Here are some stocks that interest us in the gold space
Chris Temple joins us to outline a couple gold stocks that we think should be of interest to investors. Seabridge Gold and Avino Silver and Gold Mines show that there are good stories in the industry that can provide investment growth even when the underlying precious metals prices are falling.
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The real potential for Seabridge is not only gold, but copper. There is a lot of the world yet to electrify……Much of India and Africa.
Hence why I did not chase DWTI. Just biding my time in UWTI. Same with Russia. Got burned on RUSS so I have stuck with playing RUSL. Gold, same. I am sticking with NUGT for now. DUST ain’t moving. My Looooooong plays are ECA and BABA. Got some spare change sitting in some pennies for fun. The only position chafing my butt is SPXS.
Crude has been busting right through its recent supports and prior peaks all morning. It is a sell in my view.
So you agre with Doc,Listener?
Almost always Al. When we agree it virtually always works out well.
Al…..you are a hoot…..I really enjoy listening to these reports.
Thank you guys for doing such a good job.
Regards,
John
One downside for Avino is their long term chart. It’s never been above $3 or thereabouts. I think lots of buyers of miners like to see potential in a new bull market from looking at past performance in a bull market. May be simplistic and isn’t taking into account newly added potential but I think that’s where many are. JMO
The reason why Seabridge has such a high beta is simple: while it has the largest potential reserves of gold and copper in North America, the grades are low. It NEEDS higher gold and copper prices compared with energy and labor to be viable.
That’s why I discuss Seabridge in the context of “optionality” and its leverage. It would be meaningless if I, for example, were not of the opinion that gold (and later copper) would go back up strongly down the road. The attractiveness of Seabridge is just that: that it is so highly leveraged to higher metal prices later.
I have to ask Chris….what do you mean when you say optionality?
That’s a word, Listener, that got tossed around a LOT in New Orleans…basically, insinuating the greatest leverage (such as with an option, which goes up exponentially compared to an underlying stock) to an underlying commodity. We talked about this with a few different resource plays, including another I’m about to add to my recommendations.
Thanks man.
And a P.S. – just about every time the company has raised $ to keep exploration activities going, it sells shares at well above the current market. So others share my opinion.
Chris, the time to have mentioned sea was under $5.lol
Were still weak hands holding I guess.
I forget what gold has to be at to make mining viable for sea, been awhile since I looked at it.
Not even sure if infrastructure has been put into place.
You must have missed the program here (more than once as I recall) when I did just that, bb. Or perhaps you should have been a subscriber to The National Investor.
Hope everyone is well.
I remembered c. 3 weeks ago when Chris mentioned Seabridge on the show a few weeks or only a few months back – I’d say it was 3mth ago at most.
I think the stock was at $4.5-5.0 when Chris talked about it.
It was a great call Chris. Kudos.
Best to you & to all,
LPG
Guess I missed Chris talkin about it at hat time.
I did see it at 4.54. Shot up pretty quick I thought.
Ah — thanks LPG — didn’t read down this far yet!
Maybe the reason why not many people are paying attention to Avino is becoz it’s only a small cap @ the moment ? (c. $30mn). Hence many portfolio managers can’t have it in their funds?
Realistically, if the fundamentals are sound – and as good as Chris seems to suggest (I’ve never looked at the story so can’t put my 2cts) – then at some point the share price will reflect that.
Best to all,
LPG
Probably will lpg
Agree LPG, at the New Orleans conference that was what I heard…………it’s a bit small. That being said, I liked their presentation & believe they are good people. The stock history just does not make you feel that they have much leverage to the silver price. I do think they are a good low risk play, with not as much leverage to the silver price as some.
Chris
Pretium (PVG) has to be mentioned in this exchange. Like nearby SA, it has a call option on its Snowfield property of low grade Au in excess of 20 million oz. But the Valley of the Kings bonanza grade Au due to start producing in 2017, is the creme de la creme in the sector. Bob Q, par Excellence in the CEO group. Yes, I trade this one but have in excess of 10K shares also
The Sprott folks are very big on PVG FWIW. Bob is the best!
Everyone in the industry is big on this company.
Sacks upgraded Pretium to a Buy on this Monday (2 days ago)
Zacks not Sacks, my damned I pad!
And it even spaces IPad!
What do you guys think of B2Gold? It’s a mid-tier producer that reports record production every quarter. This has gone on for years as they have expanded their resource. Share price does not reflect it, however.
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Some highlights from their last Q3 report:
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Oct. 21, 2015) – B2Gold Corp. (TSX:BTO)(NYSE MKT:BTG)(NAMIBIAN:B2G) (“B2Gold” or the “Company”) is pleased to announce its gold production and revenue for the third quarter and first nine months of 2015. All dollar figures are in United States dollars unless otherwise indicated.
