OUR 2013 Portfolio – Royalties with huge upside potential

Stocks: T.GPD/T.ALS/T.SBB/V.ASE
(Stocks mentioned: T.FNV/T.RGL/T.SSL/T.SLW/T.LIF)

Dear Readers and fellow Investors,

altough we`re already well into 2013, with this update we`re pleased to present our 2013 portfolio.

INVESTMENT THESIS:

The Royalty space remains the hottest and most promising place for Mining-Investors. Companies like Franco-Nevada, Royal Gold, Silver Wheaton, Labrador Iron Ore Royalty Corp or Sandstorm Gold continue to outperf0rm and yield substancial returns to it`s Investors, but they are far from beeing cheap.

We have put together a portfolio of only 4 Stocks, that we believe offer the best risk/reward and lowest foreward-looking Royalty Cash-Flow/Price multiple.

We believe, with this portfolio, you will not only do well in 2013, but it holds the potential to be a retirement account. For those who are already holding FNV/RGL/SLW or SSL these 4 stocks might offer an interesting opportunity to diversify further into the Royalty Sector.

For a proforma amount of just about 800 million (combined marketcaps of all 4 stocks) you buy into  possible 200+ million per annum Royalty cash flow by 2017.

and you get all the cash and all other assets also owned by the individual companies for free, like the whole Altius JV portfolio, Sabinas 6mm + high grade Gold resource or Golden Predators Yukon Projects.

We wouldn`t be suprised if some or maybe even all 4 Companies see takeover offers from the above mentioned Majors in the not to distant future.

Metrics & Comparables:

before you have a look at our portfolio, keep in mind that:

A) Franco-Nevada T.FNV, without any doubht the most succesfull and largest Royalty Company payed 1 Billion $ on this stream deal with Inmet on it`s Cobre Panama project. http://ir.inmetmining.com/press-releases/franco-nevada-and-inmet-agree-to-a-1-billion-prec-tsx-imn-201208200813206001

So basically they payed 1 Billion for an avarage 120million Royalty Revenue per annum over a 30 year mine life.

B) Silver Wheathon payed 750million for a Metals Stream with HudBay Minerals

http://www.silverwheaton.com/News1/PressReleases/PressReleaseDetails/2012/Silver-Wheaton-Acquires-Life-of-Mine-Precious-Metals-Streams-from-Hudbays-777-Mine-and-Constancia-Project1130520/default.aspx

Other than a NSR or GSR these streams do have ongoing payments. This of ourse means, free cash flow relative to royalty revenue is much lower than for our portfolios Royalties.

THE PORTFOLIO:  Outstanding Revenue Growth:

 2013-02-03_15-32_royalty portfolio finish

2013-02-03_17-01_royalty portfolio.ods

 

We are buying:

T.GPD – Gold Bullion Royalty Corp @ 0.355$

2013-02-03_15-52_Gold-Bullion-Royalty-Corp-Pres

http://www.goldenpredator.com/documents/Gold-Bullion-Royalty-Corp-Presentation-January-2013-Final.pdf

T.ALS  – Altius Minerals Corp. @ 12.66$

2013-02-03_15-54_Sept-Chicago (4).pdf

http://altiusminerals.com/uploads/2012-Sept-Chicago.pdf

 

T.SBB -Sabina Gold&Silver Corp @ 2.22$

2013-02-03_15-56_January-2013-Presentation

 

 

2013-02-03_15-57_January-2013-Presentation

http://www.sabinagoldsilver.com/i/pdf/January-2013-Presentation.pdf

 

V.ASE Asante Gold Corp @ 0.275$

2013-02-03_15-59_Presentation (7).pdf

 

http://www.asantegold.com/i/pdf/ppt/Presentation.pdf

*Please note: The Obotan NSR is subjected to the pending closing of the aquisition by Asante. 

