What caused this price pop?
Is this a trick question? Proven resources
They also have exposure to Uranium. Will be interesting to see how that plays out if Japan starts rolling nuclear energy back on line at a decent rate
Inventus Mining (TSXV: IVS, OTC: GNGXF) approved and completed a 1:2 reverse splitâŚerr I meanâŚâshare consolidationâ this week. So IVS is now trading in the .20-.28 range (still just off its reverse split-adjusted 52-week high). GNGXF should trade in the .16-.20 range.
It will be interesting to see if there is any knee-jerk fall out in the share price given the stigma of a reverse split. I voted against the reverse split as I saw no need for it, nor did the company provide an explanation that I felt was warranted. They felt the share structure was too bloated at just 85 million outstanding and that the R/S and higher perceived share price made the company more attractive for future investors and transactions. WhateverâŚwho am I to argue with Rob McEwen and Eric Sprott.
Also voted on and approved at the annual meeting - both McEwen and Sprott were designated as âcontrol personsâ of the company and they also appointed Stefan Spears to the BOD. Spears is a cohort of McEwen and has worked for McEwen mining, Lexam VG Gold (another McEwen investment) and GoldCorp when McEwen was the CEO there. So McEwenâs hand prints are all over Inventus at this point. As Iâve maintained all along, if the at-surface bulk sampling program on their Pardo property confirms the excellent gold grades previously drilled on the property, then the Pardo property will be a very economical and potentially lucrative deposit. As such, they will be quickly gobbled up by McEwen Mining (MUX) in my opinion. It may take until after the NI 43-101 is updated with results from this seasonâs exploration and bulk sampling activities, but I am confident in the prospects of this unique opportunity and more bullish about Inventus than I ever was with MDMN in its heydayâŚthe only drawback at this point is it being it so thinly traded and Iâm not able to buy it on the Canadian exchange so I have to invest in the US grey sheet counterpart GNGXF instead.
So you may want to keep your eye out for any buying opportunities that occur due to the recent reverse split.
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Hey HR, thanks for the additional insight. Fidelity quit recognizing that ticker (GNGXF) a couple of days ago. Any idea why that might be?
Also, how does this counterpart mirror the Inventus ticker on the TSX? With such low volume, Iâm struggling to understand how it reflects the ups and downs of the âmainâ ticker.
Thanks again!
i also have a question along the same lines as TexHorn.
I have stock in CNMXF. I see that they also trade on the TSX, I bought them on OTC. What does the XF stand for? I see that GNGXF also ends with XF.
TexHorn,
Inventus Mining used to be named Ginguro Exploration. The name change was announced here a year ago: https://www.inventusmining.com/news/ginguro-exploration-inc-announces-name-change
When that happened they changed their ticker on the Venture exchange, and although I have not found explicit notice, they apparently discontinued trading on the U.S. OTC exchange and thus HR and his GNGXF shares have been relegated to the gray sheets. Not fun.
A few years ago during the commodity bull it was a thing for Canada based companies to also start trading on U.S. exchanges in the hope for access to more investors. As the bull turned to big-bad-bear until recently and gutted the balance sheets of many Venture based companies, many stopped such trading in the name of saving money and since they really were not seeing the benefits, since the U.S. resource investing crowd, is ⌠well ⌠not much of a crowd ⌠er ⌠aka âsmallâ and anymore many who seek to invest in the sector will just go with funds / ETFs that people like Sprott can offer on many exchanges. But I say - whatâs the fun in that?
Thank you, sir! It appears to be trading under GNGXD now.
Goldcorp to buy Kaminak & their Coffee project in the Yukon, not producing yet
3M Oz Au Indicated @ 1.45 g/t
2M Oz Au Inferred @ 1.31 g/t
280,000 m of drilling
1682 holes
$317M construction cost
2 year payback
$520M purchase price, all stock, which is basically the NPV of the project @ $1000 Oz / Au
= $104 / Oz
http://finance.yahoo.com/news/goldcorp-acquire-kaminak-gold-corporation-113911060.html
Hey Cornhusker,
For clarification, Ginguroâs/Inventusâ gray listing didnât come due to the name change or anything untoward with the company. It has always been dual-listed - a TSX.V listing and an American gray sheet counterpart. I forget what the TSX.V symbol was before the name change last year. I donât consider their gray listing ânot funâ as you described, I consider it an opportunity that Iâd otherwise not have if they werenât dual-listed since Iâm unable to invest in Canadian-listed companies.
Now, granted owning a gray sheet company is inconvenient, if not risky, due to the lack of liquidity, but I truly treat this as an almost all-or-nothing private investment with a somewhat illiquid escape clause. 
