Africa To See More China Mining Flow

Simply Stated

 

Also: Ivanhoe Mines | Contango Ore | Seabridge Gold | New Orleans Show

These titles are likely to outpace other mining stocks through year-end:

— Xtra-Gold Resources XTG XTGRF: Africa gold producers, developers and explorers probably will see yet more China bids or partnerships on a continent where China-cos are fast becoming dominant in mining, road-building, construction and other industrial segments.

China, says World Economic Forum, is among Africa’s many nations south of the Sahara desert their largest trading partner.

The China private-co cash purchase of Namibia’s Osino Resources OSI OSIIF will consummate this month. This morning, as discussed last week, I purchased 8,100 shares of XTGRF; this brings our total of the Ghana producer and explorer to more than 110,000.

In the case of Xtra-Gold, its $12 million of cash, five concessions in Ghana and growing resource in the Kibi Gold Belt set up, I believe, for an outright offer perhaps five or more times its $45 million USD market value — albeit perhaps after an initial China “strategic” stake of 9.9%. Some two-thirds of the 46 million shares are in the hands of XTG executives and their families, a co-founder who is a Toronto broker, a European investor and several Canada businesspeople.

I intend to bring that to 150,000 Xtra-Gold shares, conceivably by year’s end.

— Contango Ore CTGO finally is seeing production from its Kinross venture in Alaska. The produced and sold gold is meaningful. We own it and have for four years. The Manh Choh 30%-owned operation delivers gold to Kinross’s Fort Knox complex. In a first batch, or pour, are 55,000 gold ounces and 11,000 silver ounces to Contango’s account. See statement. This will be the latest update from Contango — tomorrow via video.

— Kenorland Minerals KLD: on a day (today-Monday August 19, 2024) when micro and small gold/metals miners, explorers and developers are seeing 5% and greater gains, with spot gold at an all-time high price in all currencies, the Canada and Alaska peripatetic concessions owner and in most cases, operator, is outpacing its peers in the stock market. KLD KLDCF has been logging consistent gains through a challenging summer 2024 for others in the same boar. I own a small amount.

— EMX Royalty EMX is also outpacing Monday. On my screen, EMX probably is the cheapest royalty-reaper from gold and copper investments of any roy-co priced below $200 million. (Along with Elemental-Altus ELE ELEMF). EMX, XTG, Ivanhoe Mines IVN IVPAF and Alamos Gold AGI are our four largest and longest-held mining investments.)

— Of those with 1$ billion market values and above, the 3-month and 1-month and even Monday outpacers in my ken include one I do not own, Canada and Nevada copper-gold developer and explorer Seabridge Gold SA SEA, up 21% in three months; and one I do (83,000 shares), Africa copper-zinc producer  Ivanhoe Mines IVN IVPAF, its shares rising 15% in the past five trading days.

Of note,  Ivanhoe’s third Kamoa-Kakula Copper concentrator in DRC Congo marked “commercial” production. All told, the new copper concentrator set a high monthly mark of 36,000 metric tons in July. See statement.

 

Thank you.

 

— Thom Calandra