Gold Stocks Information and Comparison

kennas said:

Ashpool, how about finding out their shares on issue and what their JORC resource is and let us know. That will be a start. Cheers!

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Ashpool said:

What about psv...?cheap lots of potential? or on a slippery slope?
If you managed to buy in @ <10c every cent up is a 10% gain.

Anyway how do they rate as potential for future growth?

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reece55 said:

Kennas
Per 2006 Annual Report I have 3 Mil tonnes. Total shares on issue 899,525,625 * $0.145 = 130.4 Mil market cap. So, we have $43.4 AUD per ounce....

However, you can't really compare PSV's EV per ounce on the same basis as say LGL, because the cash cost for PSV is $400+, where as it's around $130 (off the top of my head) for LGL........ How you account for this in your analysis and how technical you want to get is up to you I suppose!

Cheers

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rederob said:

EQI
Solid performer over many years, offering annual dividends.
Looks likely to get its Cote d'Ivoire project underway at a low capital cost and with robust margins once in production - payback in less than 15 months if POG holds firmly around $700,
EQI will be a very strong runner should POG breakout, as seems inevitable.

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kennas said:

Shares on issue, SP, Au equiv, cash costs..????

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rederob said:

kennas
We are not comparing apples with apples.
People who are trying to come to grips with gold shares need to understand a whole range of factors.
Croesus was the last gold stock to go belly up.
It had pretty good mines, and the phoenix that will rise after it should do pretty well.
But like Sons of Gwalia before it, Croesus had bought into hedge commitments that ultimately brought it down.
So you are welcome to number crunch to your heart's content.
But if you cannot marry together the myriad of factors that will impact a goldie going forward, you risk getting badly burnt.

For example, Lihir is one of the best gold plays right now.
It sits in a geologically unstable part of the world. The nature of its mining operation is highly susceptible to an earthquake, while its processing facility is equally susceptible to a tsunami.
Which book did you read that told you of these risks?
Where do these factors slot into your comparative data sets?
What other vital information are you not factoring into your considerations?

For example, what are a producer's reserve replacement costs?
What is its reserve replacement history?
Will mine sequencing affect its near term price or long term price as moves to or from very high value ore bodies?
Is it possible that water availability could affect mining operations? (Have a look at the mines in Africa presently flooded, and the Australian operations that could be marginalised by lack of water or high water prices in future.)
What impact will poor ore quality, say through metal contaminants or rock hardness, have on capacity to mine at profit?

I won't go on, but hope at least some folk understand that the raw numbers you are crunching will not give you the answers you think you might be able to get.

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Nicks said:

AVO

Market cap - $362m
Resource - Greater than 2m ounces and growing constantly (unhedged)
Costs - AUD $369 ounce

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kennas said:

I absolutely agree, but maybe we can add these things to the analysis on the way. We have to start somewhere with comparing the apples, so let's start with just a few things and work our way up.

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rederob said:

EQI
Solid performer over many years, offering annual dividends.
Looks likely to get its Cote d'Ivoire project underway at a low capital cost and with robust margins once in production - payback in less than 15 months if POG holds firmly around $700,
EQI will be a very strong runner should POG breakout, as seems inevitable.

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rederob said:

Yes.
But shares on issue can hide the difference between explorer and producer.
Having say 100m shares on issue means diddly squat if you need to raise capital, and it will dilute that base by ten to one.
Having followed gold equities for some time I have learned there is no holy grail to investing success that beats sheer hard work and understanding.
Even then a lucky punt comes along and makes all the hard work nugatory.

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Bush Trader said:

Kennas,

Might be a speculative explorer to monitor, upgraded JORC Expected shortly in the vicinity of 350,000oz
Maiden JORC resource 215,000 oz Au equivalent
Shares: 82,958,931. Price 29cents = Market Cap of $24,058,090 = Owns 65% of Resource

Plus significant existing mining infrastructure adjacent to the Golden and Blue Spec mines, including: Established shafts, declines and access drives 40,000 TPA treatment plant (upgradeable to 80,000 TPA with additional float cells). Access to sufficient water for operations; Tailings dam; Full mining camp; Good roads - only 2 hrs from Newman; Granted mining leases - no Native Title issues.

This may also help to promote some ideas
2006 Gold Mining Journal Gold Explorer of the Year:
1. Tropicana: AngloGold Ashanti/Independence Group
2. Avoca Resources
3. Goldstar Resources/Navigator Resources
4. Alkane Exploration
5. Mercator Gold
6. Dominion Mining, Integra Mining, Perseus Mining, Troy Resources, Red 5, Wedgetail Mining
7. Cougar Metals, Moto Goldmines, Marengo Mining, Minotaur Exploration
8. Bass Metals, Sino Gold, Oropa, Lihir Gold
9. Monax Mining, Agincourt Resources, Dioro Exploration, Oxiana, Oceanagold, Tianshan Goldfields
10. Tasgold, Medusa Mining, Andean Resources, Echo Resources, Northwest Resources

2006 Gold Mining Journal Gold Miner of the Year:
1. Dominion Mining
2. Troy Resources
3. Barrick Gold
4. St Barbara Mines
5. Newcrest Mining
6. Oxiana, Oceanagold
7. Kingsgate Consolidated, Sino Gold
8. Newmont Mining
9. Equigold, Intrepid Minerals
10. Lihir Gold.


Cheers


BT

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