Myron's Winning Juniors

Finally the market is starting to pick back up, as I keep reminding everybody, it takes PATIENCE to be a good investor. Too many people get discouraged when the market moves against them and SELL at the bottom when they should be buying instead. I KNOW it is a difficult thing to do to BUY when the market has been trending lower, but that is how you make money, buying CHEAP when others are fearful and then SELLING when stocks have moved up significantly and people are finally climbing on the bandwagon and push shares into overvalued territory, then you SELL HIGH!  Still debating whether i want to own Molycorp shares once they complete the NEM takeover, but today I sold half my position for nearly a DOUBLE. Almost sad to see this one go as I think it still has much further to run, however once under Molycorp’s control it will be a severe dilution unless Molycorp itself heads back to its previous level above $50. at current prices it might well be a good buy, but at my capital level I prefer to buy cheaper stocks in the sector with ultimate 10 bagger potential like DMI Metals or IBC Advanced Alloys IB-V as per recent update!

 

 

Details:  Wanted some funds to buy options with great upside while they are available cheap. If Molycorp remains cheap I may tender my shares on the takeover offer. With some new and cheaper shares I want to buy I succumbed to a higher price for my remaining shares.

 

Action             Sold

Quantity 100

Symbol NEM (***NEO MATERIAL TECHNOLOGIES)

Exchange TSE

Price $11.052  Bought @ $5.79 Nov/2010

 

 

Details: Still holding a few thousand shares, just raising some money. BUY on DIPS!

 

Action           Sold

Quantity 500

Symbol AME (***ABACUS MINING)

Exchange VSE

Price $0.29

 

 

Details: Excellent company, selling only to provide capital for other stocks I wish to buy at current bargain levels.

 

Action Sold

Quantity 100

Symbol BTO (***B2GOLD CORP)

Exchange TSE

Price $4.19

 

 

 

Details: Raising some capital to buy some new stocks. Copper is up and down so i use “stink bids” to get the best price possible in a volatile market. Reason for selling, Chinese demand appears to be weakening so it makes sense to cash in an almost TEN BAGGER. Still holding some shares for market recovery. The question to ask yourself is, do you have the patience to wait 2 1/2 years to achieve a 10 bagger?

 

Action           Sold

Quantity 200

Symbol CUU (***COPPER FOX METALS INC.)

Exchange VSE

Price $1.07 Bought Oct.09 @ .115

 

 

Bought this stock in May/2011 @ $1.23 and since it has sold off below that price, and i believe this report presents the facts fairly, it is in my view a stock to consider seriously. Do your own due diligence and be prepared to hold it for at least a year. Interesting that this arrived in my in-box shortly after my daily CIBC Alerts that shows the stock up 9% on the day. You could always try a “stink bid” in the $1.12 to $1.15 range as the buying may have been triggered by other people reading this report.

Meadow Bay Gold

Meadow Bay Gold Corporation would like to notify you that a report has been release by Dahlman Rose & Co today March 21, 2012. Please down load this report from our website on our homepage under “Quick Links” and or use the following link:

http://www.meadowbaygold.com/Dahlman-Rose-Research-Coverage-March-21-2012.pdf

Thank you from the Meadow Bay Gold Team.

For further information please contact:

Goal Capital
Danny Gravelle
Tel: 1-949-481-5396
Email: goalcapitalllc@gmail.com

It seems I could write day and night about market distortions and undervalued companies, yet the market seems totally negative towards precious metals miners in spite of positive fundamentals.

This is just the latest example that has come to my attention. Here we have a company with growing resources, a CASH BALANCE of $213M, PROFIT up 155% y/y, actually producing gold @ $498. per oz. a second advanced stage mine in development, a total of 11 properties in one of the safest jurisdictions in the world, (QUE.) and yet when they report their results, the stock price goes DOWN! Back up the truck. I would borrow $100,000 at 5% or less to buy this stock. Yes I am talking about AURIZON Mines ARZ, if not in your portfolio it should be.  I have to agree with this comment; “a margin of over $1,000 an ounce is a bloody good asset.” Hard to argue with that.

… All we can do is go out and keep hitting good results. I believe that at the end of the day that’s what counts …

Aurizon President George Paspalas on 4Q 2011, year-end financial results.

