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  • Fairfax Financial: Poor 1H 2015 Results Should Not Be Treated As A Major Issue [View article]
    Thanks Terry, it clarifies a lot of things.
    Aug 9, 2015. 03:22 PM | Likes Like |Link to Comment
  • Fairfax Financial: Poor 1H 2015 Results Should Not Be Treated As A Major Issue [View article]
    Thanks Blue Ridge.
    As Prem Watsa is concerned there are two aspects of his qualifications:

    - insurance business - generally everybody thinks he is a very smart businessman
    - investment policy - at this point many people criticize him and try to prove he is not that smart investor as an insurance businessman

    Quite strange because in the long term the guy makes a lot of money in both aspects
    Aug 4, 2015. 05:33 PM | Likes Like |Link to Comment
  • Fairfax Financial: Poor 1H 2015 Results Should Not Be Treated As A Major Issue [View article]
    Now you have a chance to observe how Watsa is performing in Greece (Fairfax has a few holdings there). I think the crisis investing is what he likes the most.
    Aug 4, 2015. 06:27 AM | 1 Like Like |Link to Comment
  • Fairfax Financial: Poor 1H 2015 Results Should Not Be Treated As A Major Issue [View article]
    Fairfax holds 46.7 million shares of BBRY (according to the last Sec F13 report). As far as I remember Fairfax paid around $18 per share on average. Today these shares are trading at $7.55 so the unrealized loss is around $488 million.
    Aug 4, 2015. 04:43 AM | Likes Like |Link to Comment
  • Fairfax Financial: Poor 1H 2015 Results Should Not Be Treated As A Major Issue [View article]
    We have to wait for Form 13, where the companies disclose their equity positions. But I am rather confident Fairfax did not sell its stake in BBRY.

    Why? Ask Watsa, but, looking at the history of his long term investments I think he knows what he is doing (generally, he knows things the others do not know).


    On the other hand I am more interested what thesis stands behind his acquisitions of Resolute Forest Products and Tembec.
    Aug 4, 2015. 04:35 AM | Likes Like |Link to Comment
  • Fairfax Financial: Poor 1H 2015 Results Should Not Be Treated As A Major Issue [View article]
    Page 59 of 2Q 2015 report

    http://bit.ly/1OMHKS8

    I will add that the losses on bonds were attributable to:
    - government bonds: $245.6 million
    - U.S. states and municipalities: $242.0 million
    - corporate and other bonds: $28.5 million
    Aug 4, 2015. 04:23 AM | Likes Like |Link to Comment
  • Physical Gold Flows From Switzerland Has A Little For The Bulls And Bears [View article]
    Fine title, Hebba, he, he.
    Jul 30, 2015. 06:01 PM | Likes Like |Link to Comment
  • Gold Resource Corporation Continues To Provide Excellent Returns On Invested Capital [View article]
    You see only negatives (I have read 43-101 report so I have some doubts too, but different from yours).
    Anyway - please, write your own article on this company. It could be very interesting (at least I would like to read it).
    I always try to find arguments contrary to my thesis so try to convince me (but, please, deliver numbers not emotions).
    Jul 24, 2015. 09:16 AM | Likes Like |Link to Comment
  • Gold Resource Corporation Continues To Provide Excellent Returns On Invested Capital [View article]
    A majority of gold stocks went down during this downturn. Goro is no exception. On the other hand this company, compared to GDX, has been outperforming its peers since December 2014. So it is not that bad with this company.

    As for dividends. Goro is able to pay dividends. For example, in 2014 it had cash flow from operations of $37.7 million, of which $16.6 million was spent on development etc. So the surplus was around $21 million, of which $6.5 million was paid to shareholders as dividend.
    The company has no debt (just $2 million at the end of 1Q2015) and cash at hand of $25 million so it definitely is able to pay dividends.

    Is the management right that GORO pays dividends? It is another story. The question is what to do with cash generated from operations. There are generally four answers:
    - invest (in development, acquisitions etc.)
    - pay dividends
    - buy back shares
    - do nothing (wait for better times)

    The management has chosen the second alternative. Who knows, maybe today it would be better to do nothing - times are bad so it is prudent to have cash. But GORO, according to my calculations, has quite a wide moat. Gold would have to go down to $850 per ounce and stay there for some time to put the company in trouble. So the management has time to change its policy if it is necessary.
    Jul 24, 2015. 06:19 AM | Likes Like |Link to Comment
  • Fresnillo Plc - This Giant Silver Producer Is Going To Be Much Larger [View article]
    Thanks
    Jul 22, 2015. 03:34 PM | Likes Like |Link to Comment
  • Kinross: To Sustain Its Leading Position As One Of The World's Biggest Gold Producers, Has To Replenish Its Mineral Base [View article]
    Thanks for your comments. I will look at this project and the company (Victoria Gold) more closely.
    Jul 15, 2015. 11:33 AM | Likes Like |Link to Comment
  • Kinross: To Sustain Its Leading Position As One Of The World's Biggest Gold Producers, Has To Replenish Its Mineral Base [View article]
    Well, KGC owns just 16% in Victoria Gold, which is not too much (16% of 2.3 million ounces of gold = 368 thousand ounces, which is nothing for such a giant company as Kinross).

    What is more, at the gold price of $1,325 per ounce the project has after-tax IRR of 18.1%. At the gold price of $1,200 the IRR is around 12.5%.

    To be honest, the economics of Eagle Gold Project is not too impressive.


    But the initial CAPEX of $400 million - definitely Kinross would be able to finance it.
    Jul 15, 2015. 11:02 AM | Likes Like |Link to Comment
  • Randgold Resources: Operational Issues And Pricing Uncertainty Makes It A Risky Bet [View article]
    If you think Randgold is a risky bet so you should totally forget about investing in precious metals sector. As for your assumptions:

    - the company is not in good shape - well, the company is doing fine even now, when gold prices are substantially lower than a few years ago, for example total accounting costs (as stated in financial statements) have been going down since 2010 at least (from $898 to $703 per ounce of gold sold - try to find another miner incurring such low costs)

    - technical problems - it is common thing in this sector - mining companies have technical problems, which are then being solved - Randgold is no exception (but Bristow is an exceptional manager who knows everything about mining, solving technical problems included)

    - lower prices of gold - surely, mining companies do not have control over gold prices therefore it is a risk embedded in this industry (everybody knows it so what is the sense to write about it?).


    Summarizing - the article is a total exaggeration; Randgold is pictured as a company in trouble while there is no trouble at all (apart from minor problems which are faced by every single miner from time to time).
    Jul 9, 2015. 01:15 PM | 1 Like Like |Link to Comment
  • Navios Maritime Acquisition: Diversified Tanker Play With Irrational Undervaluation [View article]
    Just one question. In the table: NNA Product/Chem Tanker Cash Flow Projections, in the column titled "$12,500" there is a positive net cash flow of $9,900,625. But as you have written the cash break-even is $14,000 (so the net cash flow should be negative). Is it correct?
    Jul 3, 2015. 04:26 AM | Likes Like |Link to Comment
  • Why Did Silver Standard Resources Acquire A Small Stake In Golden Arrow Resources? [View article]
    Thanks for your comment.
    You are right about grades and Pirquitas profitability (with costs of production of $16 per ounce of silver it is not profitable at today's prices of silver). But, in my opinion, it is another factor, which makes cooperation between SSRI and GARWF sensible (especially for SSRI acquiring a lower-cost-than-Pirquitas deposit)
    Jun 24, 2015. 01:52 PM | Likes Like |Link to Comment
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105 Comments
44 Likes