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Mike, do we still believe institutional investors are going to start doing some serious investing?
Do we expect any additional news this week?
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The Junior Gold Miners ETF Has Bottomed; It’s Time to Add
By BRUCE KAMICH Follow | FEB 08, 2016 | 10:10 AM EST | 0
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Stock quotes in this article: GDXJ, AEM
The gold market has been around for centuries. Probably everybody follows it to some degree, like the price of gasoline. If you live in Switzerland or India or China, you may be following it even closer.
The gold market captured the American public’s attention in the late 1970s, when some people hoarded the shiny Krugerrand or Maple Leaf and feared the worst, while others became scale-up sellers of their high school rings and silver pieces they hated to polish.
As gold approached $800/oz. it became dangerous to wear bling on the subways. Today, fancy electronics are the grab-and-go high-value items of choice. Times change.
I could take shortcuts in my analysis, but it has proven its mettle over the years, so why change? Some analysts just watch the London gold fix, but there is so much more to the market. With the London market, we don’t know the volume of trading. Volume is a great confirming indicator for chartists. Mutual funds, futures, ETFs and ETNs can give us volume.
The behavior of the gold mining stocks is also important. Imagine that you have analyzed the fundamentals for gold and determined that it should rise in price. Because the timing of this rise (and any rise for that matter) is uncertain, you probably don’t want to buy futures or options.
Your first choice should be to buy shares in the best run gold mining companies. These miners should benefit when the price of gold rises. If we knew exactly when gold would rise, we could buy futures or options and get a faster, leveraged payoff.
Instead, money comes into names like Agnico Eagle Mines (AEM) first (where the On-Balance-Volume line turned up back in September). When we are really sure that a gold rally is underway, we tend to move into smaller and more volatile gold names.
Speculative names can have some big percentage moves to the upside, but they tend to move later. The Market Vectors Junior Gold Miners ETF (GDXJ) is an easy way to watch this part of the precious metal market.
I don’t have anything useful to add at the moment.
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FYI - AMC will not have a booth at PDAC 2016. There will be three members from AMC in attendance, but no official booth. Depending on how things go this year, AMC may have a booth at PDAC 2017.
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By April they may be going to this one…
Does anybody know if MDMN is on the hook for the mine development cost to the tune of 15%. If we are then we could experience a serious liquidity crisis. This may already have been covered and I missed it. thanks leif
Good hits on the ASK and BMAK keeps showing 10K
No they aren’t.
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Once the option is executed, AMC owns 100% of the properties. At that point MDMN owns a 15% equity interest in AMC.
MDMN’s interest is dilutable after the option is exercised the same way any shareholder’s interest in AMC is dilutable if cash needs to be raised through investment and the shareholder doesn’t cover their pro rata share of expenses.
Think of it just like MDMN now. When MDMN has raised funds over the years to cover expenses, they have issued shares. You and I were diluted whenever that happened. It won’t be any different with AMC. However, I expect AMC to be managed in a much more prudent fashion.
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The Rod is number1 unsung hero in my book when it comes to recording and documenting all things MDMN. A monumental effort by this man.
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Good volume today and overwhelming buys, hmmm, something is coming??
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Post option we will be a 15% shareholder in Auryn and not 15% owner in the property.
Auryn (AMC) the company will have to come up with the money one way or another, not shareholders. It will be just like if you are a shareholder in Barrick and you do not have to contribute money in ratio to your ownership for Barrick to build a mine. While one way Auryn could get money is to ask for additional capital from shareholders, it is much more likely that Auryn will have the capital in hand already or will come up with it via borrowing or something else.
This is different from a typical JV, where the JV partner and the junior split ownership in the property, then each company typically has to find a way to contribute money in ratio to their ownership of the property.
Everyone knew going in that Medinah has no money. It is in no one’s interest to delay progress while Medinah tries to figure out how to come up with money they do not have. In addition, the early opportunity near-surface stuff they will target at first will have a modest construction budget within reach of Auryn (AMC), IMO.
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This is exactly why MDMN should have negotiated early production NSR agreements for the high grade gold in the most recent meetings. AMC could then fund their progress without dilution. At some point, rather than continue allowing MDMN to retain a 15% equity that becomes ever more valuable, a TO will be offered.
Thanks Gold.
Makes the effort more worthwhile.
Level 2 anyone ?
Rod
Since we still don’t have a thread where we can post opportunities regarding possible 2, 5 10 bagger companies, I’ve been a shareholder (buying as well as private placement purchaser) in this company for a LONG time. And of course I’ve been dragged up and down (sound familiar ?) share price wise.
This company has massive land holdings in BC which as you can read contains at least 3 past producing mines.
The reason for posting is they have a large institutional holding including SPROTT (see below). Already have the infrastructure (complete operational mill) + it’s one of the stocks that once it starts to rise, ‘someone’ starts to sell a lot of shares into the higher bids (guess ? it may have been shorted, although being under $2, this apparently is not allowed). I suspect that SPROTT or ? is quietly picking up a greater percentage of the shares.
