by Travis Johnson, Stock Gumshoe | March 29, 2012 1:14 pm
It’s been close to two months since I looked at a teaser for the International Speculator[1] from Doug Casey[2]’s folks, and today they’re circulating another interesting little slew of hints about a promising gold[3] stock … one that apparently made them 1,400% returns 15 years ago and has now again become a bargain.
So what is it?
Well, that’s the age-old question, no? For the answer, we dig through the teaser ad and see what clues Louis James[4] (he edits that newsletter) provides for our hungry Thinkolator. Here’s a taste to get you interested:
“Last month, I spent several days in what was once one of the darkest corners of Africa[5] – the Democratic Republic of the Congo (DRC).
“And I’ve brought back a new gold stock recommendation that I think has so much potential that I want to make sure you know about it.
“This company was recommended by Doug Casey[6] in the International Speculator way back in December 1998 – and brought us more than 1,400% within three and a half years.
“They’re still around today, and from recent developments, I’m convinced that they’re now poised to repeat their former success.”
The info about this stock and the ticker will, as you expect, be delivered to you just as soon as you pitch in a thousand smackers (OK, $995) for a subscription. But, as is our wont, we expect that we can do some figgerin’ and thinkolatin’ and get you an answer for much less. Like, free-ish (though we adore our Irregulars, too).
So here are a few more clues from the ad for us, ready for feeding into the Thinkolator’s gaping maw:
“Their flagship project is truly world class, currently tallying 5.6 million ounces of gold measured and indicated (M&I)….
“The ore they are mining now is basically gold-rich dirt that they don’t even have to blast or crush – they just scoop up the dirt and run it through the plant. That means the company will likely maintain very low-cost production for years….
“… first mine is now up and running, and on track to produce 120,000 ounces of gold per year ….
“… four major gold projects, with a total gold resource of 11.62 million ounces – so far.”
And the company’s mines, or at least one of them, are in the Democratic Republic of the Congo (DRC) — which is one of those countries where fear of government confiscation or plain old war are very real, with examples from very recent memory and a security situation that most of the world considers quite unstable (though James said that he thinks things are looking up, with the government “respecting the rule of law,” and he thinks the company, though risky, is trading at too much of a “DRC Discount”).
So who is our little miner that Casey first pegged as an early exploration play back in 1998 and is now a “medium cap gold explorer?”
All those hints and clues go into the Thinkolator, process on “cud chew” for a while, and our answer comes out nice and clean and sparkly: This is Banro Corp (BAA in both Canada[7] and NY)
Banro is indeed a miner and explorer in the DRC, with one mine (Twangiza) that has started up and should just be hitting its 10,000 ounces/month stride now, and a second mine that they think can almost double that 120,000 ounces per year rate of production by the end of 2013, along with two other exploration projects that aren’t as far along. Here’s how they describe themselves on their website[8]:
“Banro is a Canadian gold company with production from its first gold project, Twangiza, which is located in the Democratic Republic of the Congo. Banro is also focused on the development of its second open pit project Namoya and is undertaking exploration on two further fully permitted and licensed projects, Kamituga and Lugushwa. All Banro’s current projects lie along the 210 km long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the DRC.
“Banro’s Twangiza oxide mine began production in October 2011 and is projected to produce some 120,000 ounces of gold during its first full year of operation. Led by a proven management team with extensive gold and African experience, Banro’s business model is to focus on the substantial and open pit-able oxide resources it has delineated to date. Banro has identified 6.74 million ounces of Measured and Indicated Resources, plus Inferred Resources of 4.59 million ounces along this highly-prospective gold belt.”
They did some debt financing earlier this month[9] around the time that they filed their latest technical report, which to me usually indicates more confidence than equity financing (bankers tend to be more demanding than gold stock speculators) … as a result, perhaps, the stock is a bit off of it’s highs of earlier in the year (though that dip has also coincided with a bit of weakness for a few weeks in the gold price).
And yes, Twangiza does have measured and indicated resources of 5.6 million ounces (only a million ounces, roughly, are proven and probable reserves), and the total resource, including inferred resource, of all of their assets does come in at exactly 11.62 million ounces … so that’s a lovely confirmation that this is the exact pick being teased.
Which doesn’t mean it’s a good stock, of course, or that it will make you money — just that Louis James likes this speculation for his Casey subscribers. I have proven again and again my inability to pick junior gold miners (though this one is reaching “mid size”, with a market cap of nearly a billion dollars), so I’ll just say that the resources sound promising, existing production is a good sign, the costs look low, and the DRC is, indeed, probably still scaring investors away.
