Consider it like going to “Old-Timers Day”, only Grandich no longer “pitches” and “strikes out”-lol.
Seriously, because I on “rare” occasions in the last couple of years touched on my two personal equity holdings, I’ve chosen to briefly update my personal view on them (keeping in mind, this is in consideration for my own self).
Teranga Gold – (TGCDF $.78) – I spoke in-depth with Teranga’s President and CEO earlier today and came away from that discussion most pleased. Having first spoken to him back when I wore a “metals and mining” hat for a living, I’ve had an opportunity several times to compare past discussions with him – and this one was the most optimistic by far.
There are numerous bullish fundamentals; but for me, was an understanding now of the importance the major billionaire shareholder brings to the table. It certainly solidified my long-term outlook and makes me a strong holder going forward. The risks are of course unforeseen developments like political or operational, as well as a declining gold price. In regards to the latter, I’m extremely bullish on gold so that should not be a cause for concern for the foreseeable future.
Nevsun Resources – (NSU $2.94) – Having raised a significant part of the capital needed for its first major asset purchased backed in the early 1990s, I’ve followed NSU longer than any other company.
This evening, NSU announced 2016 results and 2017 outlook. I found no surprises there, not even the major cut in its cash dividend. Normally, such a percentage cut is done when a company is in great need to preserve cash or worse. In this case, NSU was a cash cow from its one main asset. But now that it has taken over what I and others believe is a potential world-class gold and copper project in Serbia, it was prudent to use much of its cash to advance this project with the least amount of dilution. I think once we have the PFS in September, and drill results from a massive exploration program, the market will need to greatly ratchet up its valuation on Timok.
Much of the recent weakness IMHO was concerns about Bisha production. While clearly not all behind them, the wording in the release gives me a sense it will linger (but expected to be less of a concern as each week passes). The conference call tomorrow is likely to give a better idea if this assumption is valid.
If one can get past all the gibberish on the Internet and take heart this is mainly an institutionally-held stock and for the most part, those type of shareholders have the basis to derive far more logical assumptions than often “wrong” novices who think a chat forum gives them authority, I find NSU a compelling value no matter what it may do or not do in the next day or week (I see no reason to chase it, but any further weakness should be relatively short-lived).
Since I’m speaking publicly just for now, I like to send my most sincere wishes to Cliff Davis, CEO of NSU, who will be retiring once a suitable replacement is found. Having known Cliff from the earliest days of NSU, he has done a great job and NSU is poised to vault even higher (although I don’t think they will still be independent by the time TImok pours its first ore).
Old-Timers Day has ended. Be safe going home.