Junior mining question
by Anonymous Questions | August 2, 2013 6:51 pm
How can a gold[1] miner with 5 million ounces of gold in the ground, a PEA coming out in September, roads in, railroad in, airport in, friendly pro mining country and much more, HOW can this stock be selling for .05 share?
I see mining operations that are reporting 1 million ounces like it is the most ever, selling for 15 to 20 times what CGJCF is selling for.
Large outfits are seeking these type of heavy gold operators looking to buy to increase their reserves. And it is selling for .05????
Endnotes:
- gold: https://www.stockgumshoe.com/tag/gold/
Source URL: https://www.stockgumshoe.com/2013/08/microblog-junior-mining-question/
1. Maybe it has a zillion shares outstanding
2. Maybe it is in an unstable country
3. Maybe it is a very low grade holding (see Int’l Tower Hill)
4. Maybe its mgt has no respect
5. Maybe it does no PR where others do
6. Maybe its IRR is lousy (see Int’l Tower Hill)
7. Maybe it requires a huge CAPX to mine
8. Maybe, maybe, maybe
Mr. Karpoff
Have you had any experience with a Jeb Handringer? He seems like a legit blogger, but he constantly pushes Int’l Tower on his site. Seems to be a very low grade mine. Is he a shill?
Never heard of him, but I know THM. Its new PEA shows a 1% IRR due to low quality ore and cost to mine. I can’t imagine how anyone could recommend it.
I have met and talked to Jeb Handwerger and regularly read his material. In general my impression is that he is a good analyst and employs far less HYPE than many I could name. This is a typical situation where CURRENT market conditions distort prior perceived realities just as Barrick,s ballooning cost on Pascua Lama and Kinross overpayment for Red Back Mining only became apparent “after the fact” catching some investors by surprise.
I made out like a bandit owning Red Back on the buyout and sold my Kinross @ over $21. and avoided Barrick like the plague, and am still not convinced it is a buy having dropped 50%, maybe some day when new management proves itself to be more conservative.
I have owned Int. Tower Hill at various times over the years and neither made nor lost any significant amount of money. Michael is right, the problem with THM is LOW GRADES and COST of Mining in its isolated location. Obviously it is NOT viable under present conditions I.E. (current metal prices) but I personally believe it WILL eventually get developed simply because of its sheer size. It may take $2500. gold or better as so many “gold bugs” are projecting BEFORE it becomes economical to mine this resource, so the key is “timing” by monitoring market sentiment and prices. Maybe Jeb believes that at this low price it is worth the hold, particularly IF gold prices escalate rapidly in the next year, which I too consider highly likely. Let me emphasize, I DO NOT currently hold THM, I sold BEFORE the price decline, but until I see a firm and sustained rally in precious metals, AND a better mining and marketing plan from THM management, the low price does not make it a bargain in my books. In fairness to readers, I must disclose that THM is a SUPPORTER of Jeb’s website, a fact he discloses, which may or may not influence his position, he may genuinely believe that at this price THM will pay off big even if it takes several years, I am just not quite there yet, but it remains on my “watch list” for changing market conditions.
By the time gold is high enough for thm to be a buy, a hundred other explorer/miners would have already appreciated significantly. If circumstances warranted thm to be a buy, can you imagine what pvg would be worth at 6g of au/ton; or pzg with 8mm easy to mine oz? I cannot envision a scenario where, in the universe of opportunities, thm would be the one you would want to put your $ into.