I know there are many, many more gold mining[10] speculators out there in the great Gumshoe Universe, so if you’ve got an opinion on Banro feel free to let it out with a comment below.
And if you’ve ever subscribed to Casey’s International Speculator and have an opinion on Louis James and his picks, please click here to review the newsletter for your fellow investors — thanks!
Source URL: https://www.stockgumshoe.com/reviews/international-speculator/this-stock-made-us-1400-before-and-is-now-on-sale-again-sez-casey-international-speculator/
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Why go for the political unknown when you can get a 30% GAIN AS SOON AS GOLD HITS ITS HIGH with New Gold (NGD). A mid tear miner self financing expansion in good jurisdictions.
You have to remember when it comes to junior junior gold mining stocks theirs bound to be 10 duds for every big winner. Its a hit or not hit thing.
It’s TWANGIZA like surf guitar TWANG + the pyramids at GIZA, not Twanziga. Banro stock was rising nicely until it got caught in the intense downdraft on gold miners over the past couple of months. Now it is difficult to select which gold miner has the worst cold. They’re all coughing and sputtering. A month ago several newsletter analysts wrote that they were all oversold. Well, now doubly so. It is confusing to compare the price of gold vs the price of gold stocks over the past 2 years. Gold is up 50% but GDX is up only 10% ( http://finance.yahoo.com/q/bc?t=2y&s=GLD&l=on&z=l&q=l&c=gdx ).
BAA is up 125% over the same period but down from a peak earlier this year. BAA’s present price corresponds fairly well to its Twangiza mining operation and does not reflect the other mines. Then again you could say that the Congo line is not the best dance venue for an enterprise.
Ooops! thanks for the correction.
Thanks a bunch guys for keeping me away from giving money to this group.
Just curious, since it seems so interesting. Anyone know anything about graphene, and it’s base metal graphite? Travis, this stuff is supposed to cary blood, make sherman tanks invisible, bend your iPhone around your wrist, and send wireless sensors deep into earth, not to mention become nanobots. that deliver cancer medication straight to the source.
It really comes off as Mayan prophecy for an “enlightened age!”
Waiting for the Mayans to say it’s true!!
Sharon, graphite is the latest craze in juniors on tsx, they are flying…when they crash nobody knows! The best bet is probably NGC.V, also consider LMR.V ( only .12 or so).It will end in a bubble so don’t be greedy …. get out BEFORE the crash!
NGC is also available in us under symbol NGPHF. Someone on that board insisted that a better choice is Energizer Resources, around 40 cents last I looked but moving up quickly recently. Then there is also Flinders FDR in Canada. I have a little NGC through etrade but their global trading platform has rules on how much you can buy at certain prices (minimum shares levels) and each trade is $20., which I think is a rip. Sharebuilder ING seems to prohibit trading stuff on Grey markets but to me that is lame as the same stuff on Canadian markets has high volumes. As far as hype, I have no clue when any perceived bubble will pop. I think Nautilus NUSMF and I don’t see where that company will be producing gold from deep ocean any time soon. I see AOIFF apparently popped up a bit near end of day. I think several newsletters are touting it. Back to the rare earth stuff, awhile ago someone told me that Vector Vest said it was a sell but far below actual value. I have a little but it seems the shyster lawyers are jumping all over it with class action suits against management. Think they were helped by acquiring NEO recently. My opinion of the stuff I mentioned here is that the best bet long term is african oil. One hopes that things don’t change for the worse in kenya vis a vis their agreements. If a Rhodesia and Mugabe type regime took over, I’d steer clear.
I would really be careful of V.LMR Lomiko Metals. Insiders are always selling at the right time.
