Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
Sane, I never understand why people are so quick to jump to an Apocalyptic mad max scene when dealing with currency collapse. Usually the void is quickly replaced even if it happens to be someone or something that is not exactly democratic (see Napoleons Rise). Their are many more current examples of this which do not have a favorable enviroment but are not a mad max barter scene. IMHO, Its kind of a red herring to jump straight into the apolclypse argument.
If the current system where to collapse then those holding gold would +eventually+ retain their wealth, even in the midst of some limited chaos. Something would quickly fill the void as history has always shown and those that can retain real value will continue to hold power and sway in the new system.
Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
Curious How can you write the below as if it does not currently apply to our current system which is not backed by gold:
"Inflation and recessions are very debilitating to businesses and people. So every country in the world whether free or socialist or autocratic has come to the conclusion that it needs a central bank, not a gold standard or a currency somehow related to gold, to make sure it at all times has enough money to have prosperity - not too much to cause inflation due to excessive spending nor too little to cause inadequate spending and recession."
Am I missing something here? Are we not in the midst of one of the biggest boom and bust cycles ever seen? I am not in favor of a gold standard, more in favor of a basket of commodities and currency, but you seem to suggest the modern system is somehow gaining in strength on the back of current results which makes little sense to me.
Also you don't seem to address debt problems which is one of the fundamental reasons people hold gold right now. But I enjoyed reading the article..your thoughts on the debt levels?
Gold Resources: Gold Dividend Means Sell [View article]
Don't take it personal amego, but when you write an article that gets published you better have your facts straight...especially when its challenging the character of others...your entire first lead in paragraph was devoted to goro's lack of profitability which you now admit is wrong yet thousands of people will see this linked under goro's profile on Yahoo and it could damage the company without some kind of retraction. What do you expect?
Gold Resources: Gold Dividend Means Sell [View article]
Well lets be realistic about this...how many times in the last 50 years has this been possible? When is the last time gold was in this kind of demand with such a horrible backdrop? 1975 through 1980 maybe...who would have wanted gold dividends when it was considered trash and at such low prices back in the 80s, 90s, early 2000. And what past observations have shown this?
The benefits have to be substantial to overcome the challenges dealing with logistics and other difficulties associated with something like this. Its simply not been viable throughout most of modern history to try this because the metal has been largely out of favor. What better time to try this then now?
Gold Resources: Gold Dividend Means Sell [View article]
I agree dak...What is the angst at having the OPTION of getting your dividend in gold or silver
GORO will not force anyone to take their dividend in gold or silver, its only an option. The logic isnt difficult to follow. If we see a complete meltdown of the world economy then it could be impossible to have access to precious metals unless you are directly taking it out of the ground. The company probably makes no bones about targetting typical goldbugs and why should they. Right or wrong goldbugs make up a huge % of those owning gold mining equities and I see nothing wrong with targetting them like any other consumer group in a competitive market. If GORO is successful then I would imagine many others will follow suit.
Gold Resources: Gold Dividend Means Sell [View article]
Hey thanks for the reply! Most of the recent authors on GORO that have written negative articles on goro have refused to comment, so much appreciation.
I think its a better metric to look at mine gross profit when looking at goro's recent past and you should look at it within the scope of the project. Q3 is the first "honest" look at the potential of the project because of a few things: Its the first qtr that reflects the true nature of the vein La Arista, which is the companies main ore body. Q2 was the ramp up and running of developmental ore and the project had a mine shutdown due to a storm. Also, goro had yet to establish any stope mining on the La Arista vein. In q3 goro had two working stopes which is many times more indicative of the value of the vein. The number of stopes will only increase from here on out as the underground mine is fully developed.
Its a bit tricky with the accounting on goro because its classed as an exploration company because it has yet to complete its 43-101 study ...coming year end btw.
This is borrowed off goro private board but it looks spot on to me...
Here is how I see q3 breaking down:
25,200 AuEq ounces, (75k for 2011 - 30k Q4) 42.8 Million in sales of metal concentrate at 1700 39.8 Million mine gross profit (71 cents per share of which one third would be 23.7 cents quarterly dividend or 8 cents monthly)
28.4 Million net income (still not sure about the remaining tax credit? earnings less 2 cents per share for each million in taxes)
50 cents per share fully diluted (56.5M) vs 6 cents for Q2 (or 9 cents not counting the storm).
