Stockchase Opinions

John EmbryQueenstake Resources (merged to Yukon-Nevada Gold)QRL.TOWAITAug 01, 2006

A difficult mine. With costs going up as much as they have, gold price has not kept pace. Will need $850 gold for it to start moving.
$0.40

Stock price when the opinion was issued

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DON'T BUY
Busy with a merger. Believes cost structure is problematic.
DON'T BUY
Merging with YGC Resources (YGC-T), which has an interesting exploration project in the Yukon. They're old mine in Nevada has been very troubled and expect it will be shut once the merger is completed.
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.
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.
DON'T BUY
Has a lot of problems. Working on the Jarret canyon deposit, which is a complex of deposits in Nevada. Trying to reduce cash costs, but it has gone up to $640 and ounce.
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.
DON'T BUY
There are so many other stocks available. Have had a series of problems. Has not performed well.
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 $1.00.
DON'T BUY
Operates a gold mine in Nevada and if there is a decline in the US$, this company will give you leverage. Their negative is that they have a very hungry mill with limited gold to feed it with.
DON'T BUY
Only has a 4/5 year mine life. You can make a case that at this gold price it could pay you back your original investment and give a marginal return on it. That's not enough to get the gold industry excited.
DON'T BUY
The only thing that will get this company going is a higher gold price or they get some good quarters under their belt. It will likely languish until they return to a higher profitability.
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.
BUY
Bought a fairly large mine which has a hungry mill. Keeping feed in front of it has been a problem. Newmount made an agreement to truck ore to the mill. This gives them a lot more flexibility. Prefers exploration companies instead.
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.