Aurizon Mines Ltd TSX:ARZ announced financial results for the fourth quarter and year ending December 31, 2011. Year-end highlights include

Net profit of $43.9 million or $0.27 per share, up 155% from 2010
Revenue of $260 million, up 45% from 2010
Cash flow of $121.3 million, up 138% from 2010
Cash balance of $213 million
Gold production of 163,845 ounces
Cash cost of US$537 per ounce

Fourth quarter highlights include

Net profit of $21.8 million or $0.13 per share
Revenue of $85.7 million
Cash flow of $49 million
Gold production of 45,995 ounces
Cash cost of US$498 per ounce

Aurizon has 11 properties, all in Quebec. They include the Casa Berardi Gold Mine and the advanced-stage Joanna Gold Project.

Speaking to ResourceClips.com, President/CEO George Paspalas addressed a number of issues, starting with the company’s dip in share price. “If you look at some of the headlines, they’re saying things like ‘Record Year but 2012’s No Good.’ The year 2012 is slightly lower in terms of production because the grade’s a bit lower. But it’s only off a little from a record high. I’m surprised at the stock, where it is and the way it’s trending today. But it is what it is. All we can do is go out and keep hitting good results. I believe that at the end of the day that’s what counts. You just have to ride through these periods.

All we can do is go out and keep hitting good results. I believe that at the end of the day that’s what counts—George Paspalas

“We’ll complete the Joanna feasibility study in the second quarter. We’re doing exploration on the property as well, between the Heva and Hosco sectors, and that’ll continue. We’ll probably start to release drill-hole data before the feasibility is complete. With the feasibility out, if there’s a go-ahead, the first step would be to go into permitting. That’s a one-and-a-half to two-year process. To fast-track the project you’d start to buy equipment in advance. Then you’ve probably got another 18 months’ construction, so you’re looking at a three-year window between the feasibility study finishing and getting the thing operating and gold coming off of it,” he explains.

“Recruiting new employees is, I believe, one of the biggest issues facing the industry globally,” he adds. “A lot of development and operational plans hinge on the human resource, not the resource in the ground. There’s a lot of very experienced people coming up to retirement. There’s a gap where people didn’t go into the industry when metal prices were depressed in the mid- and late-1990s. That’s the age group from about 35 or 40 years to about 50 years. The industry was depressed, and the dot-com boom was on, so people wanted to get into the sexy stuff. So there aren’t a lot of people in that age group working as engineers, geologists and other technical fields. Then the miners, the process people and maintenance people have a lot of choice among a lot of operations. So there’s lots of turnover. I think it’s one of the biggest issues in the industry.”

The solution? “Well you should do it anyway, but you have to treat your people well. At Casa Berardi, our loyalty factor is quite high, particularly in the technical and management fields. And that adds a lot of value. Most of the guys who built Casa and got it running are still with us. If you want to do it again, they’re there. You don’t have to go out on the street and get unknown quantities. You have to remunerate people competitively. But you also have to look at more than just money. You have to look at all-in compensation, things like rotational cycles at work and working conditions,” he argues.

“One of the nice things about Joanna is that it’s right next to Rouyn-Noranda, which has a big complement of experienced mining people. You can drive to work and drive home every night. That really attracts people.”

As for Aurizon’s future, Paspalas says, “In five years it would be nice to have two or three operating mines. By achieving that we would have de-risked from having just the one facility. We love Casa. We’re totally relying on it for cash flow. But if we could de-risk by building one or two more operating mines, that would be even better. We’d also like to have another project in feasibility around that time. We’d like to keep moving projects up, or cutting them off and bringing new ones into our exploration pipeline. So in five years I’d like to see multiple producing mines, but I don’t really foresee a fixed number of ounces. I’d like to see them mirror the quality of Casa Berardi. We’d like to see cash costs like we’re seeing at Casa now.”

Turning to the price of gold, he says, “I’m pretty bullish because I think there’s lots of uncertainty in the world. There’s fundamental issues with major economies. There’s a bit of volatility with gold’s price now, but I think in the middle or long term gold will perform strongly. I don’t think it’s going to be a $3,000 number, but I think it’ll be plus or minus the $2,000 mark.”

Paspalas concludes, “We’ve consistently delivered on performance at Casa Berardi. A mine in a good jurisdiction that’s got a margin of over $1,000 an ounce is a bloody good asset. Joanna has huge exploration potential. Even though we’re doing the feasibility study, they’re still drilling and hopefully will find more and more ounces there. They could turn out to be higher grades. I think Joanna has permutations and combinations that will make it quite exciting. We want to grow to multiple producing mines, either organically or through good acquisitions.”

View Company Profile

Contact:
George Paspalas
President/CEO
or Ian S. Walton
Executive VP/Chief Financial Officer
604.687.6600
800.411.4653

Read feature story on Aurizon Mines Ltd.

by Greg Klein

This article was posted by Ted Niles – Resource Clips on Friday, March 16th, 2012 at 12:13 pm.