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(A Top Pick Sept 25/16. Up 81.74%.) Acquired by Tahoe (THO-T), and he accepted the shares rather than cash.
(A Top Pick Sept 25/16. Up 81.74%.) Acquired by Tahoe (THO-T), and he accepted the shares rather than cash.
A very well-run company, and he likes the valuation. Also, likes the mix between silver and gold.
A very well-run company, and he likes the valuation. Also, likes the mix between silver and gold.
A Mexican gold producer. Recently had a little guidance reduction on concerns of some of the costs. A pretty steady, staid producer of 130,000 ounces. The issue is, where is the next leg of growth. They have a couple of big projects, one in Canada and one in Mexico. Feels they have enough in terms of small expansions to bring on another small project, until they can get their Canadian project permitted and financed. He likes this, because he thought the street was over punitive on the name.
A Mexican gold producer. Recently had a little guidance reduction on concerns of some of the costs. A pretty steady, staid producer of 130,000 ounces. The issue is, where is the next leg of growth. They have a couple of big projects, one in Canada and one in Mexico. Feels they have enough in terms of small expansions to bring on another small project, until they can get their Canadian project permitted and financed. He likes this, because he thought the street was over punitive on the name.
A Short? Faced with a huge expense on a cleanup from the oil spill in Northern Saskatchewan. Like any other disaster, it is always hard to assess what is the ultimate cost. The company has always been regarded as a defensive play because of its refinery, and how that protects differential exposure. He doesn’t Short companies.
A Short? Faced with a huge expense on a cleanup from the oil spill in Northern Saskatchewan. Like any other disaster, it is always hard to assess what is the ultimate cost. The company has always been regarded as a defensive play because of its refinery, and how that protects differential exposure. He doesn’t Short companies.
Besides Cameco (CCO-T), the 4 main names to own in uranium would be Fission (FCU-T), UEX Corp (UEX-T), Denison (DML-T) and this company, Nexgen. They are in the relevant exploration plays. Fission for the longest time was the “go ahead” name with its Patterson Lake South project of over 100 million pounds and continues to grow. Nexgen has sort of taken the mantle on the West Athabascan side of the basin, which could become a $300-$400 million pound deposit, which brings you to a threshold that starts to possibly make sense.
Besides Cameco (CCO-T), the 4 main names to own in uranium would be Fission (FCU-T), UEX Corp (UEX-T), Denison (DML-T) and this company, Nexgen. They are in the relevant exploration plays. Fission for the longest time was the “go ahead” name with its Patterson Lake South project of over 100 million pounds and continues to grow. Nexgen has sort of taken the mantle on the West Athabascan side of the basin, which could become a $300-$400 million pound deposit, which brings you to a threshold that starts to possibly make sense.
This has been going through the normal process that all mining companies have been going through, focusing on costs, trying to improve the bottom line in a commodity price environment that looks to be lower for longer. Have had to force themselves to operate more efficiently. There has been a good recovery off the bottom recently, but that is not unusual after having such a disastrous fall off. Recently increased their guidance on coal production and shipments, which was positive. Probably fairly valued, so it comes down to how much more can they do to improve the bottom line.
This has been going through the normal process that all mining companies have been going through, focusing on costs, trying to improve the bottom line in a commodity price environment that looks to be lower for longer. Have had to force themselves to operate more efficiently. There has been a good recovery off the bottom recently, but that is not unusual after having such a disastrous fall off. Recently increased their guidance on coal production and shipments, which was positive. Probably fairly valued, so it comes down to how much more can they do to improve the bottom line.
He tends not to buy a company that is building a mine, but he bought this one because they were close enough to the end and he didn’t expect any CapX surprises. This has a great little asset, a nice simple operation. A low cost operation which generates very strong margins in this kind of environment.
He tends not to buy a company that is building a mine, but he bought this one because they were close enough to the end and he didn’t expect any CapX surprises. This has a great little asset, a nice simple operation. A low cost operation which generates very strong margins in this kind of environment.
