₪ David Pescod's Late Edition September 22, 2006
AURELIAN RESOURCES (V-ARU) $30.90 n/c
GOLD $588.40 +5.80
GOLDMARCA LIMITED (V-GML) $0.91 -0.47
Graeme Currie is a pretty busy boy these days, as the Canaccord
mining analyst was the very first to get on board the
Aurelian Resources story and it has turned out to be one of the
stories of the year - if not the decade! Graeme wonders if this
is not just a “discovery of the decade”, but a “discovery of a
career”. His report is getting a tad dated right now and we
refer to the report that was published on July 27th (Metals and
Mining -- Precious Metals and Minerals – Ecuador - A South
American Frontier), which took a good look at Ecuador and
how timely was that?
It seems that all the good news that has come out lately has
been based in Ecuador, with ever more good stuff about
Aurelian and also lots of gossip about Plexmar Resources
(PLE) and yesterday some news on Goldmarca.
Like we say, it is a tad-old right now, but there is tid-bits
you might want so if you want to receive a copy email Sandra
Wicks at sandra_wicks@canaccord.com.
The one thing everyone should be aware of following this
report is that it tells you how many shares outstanding. For
instance, the big excitement over yesterday’s discovery at
Goldmarca where they announced 284 meters of 2.75 grams
per tonne (including 98 meters of 6 grams per tonne) which is
pretty significant. That is until you realize how little leverage
there is. Fully diluted Goldmarca has a whopping 250 million
shares outstanding!
That meant that yesterday this company, according to the
market, was worth $300 million. At least, they have done some
drilling – little Plexmar, has yet to do any drilling, but based on
some pretty rocks and grab samples, has already had a run to
a high of $1.27 and with almost 130 million shares outstanding
fully-diluted, the market was saying at one time this company
was worth $160 million.
The big question of course is what next for the mining market
and when we ask Currie what’s his thoughts on gold, he
suggests, “Gold is probably in a trading range for the next six
to 12 months between $550 and $730.” He adds, “If you had
told me we would be in a trading range like that two years ago,
I would have kissed ya.”
Thanks for the offer Graeme, but a little hand holding in
these ugly times would be plenty.
CORRIDOR RESOURCES (T-CDH) $5.92 +0.02
OILEXCO INC. (T-OIL) $6.20 -0.04
It’s an absolutely gorgeous bottle of wine. It’s a 1997 Fabiano
Amarone Della Valpolicella and it comes in such a gorgeous looking
container that heck we are almost afraid to drink it, but I’m sure we’ll
get over that!
I’m talking about the bottle that Josef Schachter delivered to pay
off our bet of sometime ago. For those of you who forgot what the
bet was about – we had bet on Corridor Resources, which almost tripled
(thank you Andy Gustajtis) while Josef picked something that – well
lets just say, didn’t fare as well.
Needless to say, Schachter wants another go at it some time
shortly and he gets to pick the date we make the bet and this time it
will be for six months and needless to say he wants revenge. And he
also says that he expects to collect a good bottle of wine this time.
We catch up with him today for a couple of things – first of all
what’s his take on what’s next in the Middle East, after all there is
more than a few people that worry about what happens next with Iran
should they ever get a nuke and what happens next to the world? It’s
down right scary! He suggests that if you are looking to follow that
area of the world, the best thing to do is go to www.debka.com and
follow it regularly. He also tells us that it is one of the “must-dothings”
he does in order to try and keep up with what is going on in
the Middle East. It’s a web site set up by ex-CIA and ex-Mossad
agents that try and keep up and comment on any developments in the
Middle East – must reading Schachter tells us.
Next, are we near the bottom Josef for the oil & gas sector? “Not
quite yet”, he suggests, and as an indicator of that, he tells us, that
there are certain Brokers, Institutions or whatever, that whenever
things get really, really bad call for “hand-holding” and lots of it.
They haven’t phoned just yet, he suggests, but when it happens he
figures that will be the sign of the “bottom”. He does expect the bottom
within the next month or two though. (Please bottom come soon,
please!)
Now onto Oilexco, which looks like it is going to be delayed for another
week. Schachter suggests that he would be disappointed if the
Sheryl well doesn’t do somewhere between 12,000 and 18,000 barrels
a day – 15,000 barrels a day, he suggests, would make the market
quite happy! 10,000 barrels a day, which sounds like a lot to us, he
figures might leave the market a tad-bit disappointed! (We talk with
Oilexo’s IR guy Rob Elgie today and he suggests because of challenges
to the formation, results on the Sheryl well aren’t expected for
seven to 14 days to be totally finished). |
