Member Info for goldgnome

Cowichan

Yes, the Newmont takeover of GT Gold is a corker (for GT shareholders). Nearly as good as the Newmont $2.3 billion takeover of Fronteer Gold, which was a disaster, and in their own backyard!
https://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/newmont-to-acquire-fronteer-gold-in-23-billion-deal/article564805/

Lets look at the GT Gold assets ... (read grade, read tonnage)
Indicated Resource of 298 Mt grading 0.28% copper, 0.36 g/t gold and 0.8 g/t silver for a total of 1.81 Blb of copper, 3.47 Moz of gold and 7.58 Moz of silver
Inferred Resource of 543 Mt grading 0.25% copper, 0.31 g/t gold and 0.7 g/t silver for a total of 2.98 Blb of copper, 5.46 Moz of gold and 11.64 Moz of silver

Because a company is big and has lots of cash to splash, does not mean they are smart.
BHP, Rio, Freeport....etc

CEY in great position. I am enjoying accumulating

good luck to us all

the gnome

Intrigued somehwat at the endess debates on why people invest in gold. INflation hedge, uncertainty, ...Billy Brown says so...etc
BUt you cannot talk of gold and ignore critical components of human psychology, and ideas that are entrenched in human psyche.

IN 2019, two large tombs were discovered and excavated at the site of the ancient city of Pylos in southern Greece. Inside the 3,500-year-old tombs, archaeologists found remains of gold jewellery and thousands of pieces of gold foil, remnants of the sheets of gold that once lined the tomb floors. Imagine getting buried with a pile of US$ or GBP?

The ancient Egyptians considered it a symbol of eternity and referred to it as “flesh of the gods”. Consider the tomb of the boy-king Tutankhamun. He was enshrined in three gold coffins and his finery included a gold funerary mask. Again, would a stash of US$ do the trick?

Psychiatrist Dale Archer, wrote in A Psychology Lesson: Chinese citizens have always bought and held onto as much physical gold as they could afford, because it’s ingrained after generations of instability. Forced to flee their villages and homes by famine, war and constant government repression, gold was the only thing they could take with them.

In The Great Partition: The Making of India and ****stan, a Sikh woman Taran relates how her mother took all the gold and tied it in handkerchiefs and distributed it among different family members for safekeeping. We did not know where each of us would end up – this gold was our security.

Warren Buffet once said, “Gold is a way of going long on fear”

It seems a lot of Instos and people are going long on gold, July 2021 ETF buying
https://www.gold.org/goldhub/data/global-gold-backed-etf-holdings-and-flows?
and the central banks, more going in than comining out
https://www.gold.org/goldhub/data/monthly-central-bank-statistics?

Fear, uncertainty, instability are here to stay. Loss of faith in governments, corrupt institutions, laws that apply to some etc etc...

Now we have the pandemic, and we have the awkward collusion of elected poiliticians who know not what, being led by academic health officers whio should know and epxlain things a lot better

good luck, CEY is a good buy for those with along game bias. The short game is all over the place,

best
the gnome.

Totally agree ...

Thanks Cowichan

I 100% support your quest for answers on Batie, and the West African Strategy.

I fully understand that the concept of strategy may have been missed by Pardy (he is with Tanga Resources as Chairman, so perhaps consider marking this as an "avoid" stock) but it is not with Horgan. All ears!

best
the gnome

Yes, by 1985 scandals were already rife in the COMEX sphere. "It marks the second time in a year that the CFTC has gone after Comex for not enforcing rules against excessive speculation."?
https://www.washingtonpost.com/archive/business/1985/08/28/comex-traders-charged-in-gold-options-scandal/9573f1c7-e301-46f6-98d4-0c89ded74c0c/
Blistering start.
Not a bad weekend read,
"So, if Banks sell contracts with no metal backing, and these contracts are purchased by speculators with no end demand for physical, then what does the trading of these contracts have to do with the actual value of real, physical metal? The answer: NOTHING."
https://www.sprottmoney.com/blog/the-continuing-comex-fraud-craig-hemke-05-112019

Some more interesting facts and figures on the history of gold...some of it recent
https://www.sec.gov/Archives/edgar/data/1222333/000095012309044477/y02266fwp.htm

enjoy your weekend and your dividends...
16 million locked in for the weekend in Oz.

and something really worth celebrating? France wins GOLD ?
"Mr Arnault, who has been chairman of Louis Vuitton since he acquired a 44 per cent stake in the brand conglomerate in the late 1980s, is worth $US196 billion ($265 billion) as of Thursday. That’s slightly more than Jeff Bezos’ net worth of about $US186 billion, according to Forbes." Earnt every cent!

best of luck to us all!
the gnome.

Very pleasing work on a front which has bugged me for decades. The corruption in the natural resource section. Rife in gold, dimoands (of course), cobalt, etc etc ...

