John EmbryDesert Sun Mining CorpDSM.TOBUYJul 05, 2005
Has always been somewhat sceptical, but was impressed with the person who moved in as the operating guy. The stock will participate in a better gold environment.
A lot of plays on rare earths but not much production and he prefers seeing revenues and earnings. This one is trading at a huge discount to NAV of about $1.70. Have been buying back a lot of shares.
The Desert sun will be an emerging mid tier gold producer. Won't see the kind of growth we've seen over the last year. But it will be a more staid growth.
Brazilian operation so some risk with exchange rates. A lower grade mine. Producing just over 100,000 ounces a year at about $220 an ounce. The upside here will be through exploration. Under valued.
His 3 picks today are small and chosen because they are very close to their break-out points and they are all in the mining/oil sector as well as being low priced. Broke above the 200 day moving average. A gold stock, so is in the right area, right price.
Has always been somewhat sceptical. Thinks it is a difficult mine and doesn't know what the costs are going to be. Would prefer Orvana Minerals (ORV-T) which is of a similar ilk, good management and has been in production in Bolivia for a couple of years and throwing off good earnings.