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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Uruguay Mineral (SEE LSE:OMI) | UGY | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
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|---|---|---|---|---|
| 0.00 | 0.00% | 33.00 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 33.00 | 33.00 |
| Top Posts |
|---|
Posted at 07/1/2010 17:07 by robson1974 Uruguay Mineral Exploration Inc. and Fortune Valley Resources Inc.Announce Completion of Plan of ArrangementChange of Name from Uruguay Mineral Exploration Inc. to Orosur Mining Inc. MONTEVIDEO, Uruguay and Vancouver, British Columbia - Uruguay Mineral Exploration Inc. ("UME" or the "Company") (TSX-V: UME; LSE:UGY) and Fortune Valley Resources Inc. ("Fortune Valley") (TSX VENTURE: FVX) today announce the completion of the previously announced plan of arrangement (the "Arrangement"), pursuant to which UME has acquired all of the issued and outstanding common shares of Fortune Valley in consideration for 0.4534 of one UME common share plus C$0.001 in cash for each common share of Fortune Valley. David Fowler, Chief Executive Officer of UME stated: "The completion of the Fortune Valley acquisition is a major milestone for UME in improving the Company's growth profile in a recognized mining market such as Chile. Our exploration team has been established in Chile and drilling is planned to commence on the Pantanillo project during January 2010". The Arrangement was carried out pursuant to the provisions of the Business Corporations Act (British Columbia) and was approved by the Supreme Court of British Columbia and the affirmative vote of Fortune Valley's shareholders at a special meeting of the shareholders held on December 29, 2009. Pursuant to the Arrangement, UME acquired 34,772,025 issued and outstanding common shares of Fortune Valley (representing 100% of Fortune Valley's outstanding common shares) in consideration for the issuance of 15,765,638 common shares in UME and cash consideration in the aggregate amount of C$ 34,772. In addition, holders of Fortune Valley options are entitled to receive 1,008,815 UME common shares on exercise of 2,225,000 Fortune Valley options. The Fortune Valley common shares are expected to be de-listed from the TSX Venture Exchange shortly after the date hereof. Application has been made to the London Stock Exchange for the 15,765,638 new common shares in the Company issued pursuant to the Arrangement to be admitted to trading on AIM. It is expected that admission will become effective and dealings in the 15,765,638 new common shares will commence on AIM at 8.00 a.m. GMT on January 8, 2010. As a result of this issue of new shares pursuant to the Arrangement, the Company's share capital consists of 64,432,706 common shares. The Company does not hold any shares in treasury. Holders of Fortune Valley common shares are reminded that, in order to receive the consideration to which they are entitled pursuant to the Arrangement, they should properly complete and execute, as soon as possible, the Letter of Transmittal delivered to them in connection with seeking the approval of the shareholders of Fortune Valley for the Arrangement, and present and surrender the certificate(s) representing their common shares in accordance with the Letter of Transmittal, to Computershare Investor Services Inc., the depositary for the Arrangement, at the address indicated in the Letter of Transmittal. Fortune Valley shareholders who have any questions or require more information with regard to the Arrangement or the receipt of UME common shares should contact: Computershare Investor Services Inc.100 University Ave.9th Floor, North TowerToronto, Ontario M5J 2Y11-800-564-6253 (toll free in Canada and the United States)514-982-7555 (international direct dial) Change of Name to Orosur Mining Inc. Following the passing of the resolution to change the name of the Company to Orosur Mining Inc. at the Annual General Meeting held on October 13, 2009, the Company is pleased to announce that the common shares in the Company will commence trading under the name Orosur Mining Inc. with effect from January 8, 2010 for shares quoted on the TSX Venture Exchange and with effect from January 11, 2010 for shares quoted on the AIM market of the London Stock Exchange. The new TIDM of the Company on the London Stock Exchange and symbol on the TSX Venture Exchange will be 'OMI'. The new ISIN will be CA6871961059. The Company's website address will remain as www.uruguayminerals. David Fowler, Chief Executive Officer of UME stated: "The change in name to Orosur Mining Inc, reflects the broader focus of the Company on South America gold development rather than in Mineral Exploration in Uruguay. |
Posted at 21/12/2009 11:09 by currypata kai I guess yankee doodle dandy investors might be realising their losses ? |
