Virginia Mines Inc. (VGQ-T)

(A Past Investing Idea Aug 6/13. 29.75%.) Thinks it is probably a better Buy today than it was then. On the Eleonore deposit in northern Quebec, Goldcorp (G-T) is guiding as being bigger than they said it was. Coming into production, so the cash flow to this company, will begin to be felt in earnest this year. The royalty could be sold for a substantial uptick in the current price, and you get the rest of the company for free.

High quality people. Believes that the royalty on the Eleonore mine is worth more than the whole of the company of Virginia Gold. Believes this gives you the team and the redundant assets for free. The mine will begin producing in 2015 but they are enjoying revenue in terms of advanced royalty now. Every quarter, Goldcorp (G-T) seems to be making this deposit larger through exploration. Company is fully funded and won’t have to come back to market ever. Possible takeover candidate.

Superb balance sheet. Very disciplined team. Can take advantage of distress in the market. Can take advantage of other people’s mistakes.

Looks like a really interesting stock. It is showing some support and it is a good time to buy this stock.

The Eleanor deposit was bought by Goldcorp (G-T) and they retained 2%-3% interest on that. This royalty is probably one of the best royalties held by any Junior company. Generates about $100,000 a month to them. Once this is in production, which will be producing 600,000 ounces a year, they will be getting $25-$35 million annually. Based on this, the company should be worth $12-$15. Also, recently put out results on a new discovery in the James Bay area.