Natural Resource Partners Delivers What Investors Asked For [View article]
I believe that NRP's distribution will not be increased in 2013 under any circumstances. I also believe it won't be decreased. From the company's point of view, why increase the distribution when the yield is at 10% or 9%? Until faith in the business model returns and increase in the distribution may not attract new investors.
Instead, the company will wait for the yield to fall back to around 8%, probably in 2014, and then start distribution increases again. I am thinking 2%-4% increases initially, and then more or less depending on market conditions.
This is all just my opinion, mgmt is very careful not to give forward guidance, especially about distribution rates.
Pershing Gold, Nearing Production And Huge Exploration Upside [View article]
I think a few institutions are buying. Look that the combined volume for CRGC and PGLC in the past two weeks, almost 3mm shares per day for 10 days, (including today).
Pershing Gold: Not A Daytrade But A Long-Term Investment [View article]
Comments from Coeur d'Alene's Press Release today. The company reiterated its expansion plans for its Rochester Mine. That mine is located just a few miles north of Pershing Gold. Quote,
Rochester Expansion...
"The Company plans a significant expansion of its Rochester operation in 2013. As a result, silver production at Rochester is expected to increase to 4.5 - 4.9 million ounces in 2013 compared to 2.8 million ounces in 2012. 2013 gold production is expected to increase to 44,000 - 46,000 ounces compared to 38,071 ounces in 2012.
The Company estimates 2013 capital expenditures for Rochester to be $30 - $35 million to expand production. The Company is investing approximately $4 million during 2013 to expand the capacity of the primary crusher from nine million tons to the currently permitted rate of 14 million tons annually.
In addition, subject to receipt of final permitting, the Company expects to nearly double the mine's remaining heap leach capacity on existing pads during 2013 to approximately 67 million tons at an estimated capital cost of approximately $15 million.
The Company also is pursuing an additional estimated $10 million expansion, which is expected to provide 40 million tons of additional pad capacity beginning in 2016, to further extend the mine life and increase production rates from historic stockpiles.
Following the implementation of the expansion opportunities described above, the Company plans to pursue other longer-term expansion opportunities at Rochester that are focused on mining and processing of the existing mineralized material..."
CDE is minting money. I think of CDE as a silver play. I was listing gold plays. Having said that, CDE is growing in gold, especially at the Rochester complex.
Pershing Gold Exiting 2012 On A High Note [View article]
In looking at a group of 25 or so junior gold stocks that have mostly U.S. gold assets, ATNA Resources, Midway Gold and Pershing Gold have by far the best trading liquidity, [share price x average daily volume]. These are companies with market caps below $400 million.
This is important because the more liquid juniors will fit better with institutions. Pershing Gold will have even more trading liquidity when the CRGC shares are registered.
Pershing Gold Exiting 2012 On A High Note [View article]
If one assumes that Pershing Gold's valuation catches up to Midway's CURRENT valuation of $306 million 2 years from now, PGLC shares would have to increase by 60% in 2013 and another 60% in 2014 to end at about $1 per share. [Assuming 300 million fully-diluted PGLC shares].
2 years from now, Pershing expects to be in production at a run-rate of 50k ounces, growing to 75k and then 100k from just its first mine. 50,000 x $1,000 cash flow per ounce = $50 million. So one would be paying a 6x cash flow multiple for 50k ounces and get the organic growth from 50k to 100k ounces for free.
And one would get the pipeline of projects for free as well as the resources identified by then, which could be a multiple of the current figure of 600k-750k ounces. In 2 years, Pershing could have a similar resource to Midway, and be in production with its 100% owned processing facility.
I would argue that Pershing should be worth more than $306 million by then. The main risk is substantial equity dilution between now and then, which the company says they will not do.
This Gold Mining Company Is The Best Bet In Nevada [View article]
First ever article on Pershing Gold on the Motley Fool platform.
Article profiles Allied Nevada and Pershing Gold. As per Motley Fool publishing guidelines, Pershing Gold is too small to be featured alone. Please click on link.
Pershing Gold Exiting 2012 On A High Note [View article]
I haven't heard anything, but 3.5 million shares = $1.4 million, again not a big swing for a fund or a few funds. If the average volume were to stay at about 2mm shares per day (like it's been for the last 3 trading days), that would allow bigger funds to get invested.
Pershing Gold Exiting 2012 On A High Note [View article]
The water table is why the company is prudently drilling for data now rather than later. They will need permits for deeper drilling, and yes that can take several years.