CONCLUSION:

From our Database with over 200 Royalty-Interests, we found the combination of these four presenting the most attractive opportunity. Even if 50% of the underlying project would fail, which is given the Operators experience and capital strength highly unlikely, this portfolio would still be undervalued compared to recent transactions and market valuations of Royalty-Majors.

All 4 Stocks fullfill all our major Investment criteria: (those are important for all Mining-Investments, not only Royalties)

- proven management

- low debt/high cash level

- low country risk

- high management ownership

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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

 

Posted in Companies Reviewed, Royalty Companies | 3 Comments

T.GPD update – be patient!

m4s0n501

Dear Readers and fellow Investors,

yesterday we have pointed out here: http://mineninvestor.com/?p=495 why we believe T.GPD – now GOLD BULLION ROYALTY CORP will be the next big Royalty play.

Some of you might, as we are, a bit dissapointed by todays slow&tiny move up, BUT:

if history is any lesson (be careful, sometimes if looking at the past you can suffer a confirmation Bias)  the best is yet to come.

The initial reaction on T.PG Pemier Goldmines to Spin of it`s Royalty Portfolio into T.BPV wasn`t breathtaking either, but those who were patient were rewarded with a 80%-100% return on Investment only 6 month! 6month by the way that was one of the worst ever in the Gold-Mining Sector!

We would expect T.GPD to do the same as next step become more clear.

SEE CHART (it does not take into accont the spun of warrants! = additional value)

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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

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Golden Predator T.GPD becomes a pure Gold-Royalty company! Brewery Creek and Exploration Projects to be Divested to Shareholders

Dear Readers and fellow Investors,

NEWS RELEASE FRIDAY AFTER MARKET CLOSE:

Golden Predator Announces Name Change to Gold Bullion Royalty Corp; Brewery Creek and Exploration Projects to be Divested to Shareholders

 We cannot repeat often enough the fact that PURE Royalty companies are the only segment in the precious metals market that substancially outperformed the physical Metal. Altough quite a lot of Development and Exploration Companies do own Royalties, the highst premium in terms of cash-flow multiple between 15-20 times, only pure Royalty play recieve. This might be due to the risk, that investors won`t see any of those Royalty cash-flow if spent into the ground with uncertain outcome. Exploration business is and always will be a high risk investment and only 1 in 200 really becomes a success story.
(Source: http://www.premierroyalty.com/investors/presentations/ )

It seems Golden Predator Management heard Mr. Market clear and loud, and takes the right steps. We expect Golden Predator to be the next Star on the Royalty Heavens and Investors should consider adding here.

The following represents a Comparison of T.GPD`s Royalty Growth profile to  T.NSR and T.SSL:

T.GPD – Gold Bullion Royalty Corp (proforma, includes to be divested development assets) :  http://www.goldenpredator.com/overview-royalty.html

Shares OS – Basic/fully diluted: 153 million /171 million
Current Marketcap -Basic/fully diluted: 50,6 million  / 56.5 million
Cash and CashEq (basic): 6 million

(numbers are our estimates and according to publicly available information by the Operators, conservative erstimates)

 NOTE!: we have added approx 5-6 month to the official operators timeline. Our experience is that most projects come in a little later than anticipated and it`s always better to conservative. However, Midways Pan could start Q2 2014  and is almost fully funded. Barrick`s project could also see earlier development than shown here.

T.NSR – Premier Royalty Corp:  http://www.premierroyalty.com/
Shares OS – Basic/fully diluted: 77.9 million / 96.8 million
Current Marketcap -Basic/fully diluted: 153.50 million  / 190.6 million
Cash and CashEq (basic): 40 million

T.SSL – Sandstorm Gold:  http://www.sandstormgold.com/home/
Shares OS – Basic/fully diluted: 86 million / 100 million
Current Marketcap -Basic/fully diluted: 1100 million  / 1278 million
Cash and CashEq (basic): 130 million

CONCLUSION:

T.GPD has, at least  foreward looking a very low cash-flow multiple compared to it`s peers, and now that the risk of any money beening spent on Exploration or Development is removed should soon catch up.