Posted at 20/12/2009 11:56 by skidaddle """"""""""""""""""""GOLD vs. EVERY OTHER INVESTMENT EVALUATING JUNIORS: Juniors should be evaluated like stocks were during the good ole dot.com days: If a company had earnings, there was always the traditional way of evaluation: But if a company was in their early dreaming stage and had no chance of being profitable in the near future, traders and investors would come up with all kinds of ridiculous ways to justify lofty prices and bid them up even more. That is actually quite common throughout life. The anticipation is always much greater than the realization, no matter how great the eventual realization actually turns out to be. BUY ON THE RUMOR SELL ON THE NEWS. That's why the worse a company was fundamentally, the better its stock price did in the short run. SELL INTO THE NEWS because no matter how great the news is, there is always a let down. Although a few Gold analysts as well as every other analyst you see traipsing across your TV screens are already calling a top, it is mostly the same bunch who has been calling a top on every breakout since 2001 when Gold was selling for just $300. They will eventually call the top correctly, although I expect it will be a few years and a few thousand dollars from here. If you are tempted to listen, check their records. What have they been saying during the last few years? If they could not foresee either the top or the bottom of either Gold or the Stock market before, what has changed to suddenly have made them so smart now? """""""""""""""""""" Taken from: UNCOMMON COMMON SENSE For People Who Think Aubie Baltin CFA, CTA, CFP, PhD. December 19, 2009 |
Posted at 19/12/2009 10:50 by skidaddle With profits like that then they can either pay a large dividend or/and buy up shares.Personally I think they can prove up reserves for continuation of production of around 60,000ozs a year for at least 6 years! If gold goes up even more, then I doubt that investors will worry about the life of the mine. They will just look at the PE for next year! How many companies can project what profits they can make in 6 years time? It's hard enough to make any kind of profit at the moment for most of them. Look at the up and down cycle of oil. They buy oil shares when the oil price goes up and sell them when the oil price goes down. They don't ask what will the price of oil be in 6 years time. They don't look that far ahead. |
Posted at 17/12/2009 16:59 by stevea171 It costs nothing to be polite to other investors. |
Posted at 17/12/2009 16:32 by adam The 3m oz cannot be called a resource yet as it is non NI43-101 compliant. My understanding from the AGM was that cheap to prove up as near-surface widely disseminated and so wider spaced and cheap drill holes over an area required. So hopefully moot. I think investors spooked by delays in closure of deal, weak gold price and lack of liquidity towards end of year. |
Posted at 26/9/2009 10:48 by shanksaj Robson,You needn't read this - which is a year old anyway, but still relevant: Posted Tue Sep 9, 2008 11:09am AEST Updated Tue Sep 9, 2008 12:09pm AEST Investors are being tipped to watch the price of gold, which is expected to rise by 10 per cent in coming months. But the predictions are not based on the parlous world economy, but because of the Indian wedding season. Ambika Pillai is a makeup artist and hair dresser in New Delhi . For the next two months, she will be busy helping Indian women drape themselves in 24-carat gold as they get ready for their wedding. "We wash their hair, we clean their face then we do up their hair and the makeup. We drape them, put on their jewellery and they are simply ready to go get married," Ms Pillai said. "Most of them would wear real gold jewellery, it is just the girls who really cannot afford it are the ones who wear the artificial jewellery. "In the south, you would not be caught dead wearing, you know, artificial jewellery - it's all gold. And if you can't afford it, they don't get married. It's as simple as that." It is not unusual for wealthy Indian brides to spend up to $2 million on jewellery for their wedding. A JP Morgan report shows that since 2002, the price of gold has increased 10 per cent during the wedding season in September and October. Gold imports to India rose by 56 per cent last month. Angus Geddes, of stock market research house Fat Prophets, says there is no doubt India does have an impact on the demand for gold, and it is quite seasonal. "They are the largest importer of gold in the world, and the second most populous country, so they definitely do have an impact on the underlying price structure," he said. Mr Geddes expects there will be a major return to gold by small investors faced with economic uncertainty around the world. And he predicts Australians will be rushing to buy gold as they did in the 1980s. "We're yet to see an average investor holding five to 10 per cent of their portfolio in precious metals, and we saw that in the '80s," he said. "But I think that what's to come in the next five years is that investors are once again going to realise that gold is actually a very solid asset to have in their portfolio, and it's the ultimate hard currency." But with the price of gold currently around $US 809 an ounce, for most people, they will be buying a gold chain rather than a gold bar. -Based on a report by Brigid Glanville for AM |
