Aggressive Drill Program Could Focus Attention on Wyoming Gold Project

Source: The Gold Report 06/29/2017

Wyoming currently does not have an active gold mine, but GFG Resources is out to change that with a drill program that is both focused on defining ounces for a maiden resource and looking for new gold discoveries, says Brian Skanderbeg, GFG’s CEO.

The Gold Report: Brian, thanks for joining us today. GFG Resources Inc.’s (GFG:TSX.V; GFGSF:OTCQB) 2016 drill program at Rattlesnake Hills in Wyoming discovered a new zone northeast of Antelope Basin and showed the potential to link the North Stock and Antelope Basin deposits. How large is the 2017 drill program? What are its goals?

Brian Skanderbeg: GFG is planning an aggressive 2017 drill program. We’re going to drill 15,000 meters (15,000m) this year at our Rattlesnake Hills Gold Project. The focus will be on expanding the deposits and growing the new discovery proximal to Antelope Basin, as well as focusing elsewhere on greenfield opportunities. It’s a fairly large program, the first aggressive program that GFG has completed on this property.

TGR: What do you have planned for greenfield exploration?

BS: Throughout 2016 and in early 2017, we’ve done a lot of detailed work—geophysical, geochemical, modeling—generating the targets that we feel offer a lot of upside in this district. We’re going to test six of them this year. These are all kilometer-scale targets that have either rock or soil anomalous geochemistry with them, as well as geophysical signatures consistent with the deposits that exist in the district already. We will put 5,000m into testing six regional targets, none of which have had drill testing on them.

We feel very strongly that there’s a good probability we’re going to make a discovery in this district and continue to grow the number of deposits and build a significant resource base.

TGR: If you’re going to put about 5,000m of drilling into the greenfield, does that mean that you’re going to drill about 10,000m to expand known mineralization?

BS: Yes. We see a very good opportunity to grow the areas of known mineralization along strike, to link deposits together, to expand on the discovery area, and to find offset extensions to them. These are all brownfield-style targets that have a high probability of success from drill testing. At 10,000m, it’ll be about 35 holes. And they, for the most part, are within 500m of North Stock and Antelope Basin and/or Blackjack.

TGR: What are some of the similarities between Rattlesnake Hills’ geology and that of Newmont Mining Corp.’s (NEM:NYSE) Cripple Creek gold mine and Coeur Mining Inc.’s (CDE:NYSE) Wharf gold mine?

BS: Rattlesnake Hills is an alkaline gold system, and these are associated with relatively young alkaline intrusive districts. Both the Cripple Creek and Wharf mines are characterized by the same suite of intrusives. They’re the same age, and have the same composition and the same style of emplacement. We’re confident that the underlying district-scale characteristics are similar to that in terms of geology, geochemistry and timing.

Cripple Creek has been a very productive district historically, mining well in excess of 20 million ounces (20 Moz) of gold and continuing to have about 5 Moz of reserves. It’s probably a 30 or 40 Moz gold district. It shares similarities to Rattlesnake Hills in terms of the age and the nature of the mineralization being largely diatreme hosted. It is largely an open-pit operation, at present mining both oxide and sulfide that is consistent with what we see at Rattlesnake Hills.

Our vice president of exploration, Tim Brown, worked for 23 years at Cripple Creek as its chief geologist and exploration manager. He knows the system well. He had visited Rattlesnake Hills while with AngloGold Ashanti Ltd. (AU:NYSE; ANG:JSE; AGG:ASX; AGD:LSE) and sees a lot of similarities. He was happy to come work for us and apply the experience of what he learned at Cripple Creek. So, there are strong analogies to Cripple Creek to one side.

The other side of the equation is Wharf, which I think is an underappreciated mine. It was sold by Goldcorp Inc. (G:TSX; GG:NYSE)) to Coeur just over two years ago. It produces about 110,000–120,000 ounces of gold a year (110–120 Koz/year), a very profitable operation, heap-leach oxide system, about a 3 Moz historical production, 700 Koz of current reserves. It’s probably a 3, 4, 5 Moz system, very economic, and solely mines the oxide. It is the same age, same geology and same structural controls as what you see at Rattlesnake.

