Lyxr $ Frn Discussion Threads

[mattybuoy] 25/4/2013 13:43

Pre-market looking good for another fun day in the PM stocks. This is the first week I've enjoyed in the market for ages.

[mattybuoy] 24/4/2013 13:38

Yes I am aware of SND. There are too many shares out. It might be worth getting in after they do a massive reverse split like SSL did before taking off.

[jimbowen30] 24/4/2013 11:56

Good stuff - SSL is a long term winner imo. As you say Matty, the mining industry is going to struggle to get bank financing and equity dilution at this level is crazy or just not possible. So streaming will grow dramatically. Have you looked at SSL's sister company - Sandstorm Metals & Energy? Very early stage and they've had a few deals go wrong but maybe even more potential over the longer term

[jimbowen30] 23/4/2013 23:07

Agreed. Watson has stated SSL will pay a divi in a year a two, which I'm happy with given that they have plenty of opportunities to invest cash at present. These royalty and streaming companies could pick up some great deals given the current state of the junior mining sector. A divi will attract more institutions

[mattybuoy] 23/4/2013 14:21

Yes no reason why not. A divi would be nice though.

[jimbowen30] 23/4/2013 13:42

Matty - SSL might not have the explosive upside of some of the juniors but it's a nice cash generative midcap growth stock in the expanding area of streaming. I still think it will conservatively be $25-$30 within five years so that will do for me!

[mattybuoy] 23/4/2013 12:53

I might almost consider buying SSL at $7.

[jimbowen30] 23/4/2013 12:11

Matty - i knew it was huge so should have said 50 years +. Either way, it will come into production under Rio and Sandstorm will be a major beneficiary in the long term (and it's very long term with this deposit!)

[cashflo] 23/4/2013 11:42

cheers

I am with iweb - looks like I will have to set up a new account

[mattybuoy] 23/4/2013 10:37

cashflo,

TD Waterhouse or Interactive Brokers offer direct access to the whole Canadian market. Most people use the former.


jim,

Oyu Tolgoi will probably be producing for far longer than 50 years. It's a lot bigger than the stated numbers and some of the obsessives on IV think the best bits have yet to be drilled. There is a large incentive to play the thing down in order to stop the locals trying to extort even more money, yet the official numbers had to be big enough to get a major (Rio) to invest in it.

[cashflo] 23/4/2013 08:17

how do you actually buy some of these listed on T. my broker doesn't seem to recognise the codes? or even the exchange

[jimbowen30] 23/4/2013 02:09

Sandstorm is a great way to gain exposure to Colossus and Oyu Tolgoi and is my largest holding. I can't see the Mongolian government nationalising this but there is a lot of rhetoric and it's quite possible taxes might be increased. I think it has a 50 year mine life! It will also account for over 30% of Mongolian GDP and they don't have the skills to put this into production with overseas help. I'm sure all parties will win in the end. I can see why Nolan Watson of sandstorm described it as possibly the best mining deal of the 21st century.

[mattybuoy] 23/4/2013 01:03

The point about CSI is that the grades and widths are out of this world. Gold and platinum compete for the highest g/t on each drill. It's the richest rock on the planet and it's easy mining. That is why they didn't need to do a resource statement before moving to production.

Here is a recent relatively modest drilling intersection:-

SPD-184 intersected 26.65 metres grading 5.10 g/t gold, 11.22 g/t platinum and 9.42 g/t palladium also increasing the width of the CMZ in this location

You never see high-grade PGMs in those widths anywhere.

Really the only question is how big the sucker is. Hence, I guess, the name ...

[riggerbeautz] 22/4/2013 22:24

Can you shout about the likes of CSI before they move please :) Trying to find expected cost of production, any pointers?

EDIT: just found latest presentation,the words "low cost" are being used there like everything else I can find. Funded to initial production, then they may need more. Question being how much?



This is a ponder moment, looking for more clarity, but probably won't find much more.

[mattybuoy] 22/4/2013 21:52

Entree Gold (T.ETG) is another company which has done a deal with Sandstorm Gold. Nolan Watson described this as something like "possibly the greatest mining deal of the 21st century".

ETG is well in the tank these days, trading at a mere 25c which is below the cash on the balance sheet. If you read Investor Village or Stockhouse there is endless second guessing as to what's going on with the endless game at Oyu Tolgoi. I frankly struggle to even understand most of this blather let alone form an opinion on it.

However, the investment by Sandstorm says to me that (at some point) Entree will likely participate in the fruits harvested from this vast mega-deposit. Or at worst it will get bought out by someone for a lot more than the current $38m market cap. It is sitting on a truly vast heap of high-grade metal in Mongolia it just has no control over actually extracting that value.