Posted at 23/9/2009 22:07 by maximoney1 John Doody: I really don't have one because my investing strategy is to find undervalued gold stocks at every Gold Price. So it's not necessary for me to say that the stocks I recommend are going to go up because gold's going to go up. My Top 10 Stocks should go up because they are not properly valued vs. others of comparable stature based on the three metrics I use: 1) market cap per ounce of reserves, 2) market cap per ounce of production, and 3) operating cash flow multiple. My Top 10 so far this year is up 124% and that's with one stock being flat. So the other nine have, on average, more than doubled. That's vs. gold at $1,060 up 22%, and the XAU up 45%.This appreciation is why you should own the stocks more than the metal. Every Dollar of price increase gives you a Dollar more profit from current production, and it makes all the ounces that you've got in the ground that haven't been mined each worth a Dollar more. Typically, a mining company has 10 times the reserves in the ground vs. what it's currently producing. So that 10 multiple – it's even higher for some – that's where you get the leverage from a Gold Price. TGR: At a certain point, of course, stocks become overvalued. In your recent newsletter you said that they're fairly valued at a Gold Price of $997. We're now at $1060. Are we getting close to being overvalued? John Doody: Not yet, because the Gold Price of $1060 now justifies higher values than at last month's $997 Gold Price. What I'm looking for is the market to go overvalued, as it's done in the past. I measure overvalued and undervalued based upon past relationships between the market cap per ounce values we calculate every month vs. Gold Price at that time. Right now we're at a fairly valued situation. But there's been four instances, in 2002, 2003, 2006 and 2007, when gold stocks were 20% or more overvalued based on my market cap per ounce metrics. It's investor enthusiasm that creates these overvalued situations, and as can be seen in the chart, we're not there yet. People bid up the prices of the stocks so that the market cap per ounce we calculate goes to overvalued levels vs. where they've been in the past. So, even if gold did nothing from here and just stayed around this $1,050-$1,060 area, investor enthusiasm could drive the stock prices higher to make the stocks 20% overvalued. So I see a lot more upside from here and I think this is evidence that we don't have a big retail participation in this market yet. People have been thinking there's a $1000 an ounce ceiling and they don't realize that it's become the floor. Maybe it's going to take a few months hanging over $1000 or maybe we're going to have to get to $1100. At some point investors are going to realize this gold bull market has much further to go and as they pile into the small gold sector with only a $250 billion market cap, they'll drive stock prices much higher. One rationale for more investors coming to gold can be found in studying the S&P500 vs. Gold Price. As seen in the chart below, from 1973 to 1991, the Gold Price was higher than the S&P. From 1992 to 2008, the S&P 500 was higher than the Gold Price. Now we're back in the area of uncertainty where the Gold Price and the S&P price are about the same. As you look forward, I can't make any argument for the S&P going higher. I think that it's overpriced now and that analysts are building in earnings numbers for the S&P that aren't going to be earned. The consumer's tapped out. So the banks have come back some, but they've got a lot of bad debt still to write off from credit cards and commercial loans. The consumer is 70% of the economy. Without them aggressively participating, I just don't see any driver for the S&P 500 to even support this level. But I can see lots of drivers to support a higher Gold Price. Just look at monetary and fiscal policy, printing and borrowing too many Dollars The years ahead, in my opinion, have to be good for gold and not so interesting for the S&P 500 and I think as people realize this, we're going to get more retail investors coming to the gold sector. TGR: So your Top 10 list that you came out with last January is up 124%. Nine winners and one flat one. Do you come out with