The distinction between them and what we have is Wharf mine is solely an oxide heap-leach operation. Cripple Creek mine is both oxide and sulfide. And at Rattlesnake Hills, we see oxide plus sulfide. Depending on what we find in the scope of the resource, we’ll determine down the line what production may look like, whether it’s solely oxide or whether it’s oxide plus sulfide.

TGR: Are you looking at open-pit mining?

BS: Typically, these districts are open pit, a function of being broad, breccia-hosted, sulfide-replacement systems, often structurally controlled or structurally influenced as well.

The caveat is—and there are always some systems that don’t follow all the rules—Cripple Creek is a very large open-pit mine as it is reflected today. Historically, though, the bulk of its production came with a narrow-vein underground mine. Wharf has always been, in its current vintage, an open-pit mine, although historically it was also an underground mine where they mined some deep structures. They weren’t veins, but they were narrower, high-grade structures that could be mined underground.

What we are exploring for, and the bulk of what we’ve seen in drill intercepts at Rattlesnake Hills, would be an open pit in terms of the depth of mineralization and compared to the widths as well. So, we’re certainly on an open pit-style target at Rattlesnake Hills.

TGR: Rattlesnake Hills has a significant history of interest from senior producers, including Newmont, Goldcorp and Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE). Could you tell us a little about its history and past exploration results?

BS: I first learned of and followed the Rattlesnake Hills asset under one of the companies that we acquired a portion of our land position from, Evolving Gold Corp. (EVG:TSX; EVOGF:OTCQX; EV7:FSE). Evolving Gold did a fair bit of work and outlined the scope and scale of the deposits from 2008 through 2012. After having some success in 2008 and 2009, Goldcorp placed a corporate investment into Evolving Gold. And in 2011, Agnico Eagle negotiated a joint venture (JV) on the property. Both of those companies saw scope and scale for the size of the deposits they were looking for.

When you look at the path under Agnico—the company was there for about a year—it had 23 regional drill targets, none of which was drill tested. It actually abandoned the JV in 2012 after the gold price collapsed. Before joining GFG, I had a conversation with the Agnico group. There is still a positive view on the asset. I think Agnico left because of timing and a poor JV structure.

What I take out of this is that this system has hallmarks, scale and size that are attractive to mid-tiers and majors. And that reflects both the level of the past drilling and the nature of the system, being an alkaline gold system and being district scale. A lot of these district targets have yet to be drill tested. They will be drill tested this year under GFG, though.

So, a fair bit of work was conducted under Evolving Gold and partly under the JV with Agnico and Newmont. There’s one other group called Endurance Gold Corp. (EDG:TSX.V), a junior out of Vancouver, that controlled a portion of our land position. It did no drilling on it. There are several high priority targets on that land position that we will be testing this year as well.

When GFG was put together in 2015, it acquired these land positions off of two juniors that were financially in pretty tough shape. We all are familiar with the cycle of the capital markets, and at certain times, it’s very difficult to raise capital to advance a project. GFG and our shareholders were able to take advantage of that and raise some private capital at the low of the cycle to take control of what is a very major land position.

TGR: What is Wyoming like as a mining jurisdiction and what is your permitting situation at Rattlesnake Hills?

BS: Wyoming is not a common jurisdiction that you hear about from a gold perspective. It is sought after for uranium and coal and oil and gas. It is a resource-driven economy. It is the least densely populated state in the U.S. outside of Alaska.

We see it as a good place to do business in the sense that government is supportive of extractive industries. Despite the fact there are no other gold mines active in the state, there are a number of open-pit uranium mines and underground and in situ leach uranium mines. There are also very large coal operations and oil and gas.

We think from a permitting perspective, the state would be permissible and something similar to that which you’d see in the good parts of Idaho or in Nevada. We are largely on U.S. Bureau of Land Management (BLM) land, which means it’s under federal jurisdiction. There are a couple of state leases we hold and a bit of private land as well on which we have mineral rights.

