All Of It: Rolls-Roys (sic), Virginia, Farming & Africa

Eurasian Minerals | Ivanhoe Mines | Cleghorn? | Coeur | Uranium’s Virginia

Takeouts From Our Private TCR Network reports:

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  • These EMX geologists in Denver — the ones who run Eurasian Minerals’ royalties, payments, properties — are the type that could decide in future to hold their gold at the table. Eurasian will get 500 ounces of gold twice a year starting this week from the Turkey miner that bought EMX’s Akarca property in August 2016. I think Eurasian will see further cash and gold events, and in some cases stock sales — see that PASINEX RESOURCES zinc article that made our TCR Network money last week Passing The Pasinex Zinc. Best administrative thing EMX has done in years: shorten its NYSE ticker to EMX from four letters.
  • Let’s hope one or two other worthy NYSE-traded resource-cos with four letters do the same. NYSE-traded worthies: please erase your fourth letter — a shameful appendage that many investors around the world see as an OTC, Pink, Gray, Bulletin Board or whatever you want to call it piece of junk. Bizarre and true. I vote for a ticker change for cheap silver prospect Comstock Mining. Our Nevada property developer has LODE for its shares on the NYSE. I guarantee a 10 percent rise in LODE shares if the ticker were modified to three letters. Ping Comstock Mining CEO Corrado De Gasperis with your alphabet suggestions.
  • Palmarejo Coin: Mexico
  • More than a few resource-cos with three letters on NYSE (and TSE and LSE and ASE) deserve to spend time on the junk pile. Coeur Mining, its execs notorious for fiscal screw-ups, appears at first glance true to form today | Thursday. Yup, CEO Mitchell Krebs helped oversee something like a 440% gain for CDE (NYSE ticker) shares in 12 months. He sold assets, reduced total debt and says he and his execs are working on their Chicago front-office “overhead” expenses. Still, $160 million of sales for the most recent three-month period showed that the silver miner’s fresh gold output from Mexico lacked oomph. The danger here is that Coeur, active in USA, Bolivia, Mexico, Australia, and so on, will forever be seen as a gold-reaching silver producer. Yet there is hopeNot our place to examine a terribly complex income statement — as I am not an accountant or a financial analyst. The hope here, as Mr. Krebs uttered in his conference call today, is that Coeur is at an “inflection point.” The analysts — Roth Capital, Canaccord and others — point to a building inventory, a somewhat damaging $800 per-ounce gold stream to Franco-Nevada, and other events that sliced at least 20 percent or more from quarterly sales. Roth Capital notes “results were significantly impacted by the timing of a shipment (of gold to Franco-Nevada) at Mexico’s Palmarejo, an inventory build at other mines, and a change in accounting for that Franco-Nevada gold stream agreement. “We believe these items resulted in a $30 million to 35 million drop in revenue, but this should drive $25-30 million of additional revenue in Q1 2017,” an analyst there wrote, name of Joe Reagor.
  • CDE shares are down about 20 percent Thursday, drilling many of the mid-sized resource producers along with the stock. I saw a headline from 2012 today: GORY DETAILS OF COEUR’S EARNINGS MISS. Yes, 2012. The other one that deserves notice came earlier this week (yesterday) and again a few hours ago: Zacks Research said, WHY EARNINGS SEASON COULD BE GREAT FOR COEUR MINING. Fake news? No, just stupid. I am glad right now I do not own CDE shares. Still, most analysts see the shares 40 percent higher in the next six to nine months from Coeur’s current $2 billion USD market value (after today’s strip joint).
  • Palmarejo, by the by, came from Paramount Gold & Silver‘s sale of the property to Coeur a few years ago. How time flies. CEO at the time Chris Crupi of Ottawa oversaw his Paramount’s piece of Palmarejo sale to Coeur; in time (how much time is up to those financial dimwits at CDE in Chicago), the Chihuahua State gold mine (with silver) likely will prove to be one of the best quarterly enhancers CDE ever has had, even with its $800 per-ounce gold stream to Franco Nevada. That is my take. Mr. Crupi is a chartered accountant and a sharp gold mining aficionado and stocks investor. He sees CDE as a buy on Thursday’s plummet from the heights of Coeur’s skyscraper HQ in the bluesy city by the lake with the wind and the crazy murder rate. The other property in that Paramount piece was the old Sleeper Mine in Nevada, a longtime favorite of mine. The newish Paramount Gold Nevada (actually based in Winnemucca) now owns Sleeper and Oregon’s Grassy Mountain gold spread, and a bunch of claims in a couple of (back to) Nevada counties. PZG (three-letter NYSE ticker) just named Rudi Fronk of Seabridge Gold, which owns a nice slice of PZG shares, as its non-exec chair. Mr. Fronk and Mr. Crupi both are part of our TCR Network. They also run things on the cheap: no skyscrapers found here. Chris Crupi has another company now, in Colorado I believe. Mr. Fronk lives in Toronto. PZG looks cheap on paper and just raised a few million dollars with the sale of stock to its largest stakeholders, including Seabridge and Albert D. Friedberg’s FCMI Financial Corp. Grassy Mountain looks like a go for more engineering studies in coming months; the thing is epithermal hot springs with intense gold veins — maybe a 90-minute drive from Boise, Idaho. The econ study on Grassy Mountain shows low-cost gold, almost 2 million ounces, and almost 5 million ounces of silver. Just a writer’s note here (and I have yet to purchase PZG shares: I look at a lot of brochures, web literature, come-ons and abstracts and pretty maps. This straightforward chronology of the PZG workings at Grassy Mountain, well, whoever wrote it, and no I did not but wish I did, that person deserves a cigar, a hug, a new house, whatever. Nice job. Here it is. I will let you all know when I start buying into PZG.