2015 Third Quarter Highlights
Record quarterly consolidated gold production of 124,371 ounces, 38% greater than in the same period in 2014
Gold revenue of $139.3 million on record sales of 124,481 ounces at an average price of $1,119 per ounce
Otjikoto mill expansion from 2.5 million tonnes per year to 3.0 million tonnes per year completed on time and schedule in September
The Company is on track to meet the lower end of its 2015 production guidance of 500,000 to 540,000 ounces of gold and on track to meet its 2015 cost guidance of cash operating costs between $630 to $660 per ounce and all-in sustaining costs between $950 and $1,025 per ounce
2015 First Nine Months Highlights
Record year-to-date consolidated gold production of 361,796 ounces (including 18,815 ounces of pre-commercial production from Otjikoto), an increase of 33% over the same period in 2014
Record year-to-date consolidated gold revenue of $414.6 million (or consolidated gold revenue of $437.7 million including $23.1 million of pre-commercial sales from Otjikoto)
Record year-to-date gold sales of 353,703 ounces (or 372,169 ounces including 18,466 ounces of pre-commercial sales from Otjikoto)
Successful transition from construction to commercial production at the new Otjikoto Mine
New $350 million corporate revolving credit facility finalized
Robust results from the new optimized feasibility study for the Fekola Project in Mali announced on June 11, 2015
Early works construction activities at Fekola Project commenced in February 2015; mine construction commenced in the fourth quarter of 2015
Gold Production
Consolidated gold production in the third quarter of 2015 was another quarterly record of 124,371 ounces, representing an increase of 38% over the same period last year. Consolidated gold production was approximately 6% below budget as production from the Libertad Mine continued to be affected by operating delays at its new higher grade Jabali Antenna Pit (see “Libertad Gold Mine, Nicaragua” section of the news release). The increased gold production over the 2014 comparative period was primarily attributable to the successful production start and strong ramp-up in production at the new Otjikoto Mine. On February 28, 2015, the new Otjikoto Mine in Namibia achieved commercial production, one month ahead of schedule, after a strong start-up following its first gold pour on December 11, 2014.
Consolidated gold production for the first nine months of 2015 was a record 361,796 ounces (including 18,815 ounces of pre-commercial production from Otjikoto), an increase of 33% over the same period in 2014 and approximately 1% below budget.
B2Gold is projecting another record year for gold production in 2015. The Company is on track to meet the lower end of its 2015 annual production guidance range of 500,000 to 540,000 ounces of gold (including pre-commercial production from Otjikoto). Consolidated cash operating costs are expected to be between $630 to $660 per ounce, compared to $680 per ounce in 2014, and all-in sustaining costs are expected to be between $950 to $1,025 per ounce. The substantial increase in the Company’s consolidated gold production and reduction in consolidated cash operating costs per ounce in 2015 reflect the positive impact of new production from the Company’s low-cost Otjikoto Mine.
Gold Revenue
Consolidated gold revenue in the third quarter of 2015 was $139.3 million on record sales of 124,481 ounces at an average price of $1,119 per ounce compared to $114.9 million on sales of 91,282 ounces at an average price of $1,259 per ounce in the third quarter of 2014. The 21% increase in gold revenue was mainly attributable to a 36% increase in gold sales volume, partially offset by an 11% decline in the average realized gold price.
Consolidated gold revenue for the first nine months of 2015 was a record $414.6 million (or $437.7 million including $23.1 million of pre-commercial sales from Otjikoto) on record year-to-date sales of 353,703 ounces (or 372,169 ounces including 18,466 ounces of pre-commercial sales from Otjikoto) at an average price of $1,172 per ounce compared to $364.2 million on sales of 283,607 ounces at an average price of $1,284 per ounce in the first nine months of 2014.
Here is the like to the site: http://www.b2gold.com/
Don’t have a current opinion on Bema Two…though the “first” Bema many moons ago was an obscenely profitable one for us!!
Yes, Bema was most profitable. The team stayed together and has succeeded in executing their business plan to a “t”. That is the great strength of the company. But as CFS is pointing out below, to compensate for louse share price, as caused by a low price of gold, management is issuing itself tons of options.
The rays of hope I see, nonetheless are twofold:
1. Based on their record, there is every reason to believe they will continue to build the company as successfully as they have been doing. Their production projections have come true and if they do as well with their remaining projections, they will be producing ever-increasing amounts of gold in the next few years.
2. If/when the price of gold ever starts to increase, this company will make “obscene” profits, as it where.
The Casey folks are big on this stock FWIW.
I own shares in BTG.
I should have sold them, but had no use for the loss this year.
The company is mis-managed in my opinion.
The management have repeatedly issued shares and used the proceeds more to benefit management than shareholders.
Want to judge this company……LOOK at the share-count,
Management confidence in BTG:
What a joke:
Shares Bought Shares Sold
Bullock, Kevin 1,000
Cinnamond, Michael Andrew 22,667
Bullock, Kevin 1,900
Cinnamond, Michael Andrew 70,000
Connelly, Mark 5,700
Connelly, Mark 100,000
Connelly, Mark 100,000
Craig, Dale Alton 20,000
Connelly, Mark 50,000
Connelly, Mark 50,000
Craig, Dale Alton 20,000
Craig, Dale Alton 20,000
Craig, Dale Alton 20,000
Craig, Dale Alton 20,000
Craig, Dale Alton 20,000
Those are all shares sold…..sorry the table did not come out.
I have a huge short position in Seabridge. Pigs cant fly.
Has the required infestructure (to heck with spelling) been put in place for sea?
Maybe I should read their website, its been forever for me.
Also, at what price gold is sea viable?
good luk peter…sarc..
You should look at their projects and what they have done, Agatha.
C Temple imo is very solid as I have said before…
The avino deal is indicative of the desparate position Avino is in to raise capital to keep things alive. Not a ground breaking deal. Samsung is getting a smoking deal on Silver and Avino is hoping to keep things alive until prices increase. Not sure what is so exciting about the deal. Don’t see great potential in either of these unless Silver and Gold rally significantly.
Avino is getting a loan from Samsung that it is repaying in Silver.
I also like Chris but hate both of these picks especially Seabridge. Seabridge will never get finanacing for there project. Majors are dumping assets trying to raise money to get rid of debt not spend billions to take on additional risk. Seabridge is just to biggggggggggggggggggg!
I agree about Seabridge, but not so sure about Avino. The Avino owners, it appears to me, are more interested in generating steady income and employment for their family.