another Top 10 list in January 2010? John Doody: We do it on an ongoing, not an annual basis. We calculate the results on an annual basis, which is very unique in this industry. Nobody else does this unless they're a mutual fund. Every other newsletter wants to tell you what their results were based upon when they first recommended the stock, which might be five years ago. But we track the Top 10 the way any private investor would their portfolio and we put a monthly statement in the newsletter. We've had one sell in 2009. We took one off that was up 58%. It hit our target price and we didn't see a reason to raise the target price. We sold it and we had 10% cash for about four months, and we just found a new company. TGR: Many of your stocks are starting to approach your target price, yet you still sound pretty optimistic that there's a lot more upside. John Doody: Yes, and we have to change the target prices. We'll probably do that in the November issue. The target prices were basically set when gold was $900. That's been my working price for the year and for the first six months, the average price was $912, so that was a good enough number. Now we're getting not only to the end of the year and we've got a much higher Gold Price, but we're also starting to look forward to what production is going to be next year. One of the things we look for, in addition to the three main metrics, is growth in production. So we'll start looking at what higher production will do for the stocks next year. We raised the target prices for two stocks in the October mid-month update, and because the November issue updates our reports on four of the Top 10, we'll probably be raising more targets. |
Posted at 20/9/2009 23:28 by malcolmmm Could happen here-"Hello, As many of you are aware, I am a paid 'basher'. As childish as bashing might seem on the surface, a lot of money actually exchanges hands based on the work we do. I work(ed) for an investment firm based in Toronto, Ontario, Canada. I worked in cooperation with several others and under several aliases in several online investment forums. Including PresidentBush, Tooth18, OneVultrue, 7Midniqht and Herbacious on Stockhouse. To make a long story short. I have had an epihphany in the past few days. I watched the movie Fight Club, and as brutal as the movie is on the surface, it actually caused me to question a lot of things I do or have done in my life. The next day I was involved in a single vehicle car accident, which caused my vehicle to roll-over. I walked away from it all, but it got me to thinking. I only live once, is this what I want from my life? Is this what I've always wanted to do - I am not even proud of my career or myself. I say that I am a stock broker, but that is a lie. We are basically paid con-men. I quit today, no questions asked. Just walked out. I am 23 years old, and this is not what I want out of life. The scheme works like this. Be aware of it so you can guard yourself. Our company monitors undervalued companies with strong assets and strong potential. When this company, XXX.V, for example, reaches an overbought situation, our company begins selling shares that we do not own in hopes of purchasing these shares at a lower price later on. As the share price dips, our company purchases these shares for a cheaper price at the lowered ask price. That is where we come in - we bash the stock online to try and further the negative sentiment so that the stock gaps down further and increases our profit margin. This type of activity is called naked short selling and it should be illegal. Our firm is a well established one that deals out shares that we do not own, then send out an army of online rats to undermine the company's successes to drive the price down. As an employee, I never really realized the effect it had on investors or companies. I just really cared about opening the gap as much as possible, so that I could make a larger commission. It was all just a big game. LEARN ABOUT HOW BASHERS WORK: For instance: did you know that some Bashers are paid? Golden Rule: IGNORE THEM ...learn how professional Bashers are paid: When you REPLY to Bashers you give them an opportunity to earn appox. 5-7 dollars. The service agreement they enter into with their employer states their messages will be monitored for content, profanity, lies, etc. but Overseers and the like don't have the time to check all their Bashers messages. Only occasional spot checks are done. Those who manage the Basher will generally read the headlines to see if a Basher is replying to other posters by name. That tells them the Basher isn't just "posting blindly" or repeating the same message over and over since they won't pay for those.