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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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From: LoneClone11/4/2021 1:50:34 PM
   of 77826
In some welcome news, Oceanagold aka OGC announced the restart of processing at their Didipio Au/Cu mine and mill in the Philippines, following a hiatus caused by delayed permits. At present the mill, which underwent upgrades during the break, is processing only low grade stockpiled ore, but as mining operations ramp up to previous rates over the coming 8 months, the grades processed will increase, but even the low grade ore will generate a profit.

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Speaking of welcome news, Minera Alamos aka MAI announced the first production of gold dore from their Santana mine and mill in Sinaloa, Mexico. The 18 months from the start of construction to the start of production was longer than expected, primarily due to Covid, but the good news is that the excellent results from test leaching and processing, rapid leaching and low reagent consumption, are continuing into production. They will continue to ramp up mining and milling over the coming months, even as the focus turns to building their next mine, likely at Cerro de Oro in Zacateca, followed by La Fortuna in Durango.

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Here's a post from the IKN blog regarding what has been suppressing the share price of MAI, persistent selling by Osisko Gold Royalties, shares acquired through a financing deal. (Sean Roosen makes the decisions at OR.) It's a little crude, being from the blog, but aptly captures the opportunity OR's stupid selling gave the likes of me, who added a bunch of cheap MAI shares to my stash last week.

It is noticeable that MAI has finally broken out today, whether due to the move in the PoG or today's PR or the cessation of the OR dump, or all three. Whatever the cause, I hope it continues.

Sandstorm Gold Royalties aka SSL released its Q3 financial report. The big news is that they are finally instituting a dividend policy, projected to start at 2 cents a share in the first quarter of next year. Shareholders have been waiting quite a while for this.

The final results for Q3 were 15514 attributable AuEq oz at a cast cost of $238/oz. leaving a nice fat margin of $1541 per ounce. They are also continuing their share buyback programme, cancelling 2.3M shares during the quarter.They also increased their 2021 guidance to 64k-69k AuEq oz. Notably, they increased their available credit lines to $350M during the quarter.

It will be interesting to whether instituting a dividend will lead to a bump in the share price, which looks like it might have bottomed after a multi-month decline.

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FWIW, TD saw the quarter as slightly positive and maintained SSL at Buy with a target of $12.50. They expect the long-awaited feasibility study for the Hot Maden project in Turkey to be released in Q4.

Calibre Mining aka CXB also released their Q3 results. The headline result is the production of 44579 oz Au at a cash cost of $990 per oz Au. This allowed them to build their cash stash to $73M, and they remain unhedged and debt-free

But that is just the headline. I am re-familiarizing myself with the company for the first time in a few years, and much has changed. They now have three operating mines in Nicaragua, at Pavon, El Limon, and La Libertad, with the latter two also featuring operating mills. As well, they will be starting permitting at the very promising Borosi property in a few months, and are actively exploring at all these concessions in an effort to prove up more resources. They really do have a lot going on in Nicaragua. I will leave you to explore the details yourself if you are intrigued.

And then, they recently announced a buyout of Fiore for its operating gold mine and two projects in Nevada. The main thing has kept me from considering CXB as a prospect for investment is the country risk in Nicaragua, as the former Sandinstas continue to morph into just as oppresive a regime as the one they were created to overthrow. Hence, I need to consider how much the addition of the Nevada properties mitigates that risk. So far it seems enough to keep me holding my current Fiore shares as they are converted into CXB shares once the transaction completes, but I reserve the right to change my opinion pending further study and contemplation.

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FWIW, TD saw the impact of Q3 as slightly positive, and maintained them at a Buy rating with a $2.75 target.

Nomad Royalty aka NSR also released their Q3 results yesterday. It was a good quarter, with Au earned increasing to 2527 oz and Ag increasing to 29929 oz, and revenues increasing to $6.1M and their cash stash to $24.6M.

Q3 was a transformative quarter for NSR thanks to them listing on NYSE the acquisition of a royalty on the producing Caserones copper mine. We shall see whether this leads to a re-rating of the shares.

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