Right now, we work under a Plan of Operations and a Notice of Intent for our exploration activities. We have inherited that Plan of Operations from Evolving Gold and Agnico. We’re in the process of expanding the plan to include some of our testing that is proximal to the deposits. And we’re also in the process of having a Notice of Intent approved with the BLM and with the state, which allows us to test some of the regional targets.

TGR: When do you expect to start to get drill results in? And when do you plan to release a maiden resource estimate?

BS: Our drill program will begin early in July, initially with one rig and ramping up to three rigs: two reverse circulation rigs and one core rig. Given that time frame and the typical time to turn around holes and assays, we would expect initial assays later in August or into September. This should be good timing for the fall markets, which are typically seen as a little more positive for gold and certainly garner more awareness from the market sectors base. We expect drill results to continue through Q3 and into Q4 and likely into Q1/18 before we get the final results out.

We plan to advance toward a resource estimate based on the historical drilling that’s been completed but, also, incorporating the current program and the 2016 program into that resource estimate. So H1/18 would be our public guidance on coming up with a resource.

TGR: In addition to the resource estimate, what other catalysts do you foresee?

BS: The exploration results that you’ll see coming out here in Q3 and Q4 will be quite material. A number of these targets have never been tested. And success in any one of our six regional targets would dramatically shift the potential of the district. We think there’s good opportunity in that we’re onto a 1–2 Moz system quite easily with North Stock and Antelope Basin. Discoveries elsewhere in the district could turn this into a much larger system.

We will also look to further some metallurgical test work based on the preliminary work that’s been completed to date.

TGR: Can you talk about GFG’s cash position and capital structure?

BS: Our capital structure is pretty simple and pretty lean. We became public in late October of 2016 and, essentially, we rolled the GFG Resources private company through a reverse takeover into Crest Petroleum Corp., which was a shell that we had access to. That became public, and we subsequently renamed the company GFG Resources in October.

We moved through and carried about US$1.5 million ($1.5M) out of the private company. In Q1/17, we raised CA$5M under a bought-deal financing. We currently have a budget for 2017 of US$5 million. That’s a corporate budget that is fully funded. At the start of the year we had just over US$5M. Right now, we’re hovering right around US$4M, and we anticipate that to be adequate financing for the entirety of the drill program and to take us into 2018.

Share structure would be about 50M shares out. We trade on the TSX Venture as a tier two listing. And we also trade on the OTCQB in the U.S. under the ticker GFGSF. Insiders own about 15% of the company, so there is a very leveraged insider group and a very tight share structure, trading around $0.70, $0.75 these days, which implies a market cap of around $35–40M.

TGR: Would you tell us about the management team and the board of directors and their experience?

BS: For us at GFG and working in the mining space, it starts with people, as it does in most sectors. We’ve put together a highly credible team of executives and management as well as board.

I was formerly the president and CEO of Claude Resources Inc. and held roles as vice president of exploration, chief operating officer and CEO before we were acquired by Silver Standard Resources Inc. (SSO:TSX; SSRI:NASDAQ) for CA$340M in June of last year and brought the team from Claude across into GFG.

We have Marc Lepage as our business development and investor relations vice president, and Rick Johnson, who is our chief financial officer. The three of us were all with Claude. Together, we added Tim Brown, and Tim is a key guy as vice president of exploration and is our U.S. presence based out of Colorado. He had 23 years with Anglo, and has very deep experience in alkaline gold systems and particularly at Cripple Creek but, also, looking at greenfield opportunities in North America for Anglo. That’s our executive team, the four of us.

We have put together with a very strong board, where we have our founding CEO of GFG, Jon Awde. He is also the CEO and founder of Gold Standard Ventures (GSV:TSX; GSV:NYSE MKT), which is a very successful Nevada explorer and developer. And he was the one that brought me into the GFG group.

Patrick Downey is our chairman. He is currently the CEO of Orezone Gold Corp. (ORE:TSX). I got to know Paddy very well through Claude and through Elgin Mining Inc. and a number of other ventures. He is a very successful metallurgical engineer, has strong capital market experience and a great track record.