But this shouldn't impact them if they go for the shallow material first, which is of course what they would do anyway. Alfers is advancing the properly exactly how he should, not cutting corners like cash strapped or inexperienced mgmt teams might do.
Also, remember, there are dozens of gold and silver mines in and around Pershing County, NV. This is not a new and scary thing to fear. That's my opinion.
Pershing Gold Exiting 2012 On A High Note [View article]
North of 1 million shares traded yesterday and today. I know that Pershing is interested in getting institutional interest in their shares. If an institution buying, 1 million shares is nothing.
Pershing Gold Exiting 2012 On A High Note [View article]
Lisa,
Whenever I ask equity analysts about ANV, NEM, CDE or ABX acquiring Pershing they tell me the same things, 1) Why Pershing as opposed to a dozen other juniors in NV 2) Why buy ALL of Pershing or ALL of another junior as opposed to just a single mine, 3) Why assume that a suitor would buy Pershing before first production.
So, it's certainly not a no-brainer! I throw it out to get people, (including hopefully executives at CDE) to think about it.
Another push back I get is that the bigger players like ANV have so much in their own pipelines that they don't need to buy Pershing.
Pershing Gold Exiting 2012 On A High Note [View article]
I don't know what CDE will do. They have 8 equity investments in early-stage / development stage companies. Most of the 8 are outside the U.S. and most are silver or silver dominant plays, not gold. So it depends on what order they pursue these opportunities, (if at all).
I highly recommend that readers go to CDE's website. The company has made 3 investment presentations including the Nov 29th one I referenced.
Coeur's corporate presentation indicates, 1) company-wide gold production has grown robustly for several years, but stalled this year, 2) Silver production costs at the Rochester mine have ample room for improvement, 3) A significant emphasis (a corporate initiative) on production growth at Rochester.
Rochester has been in production for decades. It's largely a silver mine, but has run-rate gold production of 32k-35k. Importantly, the gold is a by-product of the silver. Rochester, (incl. Couer's Packard Mine) is on about 8,800 acres, sharing a border with Pershing.
THIS IS A KEY POINT, the gold ore grade at Rochester is much, much lower than that of Pershing's. It's likely only being mined coincident with the silver to offset overall mining costs.
If Rochester could incorporate Pershing's substantially higher grade, near surface, gold into its mix the company would greatly benefit in two key ways. First, a doubling, (by 2014) / tripling (by 2016) of Coeur's gold production and second, a BIG positive impact on Rochester's per ounce silver costs.
It's important to recognize that Rochester is no longer CDE's key asset, the company's two silver mines in Mexico are. With or without Pershing, Couer is clearly trying to revitalize Rochester to help diversify the overall risk profile of the company (too much Mexico risk? to much silver exposure?).
3rd quarter results demonstrated the exact risk that CDE is trying to mitigate. CDE's largest mine in Mexico hade a bad quarter, sending CDE stock down 20% in two days.
Pershing Gold - A Significant Resource Increase Could Be In The Near Future [View article]
Neither Coeur d'Alene nor Dr Frost are selling a single share of Pershing Gold. In fact, each might buy more in the next capital raise. The S-1 has to do with the registration of shares, not a sale of shares. That's confusing, but I am 100% sure that these holders are not selling shares.
Natural Resource Partners Delivers What Investors Asked For [View article]
Instead, the company will wait for the yield to fall back to around 8%, probably in 2014, and then start distribution increases again. I am thinking 2%-4% increases initially, and then more or less depending on market conditions.
This is all just my opinion, mgmt is very careful not to give forward guidance, especially about distribution rates.
Pershing Gold, Nearing Production And Huge Exploration Upside [View article]
Pershing Gold, Nearing Production And Huge Exploration Upside [View article]
Either way, thanks for your comment.
Pershing Gold: Not A Daytrade But A Long-Term Investment [View article]
Rochester Expansion...
"The Company plans a significant expansion of its Rochester operation in 2013. As a result, silver production at Rochester is expected to increase to 4.5 - 4.9 million ounces in 2013 compared to 2.8 million ounces in 2012. 2013 gold production is expected to increase to 44,000 - 46,000 ounces compared to 38,071 ounces in 2012.
The Company estimates 2013 capital expenditures for Rochester to be $30 - $35 million to expand production. The Company is investing approximately $4 million during 2013 to expand the capacity of the primary crusher from nine million tons to the currently permitted rate of 14 million tons annually.
In addition, subject to receipt of final permitting, the Company expects to nearly double the mine's remaining heap leach capacity on existing pads during 2013 to approximately 67 million tons at an estimated capital cost of approximately $15 million.
