Miners With and Without Money
What is the most rare thing in the world? How about a miner with money? Everyday we read about all the broke miners who can't get any financing and are having to get taken over or JV their projects. Everyone thinks it's just the little junior that is having a tough go but this past week kind of revealed some interesting stories about Barrick Gold ABX trying to raise $3 billion. Also of news is that they are temporarily suspending construction of the Pascua-Lama gold mine that sits on the border between Chile and Argentina. One aways wonders that if the big majors are having problems then who can buy out the mid tier miner or do the JV's with them. If they don't have money then who does?
But there are companies who do have money and are in fact out mining and making money. While doing some research on various miners I came across Semafo SMF. Here is a company who has three mines in Africa and is active in mining them. The company has the Mana property located Burkina Faso, the Kiniero Mine in central Guinea and the Samira Hill in Niger. The Samira Hill mine is on care and maintenance.
In 2012 Semafo produced 236,000 oz of gold and the company can produce gold for between $800-$850 per oz. The company has zero debt and in March of 2013 had $137 million in cash on hand. There is around 270 million shares O/S. The great thing about this company that I like is that the stock trading volume is higher than most equities with the average volume being 1 million plus per day. Also when running a Vector Vest scan, the stock ranks right up with the best of them for safety value and timing. One of the biggest issues these day with so many small miners is the lack of liquidity with the stock. There is nothing worse than holding a stock that just doesn't trade or holding a stock that you can't sell.
For those who like to trade warrants, I updated the warrant list finally. I was am going to put them on a page of their own but for now I just posted them on this page. They are at the bottom of the page so just scroll down. A lot of the warrants might not be worth much, but some are dated into 2016 and 2017 so if you think the market will be turned around by that time you just might find some jewels among the gravel. Be sure to check them out. I will try to keep them updated as much a possible.
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