Steve de Jong, who just sold Integra Gold Corp. (ICG:TSX.V; ICGQF:OTCQX) to Eldorado Gold Corp. (ELD:TSX; EGO:NYSE), is on our board as well.

We have four CEOs who have all been successful at building companies, advancing them, making discoveries and completing transactions to build value for shareholders.

We also have Arnold Klassen, who is on Kirkland Lake Gold Inc.’s (KL:TSX; KLGDF:OTCQX) board, and he is our audit chair; he’s the former vice president of finance for Dynatec Corp.

We have a very credible, deep team at the executive and board levels, with strong insider ownership. For a junior of $35–40M, we would put this team up against most seasoned explorers and certainly many developers and even producers in terms of the people behind it.

TGR: Any parting thoughts for our readers?

BS: We’ve been relatively quiet over the last six months, a function of not drilling since last November. But we’ve turned that corner, and we’re about to have a very aggressive three-rig program start that we expect to be very newsy. And we’re fully financed to do it. We think there are very key drivers and key milestones that’ll certainly attract some attention moving through the summer into the fall for GFG.

So, keep an eye out, certainly on our website. And feel free to either reach out to myself, or Marc Lepage at our office in Saskatoon or by e-mail. And we’re happy to take any other questions you may have.

TGR: Thank you for your time.

Brian Skanderbeg, P.Geo., is president, CEO and director of GFG Resources Inc. He was most recently president and CEO of Claude Resources Inc., which was acquired by Silver Standard Resources for $337 million. He previously worked for Goldcorp, Inco Ltd. and Helio Resources, holding positions in both exploration and operations. He holds a B.Sc. from the University of Manitoba and an M.Sc. from Rhodes University, South Africa.

Read what other experts are saying about:

Want to read more Gold Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

1) Patrice Fusillo conducted this interview for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or her family owns, securities of the following companies mentioned in this interview: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) GFG Resources Inc. is a billboard sponsor of Streetwise Reports. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclaimers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) GFG Resources Inc. had final approval of the content and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Brian Skanderbeg and not of Streetwise Reports or its officers.
4) Brian Skanderbeg: I was not paid by Streetwise Reports to participate in this interview. I had the opportunity to review the interview for accuracy as of the date of the interview and am responsible for the content of the interview. I own shares of the following companies mentioned in this interview: GFG Resources Inc.
5) Interviews are edited for clarity. Streetwise Reports does not make editorial comments or change experts’ statements without their consent.
6) This interview does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
7) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of GFG Resources, a company mentioned in this article.

( Companies Mentioned: GFG:TSX.V; GFGSF:OTCQB,

Can Precious Metals Have A Bitcoin Style Breakout? – David Morgan Interview

By David Morgan

We have returning guest David Morgan to provide us with information on the current outlook on the Precious Metals Markets and also the Yield curve flattening and what it truly represents.

During the interview we also cover the Free Markets during so much uncertainty is the driving force behind so much innovation and free thinkers finding solutions for real problems.

02:15 Yield curve flattening is highlighting a recession!
06:30 Low Yields, state pension funds, private pension funds
06:30 Many people are going to get a wake up call”!
09:20 “The Promises Will Become Greater, The Returns Will Become Nil”!
09:30 The emerging Free Markets creating the freedom to succeed!
15:50 Precious Metals unaffected by the Interest Rates
21:30 Global instability causing innovation and automation
28:40 Precious Metal Stocks, what can investors expect?
32:30 Free thinkers creating solutions to real problems
34:30 Gold and Silver could experience a Bitcoin style breakout
39:10 Where to find more insights

Join Our Free
E-Newsletter Today!
Get All Our Free Reports Below

Special Report: Silver Price Forecast: How high will the price of silver be this year? How about next year? Grab Your Silver Price Forecast Free Report Right Now! In this report you will discover Silver might surprise everybody by the end of this year.

