Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Virginia Mines: Goldcorp's Disappointing Eleonore Report Makes This Company A 'Sell'

In November I wrote an article in which I argued that investors shouldn't be fooled by Virginia Mines' (OTCPK:VGMNF) strong performance in the face of a declining gold market. While investors were optimistic about the company's royalty on Goldcorp's (NYSE:GG) Eleonore mine, I pointed out that even using generous valuation metrics that the Eleonore Royalty was simply not valuable enough to justify taking a position in the (then) $330 million market cap company. This didn't necessarily mean that one should short the stock. After all the company has over 5,000 square kilometers of exploration property, a late stage exploration project--Coulon--which has a small defined base metal deposit, and a management team with a proven track record

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details