Be cautious, do your own investigation (due diligence) and if you’d like any info I can provide, just send me a message (PM).
My DD is in the next posting.
Rod
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Someone asked before if people could mention a good exploration stock.
This one has had near spectacular drill assays over the last 3 months. Most of these holes are at shallow depth ! (see last assays for example of depth)
BGM-15-121:_____6.71 g/t (0.2ozt) Au over 5.50 m
** BGM-15-139:__7.87 g/t (0.23ozt) Au over 15.05 m
- BGM-15-141:__26.21 g/t (0.76ozt) Au over 2.80 m
- And__________13.62 g/t (0.4ozt) Au over 5.50 m
** BGM-15-142:_11.26 g/t (0.33ozt) Au over 8.90 m - BGM-15-143:___6.62 g/t (0.19ozt) Au over 10.50 m
___2.49 g/t (0.07 oz/t) Au over 21.30 m
___3.17 g/t (0.09 oz/t) Au over 11.80 m
- 10.52 g/t (0.31 oz/t) Au over 4.50 m
___7.06 g/t (0.21 oz/t) Au over 3.47 m
*__1.42 g/t (0.04 oz/t) Au over 50.46 metres
___5.15 g/t (0.15 oz/t) Au over 6.03 metres
___6.04 g/t (0.18 oz/t) Au over 3.50 m
** BGM-15-064: 27.93 gt (0.81 oz/t) Au over 3.90 m
- BGM-15-070:_ 21.72 gt (0.63 oz/t) Au over 3.75 m
BGM-15-050:___ 10.54 gt (0.31 oz/t) Au over 3.00 m
BGM-15-071:____ 8.72 gt (0.25 oz/t) Au over 3.60 m
BGM-15-087:____23.47 g/t (0.68ozt) gold over 3 m
BGM-15-089:____12.37 g/t (0.36ozt) Au over 3 m
** BGM-15-090:_13.21 g/t (0.39ozt) Au over 9 m
** BGM-15-092:_17.00 g/t (0.5ozt) Au over 4.45 m
- BGM-15-096:__10.17 g/t (0.3ozt) Au over 5 m
** BGM-15-097:__5.27 g/t (0.15ozt) Au over 18.00 m - BGM-15-102:__22.48 g/t (0.66ozt) Au over 2.50 m
- BGM-15-109:__11.23 g/t (0.33ozt) Au over 4.05 m
BGM-15-109:_____8.99 g/t (0.26ozt) Au over 2.80 m - BGM-15-110:__10.03 g/t (0.29ozt) Au over 5 m
**BGM-15-145 22.60m-27m___4.4m___18.95gt 0.55ozt
BGM-15-145 54m-59.3m______5.3m____8.78gt 0.26ozt
BGM-15-149 26m-31.3m______5.3m___11.70gt 0.34ozt
BGM-15-150 37.7m-41m______3.3m____8.07gt 0.24ozt
- BGM-15-160 25.3m-44.70m_19.4m__10.06gt 0.29ozt
BGM-15-162 22m-27m_________5.0m___6.79gt 0.20ozt
*BGM-15-162 37.00m-41m_____4.0m__21.49gt 0.63ozt
** BGM-15-163 23.05m-31m___7.95m_43.48gt 1.27ozt
It owns/controls 1,177-square-kilometres in Cariboo mining district with a rich gold-mining history that started in the 1860s with the Cariboo gold rush. It includes three main zones: Bonanza Ledge, Cow Mountain and Island Mountain. All these properties have several past producing mines.
Cow Mountain by itself contains :
2015 Cow Mountain Mineral Resource reported at a cut-off grade of 0.5 g/t Au
Indicated 35.8Mtonnes 2.4mAu 2.8Moz
Inferred 27.5Mtonnes 2.3mAu 2.0 Moz
Also owns the QR property, claims, mine & mill in which they have been producing gold from the Bonanza Ledge.
NO DEBT.
Current Outstanding Shares, 239M, of which these investment companies and insiders own 61.6% ! :
July 8, 2015 - Mr. Eric Sprott will hold, directly and indirectly, 41.8% of the Common Shares
Nov 11, 2015 - Osisko Gold Royalties Ltd has purchased 32,000,000 (flow-through)common shares @ $0.32/sh ($10,240,000)
Osisko owned 15,625,000 Barkerville Shares (the “Prior Holdings”), representing
approximately 6.9% of the 227,442,168 issued and outstanding Barkerville
Shares and 4,687,500 common share purchase warrants.
After giving effect to the Purchased Shares to be acquired by Osisko pursuant to the Private Placement, Osisko would own 47,625,000 Barkerville Shares and 4,687,500 common share purchase warrants, for total ownership of 19.9% on a partially diluted basis.
Pending : acquisition by Osisko of a 1.5% net smelter return royalty on the Cariboo Gold Project located in BC for cash consideration of $25,000,000