In an interview with 'The Gold Report,' the author of The Mercenary Geologist newsletter, Mickey Fulp, said he considers most junior miners overvalued, but some like Amarillo Gold Corp. (TSX.V:AGC), Goldgroup Mining Inc. (TSX:GGA)(OTC:GGAZF.PK) Otis Gold Corp. (TSX:OOO) (OTCBB:OGLDF) remain undervalued.
He likes Amarillo Gold because two of its projects have over 1.5 million ounces of "43-101 qualified resources."
Since going public, he cites 14 of the 15 months Goldgroup Mining Inc. via its Cerro Colorado mine, have positive cash flow. He basis his assessment of them being undervalued on " per-ounce-in-the-ground valuation." They also have two advanced exploration projects with resources: Caballo Blanco in southeast Mexico and San Jose de Gracia in western Mexico, said Fulp.
Last, when measured on a per-ounce basis against the overall peer group they compete against, Otis Gold Corp. is undervalued. They have the Kilgore project in Idaho, and are continuing to drill and enlarge another resource.
Showing posts with label Junior Gold Miners. Show all posts
Showing posts with label Junior Gold Miners. Show all posts
Thursday, October 21, 2010
Thursday, May 27, 2010
Freeport-McMoRan (NYSE:FCX), Newmont (NYSE:NEM) Up Early
Although gold futures have been quiet and level today, gold miners Freeport-McMoRan (NYSE:FCX) and Newmont Mining (NYSE:NEM) are up, with Freeport rising almost five percent and Newmont increasing by a little over 3 percent as of 1:00 p.m. EDT.
These are evidently investors and not speculators and traders mostly driving the prices, as volume was about normal for the 3-month average for both companies.
A growing number of analysts are recommending larger gold miners for investors, even though it seems the junior gold miners will make investors more money.
But the large miners like Freeport and Newmont are much safer and have a more predictable future, whereas junior miners will continue to be all over the place until they receive the type of financing which brings them to more stable players.
Watch the investment money in the companies to see who will emerge in the case of the miners, as if the projected resources their mining can be confirmed as real, then it's just a matter of finding those willing to invest in them to bring the resources out.
These are evidently investors and not speculators and traders mostly driving the prices, as volume was about normal for the 3-month average for both companies.
A growing number of analysts are recommending larger gold miners for investors, even though it seems the junior gold miners will make investors more money.
But the large miners like Freeport and Newmont are much safer and have a more predictable future, whereas junior miners will continue to be all over the place until they receive the type of financing which brings them to more stable players.
Watch the investment money in the companies to see who will emerge in the case of the miners, as if the projected resources their mining can be confirmed as real, then it's just a matter of finding those willing to invest in them to bring the resources out.
Friday, May 14, 2010
Eldorado Gold (TSE:ELD), Yamana Gold (NYSE:AUY), AngloGold Ashanti (NYSE:AU), All Close Session Higher
It was interesting watching gold mining companies like Eldorado Gold
(NYSE:EGO) (TSE:ELD), Yamana Gold (NYSE:AUY) and AngloGold Ashanti (NYSE: AU) rose uniformly with the price of gold today, and they weren't the only gold miners doing that.
I checked out about 15 gold miners, and everyone of them moved in sync with gold prices throughout the day.
It went like this. First there was a huge increase in the price of gold, rising to record levels again, reaching just below $1,250 an ounce. Then right before noon there was a quick downward plunge, and not too long after noon, gold prices started upwards again.
Go and look at the charts of the companies listed above, and a number of others like NovaGold Resources (AMEX:NG), Apollo Gold (AMEX:AGT) Iamgold (NYSE:IAG), Barrick (NYSE:ABX) and Newmont (NYSE:NEM), and you'll see the same behavior. Pretty interesting.
That brings me to the conclusion that gold miners in general are starting to finally move in step with gold, and that gold prices have now seemingly taken them under their wing so to speak, and are driving the gold miners along with it.
A lot of gold mining investors have been waiting for this to happen on this large scale, and now it seems to be locked it; at least for a period of time.
Obviously fundamentals will be significant in the long term, but for now, it seems like this is going to be the trend, albeit one that could change just as quickly as it began.
Two things are driving this now, the fears over the repercussions of China dealing with their inflation problems, and the European debt crisis which will drag on for many years, and of which there is no way of knowing where it will all go or end.
A growing number of analysts and economists believe this is the end of the euro, as Europe didn't have the will to defend it and not bail out their socialist, welfare neighbors.
To the contrary, they're encouraging the behavior by bailing them out, although in reality they're directly bailing out the banks which hold the debt or bonds which have provided the good life for the socialist, who continue spending and consuming, using other people's money.
For gold investors this is good news, as there is absolutely no short-term fix for this, and no matter how much money is ended up thrown at it, it won't solve the problem, only extend it down the road, and how far down the road will only be determined by how many trillions they end up throwing at it.
So maybe the socialists will get there way (for a very short time), but sooner or later the bill will come due, and if this goes like I think it will, with the Federal Reserve, central banks and governments around the world still drunk with spending from the bailout of banks and businesses around the globe, we'll probably see the most extraordinary and outrageous behavior from these people that will be unprecedented in history as to its scope, and gold and well-run gold mining companies should continue to flourish as this plays out over the years.
AngloGold Ashanti rose by $0.19, Yamana Gold increased $0.13 and Eldorado Gold was up $0.25, all in New York.
(NYSE:EGO) (TSE:ELD), Yamana Gold (NYSE:AUY) and AngloGold Ashanti (NYSE: AU) rose uniformly with the price of gold today, and they weren't the only gold miners doing that.
I checked out about 15 gold miners, and everyone of them moved in sync with gold prices throughout the day.