If they have 50 cents per share quarterly or $2 per year GORO remains at a forward P/E of around 10 with a SP of 19.25 with a dividend of 3.1%. It would seem there is a lot of upward potential (barring a broad market collapse related to Greece/Eurozone)
2012 - 140,000 at $1600 is 224 million less 12 million mine cost of sales is a mine gross profit (http://bit.ly/ofiujH) of 212 million.
If the dividend is paid on 53 million shares then that's $4 per share of MGP or 11 cents per share as a monthly dividend.
Prior to this date it has been a special monthly dividend going back to the start of commercial production. You should also get up to speed on where the profit is coming from...see this release:
The highlights include: Gold Resource Corporation (NYSE Amex: GORO) confirms its record production forecast for the third quarter ended September 30, 2011 with preliminary production results of approximately 25,200 ounces precious metal gold equivalent (AuEq), which is the highest number of quarterly ounces produced to date and is approximately an 87% increase from the previous quarter.
I dare streetsweeper to hold the short through q3. Lets see what happens after q3....The company had surpassed q2 numbers quite early in q3 so that writing is on the wall...
Most of Mrs. Davis arguments are political talking points and I AM A DEMOCRAT. She believes it is wrong to take profits, guilt by association, family business is bad etc...I see the slant here and where it originates.
Will GORO Ever Find That Magic Pot of Gold? [View article]
lol, it's a shame you spoke derosa2...goro just increased the dividend tonight and made it a regular dividend...i project goro revs to be around 30-35 million this qtr at 1600 gold. Bad timing huh?
Will GORO Ever Find That Magic Pot of Gold? [View article]
It's amazing that people are jumping on goro because of lack of production. It's not very uncommon to see a junior miner struggle in it's first year of actual milling...It's extremely difficult to get a mill up and running perfectly and it usually takes a few years to get it running close to perfect. GORO is right on that verge with last quarter being a good start and this upcoming quarter will set the standard. The market doesn't look backward once optimization occurs. To insinuate goro to be a fraud for struggling in the early quarters is a joke. What does Janice think the 196 employees are doing at the 60 million dollar mill? Is there a big congo line pouring buckets of water into the mill in the shifts??? Yet the author acts as though goro is ran by 3 guys based out of Colorado...she should visit the mine and see how impressive an operation this is.
Do the authors understand how capital intensive starting up and mine is? GORO entered production with 53 million shares which is about as tight a share structure as it gets...check the peers! I can count the miners under 60 million shares that produce a profit on one hand. It's extremely rare...
Choosing to hold off on a proven resource is risky and can't be done by many people. The banks love the 43-101 and the dilution that follows building it out...Management had no problems convincing the funds to buy goro as evidenced by the % of funds holding goro (WELL OVER 50%) and therefore no reason to go and dilute the stock for several years. Again, not everyone can pull this off....
GORO will be fine...just wait for q3 to see the hatchet's fade into the backdrop just like they did for Royal gold
Will GORO Ever Find That Magic Pot of Gold? [View article]
I usually enjoy janice's work when chasing dirty otb or grey stocks but this is not her best effort. I own goro and have for years and janice is barking up the wrong tree...the business model is unique and different for sure....but that's what made goro successful and on the verge of monster q3.
On some of the points
The insinuation goro lied about the storm is nothing but puffery. Look at the photos, they show the mill in about 3 inches hail...it looks like christmas in new england in the middle of the desert. Look at the photos of the debre that entered the mine. Why would someone cast doubt on this? That's quite odd to me given ample evidence....isolated storms in the middle of the desert aren't going to make it in any mexican record.
On Goro management selling stock...again, the author fails to provide this data in the proper context. look at the amount of shares sold vs held. GORO retailors have been taking small % gains off the table so why should goro management do any different.
Bringing Bre-x into the picture is again a hatchet tactic. Need anyone say more on this?
