Patagonia Gold Share Discussion Threads

[glennrcharles] 09/3/2016 15:56

A function of the price of Gold?

[robers98] 09/3/2016 11:20

Hours after Argentina cut a deal with New York hedge funds to end a nasty, 15-year-old debt dispute, the government’s top economic officials took to the podium in Buenos Aires to bask in the moment.

First to speak that February evening was the finance minister, Alfonso Prat-Gay. He’s an old JPMorgan Chase & Co. guy, a currency strategist. To his left sat Luis Caputo and Santiago Bausili, the two men in charge of the ministry’s debt program. They too are JPMorgan alums, and both would go on to serve stints at Deutsche Bank AG. To Prat-Gay’s right was the cabinet secretary, Mario Quintana. He’s an ex-private equity guy, the founder of a firm called Pegasus Venture Capital.
Wall Street is back in favor in the new Argentina, and in a big way. Since winning office in November, President Mauricio Macri, a former businessman himself, has loaded his administration up with traders, financiers, entrepreneurs, economists and corporate executives.
It’s not the kind of move that a leader would consider right now in, say, the U.S. or Spain or Greece, places where the anti-banker sentiment has reached a fevered pitch in the past few years. But in Argentina -- where a decade of government intervention in the economy, peppered with a strong ideological bent, has fueled runaway inflation and stagnant growth -- the population seems more open to the idea. Macri wants to undo those policies as quickly as possible and he wants professionals well schooled in the laws of free markets to do it.
“People got tired of living in a place where the state stuck its nose in everything,” said Miguel Kiguel, who was the country’s finance undersecretary back in the 1990s. Tops among the “absurd” regulations that were grating on Argentines, he said, were a maze of measures that tightly controlled everyone’s access to dollars.

[investment dave] 09/3/2016 10:11

Is there some news out

[hazl] 04/3/2016 20:17

'Gold managed to make the new highs despite the latest nonfarm payrolls report, which showed that 242,000 jobs were created in February, well above expectations for gains of 195,000.

However, economists dismissed the surprising strength in the headline number, noting that the details of the report, particularly wage growth, which fell 0.1% last month. Other economists note that most of the gains in employment growth were made as a result of more part-time jobs.

With gold breaking out of its consolidation period, momentum is expected to continue next week as a strong majority of retail and market analysts remain bullish in the near-term, according to the Kitco News Wall Street vs Main Street gold survey. This week, 1,254 people participated in Kitco’s online survey, of which 1,047 participants, or 83%, said they are bullish on gold next week. At the same time, 10 out of 19 market professionals, or 53% said they expect to see higher prices.

The next push is expected to come later in the week when the ECB is expected to announce more easing measures to try to stimulate its faltering economy and boost falling inflation pressures.

Although looser monetary policy measures will be negative for the euro, analysts said that as much as the U.S. dollar will benefit, so will gold prices.'

[hazl] 04/3/2016 19:02

Very true justino.....Ithink we are definitely in a bit of a bull market......time will tell.

[justino] 04/3/2016 14:17

It's interesting that no matter how good the numbers are coming out of the US, gold still holds/rallies. I think the deeper macro economic issues are what is supporting gold and I don't think they are going away any time soon.

[hazl] 04/3/2016 14:01

Only modest drop in gold so far despite non farm payroll numbers in US.8-)

IMO

[lochlea] 04/3/2016 13:13

Justino

"......so we just need the company to prove it can meet the Cap Oeste targets. This will give investor confidence in the new CEO and IMO will change the outlook for PGD."


Couldn't agree more with you on that.

[hazl] 04/3/2016 12:53

In fact the chart has steadily climbed since October!

IMO

[hazl] 04/3/2016 12:51

good points justino

[hazl] 04/3/2016 12:49

Patagonia HAS done well in the last little while as gold mining sentiment has been restored to some extent.
This chart is almost a mirror-image of the rest out there.
Every share needs to consolidate.
If POG goes down after the jobs report ,which is possible then,I still think that doesn't detract from a rising chart in PGD and gold-miners generally this year.
Time will tell.

