Nevsun Resources (NSU -$2.33) – The “Death Valley” NSU fell into thanks to the dividend debacle and the mining hiccup at Bisha, appears to be coming to an end. The announcement of a new Chairman, and the new CEO wanting to give a thorough analogy where things stand, suggests other than using this quarter as a write-off of any remaining “dead weight” (which in my book, would be the firing of Scott Treblicock), the third quarter could truly be the start of returning back to a level of respectability their projects deserve (at least a 50% higher share price is warranted at this point).
But because so many were burnt for several months, I wouldn’t take these news events as “rocket launchers”. I think NSU is now a stock from Missouri (They are going to have to prove it before people buy back in a big way). But the pain and suffering other than knowing a “second rate” IR team remains in place, should be behind us.
All this cyberspace chatter you send me about a sell out now is “poppycock”. This new team didn’t come in just to sell out for what NSU paid just for Timok, or even less. And since this is a heavily institutionally owned stock, with a couple of large holders, going hostile is not likely down at these levels.
While you won’t likely see near-term significant price appreciation, I do take the latest news as a “turning the corner” moment.
Teranga Gold (TGCDF $2.75) – With the ETF fiasco behind us, TGZ is starting to make up ground back to a level I believe it deserves on fundamentals – $5. A go ahead decision on Banfora (that Analysts agree with), and significant success with the drill bit, is what will be needed to get the share price to much higher levels. $1400+ will also be a major boost (a price I see in 2018), while below $1200 will hinder corporate good news.