Monday, November 5, 2012

investor lunch with golden predator (TSX:GPD)


the golden predator guys + girls presented their company in munich today and yes, i liked it :-)
unlike the last few presentations, i'm going to post my insights on the company this time:
  • yukon's upcoming gold producer as the brewery creek mine is going to start production in 2014. what if not? well, then they still could brew beer and sell it to other miners in the area, couldn't they? lol
  • portfolio of gold royalties in nevada which generates approximately $ 1m a year and could / should generate more as the underlying mines start and/or ramp up their production. the whole royalty business could become a future spin-off as a independent compan, who knows?
  • quite well financed up to the start of own gold production, no need to raise capital at present so depressed stock price level
  • some other assets out there as well, like an old mill in nevada, share packages in 2 or 3 other companies, few early stage gold projects besides brewery creek etc. and so fort
  • what else? hmmm, there was that positive guts feeling issue, you see? i liked many things the CEO william sheriff said: generating cash is the most important issue (many explorer companies still try to increase their reserves / resources even if since 2008 mr. market doesn't value it at all), he prefers to under promise & over deliver, he wants to run the company as a business (profitable!), moved the headquarters from hyper expensive vancouver / canada to silver valley in idaho / usa ... unfortunately, i'm both too lazy + too stupid to check out how many shares he has bought in the last few years and at which price, but i think on average he has paid more than me today (damn, is anyone who's less lazy + less stupid than me going to send me a link to the corresponding insiders' trading reports?)
  • cheap like an unwanted pet, the current price is close to the lowest levels in the last 5 years. will they go bankrupt when the current mining markets continues their ugly downturn? hell, i do not think so, they are already fairly close to (profitable) production and there are still the royalties. the gold price is not going to fall below &1,000 per ounce, is it?
  • what to do? as for me, the same procedure as so often: i've bought few shares today, subscribed for company's newsletter and thus i'm going to follow their development
bill sheriff mentioned also few companies which are somehow connected to golden predator or its directors via some equity investments the one way or the other:
  • my struggling silver producer alexco resources and golden predators neighbor in the yukon territories in canada
  • silver predator (TSX:SPD)
  • wolfpack gold (private company as for now)
  • redtail metals (TSX.V:RTZ) ~ very early stage precious + base metals explorer in the yukon with very low trading volume right now. it is a company i will look closer at and probably buy few shares if i will find some money and not forget to do so ... well, let's link the predator group's website for fast access here
good luck, my lovely golden predator fighters, good luck :-)

addendum november 8th: i've just bought few shares of redtail metals. too expensive as often because i don't want to wait for a cheap(er) price, but compared to the price level we have had months ago still very cheap (CAD 0.13 per share. 28% more expensive than 1 day ago). there is not much volume out there and especially not many sellers, so it is a long term play and i have to hope the management makes the company a succcess and this will creates some market for the share trading as well :-)

so what about my investments in november? well, i'm trying to tell the temporary mining market bottom and to be fully invested for the upcoming rally, thus i've used my margin up to the tilt, you know? good luck my lovely commodity plays, good luck :-)
go gold bugs go and let's crash this fraudulent fiat money system now :o)

addendum november 27th: i've just bought few more shares of redtail metals + golden predator. redtail at CAD 0.095 and predator at CAD 0.30 per share at market opening. hell, the overwhelming fear in the mining stocks market makes every new purchase cheap. anyway, after more than 1 and half years of correction (the peak was the gold @ $1,900 and silver at $50 per ounce event in may 2011 i think) the mining stocks should / could / would finally go up, wouldn't you say?
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