ICIJ’s 2020 Luanda Leaks investigation revealed how Angola’s former first daughter amassed a fortune through decades of inside deals. Among them was the controversial acquisition of a stake in an energy company from the state oil company Sonangol, which was, at the time, overseen by dos Santos’ father, then-President José Eduardo dos Santos.

Our reporting showed how a company owned by dos Santos’ husband paid an initial deposit of just $15 million for the shareholding. Its value now? An estimated $500 million.

Since ICIJ exposed these details, the deal has been embroiled in separate legal proceedings, as authorities took action in fallout from the investigation and the dos Santos business empire crumbled.

The controversy over the half-billion-dollar stake has now come to a head for dos Santos, as an international tribunal has ruled that the deal “cannot be explained but for grand corruption by the daughter of a head of state and her husband” and declared it “null and void.”

Go for it ICIJ, all the way!!!
https://www.icij.org/investigations/luanda-leaks/isabel-dos-santos-ordered-to-return-to-angola-500-million-in-shares-tainted-by-illegality

Could I boldy suggest if one likes the work of the ICIJ, please donate. (I am not part of ICIJ, but a suporter)

best
the gnome

They are all arms swining at Diggers...

"Miners of metals linked to the decarbonisation trend are being “priced like internet companies” and the rally may be too good to be true, according to one of Australia’s top gold bosses.

Investors have rediscovered their love for commodities like lithium, rare earths, cobalt, nickel, copper and graphite over the past nine months as a global economic recovery combines with a slew of enhanced emissions reductions pledges by major economies like the United States, Japan, Korea and China."

p/e ratios above 20 are not sustainable in the mining business ... get in, get out ...quick

Analyses
http://www.pilbaraminerals.com.au/site/PDF/c4349e0f-d3f6-4e27-a967-7b41f7be8f49/DiggersampDealersConference2021Presentation

Mkt Cap A$5.7b
p/e ratio ... now. 5 years time?
Your thoughts?

best
the gnome

The word around Kalgoorlie watering holes ...

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the gnome

The good Professor (KEY NOTE SPEAKER) has predicted a gold price of ....

Professor Goldin ( former vice-president of the World Bank) , warned Australia that its sabre-rattling was a mistake and would continue to escalate tensions between Beijing and Canberra., delivering the keynote address at the Diggers & Dealers mining conference in Kalgoorlie, said he was bullish about the gold price given the pandemic, the threat of a new Cold War and as central banks continued to print money as part of stimulus packages.
“My own view is it stay around $US2000 an ounce,” he said. “I do think gold will hold its own.”

Perth Mint recorded demand from customers looking to store wealth in 2020-21 with gold, silver and platinum worth close to $6 billion now stored in its vaults...

and on goes the show.
the gnome

Well we are nearly all locked up, locked out, or about to be at thought of a cough. The larikin charactor of Australia has left the isle, all in a few years. Our magnificent political leaders have again deferred to the ultra-cautious health advice, based on epidemiological modelling, which none of them understand, and the modellers themselves do not have enough robust inputs to get any meaningful result out, but on we go, we know not where?

But wait, there is an ever green bud appearing, and is the DIGGERS AND DEALERS Coneference (Swim through?) in Kalgoorlie. The guest speaker is Professor Goldin (Oxford), In 2014 Professor Goldin famously predicted that a pandemic would be the most likely cause of the next financial crisis...a sobering topic, but I doubt it will curtail alcohol consumption

For those wishing to attend, virtually
https://www.diggersndealers.com.au/

What is consumed apart from an astounding lot of nonsense and hype ...?

700 kilograms of beef
300 kilograms of lamb
8,000 bread rolls
400 loaves of bread
50,000 pastries
20,000 cold ****tail finger foods
4 tonnes of fruit and vegetables
John Langford, the organiser of the 2017 conference, said the three-day event was "bigger and better" than ever.

He said the event, which ships food and 1,560 bottles of wine almost 600 kilometres inland from Perth, was a logistical challenge.

Transport:
2 refrigerated semitrailers
2 equipment semitrailers
A 100-seater jet
A 50-seater bus and a 25-seater bus
I expect the skimpies will all be wearing masks, and the MandA teams will be in full swing

Good luck to us all
the Gnome (attending virtually)

Really, some dont insto's have a lot of patience, and 35-45% in a few years is not bad money...money is money, and dont worry about sentiment too much...

Sorry Bristow!, but see how you go, you may have to pay a bit more ... but hats life, and you the p/e ratio on your side, like I am sure you know all about.

best
the gnome

The other point I forgot to mention is that Barrick gets share price appreciation on earnings increase, costs decrease (In Other words MINING)...NOT EXPLORATION. So get into Egypt under the pretense of Exploration, understand the lay of the land, build allegances and relationships, understand your prey...and then pounce.
The mroe I think about it the more I am of the opinion that this is what the game is about.

