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Long a buy and hold investor, I now believe that buy and hold has to be re-evaluated in a world of ever increasing, instant information and huge gyrations in markets all over the world. A value investor at heart, I anchor my portfolio with conservative funds and blue chip dividend stocks, but... More
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  • Brigus Gold Is Extremely Under Valued
    Brigus Gold - 2012 should make investors very happy

    Brigus Gold Corp (TSX - BRD) (AMEX - BRD)

    is a mid-tier gold producer operating in several jurisdiction including it's producing Black Fox Mine complex near the prolific gold region of Timmons, Ontario, Canada.

    Unusual for such a company is that it's head office is in Halifax, Nova Scotia. Brigus has a very solid management team with many years of experience amoug them in in the field of gold mining. They are fucused on building shareholder value through the further development of the Black Fox mine and their Goldfields property near Uranium City Saskatchewan.

    Brigus expects to produce 100,000 oz in 2012 and is planning to double production in the next few years to 200,000 oz. Proven and probable reserves now total over 2,000,000 oz and with new discoveries, this number will grow.

    Current Market cap is 200m with 196m shares outstanding and the shares traded today at a low of $1.02 per share. Cost of production will average $700 per oz in 2012. Having regard to all of the numbers given by Brigus Gold in their January investor presentation, their resource base is only being valued by investors at $117 per oz. That, my friends, is such an extreme under-valuation of those resources that it borders on the ridiculus.

    Brigus has recently made agreements to option off it's mine holdings in Mexico so as to free up cash (currently $19.1M) for development of it's core assets at Black Fox and Goldfields. Current debt is $50M

    The price of gold has spiked in recent months and a number of expert analysts expect the price to go as high as $2200 this year. Over the past year, the share price of gold miners has not kept pace with the price of bullion. In fact, it has declined during that time. History tells us that this divergence between bullion prices and gold miners will correct itself and when it does, it will happen very quickly. Mid-tier miners such as Brigus and Sangold will lead this charge, in my humble opinion.

    Large gold producers, with their eye on the bottom line, often increase their resource and production base by buying mid-tier miners such as Brigus Gold and San Gold (another one of our favourites) At these very low valuations, this makes Brigus a diamond in the rough so to speak.

    Larger institutional investors include: Sprott Asset Management, LLP; Van Eck Associates Corporation; Wellington Management Company, LP; Baker Steel Capital Managers, LLP; Oppenheimer Funds, LLC; Hale Capital Partners; RBC Precious Metals; BlackRock Financial Management; Earth Resources; and Waterton Resources

    Recently Sprott upped their position by 5M shares to 20M shares or approx 10% of the company.

    The Motley Fool has made Brigus one of their top three picks this year and give it 4 stars.

    Over the past week we have doubled down on our holdings of Brigus Gold. We expect to be well rewarded during 2012. They say patience is a virtue. If you are currently holding Brigus Gold shares, good for you. If you are not, maybe you should be.

    Happy investing.


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    Disclosure: I am long BRD.

    Tags: PPP, GLD, BRD-T
    Feb 09 10:48 PM | Link | 9 Comments
  • Demand For Lithium Carbonate Drives Building Of New Plant In Australia
    Talison Lithium to build lithium carbonate plant

    Talison Lithium Limited has selected the Kwinana Industrial Area in Western Australia as the location for its proposed plant to convert lithium minerals into lithium carbonate ("Minerals Conversion Plant").

    The Kwinana Industrial Area is located approximately 40km south of Perth and 200km north-east of the Greenbushes Lithium Operations. It is one of the largest dedicated industrial areas in Western Australia and comprises a range of industries including fabrication and construction facilities, power stations, waste water plants, chemical manufacturers and alumina, nickel and oil refineries.

    Talison selected the Kwinana Industrial Area as its preferred location for the Minerals Conversion Plant due to the synergies between the lithium carbonate plant and the surrounding industries; the proximity to water, reagents and energy supply; access to skilled labour; potential customers for by-products located in the vicinity; and close location to Fremantle Port for container exports.

    Since most of Talison's 300 plus customers are from the mainland of China, the port proximity becomes crucial for timely shipments.

    Talison is the worlds largest "pure" lithium supplier, only overshadowed by SQM of Chile which produces lithium from Brine as a byproduct of it's massive potash operations there.

    Talison and Mitsui sign Memorandum of Understanding

    Talison and Mitsui & Co., Ltd ("Mitsui"), a leading Japanese trading firm with significant involvement in the lithium-ion battery market, have entered into a Memorandum of Understanding to discuss on a non-exclusive basis collaborative marketing and distribution opportunities in Japan for lithium carbonate produced by Talison at its Minerals Conversion Plant.

    Japan is one of the world's largest markets for lithium-ion batteries and lithium chemicals, and there are potential opportunities for Talison and Mitsui to work together to provide an additional secure supply of lithium chemicals to customers in this market. The Memorandum of Understanding provides a framework for Talison and Mitsui to discuss collaboration opportunities on a non-binding basis and is valid for an initial period of 12 months.

    Financial Results Release February

    Talison will release its financial results for the fiscal second quarter 2012 before market open on Monday, February 13, 2012. An investor conference call will be held at 8:30 a.m. EST.

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    Disclosure: I am long OTC:TLTHF.

    Feb 09 11:38 AM | Link | Comment!
  • Keystone pipeline to be stopped by Obama Administration
    The Obama administration just announced they will block Trans Canada Corp's, Keystone pipeline from the Canadian Oil Sands into the United States.

    As I have said before, if your neighbor keeps telling you to stay on your own side of the fence, that is exactly what you will do, even if it hurts your otherwise good neighbor.  Does the green movement really believe this will somehow stop the development of the Alberta Oil Sands, arguably the largest deposit of oil on the planet?  Not hardly.

    Canada, and it's pro business, Conservative government of Prime Minister Stephen Harper, are bent on developing this massive resource further into the 21st century. Buyers, from China to Korea are lining up in Asia and salivating as Canada is now forced to proceed with the "northern gateway" pipeline to Kitimat British Columbia, on the west coast, where this precious resource will be sold to Asia, to the future detriment of the United States and its top trading partner, Canada.

    Whinston Churchill once said that, "America always does the right thing, after it exausts all other avenues".  I wonder if that is true in the case of North American energy security.

    Only time, and one election, will tell.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Jan 20 9:24 AM | Link | Comment!
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