A very important point also to mention is – quote:

Gold Bullion Royalty Corp.’s royalty portfolio remains unique in the mineral development industry due to its ability to receive the majority of projected revenues in-kind (gold bullion as opposed to cash).  The core of the portfolio was acquired from the Lyle F. Campbell Trust; Lyle having been a very successful and acknowledged prospector and pioneer of the Carlin Trend in Nevada.  None of the principal royalty projects are subject to any reductions or buy-back provisions.

Thus Gold Bullion Royalty Corp is not only the perfect Inflation hedge, but there is also the chance that once Midway and Barrick start production Investors might see a BULLION DIVIDEND, that of course could justify a even higher premium. The only Gold-Miner we are aware of, currently doing this is GORO – Gold Resource Corp. and it trades at a good premium to it`s peers. It`s long term chart looks impressive:

http://www.goldresourcecorp.com/

CONSIDER T.GPD if you like Royalty plays!

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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

Posted in Companies Reviewed, Royalty Companies, Uncategorized | Leave a comment

German Central Bank Confirmes: Repatriation of 50% of it`S 3200 tonnes Gold-Reserve

Big news folks:

Deutsche Bundesbank wants to bring it`s Gold home, at least a large portion of it.

When Gold hit 1900$/oz in 2011 it might only be a co-incidence, but it was during the time when Venezuela repatriated it`s 11 Billion $ in Gold Reserves. Now imagine what could happen, if 120Billion are repatriated.

 

Here is the german official News-Release:

PRESSENOTIZ16.01.2013

Neues Lagerstellenkonzept der Deutschen Bundesbank für die deutschen Goldreserven

http://www.bundesbank.de/Redaktion/DE/Pressemitteilungen/BBK/2013/2013_01_16_lagerstellenkonzept_goldreserven.html

31.12.2012 31.12.2020
Frankfurt am Main 31 % 50 %
New York 45 % 37 %
London 13 % 13 %
Paris 11 % 0 %
Posted in News and Updates, Uncategorized | 1 Comment

T.MSV update: Don`t look at PM prices when it comes to takeover speculation

Dear readers and fellow investors,

yesterday we pointed out why we believe Minco Silver might see a takeover-offer soon. We like to compare it to T.ICI which indeed was taken over recently for 2.05$ in cash.

There are many similarities:

– both China

– both world class resource

– both cheap cash costs

– both have chinese people on board of directors

– both have trouble getting permits, as Chinas new leadership does not like Canadain companies to develop their resources

 

T.MSV, although nothing is sure yet, still offer nice upside on very limited risk. You may consider simply make a Stopp-Loss at 1.44$ then your downside is a maximum of approx 20% vs a possible gain on a takeover of more than 150%.  Western Mining Group payed approx 250million $ for approx 2.2million oz of M&I  Gold resource or approx 110$ per oz. If you`d apply the same metrics to a possible MSV- Fuwan price, that`s more than 150% upside on current price.

In Inter-Citic case, as you see below it was wise to not look at week Goldprice during that takeover speculation time. NYSEARCA: GLD vs. T.ICI commons

 

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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

 

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T.ICI copy cat? Minco Silver T.MSV – takeover?!

Dear Readers and fellow investors,

back in August 2012 our second post we did here we suggested that T.ICI will see a substancial all cash offer and it happend!

Today T.MSV gave a corp. update which very much sounds like it could happen again.

As a matter of fact: It would make much sense. Forign Companies have many difficulties opening Mines in China, but for a Chinese Mining Giant it could make perfect sense to buy heavly undervalued MSV. If you read between today NR`s lines it very much sound like we might see something near term:

Quote:

“Several large mining groups in China have expressed an interest in the Fuwan Silver Project. The Company has been hosting site visits, data review, and preliminary discussions with those groups, since confidentiality agreements were signed with each of the groups. While the Company is actively pursuing this alternative strategy, no agreement has been reached so far.