(True to form a Basher will put the bite on anyone, even their unscrupulous employer). A Basher will attempt to milk three to five replies per post at one to two dollars each. This way the Basher spreads negative influence to as many stockholders as possible. A Basher will create this discussion thread because it takes less time reading more messages than is necessary. This ultimately allows the Basher more time to post and make money. In general, NEVER ENGAGE A BASHER. Make them read all the posts and think up ways to enter the discussion. NEVER ENGAGE A BASHER; if you do so then YOU BECOME THE BASHER,S AID! If you feel compelled to challenge a Basher do so without mentioning his/her true alias in your response. This will make it hard for the Basher to use your post as a revenue stream. Read the news, do your own homework and make your own decisions. Get real time quotes and follow the stock for a couple of weeks. Due Diligence is key here. Know that there will be a time when the stock runs up which will be followed followed by the Bashers and those that missed the boat. The Bashers will trash the stock by saying such things as "it's a Pump and Dump" and "the company is lying" and deceiving. There goal is to scare off newbies and potential new investors by "shaking" you out of your shares. Take the time to confirm your DD ,trust your own judgement and believe in yourself, pick your point of return or loss and live with it. Don't listen to hype or Bashers trust your own judgement. Live by the rules you have created |
Posted at 13/10/2008 10:40 by divinausa1 i dont think this is the case here but on some juniors for sureWise Words For Investors In A Bear Market By Lawrence Roulston of Roulston Opportunities We have all heard enough about how bad the financial situation is. There is no question that the markets are in a terrible mess. The U.S. credit crisis is serious, it is spreading, and it's not going to get better over night. The situation is worse than nearly anyone imagined. However, there are some bright spots and those bright spots represent investment opportunities. As so often happens, the markets act like pendulums, swinging from one extreme to the other. A year and a half ago, the U.S. economy was booming, fuelled by a fraud of gigantic proportions that pushed housing prices and debt to absurd levels. The bursting of that housing bubble saw the pendulum swing to the opposite extreme as investors panicked and sold everything. There may be a long period of transition as the various bailout measures kick in and get the economy back on track. But, let's not forget that the U.S. has been through a number of difficulties and always manages to muddle along and then recover to be stronger than ever. I don't believe that the U.S. will ever regain the level of supremacy that it once held in the financial world but the current crisis will pass, as it has every time before. Look, the U.S. economy is not going to drop into some great black hole in the ground and suck the rest of the world in as some would have you believe. As far as the rest of the world is concerned, it doesn't really matter a great deal if the U.S. economy grows by 1 or 2% or shrinks by 1 or 2%. Looking at the metals: China has been and continues to be the most important driver in the metals markets. Headlines are now screaming out that the Chinese economy is slowing. Those few investors who read beyond the headlines will see that China's pace of growth has slowed from more than 11% a year to just over 10%. If you think about it further, you will realize that 10% growth, coming on the larger base, actually represents the same amount of real growth as last year. India is still growing strongly, as is much of Asia. Similarly, the pace of growth is slowing, but is still at a pace that developed countries can only dream of. Similarly, the popular press trumpets the fall in the oil price. It is only down when stacked up against the spike earlier in the year when speculators pushed it briefly to $140. When measured against the level of a year ago and two years ago, the oil price is up. Huge amounts of money are flowing to oil exporting nations which, like the Asian nations, are building infrastructure. We constantly hear about the bursting of the commodities bubble. Yet, metal prices are still well above long term trends. Iron ore prices are still rising sharply: and definitely not driven by speculators. The prices are set by producers dealing directly with users. When President Bush and the Treasury Secretary were trying to sell the bailout package, they painted a picture of dire consequences if the measure did not pass. That message seems to have been taken literally by many investors who are now even more terrified than they were before. Whether the U.S. grows by a couple of percent, or shrinks by a couple of percent, other parts of the world continue to grow. It is important to note that the emerging markets are far more intensive