Thursday, September 29, 2016

Kirkland Lake Merges With Newmarket Gold

Well, it looks like another company included in my Top Five Picks Portfolio, Newmarket Gold, is going to leave this portfolio. This time it is due to a merger with Kirkland Lake, an excellent, high-profile miner.

I will deliver a comment on this agreement in my second issue of the Simple Digressions Newsletter at the end of this week.

Tuesday, September 27, 2016

B2 Gold - The Masbate Mine Is On The List (Of Philippines Government Officials)

According to Rappler, Filminera Resources Corp, a company which owns the Masbate Mine in Philippines, is among 20 mining companies recommended by the Philippines environment officials for suspension.

B2 Gold holds a 40% stake in Masbate through Filminera so it is Filminera that should be followed by B2 Gold shareholders (me included). Well, although the mine has not been suspended yet, it is on the list (together with Oceana Gold and other, mainly nickel-related companies). 

Both stocks are crashing now:



Well, shit happens....as Lou Bega sings...

The story is developing and here is what I have found:

"Based on the reference to the three findings indicated in the brief received today and based on our subsequent meeting with the Secretary of DENR, B2Gold is confident that these issues will be resolved by working with the government agencies, in the time frame provided. 

None of the findings involve any environmental or social issues. They are related to administrative issues only.

Meanwhile operations continue uninterrupted and guidance remains unchanged.

The company awaits formal notification from the Mines and Geosciences Bureau (MGB) and details of the Show-Cause Order"


Well, well, let us see but maybe today's B2 Gold share prices crash was a nice buying opportunity...

Sunday, September 25, 2016

The Firt Issue Of The Simple Digressions Newsletter Has Been Dispatched

The Simple Digressions Newsletter has been dispatched.

In the first issue you will find:

  • Editorial letter
  • Stock pick of the week
  • Drilling sector's review
  • Comments on my Top Five Picks Portfolio
  • Companies on radar


Those interested may still subscribe (details in the section "Newsletter")

Wednesday, September 21, 2016

Gold Breaks Up

In one of my last posts I spotted divergence between the silver / gold ratio and the gold itself. In conclusion I stated that there was a chance for higher prices of gold because such a pattern (silver / gold ratio going up) was an indication of an incoming reversal in the gold trend.

Today the pattern materialized:

The line marked in red shows the downward trend in gold prices accompanied by the line marked in green (the upward trend in silver / gold ratio). Divergence may be easily spotted.

Then, today, both metals exploded (gold gained 1.5% while the price of silver went up by 2.7%). Of course, some may say it was due to no hike in interest rates. Maybe they are right - I do not know what factors were driving prices today. All in all, the facts are clearly visible - we have seen higher prices of gold and silver.

Now, I think that the ultra short term players should closely watch what happens tomorrow, the day after today's enthusiasm.

Lastly - I want to remind my readers that the first issue of my newsletter should be dispatched at the end of this week. Those interested, please, subscribe. It is free.
 

Tuesday, September 20, 2016

Newsletter

My first newsletter should be dispatched soon. Those interested in this service, please, send a mail to:

simpledigressions at gmail.com

No personal data is needed - it is enough to send a mail containing an e-mail address and stating "I am interested in the Simple Digressions newsletter" (or something like that).

When the first issue is out I will send it in a PDF format.

Now the newsletter is free of charge.

Sunday, September 18, 2016

Huge Volumes On Friday - A No-Event Occurence

It seems that huge volumes reported on Friday had nothing to do with changes among shareholders, at least as far as US exchanges are concerned. I have checked other miners and the results are as follows:

  • B2Gold - 94.4M shares changed hands (10.1% of shares outstanding)
  • Gold Resources (GORO) - 3.9M (7.1%)
  • First Majestic (AU) - 27.1M (16.7%)
  • Coeur (CDE) - 37.1M (22.9%)
  • Hecla (HL) - 73.2M (19.0%)
  • IAMGold (IAG) - 32.5M (8.0%)
etc.

So it was a too-early-alert. One of my readers commented on this event and he was right. It looks that these huge volumes were due to GDXJ rebalancing issues. It means that no changes in shareholders structures are expected.

Saturday, September 17, 2016

Richmont Mines and Newmarket Gold - Updated Volumes

Yesterday I published a post on huge trading volumes reported by Richmont Mines and Newmarket Gold, two stock picks I am closely following. Below you will find the final closing volumes, which were substantially higher than initial ones (posted yesterday):

Richmont (volume accounting for 28.6% of share count):



and Newmarket Gold (volume accounting for 20.7% of share count):



Now, as one of my readers noted, we are waiting for the info about changes in the shareholders line-up.