China & Africa & Mining Investments

Ivanhoe Mines | Contango Ore | Seabridge Gold | Xtra-Gold | Kenorland 

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), the largest trading partner. The China inflows look to be accelerating this year and for much of the past decade.

In our The Calandra Report, a China company’s cash purchase of Namibia’s Osino Resources OSI OSIIF will consummate this month after many months of regulatory review in Canada and in Namibia. Elsewhere, China gold and copper miners especially have played deep-pocket cash roles at a score or more of companies on the Continent — none more outsized and profitable than investors in (DRC Congo and South Africa) Ivanhoe Mines‘ producing and developing mines (copper, zinc, platinum group) IVN IVPAF.

(This morning — Monday — as we discussed last week, I completed a purchase of 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 three-fifths or so of the 46 million shares are in the hands of XTG executives and their families, and with a co-founder who is a Toronto broker, and a longtime European investor and with several Canada businesspeople.

I hope to bring that approx. 111,000-share total to 150,000 Xtra-Gold shares, conceivably by year’s end. Some of those owned shares go back to 2009 or so. I have been to the properties in western Africa’s Ghana five times since 2008 or 2009.

All of this China talk is speculating on my part. The company’s CEO and co-founder James Longshore, who also is a friend here at home, offers no comment on the China theme.

More The Calandra Report re: XTG XTGRF here.

— 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 [As you know, I own XTG and IVN and others here, excluding Kinross and Seabridge.]