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Spot price for uranium concentrate
  • Rolls-Roy: royalty-co on a roll; TCR Network‘s favored roys, some of them pure royalty-reapers and others part gold explorers and part roy-reapers, stream reapers and beam-leapers, are EMX, Abitibi Royalties and sister-co Golden Valley Mines, Metalla Streaming & Royalty, Riverside Resources. You have to admit, these are ALL outpacing the competition. When one of the larger roys comes in to purchase all of Abitibi Royalties in coming weeks or months, at a price that is likely three times its $110 million market value, all of our small crop of outpacing Rolls-Roys will be experiencing mixed-metaphor vertigo. You read it, viewed it, here.
  • Others that are seeing light of day for our TCR Network: Halifax lab Immunovaccine came off in price Wednesday and I added 5,000 shares to our total of about 160,000 shares. Worth scanning our report from Monday; the next trigger for IMV will be March’s data from an early-stage ovarian cancer trial IMV did last autumn (2016) with Incyte.
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DepoVax For Immunovaccine
  • Oragenics, another biomedical, is rising with no accountable news, but good volume. I bought more OGEN (USA ticker) today. This Florida lab is developing compounds that might treat oral mucositis in cancer patients (head, shoulder, neck). Possibly other uses seen as well for its so-called lantiobiotics (yes, with an “l). Speculative and short-term burst possible here. Another company, Intrexon (XON in USA ticker) owns a stake for those looking for lower risk.
  • Long-held BioCryst Pharma shaking off the slumber of recent weeks here. BCRX (USA ticker) is close to showing more data for its oral compound for a rare disease, hereditary angioedema.
  • All that JZZ: I am trying to purchase one of the zed-complex names, JZZ in Canada, Cleghorn Minerals. JZZ has the Meech Lake Matachewan complex that could show polymetallic values up there in northeastern Canada — northeastern Ontario. This was one of the first prospects that zed-developer Glenn Mullan of Val d’Or, Quebec, evaluated as a geologist maybe 25 or 30 years ago. I have seen the Meech paperwork. As specialty metals such as cobalt and nickel and zinc and one day, perhaps, graphite, keep rising in price with growing industrial demand everywhere in the world (it seems), well, for a $2.something million market value, and with a little cash on the books, Cleghorn is worth a sprinkle. Getting shares is the trick — CLGMF ticker in USA.
  • The other zeds are the ones cited here: Abitibi RZZ, Golden Valley GZZ, and one to keep an eye on as it will be the go-to explorer for most of the GZZ claims and properties that now reside in its file cabinet: Uranium Valley Mines (possible name change ahead — VZZ). Those are all Canada tickers.
  • Uranium: spot price yet higher — above $23 for one pound of concentrate. As our uranium go-to geologist Peter Dasler at CanAlaska Uranium notes, trading activity for the so-called URA ETF of uranium equities is experiencing accelerating volumes in the stock market. So are many uranium shares. Some of these companies, Skyharbour’s Jordan Trimble for one (active in eastern Athabasca Basin) are gearing up fresh drilling exploration at Moore Lake. The ones that stay on our TCR cheap list: CanAlaska (CVV), Fission 3.0 (FUU) and Virginia Energy (VUI). I own those three (two of the three in size).
  • If I am correct about legal wins and USA energy sentiment; shares of Virginia Energy will be three times their current level by the close of February. (The Coles family-founded mine in Virginia.) Thanks to MJG Capital in San Francisco, California, for the Virginia Energy neighborhood photos. Thanks, or no thanks, so far, to the state of Virginia for the uranium mining taboos; that whining in court and the capital by governors, lawmakers (not all of ’em) and activists is going to change soon — already has. Virginia Energy will be around for a long time, regardless of state and federal taboos, or lack of. The company has generational support from family and community, and maybe $1 million in working capital, too. Rocket ride here for VEGYF shares any day now. I have owned VEGYF/VUI shares for about four years and have been adding this month of February and in January at higher prices.

    All In The Virginia Hood — MJG Capital photo credit
  • Ivanhoe Mines (IVN) continues to notch multi-year highs. The principals are at the INDABA Mining exposition in Cape Town, South Africa, along with every other Africa-centric minerals explorer and producer on that continent. Several pubs are covering the addresses, including those of Ivanhoe’s Robert M. Friedland, who discusses nickel, cobalt, zinc, copper, platinum and other metals in the Ivanhoe mix. See: Ivanhoe’s geologists, engineers and execs are hosting a tour of its Congo and South Africa projects this week.
  • Watching Crops Grow: like watching paint dry — Farmland Partners now is the merged American Farmland-FPI. Ticker FPI in USA. Slow mover. Specialty USA crops. Small dividend for a REIT, 4 percent or so, will grow in coming years. Big risk here: people stop consuming almonds, pistachios, tangerines, pecans, citrus. I own a crop of it and bought more Wednesday, Tuesday and Monday.

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Thom Calandra & TCR are researchers and investors. Research and material they offer to subscribers are meant as editorial opinion.

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