LEX CORP NEWS LETTER
"Discovering Value In Commodity Stocks"
January 25th 2009 "OceanaGold-OGC" Gold Producer
I took a position in this stock on thursday .28cents and have been watching it for at least 3wks. I have noticed that the CEO Stephen Orr bought 450'000 at .297cents. He now owns over 1mil. shares. This transaction took place Jan.15th 2009. With the high volume on thursday- over 2mil. shares traded,..I had a feeling the next trading day we sould see a much higher share price. The stock closed at .40cents up 48.15%. Now should you take profits? I am currently holding the stock because I believe Gold prices will be heading higher for the next few weeks. With a one day gain of 48.15% most investors should be happy and should take some money off the table. I believe there is a reason for the high volume on thursday and the buying of shares by the CEO. Who drops $145'000 during an economic recession?? Plus the company has to write a letter to the Australian Securities Exchange to explain trading activity?? When I see a transaction like this by a CEO that gives me a buy signal on the stock.
On January 23 the company sent a letter to the Australian Securities Exchange trying to explain the recent jump in the stock price. Why should they have to explain to that they are the biggest gold producer in New Zealand and their cost of production is going to be lower in 2009. Can't the Australian Sec.Exchange figure this out?? Merrill Lynch also listed OceanaGold as the cheapest gold stock under their coverage. Here is the link to this letter that was sent out on January 23rd: http://www.oceanagold.com/images/documents/asx/090123_asx_response_v2.pdf
Merrill Lynch listed OceanaGold as “the cheapest gold stock under their coverage and forecast that we would achieve our 2008 public guidance as well as materially improve performance during 2009,” the company said in a statement. “Our share price and volumes have strengthened since this report was published” on Jan. 12, it said.
The company is finalizing its results for the year ended Dec. 31 and said its gold production was broadly in line with the 265,000 to 275,000 ounces it forecast on July 31. Cash costs were on track at US$560 to US$595 an ounce.
Still, since Oct. 20, the New Zealand dollar gold price has increased by almost 30% to NZ$1,600 to NZ$1,650 an ounce, helped by a rise in the U.S. dollar gold price and a weakening kiwi dollar. There had been “exceptional volatility” in the New Zealand dollar price between Jan. 19 and Jan.22, with a gain of about 8%, the company said.
Corp. Presentation Link: http://www.oceanagold.com/images/documents/presentations/oceanagold_denvergold.pdf
CEO Steve Orr went on to say, “The Company will maintain focus on its New Zealand gold operations where we expect to again increase production in the fourth quarter of 2008. In 2009, we plan to produce between 280,000 and 300,000 ounces of gold at cash costs of less than US$475 per ounce. In these uncertain times, we are focused on maximising revenue and reducing expenditures to further strengthen the Company’s financial position for the near-term.”
Didipio Gold and Copper Project is currently on hold -care and maintenance.
Didipio Gold & Copper Project — The Didipio project is one of the highest grade, gold-copper porphyries under development today. The bulk earthworks, detailed design & engineering and procurement have all reached 60% complete status with the project now ready for prestripping activities. The project was put in care and maintenance in December 2008 pending an improvement in financial market conditions when the remaining financing can be raised to complete construction and commissioning. It is expected to produce 120,000 ounces of gold and 15,000 tonnes of copper on average for 15 years.
January 12th 2009 "Skygold Venture-Sky's The Limit"
I took a position on Skygold Ventures-SKV. I have been watching this stock since .10cents. Drill results are very impressive and I believe Spanish Mountain has a resource between 5-10mil.oz. They currently have resource 43-101 of almost 2mil.oz. I am expecting a resource update this month, which I believe will be an increase of 1mil.oz. I highly recommend doing your DD's on Skygold Ventures.
See Dec. 2nd 2008 News release - "Skygold now anticipates that the updated resource estimate will be completed by the middle of January, 2009."
Fly Over View -Spanish Mountain -video: http://www.skygold.ca/_resources/video/spanish_website100.wmv
January 8th 2009 Updates / Recent Buys
Today I finally took a position in Colossus Minerals- CSI. I have been watching this one for over 1yr and finally I decided to take a position. I believe they are sitting on world class gold/plat. deposit. Serra Pelada's history is very fascinating- see the links below to learn more. You will enjoy the 60Minutes Coverage. 2009 could be a great year for this stock- Expect alot of good news.
http://www.colossusminerals.com/
Northern Miner TV clip on youtube: http://www.youtube.com/watch?v=7BdaBy52OPs
Colossus Minerals flagship project, Serra Pelada (
Serra Pelada was so popular back in the 80's they even made a Brazillian Movie see it here on this link and you can watch the rest on YouTube: http://www.youtube.com/watch?v=fMf4z7beUTM
Northern Dynasty Minerals-NDM I recently bought NDM.