AND:

In addition, the Company will actively evaluate silver dominant project outside China for potential acquisition in 2013. Mr. Peter Voulgaris, Vice President of Corporate Development of the Company, will be in charge of this initiative.

http://www.marketwire.com/press-release/minco-silver-provides-corporate-update-tsx-msv-1743294.htm

 

LOOK and COMPARE: our recommondation: consider buying into T.MSV here!

http://www.inter-citic.com/press_releases.php

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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

 

 

Posted in Companies Reviewed | 1 Comment

Year end update. Closing all position for a 22% gain in 5 month!

Dear Readers and fellow Investors,

a successfull 2012 end for us. We decided to sell all stocks in the portfolio and set up a brand new one. Our total profits and losses on our 2012 Portfolio account for an avarage total return on investment of 22%!

We think especially given that indeed this is a 5month return only, as we started mineninevestor.com end of August 2012 and given the significant underperformance of Gold and Resource stocks in 2012 we delivered a solid performance.

WE WILL PRESENT OUR 2013 PORTFOLIO IN THE COMING DAYS WITH A SEPERATE UPDATE!

With this update we sell:

Alamos Gold Inc. T.AGI for a 11.85% profit

Asante Gold V.ASE for a loss of 18.85%

Premier Royalty Warrants  T.NSR.WT (formerly T.BPV.WT) for a 10,5% profit

Premier Royalty Commons T.NSR (formerly T.BPV) for a 58.5% profit

Dalradian Resources T.DNA for a 75.6% profit

Royal Gold T.RGL for a 6.3% profit

Together with our sell transactions end of November (http://mineninvestor.com/?p=406) that accounts for the obove metioned avarage profit of 22% in 2012!

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T.GPD`s WORLD CLASS Royalty Portfolio

Dear Readers and Fellow Investors,

as most of you know, we at mineninvestor have a strong focus on undervalued Royalty plays. Royalty Stocks of course where the only segment in the mining market, which were able to substancially outperform the Bullion over the past 5-6 years!
Now we found a Royalty Portfolio that is in terms of timeline a little behind our favourite Royalty Stock PREMIER ROYALTY (T.NSR), but in terms of quality and growth profile maybe even better.
GOLDEN PREDATOR (T.GPD) really holds a Diamond here that has yet to be discovered by the market. Especially since ALL it`s Royalty Interests apply to underlying assts in save juristdictions and most of them are run by proven Goldminers/Developers, such as BARRICK or MIDWAY.
The market most likely has not yet discovered the true value, because T.GPD currently presents itself as a developer for a yukon mine. But we actually think, the Royalty portfolio might even be of much greater value. In the following presentation of a potential growth profile as well as the most prominent Royalties and it´s underlying assets, we have only assumed those run by Barrick, Midway and Silver Scott to go into production. All others given no value.
Such a Royalty Portfolio spun-off from the Development Company should recieve a minimum of 120million $ in marketcap imidiatly, and that would be conservativly priced in Comparison to Peers, such as T.SSL/T.NSR/T.FNV/T.RGL and to recent transactions, like the Franco Nevada takeover of Lumina Coppers Royalty portfolio for 66m$.
T.GPD (unfortunatly) decided to use the portfolio as colleteral for a loan, to built their Brewery Creek mine, but as it is only a small debt burden and the Royalty Revenue still goes to T.GPD this should not hurt too much.There is still the possibility of early repayment and earlier than anticipated spin-off.
However, given the current marketcap of 44million, T.GPD is most likely the most undervalued Gold-Royalty play ever! even if you`d assume only half the projects would ever go into production it looks undervalued.
Pls check this article for your DD and comparison with T.GPD`s royalty portfolio:
Gold Royalty Stocks – Overview&Comparison Part I
Helpfull links for your own DD:
http://www.goldenpredator.com/index.html
http://www.gowebcasting.com/events/precious-metals-summit-conferences-llc/2012/09/07/golden-predator-corp/play/stream/5432

