I attended the Hard Asset Conference on Monday and Tuesday of this week. According to veterans of past NYC Hard Asset Conferences, this one was sparsely attended.
It was a busy time as I visited with about two dozen junior gold mining companies, looking for more emerging producers. There were a few producers identified that were not on my radar screen like High River Gold, Alexis Minerals, Great Basin Gold, Timmons Gold, and Petaquilla Minerals.
While there, I sat down with representatives from a few companies on my valuation list including Metanor Resources, San Gold Resources, Jaguar Mining, Western Goldfields, Jinshan Gold Mines, and Apollo Gold. I also visited with representatives from New Gold.
The highlight was meeting with Metanor’s management at the conference. I learned that Metanor was mentioned in one of the regional newspapers. It was listed as the top performer for 2008 among companies in the Montreal Index. The drill program at Metanor’s Barry Project is going very well and everything is moving ahead on schedule at the mill. The mill is running 24/7 for shareholders.
San Gold was also there. I spoke to Arness and he was excited about San Gold's exploration program. I don't own San Gold any longer, but still think it is a nice exploration play with their aggressive drilling program in the gold rich Red Lake area. The stock price is more dependent on proving up the resource than increasing production at this point IMHO.
As time permits, I will update my valuation list by adding the five emerging producers visited this week. It will take a while to synthesize and work through all the information gathered on the companies in NYC.
Junior gold mining companies (emerging producers and explorers) remain undervalued compared to both the price of gold and major gold producers IMHO. Let's hope that changes soon.
Cheers!
Gold Stock Strategist
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Full disclosure: I own shares in several of the companies mentioned above. The information provided in this post is believed to be correct, but not guaranteed. Investing in junior gold miners entails risks. Readers are responsible for their investment decisions. Do your own due diligence.
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2 comments:
Scott, just wanted to say thanks for identifying Gold Resources in your piece on valuation of near term producers. Caught my eye and I started the DD, liked it. I haven't had time and funds to establish a full position yet, but the initial buy was at $5, showing a gain of $1 and more today. The opportunity I see in Gold scares me. Too much concentration, altho I'm still way overweight Moly, holding my Mercator and Thompson Creek and then heavy in met coal as well, for a play on steel. thanks again, and BOL! Dan Ross
Dan, thanks! I'm still assessing Gold Resource. The financial metrics are attractive. But they have had problems as they move into production. I need to look over their balance sheet and other financials before doing a full valuation. Thanks again for the kind comments.
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