The Company also is pursuing an additional estimated $10 million expansion, which is expected to provide 40 million tons of additional pad capacity beginning in 2016, to further extend the mine life and increase production rates from historic stockpiles.
Following the implementation of the expansion opportunities described above, the Company plans to pursue other longer-term expansion opportunities at Rochester that are focused on mining and processing of the existing mineralized material..."
Pershing Gold: Mining Without Risk [View article]
Pershing Gold Exiting 2012 On A High Note [View article]
This is important because the more liquid juniors will fit better with institutions. Pershing Gold will have even more trading liquidity when the CRGC shares are registered.
Pershing Gold Exiting 2012 On A High Note [View article]
2 years from now, Pershing expects to be in production at a run-rate of 50k ounces, growing to 75k and then 100k from just its first mine. 50,000 x $1,000 cash flow per ounce = $50 million. So one would be paying a 6x cash flow multiple for 50k ounces and get the organic growth from 50k to 100k ounces for free.
And one would get the pipeline of projects for free as well as the resources identified by then, which could be a multiple of the current figure of 600k-750k ounces. In 2 years, Pershing could have a similar resource to Midway, and be in production with its 100% owned processing facility.
I would argue that Pershing should be worth more than $306 million by then. The main risk is substantial equity dilution between now and then, which the company says they will not do.
This Gold Mining Company Is The Best Bet In Nevada [View article]
Article profiles Allied Nevada and Pershing Gold. As per Motley Fool publishing guidelines, Pershing Gold is too small to be featured alone. Please click on link.
http://bit.ly/12AOlYJ
Pershing Gold Exiting 2012 On A High Note [View article]
Pershing Gold Exiting 2012 On A High Note [View article]
But this shouldn't impact them if they go for the shallow material first, which is of course what they would do anyway. Alfers is advancing the properly exactly how he should, not cutting corners like cash strapped or inexperienced mgmt teams might do.
Also, remember, there are dozens of gold and silver mines in and around Pershing County, NV. This is not a new and scary thing to fear. That's my opinion.
Pershing Gold Exiting 2012 On A High Note [View article]
"PGLC will need a heck of a lot more cash than they have on hand to get through 2013"
They need about $10 million having just raised $3.1 million and clearly stated need of $13 million. Look at the latest 10-q report, MD&A section.
Pershing Gold Exiting 2012 On A High Note [View article]
Pershing Gold Exiting 2012 On A High Note [View article]
Whenever I ask equity analysts about ANV, NEM, CDE or ABX acquiring Pershing they tell me the same things, 1) Why Pershing as opposed to a dozen other juniors in NV 2) Why buy ALL of Pershing or ALL of another junior as opposed to just a single mine, 3) Why assume that a suitor would buy Pershing before first production.
So, it's certainly not a no-brainer! I throw it out to get people, (including hopefully executives at CDE) to think about it.
Another push back I get is that the bigger players like ANV have so much in their own pipelines that they don't need to buy Pershing.
Pershing Gold Exiting 2012 On A High Note [View article]
I highly recommend that readers go to CDE's website. The company has made 3 investment presentations including the Nov 29th one I referenced.
Coeur's corporate presentation indicates, 1) company-wide gold production has grown robustly for several years, but stalled this year, 2) Silver production costs at the Rochester mine have ample room for improvement, 3) A significant emphasis (a corporate initiative) on production growth at Rochester.
Rochester has been in production for decades. It's largely a silver mine, but has run-rate gold production of 32k-35k. Importantly, the gold is a by-product of the silver. Rochester, (incl. Couer's Packard Mine) is on about 8,800 acres, sharing a border with Pershing.
THIS IS A KEY POINT, the gold ore grade at Rochester is much, much lower than that of Pershing's. It's likely only being mined coincident with the silver to offset overall mining costs.
If Rochester could incorporate Pershing's substantially higher grade, near surface, gold into its mix the company would greatly benefit in two key ways. First, a doubling, (by 2014) / tripling (by 2016) of Coeur's gold production and second, a BIG positive impact on Rochester's per ounce silver costs.
It's important to recognize that Rochester is no longer CDE's key asset, the company's two silver mines in Mexico are. With or without Pershing, Couer is clearly trying to revitalize Rochester to help diversify the overall risk profile of the company (too much Mexico risk? to much silver exposure?).
3rd quarter results demonstrated the exact risk that CDE is trying to mitigate. CDE's largest mine in Mexico hade a bad quarter, sending CDE stock down 20% in two days.
Pershing Gold - A Significant Resource Increase Could Be In The Near Future [View article]