users of metals that the developed world. The U.S. is more of a service-oriented economy, whereas China and the other developing nations are more heavily involved in building factories, housing, infrastructure and other things that use a lot of metal. The net result is that world-wide demand for metals continues to grow. New sources of supply are needed to match that growing demand and to replace older mines as they are depleted. Much of the mining industry investment in this cycle has been directed to buying existing production. The major producing mining companies are being valued on the basis that metal prices will fall hard based on a U.S. recession impacting the rest of the world. That hasn't happened, and will not happen. And that means that the mining companies are being valued at exceptionally low levels in relation to actual and projected earnings. Teck Cominco represents exceptional value. The majors have suffered, but the smaller companies have been beaten down to absurdly low levels. We are already seeing takeovers as the larger companies go bargain hunting. The smaller and mid-tier companies are beginning to merge. Those deals will be accretive to shareholder value as they will create larger and stronger companies. Recovery in the junior mining sector will not be the same for all companies. Those companies that need to raise money in the near term will continue to face real challenges. Many will have to look to joint ventures, asset sales and mergers to find the money they need to move forward. There are many small companies with defined metal deposits, strong management, and cash. Those companies will come back early in the recovery. Some commentators worry that there will be no money for mine development. Clearly, if a junior walked into a bank tomorrow and asked to borrow a few hundred million dollars to develop a mine, they would get a rather chilly reception. However, the smelter companies, the metal trading companies, and the majors are awash in cash and are seeking new supplies. Baja Mining recently completed an $800 million financing package to develop a mine in Mexico. They worked with a consortium of Korean metal companies. The market seems to have missed the fact that Baja's project is now funded and well on its way to production. Base metal companies are out of favour, making advanced-stage deals like Baja excellent investment opportunities. Once the panic subsides, there will be a great many banks and other investors who welcome the opportunity to invest in tangible assets instead of the alphabet soup of financial hocus pocus that was on offer for the past few years. I believe that the current financial mess will result in a return to more fundamental-based investing and that move will benefit mine developers. It won't happen overnight, but it will come. The message here is that those juniors that hold metal deposits that can be developed into mines will see a return to more rational values. Those companies that are still hoping to find a metal deposit at some time in the future may have longer to wait. There is lots of cash available among the larger mining companies. Just looking in Canada, we see Barrick with nearly $2 billion, and Teck, Goldcorp and Inmet all sitting on more than a billion dollars of cash. What I'm saying here applies equally to precious metals, base metals, minor metals and uranium. We aren't looking to gains in the commodity prices. We are looking to companies that are adding value to their assets. The most immediate market action is likely to come in the gold sector. The cost of the financial bailout in the U.S. is measured in the trillions of dollars. The latest bailout package was $850 billion, including the tax breaks thrown in to get it approved. Add in the earlier bailouts and recognize that nationalizing Fannie Mae and Freddie Mac added $5 trillion dollars of liabilities to the U.S. government, bringing the total debt to $14 trillion. Don't forget the on-going wars in Afghanistan and Iraq and the huge trade deficit. The dollar was falling sharply before the burden of the bailouts was added. European governments are also conducting bailouts of failed banks. Ironically, the bailouts have hurt the price of gold. That is a short term reaction, as traders seem to reason: "OK, the U.S. financial system isn't going to collapse this week, I don't need to own gold", and they dump their holdings. Anybody who takes a longer term perspective will realize that if a government simply keeps spending enormous amounts of money that it doesn't have on things that do not generate a return for the economy, then the value of the currency will decline. The whole financial mess, for many investors, has destroyed confidence in the global financial system. Right now, investors seeking safety are flocking to U.S. treasury bills. That is