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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (48487)	6/28/2012 1:40:44 PM
From: Sergio H	Respond to of 78710

John Paulson <senses "opportunity" where AU shares have slipped 9% in three years as gold has climbed 69%> bloomberg.com A good article on evaluating gold mining stocks: contrarian-investor.com

To: Paul Senior who wrote (48487)	6/28/2012 2:48:05 PM
From: E_K_S	Read Replies (1) \| Respond to of 78710

Copper Mountain Mining Corporation (CPPMF) Copper Mountain Mining Corporation (CUM.TO) ( finance.yahoo.com ) Web Site: cumtn.com Started a tracking position in CPPMF. This is natural resource play for Copper and a hedge for a continued strong $US. Stock trading at a 52wk low. 2011 Presentation - goo.gl o Recognized revenue of approximately $66.5 million for the first four months of production (Gross profit $16.2 million) o Average realized price of $3.55/ pound of copper, $1720/ ounce of gold, & $34 / ounce of silver (US$) o Site cash costs per pound of copper produced US$1.26 (net of precious metal credits) o Total cash cost per pound of copper sold US$1.71 (net of precious metal credits) o Cash margin of $1.84 (US$)per pound of copper sold • Total Operating Costs Net Of Credits* $US/ lb $1.80 o 17 year mine production life. ------------------------------------------------------------ BV = $1.78/share; With current production (w/ recent new mine opening) Forward PE= 2.67 COPPER FUTURE (USd/lb.)$333.250 -2.400 -0.72% Cost of production is 1.85x spot price. So they are profitable at current production Just a tracking position now, Have GTC order for another lot at $2.47/share. CPPMF is quoted/sold in $US prices . The active volume is on the Toronto Exchange CUM.TO and their quote is in $CAN. EKS

To: Paul Senior who wrote (48487)	6/29/2012 12:31:21 AM
From: Difco	Read Replies (1) \| Respond to of 78710

Paul, RIC looks to me like a pot of gold (no pun intended). Do you like Barrick Gold (NYSE: ABX) at the current price levels? The CEO being ousted could have been the catalyst that led to the continuing slide and you it seems that we know where we stand with Barrick. Have you heard of Nevsun Resources (NYSE: NSU)? Financials look enticing - approximately 40% of the book value is in cash, profit is up in the first 3 months of the year although I am a bit suspicious of the level of the capital expenditures, seems awfully low compared to peers. Nevsun has diverse staff too: 751 full-time employees and 179 part-time in Eritrea (I admit I needed a map to find where Eritrea's location - it's between Ethiopia and Sudan) and a total of 8 employees in Canada - Berkshire Hathaway Omaha headquarters watch out, Nevsun runs efficient operations. And finally, a letter from Statman, Harris & Eyrich, LLC which among other things says: "(i) Nevsun’s mining at the Bisha Mine resulted in a material amount of waste rock rather than gold ore; (ii) gold ore and gold from the Bisha Mine was materially less than the amount estimated by Nevsun’s model, and defendants knew or had reason to know this based on data routinely collected from the Bisha Mine throughout the Class Period; (iii) Nevsun was progressing through the ore body much more quickly than planned in order to maintain gold production at a rate that would not reveal to investors that the amount of gold at the Bisha Mine was materially less than the Company’s model; (iv) the Company was aware that its model was materially defective because the actual amounts of gold mines at Bisha did not reconcile with the Company’s model previously disseminated to the investing public; and (v) Nevsun materially overstated its gold reserves at the Bisha Mine.On February 7, 2012, Nevsun issued a press release disclosing: (i) that it had materially overstated gold reserves at the Bisha Mine by 30-35%; (ii) that the amount of gold to be produced in 2012 would be about half of what Nevsun previously represented to investors; and (iii) that it would restate its proven reserves. Following this news, Nevsun’s common shares fell from a closing price of $6.34 per share on February 6, 2012 to close at $4.40 per share on February 7, 20.12." For full disclosure - prweb.com

To: Paul Senior who wrote (48487)	7/2/2012 2:18:49 PM
From: E_K_S	Respond to of 78710

Here is an interesting post regarding the cost of production for gold. Apparently it is increasing at a fast pace (up over 30% in last 6 months). For me, that's hard to believe so it must either be a country specific thing and/or a company operation specific event. goo.gl Barrick Gold (ABX) was mentioned in the post. RIC seems to acting like they may be incurring higher production costs too. My thought was to look at the newer and efficient Canadian miners as their production costs are lower and have no new Country resource tax like So. Africa. It's still something to watch as I only want to own the very efficient producers. EKS

To: Paul Senior who wrote (48487)	7/3/2012 9:46:46 AM
From: E_K_S	Respond to of 78710

Maybe this is/was the cause of the recent weakness in RIC. 8:32AM Richmont Mines announces downward revision of reserves and production and write-down on assets (RIC) 4.78 : Co announces updated Proven and Probable Reserve estimates of 504,687 tonnes grading 4.78 g/t Au, for 77,580 ounces of gold, versus 615,664 tonnes grading 6.91 g/t Au, for 136,749 ounces of gold previously; Updated Measured and Indicated Resource estimates of 33,301 tonnes at 4.20 g/t Au, for 4,499 ounces of gold, versus 76,449 tonnes grading 7.54 g/t Au for 18,541 ounces of gold previously. Revised production guidance of 132,000 tonnes per year, or approximately 20,000 Au ounces, versus previous guidance of 30,000 to 35,000 Au ounces per year... Richmont will take a non-cash write down in the second quarter of 2012 of approximately CAN$25-CAN$30 million pre-tax (approximately CAN$20- CAN$25 million after-tax), related to the lower anticipated production from the Francoeur Mine. "As we have previously announced, information obtained from definition drilling completed over 2011 and early 2012 indicated that the mineralized zones were more discontinuous in the upper portion of Francoeur's West Zone than in the initial geological model. This, coupled with average realized grades that were below the 2009 reserve levels, have led to the downward revision of reserves and production and, hence, to the write-down on assets." --------------------------------------------------------------- Maybe the bottom is in now. EKS