Is There A Silver Shortage Webinar: Join me in the free webinar where we’ll discuss, Is a silver deficit a silver shortage? What year did the deficit turn to a surplus? Are the above ground silver stocks increasing or decreasing How well does price track supply?

Special Report: Riches In Resources: The RIR report was written by myself. Often I rely on my team to help with research and trips to various companies, annual meetings, quarterly updates, conference calls, investor seminars, and all that we do to keep our members at the cutting edge of the Wealth building/Wealth preservation sector.
There is so much information in this report. So be sure to watch the movie, understand the times we are living in, and please share with your friends, family, social media or anyone that you care about. These times are changing rapidly.

Because there is a 100% failure rate of ALL fiat money throughout history, you will learn what to do by obtaining our Free Reports. Just enter your first name, your primary email address and click the Get Special Report button below.

Are you prepared for what lies ahead? Our Free E-Letter will keep YOU in the top 3% of the Informed, the Awake, and the Aware.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); = id;
js.src = “//”;
fjs.parentNode.insertBefore(js, fjs);
}(document, “script”, “aweber-wjs-jc8lzhdt3”));

Our mission statement reads…

“To teach and empower people to understand the benefits of an honest monetary system.”

Today’s monetary system is based upon a lie. The lie is that you can get something for nothing, or perhaps …read more

Source:: david morgan

The post Can Precious Metals Have A Bitcoin Style Breakout? – David Morgan Interview appeared first on Junior Mining Analyst.

Face to Face with the Fed

By Dave Gonigam

Kashkari puts on his best poker face as your editor asks Jim Rickards’ question

[Screengrab from Minneapolis Fed video via YouTube]

If you’ve been reading Jim’s work for any length of time — or even following our thumbnail sketches of his work in The 5 — you know Jim believes it’s politically untenable for the Fed to blow up the balance sheet again the way it did from 2008–2014…

That is, the torches and pitchforks will come out if the Fed embarks willy-nilly on a new round of money printing. From $4.5 trillion now to $8.5 or $9 trillion? Not happening. Especially not when the Fed is already leveraged more than 100-to-1.

In a crisis, the liquidity to save the system will have to come from the only solvent institution left standing — the IMF. It will print SDRs in mass quantity to be distributed among the globe’s governments and central banks. You and I will continue to transact in dollars — but thanks to the proliferation of SDRs, those dollars’ purchasing power will shrink dramatically, and in a hurry.

This isn’t Jim’s idle speculation; the plan was laid out in an IMF white paper in January 2011.

Kashkari dodged this one too — as best he could.

To begin with, he said, “There’s nothing on the horizon that tells us another ’08 crisis is imminent” — even as he allowed that “by their nature you never see the risk until it blows up in your face.”

Alrighty then…

“I think the Fed still has a lot of tools in our arsenal,” he went on. He itemized them as follows: zero interest rate policy, or ZIRP. More quantitative easing. And forward guidance, which is Fed-speak for how the Fed jawbones the markets about its intentions.

In other words, more of the same.

“Whether we could expand our balance sheet another $4 trillion, I don’t know. I don’t know what the limits would be in the Treasury market or the mortgage-backed securities market. But I think we would have a lot of tools at our disposal. And ultimately if it were another ’08-type crisis, Congress would have to get involved again.”

Kashkari is an adamant defender of the 2008 bank bailouts that Congress approved and he oversaw. “We hated to do it. It was the right thing to do.”

[Recovered history: He left out the part about how his boss, Treasury Secretary Hank Paulson, threatened Congress that if it didn’t act, the resulting economic meltdown would necessitate martial law. This story was confirmed at the time by both Rep. Brad Sherman (D-California) and Sen. Jim Inhofe (R-Oklahoma).]

“A disappointing answer, but not too surprising coming from a Fed official,” Jim tells me this morning.

“The answer about ZIRP, QE, forward guidance, etc., is the playbook for a recession (from Yellen’s 2016 Jackson Hole speech). It’s not the playbook for a crisis, which is completely different.”

A while back, Jim himself asked the same question of Timothy Geithner, Obama’s first Treasury Secretary… and got an equally unsatisfying answer.