Annual growth profile: (assuming 1700US$/oz goldprice and acc. to publicly avialable information, should not be assumed 100% accurate)


2013/2014:
approx. 2million in bullion and cash from mostly preproduction royaltys*

2014/2015
Events:
Silver Scotts Quitovac Mine – 10% NSR and Midways PAN deposit – 4% GSR coming into production
Expected attributable ounces: 2600-3000
Expected Royalty Revenue: 4.4-5.1 million US$
2015/2016
Events:
PAN and Quitovac in full production -> Barrick Bald Mountain-Alligator Ridge Area 1% GSR start up
Expected attributable ounces: 5000-6000
Expected Royalty Revenue: 8,5-10,2 million US$
2016/2017
Events: Pan/Quitovac/Alligator Ridge producing ->Midways GOLD ROCK deposit – 4% GSR start up
Expected attributable ounces: 9000-11.000
Expected Royalty Revenue: 15,3 – 18,7 million US$
2017/2018:
Events: Pan/Quitovac/Alligator Ridge/Gold Rock producing -> Barrick Bald Mountain – Trapper 4% GSR in production
-> several expansions planned, such as at PAN to double production to 160k p.a.
Expected attributable ounces: 14.000-17.000
Expected Royalty Revenue: 23,8 – 28,9 million US$

2019 …..2022….
BLUE SKY!!!

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Barrick Bald Mountain – Trapper 4% GSR, (approx 0.5m P&P)
could net 4000oz p.a. – sometimes in the next few years, in the mine plan

Barrick Bald Mountain-Alligator Ridge Area 1% GSR
(approx. 1million oz M&I incl. 0.66m P&P)
100-150k ounces per annum from 2015 on- net in 1000-1500oz p.a.
http://www.barrick.com/operations/north-america/bald-mountain/default.aspx

Midways PAN deposit – 4% GSR (1.2million oz M&I incl 0.8m P&P)
start up mid 2014 @ 80k ounces – net in 3200 oz
expansion 2017 @ 160k ounces – net in 6400 oz

Midways GOLD ROCK deposit – 4% GSR (M&I 0.6million ounces)
start up mid 2016 @ 80k ounces – net in 3200oz
expansion mid 2018 @ 100l ounces – net in 4000oz
http://www.midwaygold.com/s/Home.asp

Silver Scotts Quitovac Mine – 10%/6% NSR (resource unkown)
start up mid 2014 @ 40k ounces – net in approx 2000oz
https://www.edelmetallmesse.com/upload/datenblatt//datenblatt_472.pdf

McEwanMinings Tonkin Springs – 1,4%NSR (M&I 1.5millionn oz Au)
http://www.mcewenmining.com/Operations/Tonkin-Development/default.aspx
(Applies after 230k oz produced)

Silver Predators Taylor Mine – 1-2% NSR (M&I 15million oz Silver)
possible start up 2016/2017 – net in approx 1000oz Ag? = 20z AUeq
http://www.silverpredator.com/presentations.html

Evolving Golds Rattlesnake – 0,5% NSR
http://www.evolvinggold.com/s/Rattlesnake_Hills.asp
—-
PLUS: 22 early stage Royalties with uncertain value and no publicly disclosed plans. But still some value!
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*Gold Standard Royalty Portfolio 2011 Fiscal Year The Company is also pleased to provide a report on its royalty portfolio for the recently completed fiscal year.  The Company received advance royalty payments totalling over $850,000, as well as 9.998 troy ounces of gold, bringing the total gold held on account at Johnson Matthey to 143.072 troy ounces.

 

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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

 

 

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Monthly Review: Portfolio up 25% despite year end weakness. Major changes!

Dear Readers and fellow Investors,

altough our portfolio performance is a little weaker compared to end of October, we are very happy with an overall performance of more than 25%. We started mineninvestor.com 4 months ago and, given the significant weekness since beginning of November, we believe that we delivered a solid performance.

