Extensive Analysis

Genesis Metals: Value In The Abitibi Greenstone Belt

This article by Brian Leni has been published first at Junior Stock Review.

All pictures are company material, unless stated otherwise.

Is the tide beginning to change from bear to bull in the gold market? In my opinion, it could be, and one of the major driving forces behind it could be mergers and acquisitions (M&A).

For those who haven’t been following closely the last few months, it began with the merger of Barrick and Randgold and then, just recently, with Newmont’s acquisition of Goldcorp.

Tax Loss Buying Candidate Kutcho Copper Completes 2018 Drill Program; FS Scheduled For Q2 2019

Kutcho project

1. Introduction

Although Kutcho Copper remains under the radar of most it seems, it doesn't seem to lose a lot of time, and continues doing the heavy lifting in order to advance their flagship project, the Kutcho high grade copper-zinc project in British Columbia, Canada. Backed by a financial package arranged with Wheaton Precious Metals, Kutcho completed their 2018 drilling and exploration campaign at the end of October as planned (winterbreak), and is processing all data now. A Feasibility Study is planned for the end of Q2, 2019. Their blockchain initiative MineHub isn't shelved either, and management intends to publish a news release with current developments and partner names within a few weeks from now.  

Kees Dekker Versus Trilogy Metals: An Analysis

Arctic project; exploration

1. Introduction

This time Kees analyzed Trilogy Metals, which sports one of the highest grade copper projects worldwide (Arctic). I found Kees' report interesting enough to obtain company feedback, and after a lengthy process of 6 weeks here is the end product for your convenience. Kees found several reasons to increase opex meaningfully compared to the PFS, so as a consequence the post-tax NPV8 came down significantly (from US$1412.7M to US$803.8M @US$3.00/lb Cu), and I estimated the adjusted IRR at 23% (from 33.4%), which are still strong numbers. At a current market cap of US$226M one could argue that Trilogy is undervalued, as Bornite hasn't been taken into consideration yet.

Golden Arrow Resources: Rock Solid Leveraged Play On Silver

San Miguel open pit; Pirquitas Mine

1. Introduction   

Although silver does not get much love lately, there are silver plays around that could move significantly as soon as the price of the metal recovers in more positive precious metals sentiment. One of these plays is Golden Arrow Resources (GRG.V, GARWF.US, G6A.FSE). Despite the name, this junior doesn't own one NI43-101 compliant ounce of gold in the ground yet. Their flagship project is called Chinchillas, located in the Jujuy province in Argentina, and is a large, open pit silver/lead/zinc project. At the moment it is on the brink of production, as part of the Puna Operation, a joint venture (JV) with much larger gold/silver producer SSR Mining (SSRM.TO, market cap of C$1.6B, formerly known as Silver Standard).

Adriatic Metals: A Polymetallic Explorer With Significant Potential

Drilling at Rupice


This time Kees Dekker analyzes Adriatic Metals, an Australian junior exploring a very high grade polymetallic project called Rupice in Bosnia Herzegovina. Kees and I had our doubts as the last drill results at the border of the drill permitted area took a very long time until release, but when they did came in, the results appeared to be pretty good again. Kees does a good job calculating metal value including recovery and payability, basing his cash margin on this, and hereby maintaining a conservative stance which seems healthy for an early stage exploration play. 


Subscribe to RSS - Extensive Analysis