AND - Andean Resources

[Sean K]

After a strong run on high volume during mid-late May, Andean tapered off in June. I think the chart looks like a flag pattern which should be bullish, assuming gold holds up. Thoughts?

Still bullish while $1.70 ish holds. Yes, relies on POG strength and the overall market. Once people start selling just about everything is effected.


The resource upgrade expected in May didn't make it out till 9 June, but was along expected lines. More ounces to be added due to recent new discoveries. Amazing overall grades.

They're also doing some sort of capital raising for CAD90m which will look handy in the bank, but dilutes them quite a bit too. Not sure how 'cheap' they are looking with mc to oz au now, even with those grades..

ANDEAN RESOURCES REPORTS AN UPDATED RESOURCE AT THE EUREKA VEINS

Highlights
• Updated independent Resource Estimate for Eureka Veins delivers:
a 38% increase in the Indicated gold Resource to 1.4M oz Au; and
a 20% increase in the global gold Resource at Eureka
• The increase in gold and silver resource will significantly improve the already robust project economics at Cerro Negro, which are currently the subject of a Bankable Feasibility Study (“BFS”).
• Eureka West indicated resource zone diluted grade of 12.5 g/t Au and 184 g/t Ag gives a combined grade of 15.6 g/t AuEq (gold equivalent), making Eureka one of the highest-grade undeveloped gold projects in the world
• A very high-grade core to the mineralization exists with approximately 2.5 million tonnes at 17.2 g/t Au and 223 g/t Ag of indicated material identified to date
• The Eureka vein system remains open at depth and along strike, with only 25% of the known strike length of the outcropping Eureka vein system included in this resource estimate.
• Further upside potential remains at Cerro Negro, following the recent highgrade Bajo Negro vein discovery (not included in this estimate)


June 25, 2009, Perth Australia -- Andean Resources (AND:ASX; AND:TSX) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, including CIBC World Markets, Paradigm Capital, RBC Capital Markets, Thomas Weisel Partners, UBS Securities, Haywood Securities, and Dundee Capital Markets, under which the underwriters have agreed to buy on a “bought deal” basis by way of a short
form prospectus, a total of 56,250,000 Common Shares (the “Common Shares”), at a price of C$1.60 per Common Share for gross proceeds of C$90,000,000.

 

[Sean K]

Bajo Negro ('Black Below', huh?) firming up to be a decent deposit.


ANDEAN RESOURCES EXPANDS BAJO NEGRO DISCOVERY AND PROVIDES ADDITIONAL DISCLOSURE

July 8, 2009, Perth Australia -- Andean Resources Ltd. (AND:ASX; AND:TSX) is pleased to report six additional diamond drill results from the recent Bajo Negro discovery at its 100% owned Cerro Negro gold and silver project in Southern Argentina. These latest results continue to provide new resource potential at the project and highlights include:

· BDD-914 intersected 3.5m of 26.7 g/t Au and 58 g/t Ag from 242m
· BDD-915 intersected 5.25m of 18.7 g/t Au and 27 g/t Ag from 202m
· BDD-918 intersected 7m of 10.3 g/t Au and 20 g/t Ag from 121m
· Strike length of the vein has now been tested along approximately 550 meters
· Mineralization remains open at depth
· To date, all 19 drill holes in Bajo Negro have intersected mineralization with
grades exceeding 2.5 g/t Au over mineable widths


Some great grades in there....

 

[So_Cynical]

Still bullish while $1.70 ish holds. Yes, relies on POG strength and the overall market. Once people start selling just about everything is effected.

I would of though that a chart u posted in another thread may indicate that AND is fairy
valued when compared to other gold stocks, keeping in mind there prob 2 years away from
producing anything, still the Andean deposits are outstanding in comparison.

 

[Sean K]

I would of though that a chart u posted in another thread may indicate that AND is fairy valued when compared to other gold stocks, keeping in mind there prob 2 years away from producing anything, still the Andean deposits are outstanding in comparison.

That's a little dated, but probably still close to the mark.

'fairy valued' ? How much are fairies these days to do a comparison?

On the surface of it, I'd actually say overvalued. A lot of positives are factored into the share price and perhaps expectations of huge upgrades in the total resource and possibly a takeover.

 

[So_Cynical]

That's a little dated, but probably still close to the mark.

'fairy valued' ? How much are fairies these days to do a comparison?

LOL and i was completely sober. i make so many typos. :shake:

Now one would think a good mod mite just fix the odd typo.

 

[jman2007]

That's a little dated, but probably still close to the mark.

'fairy valued' ? How much are fairies these days to do a comparison?

LMAO!!

Tbh a group of fairies might actually do a better job than some of the teabags sitting on the Board in some of the companies I hold ...

 

[eddyeagle]

Up 9% to all time highs today!

It's all blue skies from here!

Gold stocks seem to be in a good place at the moment with gold nudging US$1000 again...

 

[eddyeagle]

Have been a little dissapointed with the pull back on AND in the last week with gold above $1000- obviously a few profit takers out there.

Will hopefully find some support around the current levels from the high posted start of June and keep charging upwards!