With this update we make some major changes and are selling some non-performing stocks. To be clear here: We are in the market to make money, not to promote stocks. Mineninvestor.com does not advertise nor do we receive any benefits from the companies in our public portfolio. Some stocks we sell with this update we still like, but we think short term others offer better upside.

Our portfolio-performance assumes that all stocks are weighted equally, but as we focus on educated investors our readers may of course feel free to do otherwise!

MAJOR CHANGES:

– WE HAVE RECIEVED OUR CASH SETTLEMENT ON THE INTER-CITIC (T.ICI) TAKEOVER FOR A REALIZED PROFIT OF 50%

– WE ARE SELLING NORTHQUEST (V.NQ) FOR A LOSS OF 11.8% BECAUSE IT IS A NON PERFORMER

– WE ARE SELLING LYDIAN INT. (T.LYD) FOR A LOSS OF 9% BECAUSE IT IS A NON-PERFORMER

–> WE ARE BUYING ASANTE GOLD (V.ASE) AS A TOP-PICK @0.265Can$ ! READ HERE WHY: http://mineninvestor.com/?p=397

Bottom line: The realized profits and losses account for an avarage 10% gain. We are using the freed up cash to buy V.ASE and to add to T.BPV = PREMIER ROYALTY CORP. All other positions in the portfolio remain a hold or buy in our opinion.

 

Name
Symbol
Last
YTD
Gain Since Added
Alamos Gold Inc. T.AGI 18.490 7.70 % 15.925 %
Asante Gold Corp… V.ASE 0.260 N/A 0.0 %
Bridgeport Ventu… T.BPV.WT 0.255 70.00 % 2.0 %
Bridgeport Ventu… T.BPV 0.630 110.00 % 59.494 %
Dalradian Resour… T.DNA 1.680 -7.37 % 86.667 %
Royal Gold, Inc. T.RGL 82.540 18.65 % 7.726 %

Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

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Asante Gold (V.ASE) with an amazing Gold-Royalty acquisition- the cheapst junior on the Venture?!

Dear Readers and fellow Investors,

Let me ask you a question: If my Dad has a 150million in net worth and is a well recognized businessman with a great track record. I would now ask you to lend me 6million $ and my Dad promises you to pay you back from mid 2014 on a 4million per annum for at least the next 12 years minimum, but possibly even for the next 20 years. so Basically, for your initial investment of 6million, you`d recieve 48-80million bucks.

What would you say? Not possible? Such Chances don`t exists?

Well, they DO!

V.ASE – Asante Gold just recently a announced a deal which is more or less like the situation i described above.

Asante Gold Corporation: Acquisition of Obotan Gold Project 1% NSR Royalty Announced

http://www.marketwire.com/press-release/asante-gold-corporation-acquisition-of-obotan-gold-project-1-nsr-royalty-announced-tsx-venture-ase-1724611.htm

The most amazing point here is that, due to personal relationships from ASE`s management the deal is all-share based, with no cash component and values the shares of ASE @0,5Can$ while the stock was tradig at 0,2Can$!

But before we take a closer look at the 2014e cash-flowing Royalty aquisition announced last week, let me introduce the company and its Management to you.

KEY FACTS:

Website: http://www.asantegold.com/s/home.asp

Symbol: V.ASE – (current price 0,27Can$ as of Nov 17th)

Shares OS basic/fully diluted pre deal:  20,11million / 32,1million

Shares OS basic/fully diluted post deal: 65,11million / 77,1million

Marketcap pre deal fd: 8,67million Can$

Marketcap post deal fd: 20,81million Can$

Cash & Recievables fd: 6million+

Projects/Location: early stage Gold project in the Golden Triangle of Ghana, next to T.PRU`s 280,000 oz per year Edikan Mine

 

The Management:

Douglas R. MacQuarrie, President

P.Geo.BC, B.Sc. Combined Honours Geology & Geophysics

A resident of Vancouver, Mr. MacQuarrie has 36 years’ mineral exploration experience, the last 19 years in West Africa. He has been responsible for the discovery, acquisition and development of many significant gold deposits both in Canada and in Ghana, West Africa. As the former CEO of PMI Gold Corporation (+$200 million market cap) he was responsible for raising over $45 million for Ghana gold exploration and development. Mr. MacQuarrie is a co-founder of Asante Gold.

