Musings on Investing

Excellent Gold Stock Opportunities

First Mining, etc.

Toronto venture index is back to where it was at the beginning of this year. The performance of junior gold mining companies has been similar. At best, they have stagnated. This happened despite that gold price has done extremely well. While most of the junior mining companies will always lose money for investors, companies with good projects and good managements have also fallen. This predicament is where the sweet-spot for investors is.

Here is Bill Powers and I talking about the status of the junior mining sector and why I think huge opportunities await those who are prepared to invest when others are too scared to, particularly if they can avoid trying to speculate in commodities:

On Investments…

Here is a list of companies that we see as offering a good upside:

  • O3 Mining (OIII; C$2.40).
  • Core Gold (CGLD; C$0.22): It has a hostile takeover offer, which is at a premium of 90% over the current share price. The company is negotiating with several other parties. We see very limited downside risk.
  • Commander Resources (CMD; C$0.07): In our view, the value of its royalty ownership and cash in hand is C$0.10, offering a 40% upside.
  • Defiance Silver (DEF; C$0.20): They have two interesting projects. Just be aware that their last financing is coming free-trading in December.
  • Anaconda Mines (ANX; C$0.205): Their recent news on production from the last quarter, in our view, is very positive. The market ignored it.
  • Eastmain Resources (ER; C$0.105): They are currently raising money. Those crazy (and greedy) for warrants are selling their shares in the hope of participating in the financing. Before the warrants that are being offered come in the money, I will have made >50% profit. (Avoid greed and avoid speculating in commodities. These do not work).
  • Golden Arrow (GRG: C$0.125): The cash value per share is more than C$0.20. They have cash and shares worth C$28 million. I would have liked it if the company had sent a part of this money back to the shareholders. If I had C$28 million in cash with me, you should be assured that I would make a lot of malinvestments. My fear is of this cash getting frittered away.
  • Miramont Resources (MONT; C$0.095): MONT has about C$0.07 in cash per share.
  • Amarillo Gold (AGC; C$0.20): Their last financing has recently come free-trading, so you should expect a weakness. While the market has mostly ignored the company, AGC is expecting to have a feasibility report on its Mara Rosa project ready by January 2020.
  • Condor Resources (CN; C$0.045): They have some good projects.
  • Maritime Resources (MAE; C$0.08): In our view, MAE is very cheap and will eventually get acquired by Anaconda Mines.
  • Strongbow Exploration (SBW; C$0.045): It pays to remember that their last financing was done at C$0.14.
  • Treasury Metals (TML; C$0.27): One day, a deal will likely happen with First Mining Gold.
  • First Mining Gold (FF; C$0.22): The PEA on Springpole project was recently completed, and looks reasonably good to us.

Warm regards,

Jayant Bhandari

Associate: Rajni Bala

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