Value accretive acquisition on earnings
No debt or royalty inheritances, cash in the bank
better acreage for growth in Egypt through putting the exploration ground they are acquiring with that of CEY

and away we go. So if you like to make 30-40+% cap growth + 5-10% dividend pa...then get on board CEY

With us$20-25 trillion floating around with the Central Banks...interest rates prob not going to do a lot.

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the gnome

I guess the question is why not tax crypto's. The Govts have been very slow out of the blocks to catch up to taxing the other technology changers like Google, Amazon, Apple, ...time to get in front ?

The bail outs due from the global central banks has pushed through $20 trillion and hard not to see taxation mounting a charge. Productivity has been flat to decreasing...etc etc

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the gnome

The point of interest to me of the Barrick move

1. Highlights the exploration potential of Egypt
2. Barrick would know how long it takes to get things going in Egypt (if they dont they are about to learn), BUT having made the effort of braving the Egyptian world, AND GETTING TO KNOW THIS WILL PUT THEMSELVES IN A GOOD STRATEGIC POSITION TO MAKE A LUNGE FOR CENTAMIN (WHO OWNS ONE OF THE FEW TIER 1 GOLD ASSETS). IF CENTAMIN IS CONTINUING TO BE UNDER VALUED BY THE MARKET, THEN I SUSPECT BARRICK IS LAUGHING AND THEY WOULD HAVE A DIFFERENT VALUATION ON CENTAMIN.

BARRICK P/E RATIO 15
CENTAMIN P/E RATIO 11

SO THE CENTAMIN EARNINGS ARE WORTH 36% MORE IN BARRICK, SO WHAT AN INTERESTING %??

MY BET: THIS IS A 2 YEAR PLAY BY BARRICK TO MOVE INTO EGYPT AND CLAIM SUKARI AND CENTAMIN.

SO BEST CENTAMIN GET A RATTLE ON, OR THEY WILL BE GOBBLED UP...AND ALL THE SHORTERS, ...GOOD LUCK, PERHAPS CONSIDER GOING LONG

best
the gnome

She walks in beauty, like the night
Of cloudless climes and starry skies;
And all that’s best of dark and bright
Meet in her aspect and her eyes;
Thus mellowed to that tender light
Which heaven to gaudy day denies …

an overdose obviously

best
the gnome

Better to buy a bordello franchise?

Australia is paying the price for it slow vaccine rollout (won't go on the blame trail, but its the usual suspects) and the Gold Miners have warned of steep rises in production costs because of labour and skill shortages exacerbated by random (but of course divinely inspired?!) Intrastate and International border closures (in a pandemic, any government border will do?). Would anyone self respecting Geologist want to go bush? etc and if they did what would they discover, given all of the low hanging fruit has been discovered/

Newmont chief executive Tom Palmer said the company was expecting cost escalation of up to 5 per cent for materials, energy and labour as the COVID-19 pandemic drove inflation around the globe. He maybe conservative, as inflation has popped up with (a spike obviously, LOL)....a 3.8 per cent annual rise in the consumer price index which will not trouble the RBA...who know not what they need to know (how the world works).

So the cost of mining goes up (significantly), the cost of discoveries even more... and has already gone up significantly and will continue to soar, and the price of gold, controlled by the ..xx people.. will do what the ..xx people.. want, until there is a significant disconnect, and then the price of gold will lurch forward, as the shorters and the rorters get caught out?

Well my tip, .... the POG must rise, or the game will be up, and I think all prefer the gold price to go up, especially those in China who are the worlds biggest gold producers and hoarders.

"The bells of hell go ting-a-ling-a-ling for you but not for me"
The POG will go ting-a-ling-a-ling-a-ling for us, all but not for some?

best
the Gnome.

Rio has made some mammoth st%ff ups. The Mongolian disaster is enough to sink most companies, I doubt whether it will return its capital?

Great development teams are few

best
the gnome

Not a strong portfolio, best to offer to the public!

There is the usual mischief and shade of incompetence going on in the Central Banks.

Now we have (again) congressional inaction on the artificial debt ceiling limit and the real (as distinct from rhetorical) budget. This nonsense is limiting how many Treasury bills and short-term government securities can be issued.

For its part, the Fed is ensuring that much of the short-term US government paper that might be available is locked up in accounts where it cannot be used to secure the myriad financial transactions that keep the global economy ticking over. Sort of like the idiot teenage horror victim who loses the keys to the escape car.

Unless you believe in fairies and cross-party goodwill, there will be no resolution of the debt ceiling and budget legislation before October or November, which means November.

At least until then, the collateral shortage will get steadily worse, which will be a drag on growth. And god help us if there is any global margin call – a demand for leveraged traders to place more collateral with counterparties – before then. The required paper won’t be there.

Fairies or gold?

best
the gnome