particularly ironic, as the dollar, in the longer term, will suffer the most from the bailouts and the plummeting confidence. In time, gold will be the biggest beneficiary. I can't tell you what the gold price will be tomorrow, or next week or next month. Nobody can. I can tell you with certainty that the gold price will be high enough that the major gold producers will continue to mine it. As long as gold companies are mining gold, they will be looking for new deposits to at least offset the amount mined each year. The juniors will continue to play an important role in finding and developing new gold deposits. It doesn't really matter what the gold price is: a new discovery will generate big returns for shareholders of a junior gold company. Advancing a deposit toward production will generate returns for shareholders of a junior gold company. It's not hard to make the case that the situation in the junior mining sector will improve in time. Of course, we all want to know precisely when the markets will turn around. Just remember that the situation always looks bleakest at the bottom of the market and it looks rosiest at the top of the market. It requires a lot of nerve to invest contrary to what appears to be the right thing to do. At present, at least on the surface, this appears to be a really bad time to be investing. And that makes it the best time to be buying. The greatest gains come from buying at the bottom of the markets and selling at the tops. That means buying when prevailing wisdom says it is a bad time. We will never know exactly when the bottom is. Here are some things to consider at present. Over the past few weeks, Warren Buffet has invested $12.7 billion into the markets, including $5 billion into Goldman Sachs, one of the investment banks. The popular press thinks it strange that Buffet is investing at a time when things are so bad. But, that is precisely how he became the world's richest investor. Other signs that the worst may be over: the U.S. bailout has been approved. It will take some weeks for the program to be implemented, but at least bankers know there will be relief coming. The failed banks are being snapped up quickly by other banks. In the latest deal, Citigroup tried to scoop up Wachovia within a day of its collapsing, but they were outbid by Wells Fargo. Citigroup, which had the smarts to avoid the moves that led other banks into trouble, published a report last month that examined the commodities. They concluded: "It is important not to lose sight of the long term picture. We regard these conditions as a correction ... in a secular bull market. The drivers of the super cycle - urbanisation and industrialization in China and supply shortfalls are intact. Indeed the next up-cycle could be even more powerful than its predecessor." If that report had come from one of the failed banks, I would not have paid much attention. Citi had enough smarts to avoid the mistakes that overtook so many of the other banks. Investors are not going to suddenly rush back into the junior resource markets. But, those who buy the solid companies at the present severely depressed prices stand to enjoy big gains in the fullness of time. The most immediate reaction will come from within the industry. Smaller companies will merge in deals that add shareholder value. The larger companies will be taking over smaller companies with good deposits. To give an indication of the valuations: At present, major gold companies are valued on the basis of just under $200 per ounce of total gold resources. Juniors, on average, are valued at a mere $29 per ounce. At prices like that, the juniors must look extremely enticing to the larger companies. Obviously, there would be takeover premiums that would generate returns from the current price levels. Companies like CGA Mining, which is close to production, look very attractive.Another interesting area is platinum: the price is down 60% from the $2,300 level earlier this year. Demand is growing and supplies are constrained. The market was clobbered by a big selloff by a platinum ETF. Eastern Platinum is making big profits even at the current price and will do very well with a rebound. It's a similar situation for silver: development stories like Bear Creek, small producers like Aurcana and Great Panther. Uranium is going to come back in the not too distant future. Hathor has made a very important discovery and is not getting full value. Soon enough, investors will again wake up to the fact there is an energy shortage and uranium stocks will again become popular. Panic selling at this stage is definitely the wrong thing to do. Taking advantage of the panic selling of others could net you some good companies at attractive prices. Be selective. Be patient. The market will come back. |
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