MCO is about to go into production. Has had a retrace today to 40 cents - was 35 cents last week and went to a high of 47 cents today. MCO is expected to be a high grade low cost producer, a bit like SLR without SLR's Murchison gold deposit. Cashed up to production and no hedge or loan.
CGX is under-valued. Has about 8 million gold resource/reserve. Indicates it is looking to expand production and looking to acquire other gold assets. Current production capacity of 220,000 ounces per annum. Share price has had a tendency of not moving much for long period. Management does not do a lot of PR, and perhaps its location in the Philippines is a negative.
PIROA is worth a look. High grade deposit in Mali, activist MD now gone to Asia to drum up support (share price usually has a run after his presentations), awaiting results from recent drilling effort, shares have had a good run recently but is still undervalued relative to its west African peers, has a 600,000 ounce deposit (3 gms/tonne) of which it has an 80% interest.
CDT has 10,000 square kms of tenements in Ghana but so far only a very small deposit. It recently raised funds for exploration. Mark Creasy took up a significant interest in the company in a recent placement and on-market purchases. The son of an Argentinean billionaire has recently taken up a significant shareholding in the company. Ghana = elephant gold country. Will need to top up funds for further exploration once its current program exhausts the funds. Less than 100 million share on issue. Danger of shareholder dilution as more funds will be required for exploration - may not be a problem if they find gold and they can raise lots of cash at higher share prices like AMX has done.
AZH is an interesting spec - will need more cash. Has a large land holding in South America. Nothing actually fund as yet. Very spec.
SLR is likely to keep delivering. SLR is finding more gold at its Murchison tenements where it plans to develop a mine, as well as near its existing WA mine. Has already gone from 18 cents in December 2008 to $2.40 with production now being at around 100,000 ounces per annum. They are planning to increase production to 320,000 ounces per annum by 2013-14 (I think). Very strong management team. Share price will rise on the back of news relating to their exploration program intended to find around 800,000 ounces each six months to end of 2011, by which time I expect the share price will be $4-5, depending on exploration success and mining expansion. - Have a look at their most recent presentation.
RSG is worth a look. It is another potential takeover candidate. Large reserve/resource mostly in Mali (but also in Australia and east Africa). Three operating mines, the Mali operation is currently high cost and has operational issues which are being resolved, I hope. Lots of institutional investors willing to buy for the longer term. Was a great buy in August when it fell to 74 cents, but has recovered to around $1.30. Have a look at its recent presentation. You do the sums on it. Risk is that they will not fix the Syama problems and it gets taken over on the cheap.
MML and PRU are interesting. PRU especially as a takeover prospect given its big reserve/resource, MML because it is such a low cost operation (but has a low reserve due to the nature of its narrow vein mine).
ROL and IAU are interesting - both are exploring in Indonesia.
ADU has some growth prospects, should be in production in early 2011, and has disappointed me by doing a capital raising involving a 15% increase in the number of shares. They have a largish hedge at $USD 1075/ounce for almost 300,000 ounces over 5 years with some flexibility to meet this commitment earlier. Considerable exploration potential as only 15% of their tenement has been explored. Further expansion via mining their sulphide deposit is being examined - the present mine only involves the cheaper oxide deposit.
BDR? Have a look. I do not own. Developing a mine in South America.
TRY. Sound management, cashed up and no hedge. About to go into production in South America. I do not own.
EVG is one that could turn out well. Keep it on your radar. Needs to finalise MacBank funding - almost there - for its 65,000 ounce per annum South American project, and has another 65,000 ounce per annum project under consideration in Ecuador. Further shares are likely to be issued. For those willing to trust management and wait it could be a multi-bagger from its current 7.5 cents/share. Country risk.
I am sure there are lots of other ones. OGC has had a monster run, but will it continue? RMS has expansion plans to 200,000 ounces per annum and the funds to do this without shareholder dilution. CRK - is this trash or treasure, Laurence Freedman does not think so - have a look at recent price action and press releases - a takeover candidate at $3-4 or a dud to be avoided due to problems with the economics of their 4.1 million ounce resource?
I suggest people develop a set of criteria for what they believe makes for an undervalued goldie. These can change over the gold cycle and market conditions. We are still at the stage where pure explorers can easily be trashed, while cashed up producers with good grades/reserves hardly get impacted by a general market downturn. Just prior to a full bull market buy all the crap goldies because these will go up the most percentage wise.
Just some thoughts, and happy hunting. This is the "gold season" and many of the goldies may under-perform later on for some months because of the over-enthusiasm during this period. I am not sure what will happen to gold and goldies in a GFC2 - another thrashing I suppose.