So a long-term punt perhaps.

[mattybuoy] 22/4/2013 21:43

Another stock which has attracted notable insider buying recently is Colossus Minerals (T.CSI), the owner of the richest gold-platinum rock on the planet at Serra Pelada in Brazil.

It's up 21% today, but that could mostly just be rebound from last week's carnage. Now trading at just over $2 this is still a fraction of the heights reached during the "discovery phase".

Meanwhile in the real world the company is ramping up for production at the start of the second half of 2013 (that's soon) and it looks like the first ever resource statement may also arrive in the near future.

There ought to be no way this company loses money whatever the gold price is, and they are fully funded thanks partly to a streaming deal with the ever more active Sandstorm Gold.

[mattybuoy] 21/4/2013 21:08

Here's one I may have mentioned some time ago, not sure.

Zargon Oil & Gas (T.ZAR) is a former income trust which specialises in using tertiary recovery methods on oil pools in Alberta/Sask. which are too small to be of interest to larger companies.

The stock currently yields 11% (9.35% after witholding tax). Perhaps the market is assuming that the dividend will be cut (for the second time) or maybe it's a perception that the company is "gassy", which is not really correct. Production is over 60% oil. Besides which nat gas has now finally come out of its slump caused by over-production in the US and prices are normalising.

Zargon does have some debt and has been reporting losses but it has always remained cash flow positive.

Anyway what is interesting is that the CEO has over the last 3 weeks or so bought nearly $700,000 worth of stock on the public market. Quite a positive sign wouldn't you say?

[scyther] 03/4/2013 11:01

Anyone on here have any thoughts on canarc resource corp. CCM.

Run by the same team as endeavour silver bradford Cooke is ceo etc

Trying to secure finance for the new Polaris gold property they have to production.

Scy

[riggerbeautz] 30/3/2013 10:51

Snicks noticed the Falcon listing and a fair bit of not so subtle talking the price down noise, keeping an eye on that one. For some foolish reason also OER, part because of EEL and part because at some point they might do something with all these resources they are acquiring.

Miners not interested at present, maybe the odd quality one will get my attention, but the sector is out of sorts, for want of better description.

[snickerdog] 26/3/2013 09:40

Rigs, I might have a few for you too, I come across some interesting ones a bit and am definitely looking more at the TSX oil sector.

LOI interesting and good possible leverage, AEY has had a massive bummer of late especially with split opinion over whether thery are going to get a full financing or have to introduce an equity element as well. Results this week?

It's the cash element and forward looking income vs market cap which could lift it a little from the spiral down to 28p. Beyond that there might be a few other catalysts.

Falcon dual listing on Thursday - the guys behind Cove are in this one and have diversified risks with portfolios in 3 continents and all with free carries or MOUs with majors.

Will pop in later with a few more to look at.

Still holding one Canadian miner - I don't know who this guy is but it would be great if they pull their finger out and do a deal:

[mattybuoy] 14/3/2013 12:43

This is big, or will be in a few years ...

Methane Hydrates



Note the reference to "the Canadians". I don't think there's any listed juniors operating in the space quite yet though.

[jimbowen30] 12/3/2013 09:57

Interesting interview with Rick Rule about junior miners. The key is the quality juniors will do very well and have no issues with funding.

[contrarian2investor] 27/2/2013 14:58

My little tiddler Canacol gets a farm out deal with ConocoPhillips a $70 bln mega cap. More farm out deals to come.

Canacol Energy Ltd. and Sign Agreement for Shale Oil Exploration Project in Colombia

[mattybuoy] 21/2/2013 01:50

Rigger,

With Mart it was reading Oiljack's posts on IV that convinced me. Also my realisation that light sweet crude in a dodgy country might be a better bet than "mining" for oil and gas in North America.

Looking at North America, it is becoming clear that there are very few companies who are actually making money out of fracking. Most of them are just increasing production by issuing shares and debt without concern for the actual profitability.

This is why Peyto is an absolute gem of a company. They are the anti-thesis of this approach since they will only spend money or raise if it makes sense to do so based on very stringent per-share financial criteria. Their website is well worth reading just for the sheer amount of nitty gritty and dare I say it honesty on display.

The stock 500 bagged over the first 10 years of its life (assuming divis re-invested). That won't happen again, but for a low-risk long-term growth stock I don't think you'll find anything better out there. They have at least 20 years of growth ahead of them based on the current assets, and the semi-bankrupt nature of much of the Canadian oil patch may well present them with more opportunities as time progresses.