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Steve Abram
Past commentaries:
The Toronto PDAC Convention
March 9, 2007
It was time again to attend the PDAC convention in Toronto.
The financial capital of Canada. This time the weather was very blustery and the temperature was extremely cold for March. With the wind chill factor it was close to minus 35 Celcius. The winds were very strong and wreaked havoc in the financial district, and around the Toronto Convention Centre. Toronto's tallest landmark, the CN Tower, was the culprit that was hurling ice to the surrounding area. Up To 500 metres away from its base. Having the safety of its citizens and that of its visitors in mind, some streets were blocked off to traffic.
The problem was not only outside. It seemed that somehow this cold weather affected the people that were at the booths, and who were supposed to greet the convention delegates. The ones that they came to get their attention in the first place. The Convention was packed with people and there were times that you would have to squeeze by to go where you wanted to go.
I would say that about half the companies that rented a booth could have stayed at home and not have bothered to represent their companies at all. It would have not made any difference.
It's about time that company executives planned their next presence in one of these conventions. Instead of expecting to have delegates be attracted to them and come to ask questions, they should take the initiative and have a presentation to attract delegates to their booths. It may be necessary to hire proffesional people that will impact the delegates.
After all, unless they have investors interested in owning their shares, they will not be as successful in raising new capital for their projects!
Of course, Teck-Cominco was very strong as always, along with about half of the companies that had a presence at the PDAC Convention.
Some of the companies that did an excellent job in promoting their company were:
Blue Pearl Mining, (BLE.TO),
Miramar Mining, (MAE.TO),
Osisko Exploration, (OSK.V),
Hudbay Minerals, (HBM.TO) just to list a few.
Another company that was working hard to win investors was Trade Winds Ventures, (TWD.V). A company that has been successful with the drill rig, but has not been able to convince investors that they have discovered something of value and that deserves their attention and their interest.
Thas is up to now!
I saw Ian Lambert, President of TWD, talking to investors and telling them with confidence that when the drilling stops at the Detour Camp, there will be a huge resource discovered.
At this point it is anticipated that there could be 4.0 million ounces to be discovered in Block A alone, and another 6.0 million in the property owned by their partner of Block A, Detour Gold Corp, (DGC.TO).
Detour Gold was recently formed to advance the property that was owned by Pelangio Mines.
There is no doubt in my mind that Detour Gold is undervalued having a resource of 3.4 million ounces and trading at about $3.50/share.
That represents a value of about $28.00 per ounce of gold!
Trade Winds Ventures is even better value than that! With 1.2 million ounces as their part of the resource in Block A, the shares are trading at $0.34/share.
With a little less than 61.0 million shares outstanding, the value of each ounce in the ground is valued at about $17.25!
Now about Alexis Minerals, (AMC.V), at this time represents fair value, but there is potential for increasing the resources, and thus also share price appreciation.
Goldstake Exploration, (GXP.TO), is one new on the list and represents a good speculative play, especially the Uranium aquisition in Utah.
The property of Home of Bullion, if a decisiton is made to bring to production, will catapult the shares much higher. At this point the shares are undervalued and they will need more financing to move their properties further along.
It is hoped that the shares will appreciate considerably before the next financing. Thanks for visiting, and have a profitable week!
geocities.com
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