Sandstorm/Brigus GoldTravis:
Brigus repurchased a portion of the Sandstorm steam a few months back. I was disappointed that the Sandstorm steam was being reduced. I looked into the financials for Brigus to see how and why they repurchased the stream. It seems to me that Brigus has a pretty compelling story now with one producing mine, a second in development and possibly a third in the future. Although much more risky than Sandstorm, it looks to have a lot more upside potential. Just wanted to get your thoughts?
Frank
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One of the reasons that I love the streamers and financiers in the natural resources world is that I really like having experts evaluate mines instead of doing it myself — I just have little to no expertise in that area.
That said, Brigus is one that tempts me from time to time — they are in a bit of a sweet spot in terms of being small, profitable, and potentially able to grow their mine nicely in a mining-friendly jurisdiction. They get a lot of coverage from bloggers at Seeking Alpha and other folks, like a couple of the Motley Fool writers, so there are lots of opinions out there from folks who are probably better informed than I am.
Brigus looks good, but I think that Kingsrose is a much better buy right now. They have been beaten down by an accident at their mine causing a very sharp drop in valuation. I think they will come back in strength in Q2 when they return to full production again. The reason their production costs are low is the high silver byproduct. If silver shoots up their gold cost will turn negative!
I agree Brigus looks compelling if you look at the story and the resource. Management is not the best over promising and under delivering. That said it’s pretty cheap.
Brigus was actually the very first mine I visited many years ago before the name change and new management that turned things around. I am currently working on a “Bakers Dozen Precious Metals Picks for 2013” but am not sure whether Brigus will make the cut, but it will be close. Management seems reasonably competent and with expansion of resources looking very promising I think Brigus has a bright future. With the continued instability of the market it should be possible to still pick up shares under a dollar on down days.
Came across Reed Resources the other day, they just went in production with their Meekathara gold project, seems cheep. Tell me what you think.
How does on access the ASX from Canada? (Using self directed accounts).
Thanks