Philip Gibbs, Chief Financial Officer

B.Compt., MBA, CMA

A resident of Toronto, Mr. Gibbs has extensive experience in the financial management of major international corporations and Canadian listed mining and mineral exploration companies. Mr. Gibbs is also Chief Financial Officer of KILO Goldmines Ltd., and Macusani Yellowcake Inc., operating in the Democratic Republic of Congo and Peru respectively.

Jag Sandhu, Director, Corporate Development

B.Economics

A resident of Vancouver, BC, Mr. Sandhu is a specialist in corporate finance and development services and has 15 years’ experience assisting companies in raising capital for Canadian listed resource exploration and development companies. Mr. Sandhu has held various senior level executive positions in a number of listed companies and is a co-founder of Asante Gold.

Florian Riedl-Riedenstein, Independent Director

A resident of Vienna, Austria, Mr. Riedl-Riedenstein is a former investment banker working in both New York and Austria. He has over 30 years’ corporate experience as a Director and Officer of Canadian listed companies. His specialty is the successful introduction of Canadian resource companies to European investors. He is also a co-founder of Asante Gold.

 

The Fahiakoba Gold project – Ghana

Fahiakoba, a 22.07 sq km prospecting license located on strike with and between Perseus Mining’s 4.32 million ounce (gold reserves & resources) Edikan Mine and AngloGold Ashanti’s 60 million ounce (reserves & resources of 9.52 and 35.41 million ozs, and historical production of ~31 million ozs) Obuasi mine. The latter is the longest producing, highest grade and largest gold resource in West Africa.

Previous drill results from Phase one drilling showed some nice narrow width – high grade results. But should they find Edikan like Gold mineralisation of 20meters of high grade small qtz veinlets with gold Asante should see much greater Interest from both the Investor Communitiy as well as Perseus and possibly other Ghana based Gold producers. With their high annual production of more than 280.000 ounces it will be very important for Perseus to add additional reserves and resources from regional exploration and mergers.

In our view Fahiakoba represents one of the most promising early stage gold exploration projects in Ghana and it`s proximity to Gold producing mines derisks the project significantly.

http://www.asantegold.com/s/fahiakoba.asp

 

The Royalty and it`s underlying asset

1% Net Smelter Royalty with no buyback right and no Cap, it covers the complete highgrade open pit Obotan Gold Project being developed by T.PMV.  PMI Gold has in excess of 150million in cash and there is little doubht in the industry that they will build Ghanas next major Gold mine!

ANNUAL PROJECTED ASANTE GOLD 2014/2015e ROYALTY REVENUE: 3,7-4million $ @ 1700 Gold

 

http://www.pmigoldcorp.com/s/Obotan-Gold-Project.asp

 

BOTTOM LINE:

As outlined above: Such great chances exist sometimes, but they won`t be there forever.

Asante in our view has 3 major upside cathalysts:

a) The Royalty aquisition. The closing of the deal and then cash flow from the development of Obotan  into production by PMI Gold.

b) Exploration success on their Fahiakoba Gold project, which could potentially be a satellite deposit to T.PRU`s Edikan Mine

c) The ability from it`s great Management to do more good deals

We have just recently received our cash settlement from T.ICI`s Takeover and will reinvest the Money and our 50% profits into V.ASE. V.ASE will also be added to our public portfolio with the next update. What makes us even more confident is the fact that Insiders bought the stock all summer long…and are still buying!

http://www.canadianinsider.com/node/7?menu_tickersearch=ASE

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Legal Notice / Disclaimer
This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Martin Hoff has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Martin Hoff makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Martin Hoff only and are subject to change without notice. Martin Hoff assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Martin Hoff, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

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