But I think you're on a sticky wicket if you suggest it hasn't done well lately and there has been more positive interest than for months!


imo

[justino] 04/3/2016 12:46

In order to rise significantly we need 3 things to happen to satisfy investors:

1. Cap Oeste to start producing 17,000oz 4th quarter this year, on schedule, which will be a good indication of whether we will meet the 67,000 oz total for 2017.

2. Any large sellers and/or sale overhangs to clear.

3. Gold price to remain circa $1200+

I think number 2 is playing a significant part in keeping the share price down at the moment but is only a matter of time. Gold looking good to stay circa 1200, so we just need the company to prove it can meet the Cap Oeste targets. This will give investor confidence in the new CEO and IMO will change the outlook for PGD.

If it all happens we are looking at $30m+ profit for 2017 which would give the company a big exploration/development budget and a significant rerating.

[luni2] 04/3/2016 12:02

And you can take that Proactive Investors article as just another bulletin board ramp by shareholders in the company. Definitely not an objective or independently sourced article!

[lochlea] 04/3/2016 11:46

Yes, credibility needs to be restored before buyers return in any great number imo.

[gsg] 04/3/2016 11:19

and a history of non delivery and false promises.

[chutes01] 04/3/2016 11:11

an overhang of shares and uncertainty over the fund raise for new mine

[investment dave] 04/3/2016 11:03

Why is this not rising then hazl Did you read proactive investor article pretty darn positive and yet no movement here

[hazl] 04/3/2016 09:32

gold price steaming up at the moment........

imo

[investment dave] 03/3/2016 17:44

HomeNewsArticlesLON:PGDPatagonia Gold: THE INVESTMENT CASEINVESTMENT OVERVIEWPatagonia Gold offers big upside in South AmericaShare 11:55 03 Mar 2016Patagonia's gold exploration upside in Argentina and Uruguay is now supported by small scale gold productionPatagonia Gold offers big upside in South AmericaINVESTMENTOVERVIEW: PGDTHE BIGPICTUREConstruction at Lomada-- adds Cap-Oeste plans--Patagonia Gold (LON:PGD) holds extensive ground on the Deseado Massif in Argentina, an area that stretches several hundred kilometres inland from the Atlantic coast and that has already played host to several large gold mines.Historically, Patagonia Gold has focussed primarily on exploration ground across three licenses, El Tranquilo, La Paloma and La Manchuria.More recently the company started small scale gold production at its Lomada project on the La Paloma property, with annual production running at around the 20,000 ounce mark.The thinking behind this model conforms to an age-old prejudice that survives in London's mining investment circles: that large scale exploration upside should be supported by cash flow from a smaller producing operation.New mine for oldBut it's small and the resource is running out so in February Patagonia took a major step by announcing that it was closing to be replaced by another prospect in Argentina, Cap-Oeste.Lomada has sufficient ore stockpiled to keep producing gold until the end of 2017 by which time Cap-Oeste should be up and running fully at 67,000 oz per year.Cap-Oeste, on the El Tranquilo property, is still referred to as Patagonia's "flagship project." On its own it holds 1.3 mln ounces of gold equivalent in the indicated category, with a further 385,000 ounces inferred.Just down the road another deposit, COSE, adds 83,000 further gold equivalent ounces in the indicated category, with a further 16,000 ounces inferred.Cap-Oeste has been a stop-start project thus far and was deemed at one point to have too short a mine life to warrant further development.

[kirk 6] 03/3/2016 16:52

ID - why is this not rising then? Almost getting abit concerned as to why PGD is not so much higher?? Gold now well above 1250 in which PGD should be realising a solid profit? Ask yourself why is this not 5-10p

[johnsalv] 03/3/2016 16:45

Patagonia Gold (LON:PGD) holds extensive ground on the Deseado Massif in Argentina, an area that stretches several hundred kilometres inland from the Atlantic coast and that has already played host to several large gold mines.