 

[GoodCall]

Andean announced today that it has discovered another new vein at Cerro Negro. This was in the San Marcos area. From today's company announcement of the five new drill holes:

Today’s release includes the results of four new drillholes
at 100 meter spacing over a strike length of 300 meters and approximately 150 meters
beneath the surface:

SRC-901: 22m of 8.5 g/t gold and 58 g/t silver from 181m
SRC-902: 16m of 10.3 g/t gold and 86 g/t silver from 195m
SRC-903: 7m of 8.1 g/t gold and 77 g/t silver from 189m
SRC-904 1m of 6.8 g/t gold and 62 g/t silver from 189m

A fifth hole, SRC-905, was drilled 100m west of SRC-904 and did not intersect the vein.

Disclosure: I hold a small parcel of AND.AX shares.

 

[MOSSuMS]

AND - ANDEAN RESOURCES LTD

Andean Resources (AND) is exploring and planning to develop its high-grade Cerro Negro gold project in Argentina. Cerro Negro is 100% owned and is located in the Southern Argentinean province of Santa Cruz. JORC resources currently stand at over 2Moz of gold and 22Moz of silver.

I've heard a couple of Analysts (yes, i know!) mention this stock and was wondering if anyone is in, or has traded, this. It's interesting but am looking for more insight and views, especially with regard to the risks where it is operating, given the rahter overblown stories out there.

It's headquartered in Freo, WA.

It's price chart and announcements have generally been good, if volatile, with a rise from a few cents in 06 to $2.50 ish now. It had a bad 08, when it declined to 50c.

I think they are looking for a bankable feasibility study by mid year, but not sure when they target production.

Gold's on a bit of a pullback, so it's just a 'watcher' for me ATM.

 

[So_Cynical]

Re: AND - ANDEAN RESOURCES LTD

It had a bad 08, when it declined to 50c.

ALL Gold stocks had a bad (late) 08...that turned out to be a great time for the true believers to average down and or enter great Gold stocks for the first time, i must admit that i didn't realise that AND had broken $2...still most of the quality gold stocks have gone up over 300% bottom to top so AND is only a slight stand out there.

Personal ive no idea why anybody would be interested in an entry at these levels, the horse has well and truly bolted...are they any closer to actual production?

 

[eddyeagle]

If gold keeps heading north, I wouldnt be surprised if Andean hit $3. There are several Canadian brokers with price targets in that region. It's also been mentioned before in Fat Prophets reports that it could be a possible takeover target for some of the bigger gold miners... But I agree with So Cynical that the big gains have probably been had as it has had a super 2009! I sold half my holding around $2.50...

 

[Scalper23]

Andean Resources

Any news on Andeans (AND) big rise today

 

[So_Cynical]

Re: Andean Resources

I know the search function can be a little un-cooperative at times however a search for Andean found the right thread easily....greed is good, and so is the search function.

https://www.aussiestockforums.com/forums/showthread.php?t=321

 

[Sean K]

I've been saying this was overvalued since about $2.00.

Trading at about $750 an ounce EV, this is certainly unsustainable imho. When actual producers are on about $150 an ounce with 30 year lives plus, it makes this position look absolutely illogical. Something will have to give at some point and reality kick in.

 

[skyQuake]

I've been saying this was overvalued since about $2.00.

Trading at about $750 an ounce EV, this is certainly unsustainable imho. When actual producers are on about $150 an ounce with 30 year lives plus, it makes this position look absolutely illogical. Something will have to give at some point and reality kick in.

But thats ignoring the Cerro Negro stuff that came out recently,
285koz per annum at $60/oz (including silver byproducts) = one of the lowest cost mines.
10yr mine lifespan.

 

[Sean K]

But thats ignoring the Cerro Negro stuff that came out recently,
285koz per annum at $60/oz (including silver byproducts) = one of the lowest cost mines.
10yr mine lifespan.

Yes some amazing results out recently that will increase their overall resource. They could get to 5m ounces as a guestimate, so that doubles their resource which will take their EV to ounces to $350 ish, not taking into account any further dilution due to share issues or debt raising. I think the Capex was $250m or so for the initial operation, so add that to their debt.

The $60/oz is interesting, but we need to check the wording on that. I don't think they're claiming that as Opex, but something else. I think they're being a little deceptive actually. What is the Opex? Surely it's not just 60 bucks? Why not state the estimate? Really, $60 an ounce for an underground operation? huh?

 

[jonojpsg]

But thats ignoring the Cerro Negro stuff that came out recently,
285koz per annum at $60/oz (including silver byproducts) = one of the lowest cost mines.
10yr mine lifespan.

Yep, if they make $800/oz that's $228m a year which based on current MC of $1.9bn is a PE of around 9. Low for an established producer (Lihir 30 and Newcrest 25) and with additional ounces as mentioned potentially taking mine life to 20 years (or production rate higher?) then maybe SP is justified...and could yet go higher?

Assuming POG longer term stays high which given monetary positions of US, GB etc could well do, then a margin of $800/oz doesn't seem unreasonable even if costs are around $2-300/oz rather than $60

 

[adobee]

I've been saying this was overvalued since about $2.00.

Trading at about $750 an ounce EV, this is certainly unsustainable imho. When actual producers are on about $150 an ounce with 30 year lives plus, it makes this position look absolutely illogical. Something will have to give at some point and reality kick in.

Just broke to new highs beyond $4.00 .. hasnt stopped moving up since $2.00
cant believe I sold this so early reacting to so much over valued sentiment..

 

[skyQuake]

And there i was. Ramping a stock i was playing with on the short side...

EDIT: lol finally got a speeding ticket