Stu
Filing
Date Transaction
Date Insider Name Ownership
Type Securities Nature of transaction # or value acquired or disposed of Unit
Price
Feb 24/12 Feb 22/12 Consolidated International Investment Holdings Inc. Control or Direction Common Shares 10 – Disposition in the public market -350,000 $0.105
Feb 24/12 Feb 22/12 Consolidated International Investment Holdings Inc. Control or Direction Common Shares 51 – Exercise of options 350,000 $0.080
Feb 24/12 Mar 4/11 Consolidated International Investment Holdings Inc. Control or Direction Common Shares 00 – Opening Balance-Initial SEDI Report
Feb 24/12 Feb 22/12 Consolidated International Investment Holdings Inc. Control or Direction Options 51 – Exercise of options -350,000 $0.080
Feb 22/12 Feb 21/12 Inwentash, Sheldon Indirect Ownership Common Shares 10 – Disposition in the public market -250,000 $0.090
Feb 20/12 Feb 15/12 Gill, Amrit Paul Singh Direct Ownership Common Shares 11 – Acquisition carried out privately 40,000 $0.095
Feb 20/12 Feb 15/12 Gill, Amrit Paul Singh Direct Ownership Common Shares 10 – Acquisition in the public market 30,000 $0.090
Feb 14/12 Nov 16/11 Michael, Jacqueline Direct Ownership Options 52 – Expiration of options -200,000
Feb 10/12 Feb 9/12 Inwentash, Sheldon Indirect Ownership Common Shares 10 – Disposition in the public market -100,000 $0.120
Feb 10/12 Feb 8/12 Inwentash, Sheldon Direct Ownership Common Shares 10 – Disposition in the public market -200,000 $0.107
Stu, insiders are buying LMR: http://www.canadianinsider.com/node/7?menu_tickersearch=LMR+%7C+Lomiko+Metals
Also, go to pinnacle digest, they have a good article on there about graphs.
Casey’s questionable results, along with the smugness factor, make him a dreary read . Who needs that. If you do subscribe to him, you better know how to chart and avoid the huge losses when commodities fall, like pm’s are doing right now.
By the way, and most importantly, thanks Gumshoe!
Travis,
If BAA is as good of some of your recent recommendations ( a. GDVSF, b. AOIFF, c. PLSDF) Then it will be great. a is a Nevada gold stock which has more than doubled after striking it; b is an African oil stock which also made a strike and c uses wave pulses to locate good geological finds which seems to be progressing well. Don’t recall if you cited ONVO which has revolutionary potential to develop organs for transplantation.
Many thanks for your many useful suggestions.
Nick
Thanks Nick, though please don’t assume that I’m recommending the stocks that I uncover, in most cases I’m doing enough research to make sure that I’ve identified the teaser stock and then letting folks follow up with their own due diligence. I feel more strongly about the stocks that I end up buying personally, or that I end up featuring as “Idea of the Month” investments for the Irregulars, but my coverage of a stock shouldn’t imply that I think it’s a great buy for everyone.
Of those four you mentioned, I now regret not taking a flyer on Gold Standard Ventures but generally try to avoid betting on gold miners due to my lack of expertise (part of why I like Sandstorm Gold and some of the other financing companies, I get to outsource some of the due diligence on projects to people who actually understand geology and mining), and I do own Africa Oil and am quite pleased with their “de-risking” discovery this week. Pulse Seismic is pretty hairy and I haven’t researched it any further after my original note. Organovo was mentioned in some comments on my “3D printing” article a while back but I’ve never researched it personally.
But again, thanks!
I subscribed to IS years ago and didn’t care for it. Thought the Hard Rock Analyst (Coffin Brothers) was better. Now I am with Metal Augmentor, too new to know yet. I did also tried Brent Cook’s “Mining Insights” but found it a tad pricey.
Better than the lottery? Stick with the U.S. and Canada with a smidgen of South America.
Sandstorm Gold has doubled with no sleepless nights.
BAA is rec’d by Madiali (buy-up-to is $4) and Zeal as well. I’m waiting for it to get closer to $4.
Bought Casey’s books (Crisis Investing) back in the 70’s, 80’s etc. and enjoyed the read, agreed with the analysis but lost my ass investing in his picks and NOT INVESTING WHEN HE WARNED ABOUT FINANCIAL COLLAPSE…most big losses I’ve suffered have been the result of his recos….his philosophy is correct but seldom pertinent to reality.
I do not and will not subscibe to any of his current offerings….took me a long time and substantial losses to finally wake up!!!!!
Until the underlying commodity prices move up, anyone’s picks are likely to be duds.
if your interested in GOLD price manipulation have a look at this
it doesnt mean you wont make a few bucks but if this blatant manipulation isnt stopped then it will only go up a bit then the shorters move in then up a bit more – slow
I invested in a stock in OZ on ticker RSG and then a coup in Mali – 2 weeks now and
fell quiet a lot but still a bargain now, as the mine has not been effected
http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=148412&sn=Detail&pid=110649
Hope you bought LMR.V, thaaar she blows!!!!
lol rekt