If you find this episode a little unsettling — especially the part about “no imminent crisis” even though Kashkari admits central bankers do a lousy job of anticipating crises — you might want to take some of the precautionary measures now. Rickards’ suggests increasing your allocations to 10% of your investable assets in gold.

Best regards,

Dave Gonigam
for The Daily Reckoning

The post

Exclusive Insights on the Gold Market – Wed 28 Jun, 2017

By Cory Technical updates on Gold and GDX

Jordan Roy-Byrne in back with his updated look at the gold and GDX charts. Continuing to trade in a tighter and tighter range there is a break coming and Jordan is looking to the downside. He shares some levels that gold and GDX could drop to as well as a comment on the overall sentiment in the PM sector.

Download audio file (2017_06_28-Jordan-Roy-Byrne.mp3)

Below is a link to the article Jordan references in the interview.

Gold & Gold Stocks Nearing a Big Move

…read more

Source:: The Korelin Economics Report

The post Exclusive Insights on the Gold Market – Wed 28 Jun, 2017 appeared first on Junior Mining Analyst.

Cannabis Cures: Ending an Epidemic

By Ray Blanco

This post Cannabis Cures: Ending an Epidemic appeared first on Daily Reckoning.

Can you guess the leading cause of death for Americans under the age of 50?

It’s not car crashes, or violent crime, or suicide.

I’ll give you a hint:

Get it yet?

The leading cause of death for Americans under the age of 50 is now drug overdose.

The image above is a dose of Narcan nasal spray. Narcan (naloxone) is a lifesaving wonder drug that can block the effect of opioids — it’s commonly administered to people overdosing.

For decades, naloxone has been standard issue for emergency medical technicians.

But more recently, it’s become commonplace for law enforcement to carry too. Just between April and December of last year, the number of U.S. police and sheriff’s departments carrying Narcan increased by 25%. Opioids are clearly an epidemic here in the U.S.

The Answer Is Pot

One solution to the problem might just surprise you. It’s pot.

While politicians like lumping marijuana in with all manner of outrageously dangerous drugs (scare tactics win elections, after all), science tells a different story… A recent study found that in states with legal weed, opioid problems are actually dropping.

According to the study, the hospitalization rate for opioid abuse and dependence in states with medical marijuana laws is approximately 23% lower than in states without legal access to pot. And emergency room visits for overdoses dropped 13%, on average.

That shouldn’t come as a total shock — when patients have access to less extreme options for pain management, they’re less likely to get hooked on opioids.

In another study from the University of British Columbia and University of Victoria, 63% of patients with chronic pain and mental health issues chose marijuana over addictive prescription drugs when doctors gave them a choice.

Even more telling, those patients said that they were better able to manage their symptoms by using marijuana.

There’s no question that marijuana is a safer alternative to opioids — and there are some major societal benefits to moving more people to pot.

For decades, supporting pot has been politically imprudent. But that ship has turned around. It’s becoming impossible for people with political agendas to keep stifling the nationwide adoption of medical and recreational marijuana.

The science is irrefutable. The societal and economic benefits dwarf the drawbacks.

We’re on the ground floor of a momentous trend that’s only beginning to get traction — and the profit opportunities from investing in the companies involved in the shift are going to be astronomical.

Pot’s New Mission Means Big Profits

Medicinal cannabis is the best solution we have to the opioid crisis. And its viability for pain therapy means even more profitable opportunities for you.

Industry experts, investors and throngs of medical professionals are fully aware of the opportunities in the cannabis space. And the recent swell we’ve seen in the cannabis market is a direct response to how the public perceives pot’s utility.

I’ll continue to track these developments closely and make sure you are fully informed on the most profitable opportunities available. Stay tuned.

To a bright future,

Ray …read more

Source:: Daily Reckoning feed

The post Cannabis Cures: Ending an Epidemic appeared first on Junior Mining Analyst.

