Opinions Paul VanEeden
Queenstake Resources (merged to Yukon-Nevada Gold)QRL.TODON'T BUYJan 13, 2006
Queenstake could possibly be a very significant player. We are seeing volatility and liquidity evolving in the mid-tier market. They have an operating gold mine in Nevada so if we have a decline in the US$, an increase in the US gold price than the operating margins for them should go up dramatically. They have suffered a little bit because they have a very high operating cost and they don't have a lot of ounces ahead of the mill so they're having a tough time keeping a hungry mill satisfied. That has impacted the operations and negatively impacted the share price. If we see a dramatic increase in the gold price this should have dramatic increases in Queenstake share valuation. But, he would really like to see them address the issue of reserves that are lying ahead of the mill. An increase in reserves and resources would do magnificent wonders for the stock.
$0.35
Stock price when the opinion was issued
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SELL
You could see quite a bit of value coming out of this, but it may take some time. Had a lot of operating difficulties with their Jarret Canyon mine and haven't been able to generate enough cash to fund exploration. Cutting back considerably on production and will be cash flow neutral at best.
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HOLD
Merging with YGC Resources (YGC-T). This has been a very disappointing stock. They couldn't operate their mine successfully. Great land package. Wouldn't buy at this time until you see what happens.
John EmbryOwned
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DON'T BUY
Has been an enormous disappointment. A high cost mine and they cannot operate profitably in the current gold price. Dead money unless gold shoots up.
John EmbryOwned
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BUY
Owns 20% of company. They have had decent results. Believes that gold will go higher. He has no intention of selling the stock and believes that it go to $1.00.
Peter HodsonOwned
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BUY
The stock to own if his much higher gold price prediction is correct. Producing a lot of ounces and are a fairly high cost operation in Nevada. They'll make a lot of money in higher gold prices.
John EmbryOwned
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BUY
Newmont Mining (NMC-T) has come in which is very positive in that it will help with their milling costs. Feels they will move into a positive cash flow basis. Also, they now have money to explore.
John EmbryOwned
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