This stock is very undervalued. They have the Pebble Project which is a world class deposit. Possible the biggest undeveloped Copper/Gold/Moly deposit in the world. I highly recommend looking at NDM-Take-Over Target- Anglo America is investing upto $1.5bil. that will take the Pebble Project right up to the construction stage. Rio Tinto has invested $200mil. by buying up shares and Mitsubishi has invested $100mil. by buying shares. Why would 3 big major producer invest so much money in NDM?? NDM also has $40mil. cash and no financial commitments. Management has done all the right things, and the market will eventually take notice of this very undervalued stock.
Watch this video and see their corp. presentaion
Video: http://www.northerndynastyminerals.com/i/media/northern/ND-Pebble.htm
Presentation: http://www.northerndynastyminerals.com/i/ndm/NDM_SMagee__Dec2008.pdf
http://www.greystarresources.com/s/Home.asp
I recently took a position in Greystar Resources-GSL. I believe this stock is also a take over target. With aprox. 15mil. oz of gold and over 60mil.oz off silver this stock is trading at a very cheap price. Plus, drills are still turning to upgrade this resource. The company has aprox. $27mil. cash. Construction should start in Q1 2010 and production aprox. Q2 2011. Check out the link below for further info.
Corp. Presentation: http://www.greystarresources.com/i/pdf/CorporatePresentation.pdf
Equinox Minerals-EQN also came out with an update which I found to be great news. This is still one of my biggest holdings and I still believe the stock has alot of upside. Long term copper prices will be trading much higher and Equinox Mineral will captilize. Read the news release here: http://www.equinoxminerals.com/files/files/683_LumwanaMineUpdate090107.pdf
2009 Production Forecast
With production ramp up progressing smoothly, the Company estimates production for 2009 will total 170,000 tonnes (375 million pounds) of copper metal in concentrates at a cash (C1) operating cost of US$1.15 per pound. As can be expected, unit production costs are anticipated to be higher in the early part of 2009 until steady state production activities are reached, which is expected by mid-2009. The Company’s objective is then to reduce operating costs over time and increase throughput from 20 Mtpa to 24 Mtpa over an 18 month expansion program through optimization and de-bottlenecking. A further medium-term expansion objective to 30 Mtpa throughput will be the subject of a feasibility study.
Take note, that the stocks I mentioned today have excellent project, strong management and cash. They have projects that can't be ignored. These are companies that will survive the current economic crisis. Invest wisely.
January 4th 2009 Great Read: "Mining E-Book"
I had great pleasure reading a book called Mining E-Book that was put together by James Fraser and Kevin Pederson. Link: http://miningebook.com/
The book is a great tool for new and experienced investors who are interested in mining stocks. I have certainly learned alot from reading this book and have to pat the writers on the back for doing a great job. Investing in mining stocks is a highly specialized subject and I believe these guys are providing investors interested in mining stocks with valuable information. This is Mining Investment 101.
What you will learn after reading this book:
· Why the metals markets are heading higher
· The commodity cycle
· The cause and effects of the global financial crisis
· What some of those geology terms actually mean
· The mining process from start to finish
· Different exploration techniques
· The drilling process and how to read and understand drill results
· What mining companies reveal in their public disclosures and what it means
· The difference between an inferred resource and a proven reserve
· What National Instrument 43-101 means for your investments
· How to be confident you are not buying into another Bre-X
· Red flags, secrets of the pros and what to watch for when investing
· How to analyze technical reports and news releases
· Different junior mining investment strategies
· And More!!
Visit the website to purchase the book - "It's A Great Investment"
January 4th 2009 CGA Mining Ltd -CGA
CGA Mining will be producing gold in Q1 2009. I have taken a position in the stock last month and will be accumulating more in days to come. One thing investors should know is this stock is tightly held and trades on very low volume. Not alot of sellers. The Masbate Gold Project in the Philippines is currently under construction and first gold production is due in the first quarter of 2009. The project has a total indicated resource base of 4.55M ounces, total inferred resource base of 3.22M ounces and a probable reserve of 3.03M ounces of gold. It is currently forecast to produce over 200,000 ounces per annum. They have a study underway to increase this resource. With a total gold endowment of 10'000'000 oz of gold this stock is trading at a discount. They also have a copper project in Zambia where a feasiblilty study should be released very soon. With $34mil. cash in the bank and a debt facility of $51mil. the company has more than enough money to reach full production at the Masbate Project. Masbate Gold Project Update http://www.cgamining.com/media/announcements/asx_loaded/asx_496.pdf Broker Reports Mirabaud -Mining Research -target $2.57 http://www.cgamining.com/media/broker_reports/file/Mirabaud%20Mining%20Weekly%20No%2023.pdf Haywood Securites -target $3.20