On the math side of things...accounting is different for an exploration company which is what goro is classified because they have yet to publish a 43-101. Read up on that then it should make sense to you.
The other stuff is slinging mud and conjecture about anything from family run business to quoting bloggers as sources. Wow Janice, you really didn't bring the A game for this one. Stick to 8000 inc
The Short Case for Neoprobe: Skeptical of Its Primary Asset's Success [View article]
Justin, Martin refused to answer 80% of the counter points of DDBUYER...go back and read this:
In summary:
1) He ignored the Cardinal distribution agreement calling for Neoprobe to receive 50% of the RETAIL price
2) Instead, he based revenues on the WHOLESALE price for Sulphur Colloid ONLY
3) He used 2005 wholesale prices
4) The 2005 price he quoted was wrong
5) He omitted the cost of Blue Dye altogether in his calculations, and;
6) To compound his errors further, he used U.S. Lymphoseek sales only to derive the value of NEOP stock, ignoring the ex-U.S. markets, other indications, etc.
Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
Ah this feels like a cat chasing his tail...show me a peoples without greed, without booming and bust...its who we are.
Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
If the current system where to collapse then those holding gold would +eventually+ retain their wealth, even in the midst of some limited chaos. Something would quickly fill the void as history has always shown and those that can retain real value will continue to hold power and sway in the new system.
Why Gold-Related Investments Are Slowly Becoming Worthless [View article]
"Inflation and recessions are very debilitating to businesses and people. So every country in the world whether free or socialist or autocratic has come to the conclusion that it needs a central bank, not a gold standard or a currency somehow related to gold, to make sure it at all times has enough money to have prosperity - not too much to cause inflation due to excessive spending nor too little to cause inadequate spending and recession."
Am I missing something here? Are we not in the midst of one of the biggest boom and bust cycles ever seen? I am not in favor of a gold standard, more in favor of a basket of commodities and currency, but you seem to suggest the modern system is somehow gaining in strength on the back of current results which makes little sense to me.
Also you don't seem to address debt problems which is one of the fundamental reasons people hold gold right now. But I enjoyed reading the article..your thoughts on the debt levels?
Gold Resources: Gold Dividend Means Sell [View article]
Gold Resources: Gold Dividend Means Sell [View article]
Absurdity brigrade
Gold Resources: Gold Dividend Means Sell [View article]
Gold Resources: Gold Dividend Means Sell [View article]
The benefits have to be substantial to overcome the challenges dealing with logistics and other difficulties associated with something like this. Its simply not been viable throughout most of modern history to try this because the metal has been largely out of favor. What better time to try this then now?
Gold Resources: Gold Dividend Means Sell [View article]
GORO will not force anyone to take their dividend in gold or silver, its only an option. The logic isnt difficult to follow. If we see a complete meltdown of the world economy then it could be impossible to have access to precious metals unless you are directly taking it out of the ground. The company probably makes no bones about targetting typical goldbugs and why should they. Right or wrong goldbugs make up a huge % of those owning gold mining equities and I see nothing wrong with targetting them like any other consumer group in a competitive market. If GORO is successful then I would imagine many others will follow suit.
Gold Resources: Gold Dividend Means Sell [View article]
I think its a better metric to look at mine gross profit when looking at goro's recent past and you should look at it within the scope of the project. Q3 is the first "honest" look at the potential of the project because of a few things:
Its the first qtr that reflects the true nature of the vein La Arista, which is the companies main ore body. Q2 was the ramp up and running of developmental ore and the project had a mine shutdown due to a storm. Also, goro had yet to establish any stope mining on the La Arista vein. In q3 goro had two working stopes which is many times more indicative of the value of the vein. The number of stopes will only increase from here on out as the underground mine is fully developed.
Its a bit tricky with the accounting on goro because its classed as an exploration company because it has yet to complete its 43-101 study ...coming year end btw.
This is borrowed off goro private board but it looks spot on to me...
Here is how I see q3 breaking down:
25,200 AuEq ounces, (75k for 2011 - 30k Q4)
42.8 Million in sales of metal concentrate at 1700
39.8 Million mine gross profit (71 cents per share of which one third would be 23.7 cents quarterly dividend or 8 cents monthly)
28.4 Million net income (still not sure about the remaining tax credit? earnings less 2 cents per share for each million in taxes)
50 cents per share fully diluted (56.5M) vs 6 cents for Q2 (or 9 cents not counting the storm).