Eldorado Gold risks missing 2017 guidance over issues with Turkish mine

By analyst

By Cecilia Jamasmie

Canada’s Eldorado Gold (TSX:ELD) (NYSE:EGO) may miss its 2017 guidance by as much as 25% due to leaching problems at its Kışladağ mine in Turkey, one of its largest operations.

The Vancouver-based company said late Tuesday that Kışladağ is now expected to produce 180,000-210,000 ounces of gold this year. Incorporating that revised guidance, the miner’s group expected output would be 315,000-365,000 ounces, down from the original 365,000-400,000 ounces forecast.

It now expects to produce at least 180,000-210,000 ounces of gold this year at Kışladağ, down from the previous 2017 mine production guidance of 230,000-245,000.

Shares in the company were hit hard by the news. They fell 4.9% Wednesday to Cdn$3.53 in mid-morning trading in Toronto and were last trading 3.9% lower in New York to $2.71. Other larger gold miners were also falling today.

“While Kisladag’s decrease in production for the year is disappointing, our team has implemented a strategy to return our cornerstone asset to normalized production levels,” the company’s President and CEO, George Burns, said in a statement.

He noted that the ounces the company may miss in 2017 are expected to be produced in the first half of 2018.

As a result, Eldorado Gold upped its outlook for next year and now expects to generate about 320,000 to 335,000 ounces at cash costs of $425 to 475 per ounce, compared to previous guidance of 285,000 ounces.

The potential miss in the current fiscal year could have consequences on the company’s ongoing acquisition of Integra Gold (TSX-V:ICG), as the fellow Canadian miner’s shareholders are set to vote next week whether they approve the takeover.

Eldorado has gone through major shifts in the past year, including the sale of all its Chinese assets in 2016 and a change of leadership with the appointment of one of Goldcorp’s top executives as CEO.

Early this year, the company announced it had indefinitely shelved expansion plans for its Kışladağ mine, Turkey’s largest gold operation.

It also deferred a decision on developing a project in Brazil, citing low gold prices.

Eldorado is set to release results for the second quarter at the end of July.

The post Eldorado Gold risks missing 2017 guidance over issues with Turkish mine appeared first on

…read more

Source:: Infomine

The post Eldorado Gold risks missing 2017 guidance over issues with Turkish mine appeared first on Junior Mining Analyst.

Is FactSet Research Systems Stock Undervalued or Overvalued Today?

factset data systems stock factset data systems earnings 1

By Rob Otman

FactSet Research Systems (NYSE: FDS) is a midcap company that operates within the capital markets industry. Its market cap is $7 billion today, and the total one-year return is 3.74% for shareholders.

FactSet Research Systems stock is underperforming the market. It’s beaten down, but it recently beat earnings expectations. So is it a good time to buy? To answer this question, we’ve turned to the Investment U Stock Grader. Our Research Team built this system to diagnose the financial health of a company.

Our system looks at six key metrics…


✓ Earnings-per-Share (EPS) Growth: FactSet Research Systems reported a recent EPS growth rate of 2.42%. That’s above the capital markets industry average of -6.76%. That’s a great sign. FactSet Research Systems’ earnings growth is outpacing that of its competitors.

✗ Price-to-Earnings (P/E): The average price-to-earnings ratio of the capital markets industry is 23.18. And FactSet Research Systems’ ratio comes in at 24.99. Its valuation looks expensive compared to many of its competitors.

✓ Debt-to-Equity: The debt-to-equity ratio for FactSet Research Systems stock is 74%. That’s below the capital markets industry average of 121.59%. The company is less leveraged.

✗ Free Cash Flow per Share Growth: FactSet Research Systems’ FCF has been lower than that of its competitors over the last year. That’s not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth. It’s one of our most important fundamental factors.

✗ Profit Margins: The profit margin of FactSet Research Systems comes in at 22.66% today. And generally, the higher, the better. We also like to see this margin above that of its competitors. FactSet Research Systems’ profit margin is below the capital markets average of 28.6%. So that’s a negative indicator for investors.

✓ Return on Equity: Return on equity gives us a look at the amount of net income returned to shareholders. The ROE for FactSet Research Systems is 66.59%, and that’s above its industry average ROE of 18.98%.