It went like this. First there was a huge increase in the price of gold, rising to record levels again, reaching just below $1,250 an ounce. Then right before noon there was a quick downward plunge, and not too long after noon, gold prices started upwards again.
Go and look at the charts of the companies listed above, and a number of others like NovaGold Resources (AMEX:NG), Apollo Gold (AMEX:AGT) Iamgold (NYSE:IAG), Barrick (NYSE:ABX) and Newmont (NYSE:NEM), and you'll see the same behavior. Pretty interesting.
That brings me to the conclusion that gold miners in general are starting to finally move in step with gold, and that gold prices have now seemingly taken them under their wing so to speak, and are driving the gold miners along with it.
A lot of gold mining investors have been waiting for this to happen on this large scale, and now it seems to be locked it; at least for a period of time.
Obviously fundamentals will be significant in the long term, but for now, it seems like this is going to be the trend, albeit one that could change just as quickly as it began.
Two things are driving this now, the fears over the repercussions of China dealing with their inflation problems, and the European debt crisis which will drag on for many years, and of which there is no way of knowing where it will all go or end.
A growing number of analysts and economists believe this is the end of the euro, as Europe didn't have the will to defend it and not bail out their socialist, welfare neighbors.
To the contrary, they're encouraging the behavior by bailing them out, although in reality they're directly bailing out the banks which hold the debt or bonds which have provided the good life for the socialist, who continue spending and consuming, using other people's money.
For gold investors this is good news, as there is absolutely no short-term fix for this, and no matter how much money is ended up thrown at it, it won't solve the problem, only extend it down the road, and how far down the road will only be determined by how many trillions they end up throwing at it.
So maybe the socialists will get there way (for a very short time), but sooner or later the bill will come due, and if this goes like I think it will, with the Federal Reserve, central banks and governments around the world still drunk with spending from the bailout of banks and businesses around the globe, we'll probably see the most extraordinary and outrageous behavior from these people that will be unprecedented in history as to its scope, and gold and well-run gold mining companies should continue to flourish as this plays out over the years.
AngloGold Ashanti rose by $0.19, Yamana Gold increased $0.13 and Eldorado Gold was up $0.25, all in New York.
Thursday, May 13, 2010
Freeport McMoRan (NYSE:FCX), Newmont (NYSE:NEM), Randgold (Nasdaq:GOLD) Down Today
Freeport McMoRan (NYSE:FCX), Newmont (NYSE:NEM) and Randgold (Nasdaq:GOLD) were all down just after mid-day, as gold futures prices have fluctuated back and forth above and below $1,237 an ounce.
This isn't anything to be too concerned about, as there was no way they could continue to explode at a sustainable level at the pace of the last couple of days.
But I do think the gold mining sector should enjoy some good times overall going forward, as the gold mining companies haven't moved in unison with the price of gold futures, and they seem to be ready to do just that.
Some junior gold miners that haven't received much interest should especially do well, although the large ones should have some nice movements too.
This isn't anything to be too concerned about, as there was no way they could continue to explode at a sustainable level at the pace of the last couple of days.
But I do think the gold mining sector should enjoy some good times overall going forward, as the gold mining companies haven't moved in unison with the price of gold futures, and they seem to be ready to do just that.
Some junior gold miners that haven't received much interest should especially do well, although the large ones should have some nice movements too.
Wednesday, May 12, 2010
Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) About to Take Off?
The fairly new Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) may be a great way to play the gold sector now, as gold is about to take off as most barriers have been removed, and even more important, gold mining companies look like they're finally going to start moving up with gold futures' prices, which Market Vectors Junior Gold Miners ETF could strongly participate in.
Why this is important at this time, or any time market conditions are like this, is the majority of large gold miners have most of the value they represent built into the share price of the stock. While they will definitely improve in value as gold prices rise, they are mature companies that won't move quickly.
On the other hand, junior gold miners are ready to break out, and it's quite possible more than one will skyrocket as a result, which will strongly benefit anyone who has invested in the Market Vectors Junior Gold Miners ETF.
A number of those following the gold industry believe the junior gold miners are the ones with tremendous upside potential, and because they have been held back for some time, as gold continues to move up, a lot more notice will go toward the junior gold miners and their fundamentals, which in a number of cases are underestimated.
Eventually they'll move to their true value, and when they do, as long as they're represented in the Market Vectors Junior Gold Miners ETF, it will rise with them.
Of course if you prefer to play it safe, you can always go the route of the Market Vectors Gold Miners ETF (NYSE: GDX), which moves in accordance with the large cap miners.
Either way, they're both positioned strongly, but the Market Vectors Junior Gold Miners ETF is probably about to take off, and it's a solid bet those investing in it won't be sorry they are.
Why this is important at this time, or any time market conditions are like this, is the majority of large gold miners have most of the value they represent built into the share price of the stock. While they will definitely improve in value as gold prices rise, they are mature companies that won't move quickly.
On the other hand, junior gold miners are ready to break out, and it's quite possible more than one will skyrocket as a result, which will strongly benefit anyone who has invested in the Market Vectors Junior Gold Miners ETF.
A number of those following the gold industry believe the junior gold miners are the ones with tremendous upside potential, and because they have been held back for some time, as gold continues to move up, a lot more notice will go toward the junior gold miners and their fundamentals, which in a number of cases are underestimated.
Eventually they'll move to their true value, and when they do, as long as they're represented in the Market Vectors Junior Gold Miners ETF, it will rise with them.
Of course if you prefer to play it safe, you can always go the route of the Market Vectors Gold Miners ETF (NYSE: GDX), which moves in accordance with the large cap miners.
Either way, they're both positioned strongly, but the Market Vectors Junior Gold Miners ETF is probably about to take off, and it's a solid bet those investing in it won't be sorry they are.
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