This is not an investment you put money in that you need to recover on a whim. Are any penny stocks? Iâm waiting for the endgame of a buyout or monetization of the paleo-placer discovery.
Got it. I just wanted to make sure everyone understood that part. CDCH has pretty much become that kind of play as the spreads are so large and there is basically no volume - and at least the 5% AMC part of CDCH to be split off becoming a private company will be even more so - all or nothing. Depending on how you look at it this can be a positive or a negative but you sure want to understand what it is before committing.
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Spent the weekend at my first mining conference, MIF in Vancouver. Its a smaller, free conference only about six blocks from work so had to check it out. Anyone still newish to mining stocks needs to check one out if any come close to where you live. I guess Iâm lucky living in Vancouver as we get quite a few of them, and I will definitely be attending all the free ones from now., ,aybe even some of the pay ones. I met a number of really interesting people, many of whom write articles on the internet which I have read, Also met a number of CEOs and company geologists who were fascinating with the information that they were happy to dispense about geology and mining. My stock analyzing skills are not sufficient to make any recommendations to others, but Iâm happy to take small positions in a handful of them after the weekend.
Bytal, most of the conferences are free, the things that cost money are admittance to certain areas, workshops, etc. I think Cambridge House host two conferences a year in Vancouver.
When i was on the TSX-V, we were HQâd in Kelowna. Beautiful country.
I was going to go to the Cambridge house show earlier this year but couldnât make it in the end. I know Sprott does a couple conferences in Vancouver every year but they are bloody expensive. Kelowna and the okanagan in general sure is a beautiful place. I donât make it out that way enough unfortunately
Anyone have any thoughts on the Fed minutes today re: gold? It looks like we might see a rate hike in June now.
More hawkish comments by the Fedâs Lacker this morning - supporting a rate hike in June.
http://www.zerohedge.com/news/2016-05-19/feds-lacker-unleashes-more-hawks-markets-took-wrong-signal-fed-march-and-april
POG down to $1245.
It looks like we are going to have a short term POG down cycle until the June rate hike - or not is decided. They pretty clearly want everyone to think they might. I think they want to before an economic downturn comes along (oops - may be too late). So itâs hard to say what they may or may not do.
I agree with the broader idea that things are really more driven at this point by how crazy things get in China. If you recall we had a big China moment last summer in July / August. Then again in Dec / Jan when China unleashed a new $1T worth of credit creation locally to try and buoy up their economy. We are in a China lull right now, the afterglow of that massive Q1 credit creation (which led to crazy commodity speculation and some of the short term commodity price recovery). I think the safest best is another China moment is on the way, perhaps in the same summer time frame as last year. And the POG will respond.
But in the meantime, the Fed could do whatever. Another 25 basis points probably wonât tip the boat one way or another much. But it makes them feel like they are doing something important. And the POG continues to respond to their words. And that is a barometer of the faith remaining in FedWords. Eventually FedWords wonât matter.
By-product precious metals revenues in a base metals companies can trade at 5 â 7 times EBITDA and top tier companies at 15 â 20 times EBITDA. Gold equities are in the midst of a momentum trade having been under-owned and gold being the one resource that is actually moving up.
The discovery market in the 90s caused a dramatic bull run in the juniors, a big precious metals discovery now could be spectacular although the highest chances of large discoveries are in political unstable or risky areas that have been under explored.
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A nice interview on KWN by Rick Rule, one of my favorites, PM investing right now:
http://kingworldnews.com/rick-rule-5-22-16/
A few nice quotes:
âMost people are investing with the idea that there are many other people more stupid than they are. And that is why they do not end up making much moneyâ
Comments are made on: the next phase of the gold market, moving âdown marketâ, that is, into smaller companies, the importance of investing in the best people (aka - management matters).
For those unaware:
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Rick Rule was a well known PM stock investor for years. But several years ago he was bought out or merged with Sprott.
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If you just listen to Rick Ruleâs interviews he comes across as a very intellectual guy, very smart. In fact if you compare his interviews with Eric Sprott if you are like me you conclude Rick comes across as much more intellectual or âsmartâ than Eric in regard to the arguments they use to support their decisions. But one of the most interesting comments Iâve heard Rick Rule say was about 6 months ago in an interview where he stated: âEric has a sense of timing that is much better than mine. And that is why he is worth much more than me.â Itâs not simple to do but when you look at all the moves Sprott made in this last down market: tons of private placements, acquisition of Rick Ruleâs company, the buyout of the Central Fund of Canada gold ETF, his partaking and funding of BitGold, etc. itâs easy to see Sprott has gigantic convictions re. the PM market and the boldness to make all kinds of big moves and his timing at least for now seems to have been excellent for most of these decisions. But I still like to listen to Rick Rule more.
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