FactSet Research Systems stock passes three of our six key metrics today. That’s why our Investment U Stock Grader rates it as a Hold.

Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That’s why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.

If you’re interested in finding Strong Buy stocks yourself, check out Fundamental Analysis Pro. It’s a free five-part mini-course that will teach you how to grade stocks like a Wall Street veteran. Click here to learn more. …read more

Source:: Investment You

The post Is FactSet Research Systems Stock Undervalued or Overvalued Today? appeared first on Junior Mining Analyst.

A Smarter Way to Buy the Dip in Nasdaq Stocks

buy the dip nasdaq stocks 1

By Matthew Carr

The number of tech stories has been dizzying in 2017…

Machine learning, artificial intelligence and Internet of Things companies are minting profits for investors.

They’re changing industries. They’re altering the traditional ways in which business has been done. And they’re rewarding those who embrace these technologies, which increase productivity, increase efficiency and lower costs.

The popular cryptocurrency bitcoin has risen 134.7% in 2017. And that includes a major pullback from its June 11 peak of $3,018.

And the FAANG stocks – Facebook (Nasdaq: FB), Apple (Nasdaq: AAPL), (Nasdaq: AMZN), Netflix (Nasdaq: NFLX) and Alphabet (Nasdaq: GOOG) – have left the broader markets in their dust…

Each has gained more than 20% in 2017. And except for Apple, they’re all up more than 200% in the last five years.

Beyond this, shares of Tesla (Nasdaq: TSLA) have surged more than 70% this year. And the high-end electric car maker now has a market cap larger than that of Ford (NYSE: F).

For a lot of investors looking to get into these opportunities – particularly with the recent dips – the sheer cost dissuades them.

I don’t believe that a company’s share price should stop investors. But I do understand that at today’s prices, buying just one share of each of the FAANGs costs $2,355.60. And one bitcoin will run you $2,400.


For investors – both novice and seasoned alike – we live in a time in which there are plenty of low-cost options, like exchange-traded funds (ETFs), that allow exposure to a variety of great companies.

And beyond basic sectors, subsectors or country ETFs, there are thematic ones. These target a specific group of opportunities.

For example, let’s say you want exposure to the FAANGs, bitcoin, some biotechs, social media companies and the Chinese premium tech companies like Alibaba (NYSE: BABA) and Baidu (Nasdaq: BIDU).

There’s an ETF for that: ARK Innovation ETF (NYSE: ARKK)… and the slightly different ARK Web x.0 ETF (NYSE: ARKW).

In Web x.0, the largest holding is Amazon, followed by the Bitcoin Investment Trust (OTC: GBTC), athenahealth (Nasdaq: ATHN), 2U (Nasdaq: TWOU) and Tesla.

In total, the ETF holds 40 positions.

The Innovation ETF is different. It holds 50 companies, and its largest holding is the Bitcoin Investment Trust, followed by Tesla, athenahealth, 3-D printer Stratasys (Nasdaq: SSYS) and Amazon.

Though the Innovation ETF has performed slightly better, both have done well, up roughly 40% or more.

For comparison, the Technology Select Sector SPDR Fund (NYSE: XLK) is up just 13.9% this year, while the iShares Nasdaq Biotechnology ETF (Nasdaq: IBB) and the Vanguard Information Technology ETF (NYSE: VGT) have gained only 17%.

The Web x.0 ETF gives you exposure to all the FAANGs. The Innovation ETF holds just the FANGs (no Apple). But both provide exposure to Asian tech companies like Nintendo (OTC: NTDOY), Alibaba, Tencent (OTC: TCEHY) and SoftBank (OTC: SFTBY), as well as the Bitcoin Investment Trust.

On Tuesday, the Nasdaq got hammered pretty hard once again.

The tech index fell 1.6%. Though, as you may remember, I recently pointed out that the Nasdaq rarely ever does well in June.

But …read more

Source:: Investment You

The post A Smarter Way to Buy the Dip in Nasdaq Stocks appeared first on Junior Mining Analyst.