Historically, Patagonia Gold has focussed primarily on exploration ground across three licenses, El Tranquilo, La Paloma and La Manchuria.

More recently the company started small scale gold production at its Lomada project on the La Paloma property, with annual production running at around the 20,000 ounce mark.

The thinking behind this model conforms to an age-old prejudice that survives in London’s mining investment circles: that large scale exploration upside should be supported by cash flow from a smaller producing operation.

New mine for old

But it’s small and the resource is running out so in February Patagonia took a major step by announcing that it was closing to be replaced by another prospect in Argentina, Cap-Oeste.

Lomada has sufficient ore stockpiled to keep producing gold until the end of 2017 by which time Cap-Oeste should be up and running fully at 67,000 oz per year.

Cap-Oeste, on the El Tranquilo property, is still referred to as Patagonia’s “flagship project.” On its own it holds 1.3 mln ounces of gold equivalent in the indicated category, with a further 385,000 ounces inferred.

Just down the road another deposit, COSE, adds 83,000 further gold equivalent ounces in the indicated category, with a further 16,000 ounces inferred.

Cap-Oeste has been a stop-start project thus far and was deemed at one point to have too short a mine life to warrant further development.

But it’s a good-looking orebody and now Patagonia is coming round for a second swing.

The Cap-Oeste pit design contains a total measured and indicated resource of 1.56Mt at 2.21 g/t gold and 80 g/t silver for a gold equivalent grade of 3.29 g/t.

The current plans envisage a 24 month mine life, with the option to increase this to six years with the development of the two underground projects.

Talks are now underway over the financing of the initial phase of the project, which will cost US$13mln upfront.

That includes the pad construction, fleet expansion, plant construction though a further US$4.5mln for working capital will also be needed.

Discussions are ongoing over raising the finance.

Meanwhile, exploration will continue at Lomada along the nearby Paloma blocks and breccia Sofia target and the along strike extension of the Lomada de Leiva structure.

If a commercial resource is discovered, the mine will re-open, Patagonia said.

Further afield

Exploration will also continue on other prospects in Patagonia and newly acquired ground in Uruguay.

In November 2015, Patagonia announced that it had entered into an option to acquire the Carreta Quemada and Chamizo gold projects in Uruguay from Canadian-based Trilogy Mining.

Under the terms of the deal, Patagonia will earn an initial 51% in the projects by spending US$1.5 mln over the course of the next 18 months.

It can then go to 80% by funding a further US$2 mln of expenditure, at which point if the projects are showing at least 400,000 ounces of JORC equivalent gold, Trilogy can exercise a put option that requires Patagonia to acquire the remaining 20% of the project at a price of US$10 per ounce of gold discovered, to be satisfied either in cash or in new shares in Patagonia.

Alternatively at that point, Trilogy will be able to elect to stay in and fund its 20% portion of the expenditures going forward.

The upside on these projects would appear to be considerable, with Patagonia talking of a 35 kilometre strike length at Carreta Quemada although no detailed drilling has yet been done.

At Chamizo, meanwhile, historical drilling done in the 1990s by American Resource Corporation at shallow depths identified two separate ore zones with grades running at between 1.5 grams and 2.0 grams gold per tonne over true widths typically running at 5 metres.

At this stage Patagonia puts the potential mineralisation at one of the zones at around 50,000 ounces, but says that thus far mineralisation elsewhere is too discontinuous to estimate further resource potential.

Nonetheless, these will clearly be projects to watch in the near future as the company adds to its existing resource inventory, centred in Argentina.

[investment dave] 03/3/2016 15:46

Good flying this should be well over 3p

[hazl] 03/3/2016 10:12

A little OT but........VERY RESTFUL