orm still has the village worry IMO. ggc may do well but I did not care for the last two sets of NR's concerning the assays. Goz could be the winner there. The main guy started Cumberland which became a buy out. I do not follow the others.
I like Western Goldfileds Here is a link to their presentation at Denver today. Registration is easy. You can click on the companies listed for audio with slide show presentations.
http://events.onlinebroadcasting.com/denvergold/092407/index.php?page=redirectHere is what Hugh Cleland, one of Canada's top fund managers says:
Western Goldfields: Actually, this one has held up better than most. From a June low of about $2.08, it hit a July high of about $3.10. It was quite a rude shock, however, when I saw a number of market-sell orders (probably margin calls) take it down to $1.75 within 20 minutes of the open on Thursday, August 16, 2007. (August 16th has been the bottom to date.) It closed Friday (the next day) at $2.44. Six features of Western Goldfields continue to make it a core position:
1) World-class management, starting with Randall Oliphant, former CEO of Barrick Gold. Randall convinced a top-notch mine-development team to join him from Barrick, including President Ray Threlkeld.
2) World-class resource: The NI43-101 resource now stands at close to 4 million of proven and probable gold ounces.
3) Location: continental USA means no political risk, and its fully permitted.
4) The company is fully financed to production, including all necessary debt and equity. (i.e., the only way to acquire shares now is in the open market.)
5) Management is exceeding expectations, having recently announced that the mine will be going into production in January 2008, 3-4 months ahead of the previous guidance. (That almost never happens in the mining industry…)
6) Valuation: with the mine going into production in January, Western Goldfields is in the process of being re-rated from a pre-production multiple of ½ times NAV to the 1 to 1.5x NAV multiple that a producer gets. Bottom-line: with an NAV in the $4-$5 range (depending on the assumptions you want to use), the stock should be in the $4.00 to $7.50 range by February 2008, only six months away.
http://www.northernriversfunds.com/assets/downloads/Cleland%20-%20July%202007%20.pdfHere is Peter Hodson of SPROTT management on BNN TV Scroll down to the 7:30 time period. He talks about Western in his top picks a few minutes into the segment:
http://www.bnn.ca/shows/past_archive.tv?day=thurBill Cara's piece but his website has a lot more:
January 30, 2007
Another junior goldminer candidate, Tues., Jan. 30, 2007, 3:25 PM
Today we celebrated Scotland's favorite son, Robbie Burns, with a dish of beef stew, shortbread and haggis. Ray Threlkeld of Western Goldfields provided the lunch and the entertainment.
Entitled "Introducing a Unique Investment Opportunity," Threlkeld went through the usual presentation. My conclusion: what's not to like.
Here are the bullet points:
* Projected 9.5 years annual production of 165,000 oz. gold, starting (full prod.) April 2008
* Cost of sales of $335/oz
* All-in costs of $414/oz
* After-tax IRR est. to be +13 pct @$500 gold; +25 pct @600 gold; and +35 pct @$700 gold.
* Fully funded, fully permitted, and situated in Southern California with a grandfathered environmental permit and an environmental partner in Los Angeles County that needs their fill to cover disposed waste
* World-class resource with completed resource estimate of 3.61 million oz gold and a completed feasibility study for mining 2.36 million oz gold reserves.
* Additional resources are likely with drill results to be reported in February
* Conventional truck and shovel mining with run-of-mine heap leaching
* Politically stable environment " about 120 miles east of San Diego CA and 45 miles northwest of Yuma AZ.
* Outstanding management team that will likely build a success here with this property and use the shares to acquire similar properties for the next several years
* Completed a C$70 million financing a couple days ago, done overnight
* Arranged a C$105 million project debt financing in Nov-06
* Low $286 million market cap capable of expanding by a factor of three after the expected analyst rating upgrades
* Property called Mesquite was acquired from Newmont for 3.5 million WGI shares (ie, less than 10 pct) plus Net Smelter Return of between 0.5 pct and 2.0 pct. Newmont holds additional warrants to purchase 6.1 million shares
Why do you buy the shares of a goldminer? As Threlkeld says, it's because of (i) the resource (ii) management, and (iii) the price of gold. This one is a winner on all counts. I don't think WGI.TO will be trading at a low price for long.
The resource has already produced about 4 million oz of gold at an average cost of sales of less than $200, but was suspended by Newmont in 2001 due to low gold prices. But Newmont acquired expansion permits and grandfathered the mining rights before selling the resource. Another management team failed to do much, and present management stepped in recently (less than a year ago) with financing and a solid track record of success in the gold mining business. This is basically an old mine with a new story. I happen to like the story.
Chairman is Randall Oliphant who until 2003 was CEO of Barrick. CEO Threlkeld was formerly a senior officer at Barrick. Paul Semple and Wes Hanson have a track record of success in the industry, and CFO Brian Penny formerly held that position at Kinross.
Gold prices at this level will generate a substantial profit.
The stock trades on the Toronto Exchange (WGI) ($2.35) and in the USOTC market (WGDF) (US$1.96). I would expect a full U.S. exchange listing soon.
Until I get a better feel for the company, I will set a 12-month Price Target (PT) of C$4.00 (US$3.50). Should gold prices move higher, I will not hesitate to set a higher PT. This one is worthy of looking into. I will follow it closely here in the blog.
http://www.billcara.com/archives/2007/01/another_junior_goldminer_candi.htmlI am way long WGDFF/WGI.to. It had everything I can find that I want in a stock. Location, it has 4 million ounces of gold, it has world class management, they have exploration upside, they have connections. They are pouring gold now but full production starts January 2008 or sooner.
Here is something I am guessing at first time today. If you listen to the Denver show presentation Ray says WGDFF has moved new ore onto the old leach pad and started leaching. Further on during the question answer preriod, I believe, he mentions the time involved in the leach cycle. Two months. Seems to me the first gold pour will be by Thanksgiving.
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