If they have 50 cents per share quarterly or $2 per year GORO remains at a forward P/E of around 10 with a SP of 19.25 with a dividend of 3.1%. It would seem there is a lot of upward potential (barring a broad market collapse related to Greece/Eurozone)
2012 - 140,000 at $1600 is 224 million less 12 million mine cost of sales is a mine gross profit (http://bit.ly/ofiujH) of 212 million.
If the dividend is paid on 53 million shares then that's $4 per share of MGP or 11 cents per share as a monthly dividend.
How is that for profit?
Gold Resources: Gold Dividend Means Sell [View article]
GORO instituited its dividend policy here:
http://bit.ly/pbQNsI
Prior to this date it has been a special monthly dividend going back to the start of commercial production. You should also get up to speed on where the profit is coming from...see this release:
http://bit.ly/plr954
The highlights include:
Gold Resource Corporation (NYSE Amex:
GORO) confirms its record production forecast for the third quarter ended September 30, 2011
with preliminary production results of approximately 25,200 ounces precious metal gold
equivalent (AuEq), which is the highest number of quarterly ounces produced to date and is
approximately an 87% increase from the previous quarter.
Thats pretty high cotton dont you agree?
Gold Resource Corp Pays Execs Handsomely, Neglects Expert Analysis [View article]
Most of Mrs. Davis arguments are political talking points and I AM A DEMOCRAT. She believes it is wrong to take profits, guilt by association, family business is bad etc...I see the slant here and where it originates.
Will GORO Ever Find That Magic Pot of Gold? [View article]
Will GORO Ever Find That Magic Pot of Gold? [View article]
Do the authors understand how capital intensive starting up and mine is? GORO entered production with 53 million shares which is about as tight a share structure as it gets...check the peers! I can count the miners under 60 million shares that produce a profit on one hand. It's extremely rare...
Choosing to hold off on a proven resource is risky and can't be done by many people. The banks love the 43-101 and the dilution that follows building it out...Management had no problems convincing the funds to buy goro as evidenced by the % of funds holding goro (WELL OVER 50%) and therefore no reason to go and dilute the stock for several years. Again, not everyone can pull this off....
GORO will be fine...just wait for q3 to see the hatchet's fade into the backdrop just like they did for Royal gold
Will GORO Ever Find That Magic Pot of Gold? [View article]
On some of the points
The insinuation goro lied about the storm is nothing but puffery. Look at the photos, they show the mill in about 3 inches hail...it looks like christmas in new england in the middle of the desert. Look at the photos of the debre that entered the mine. Why would someone cast doubt on this? That's quite odd to me given ample evidence....isolated storms in the middle of the desert aren't going to make it in any mexican record.
On Goro management selling stock...again, the author fails to provide this data in the proper context. look at the amount of shares sold vs held. GORO retailors have been taking small % gains off the table so why should goro management do any different.
Bringing Bre-x into the picture is again a hatchet tactic. Need anyone say more on this?
On the math side of things...accounting is different for an exploration company which is what goro is classified because they have yet to publish a 43-101. Read up on that then it should make sense to you.
The other stuff is slinging mud and conjecture about anything from family run business to quoting bloggers as sources. Wow Janice, you really didn't bring the A game for this one. Stick to 8000 inc
The Short Case for Neoprobe: Skeptical of Its Primary Asset's Success [View article]
In summary:
1) He ignored the Cardinal distribution agreement calling for Neoprobe to receive 50% of the RETAIL price
2) Instead, he based revenues on the WHOLESALE price for Sulphur Colloid ONLY
3) He used 2005 wholesale prices
4) The 2005 price he quoted was wrong
5) He omitted the cost of Blue Dye altogether in his calculations, and;
6) To compound his errors further, he used U.S. Lymphoseek sales only to derive the value of NEOP stock, ignoring the ex-U.S. markets, other indications, etc.
I’ve only scratched the surface, too…