my miners. There is just a huge amount of risk with African countries. Less so with South America but even so....
Exactly. They definitely have a mine-life issue at hand but some of the assay results are looking good. Not sure if Claude Resources will add to that but Claude has a large exploration potential that looks promising.
I do hold some AG and yes, its run has been crazy. Due mainly to small float I think.
No but you can sell puts if you like the stock and you basically are buying the stock if it goes below the strike you sold at.
Not covered calls, that would imply you owned the stock and it could get called away. This is called a spread. You are buying and selling the same amount of options for the underlying stock. You buy the lower strike price (3) and sell the upper strike(5) for however many you want to do. I do this to reduce my price. In effect, you are debiting your account for the buy and crediting your account for the sell. If the stock goes above the higher strike price you have maxed out on how much you make. So for the above example it cost you 70 cents to enter into the $3 call (buy to open) and the $5 call (sell to open). So at the end of the time period, anything over $3.70 you make money. Anything less and you lose up to a total of 70 cents per contract. So, at this price you are basically betting it will be higher than $3.70. Once it gets above $5, the call you own ($3) and the call you sold ($5) negate each other. That is when the one goes higher so does the other so it is a wash after $5. Actually its a screaming good deal.......IMO (but I think gold will be higher by January)
Better yet, buy the 3's, sell the 5's and you get a FREE option. It would cost you 70 cents and the stock is trading at $3.68. Okay, not free, it cost 2 cents and you risk a total of .70 cents for a potential $1.30 gain..... Well ? Any takers?
You can always but the 3's and do a simultaneous sell of the 6 to bring your cash cost down but it also limits your upside.... Consider it a forcing function. Forces you to take profits when you should.
I still like others more than IAG. That's not to say that IAG can't get their act together but history isn't a good indicator. I still think that SSRI is vastly undervalued compared to all peers. CDE looks good also but the recent shelf offering will weigh on it for a while. The thing with the dual gold/silver miners is that for every $1 in silver rise you get a huge bump in value. SSRI does 10M ounces of silver a year and 200k ounces of gold. For every buck you get 10M to the top/bottom line.
The reason that these haven't gone down a lot is that they are all at, still, ridiculous valuations. IAG at 1.5B, SSRI at 750M, etc, etc.
Thank god I'm not the only one... I like the management team. Hope they can pull it off. They seem to have some good gold bearing reefs.