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African Gold Stocks


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Given that Africa is being touted as THE next gold spot to be in, have updated my watch list to include producers, near producers, existing explorers and recently listed explorers.

 

Given the Sovereign Risk volatility in many parts of Africa, your own research is vital.

 

CRB

MDL

NMG

SRL

HDG

BYR

CAY

MET

PRU

AMX

CHN

RSG

CDT

GRY

CAS

AZM

DRA

VKA

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  • 4 weeks later...

Anyone looking for an intro into the gold sector / west african gold stocks / ghanaian gold stocks there is a broker's report on the Viking Ashanti (VKA) website which I reckon is worth an hour of your time.

 

http://vikingashanti.com/index.php/broker-research/

 

VKA itself is interesting to me on a number of fronts.

 

First off it has only about 75m shares fully diluted (many of which are under voluntary eschew) and closed yesterday at 29 cents, and also has about $7m in cash (as at 30 Sep 10) which is enough for a 2 year drilling program. In other words it has a very low enterprise value.

 

Secondly it already has JORCed up half a mill oz of gold, which on the face of it is handy given the technique often used to value junior goldies.

 

Thirdly Resolute Mining (RSG) owns 30% of it, so VKA is no orphan.

 

Fourthly VKA operates in Ghana, my pick of the west african countries for stability.

 

Fifthly it has a couple of blocks in or nearby to the Ashanti Belt, one block (where all the current resources are) is about 25k away from Newmont's monster Akyem deposit (8.7m oz), and the other only 4 km away from some of Adamus Mining's (ADU) land that feeds into their brand spanking new operating mine. Nearology is usually not a bad thing (as in the most likely place to find more gold is nearby to where you've already found gold).

 

And lastly, the management team at VKA has been there done that in that they already taken one west african micro goldie through to the verge of being a mid-tier operator at which point it was taken over. No guarantee they could do it again of course but the fact is they do have form.

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  • 2 weeks later...

Here's a bit of an oddity.

 

I came across mention of PMI Gold Corp on a north american blogsite. It is a Canadian based goldie that has a couple of old mining blocks in Ghana. The company itself has been in Ghana since 2002 and has a fairly impressive top team. The oddity is that late last year it raised about $27m on the ASX: it trades here under the code PVM. Usually north americans are willing to pay a premium for gold stocks in comparison to us locals and so there are a number of ASX listed stocks that subsequently list on the TSX chasing after "cheap" funds.

 

So does this recent move by PMI Gold suggest that aussies are actually willing to pay more for west african gold companies than North Americans are? I don't know but if so suggests that the locally listed west african stocks may be a bit ahead of themselves (?).

 

The company presentation, put out on 20 Jan, has a list of all the TSX (8 of them) and AXS (18 of them) gold stocks that are working in west africa, together with a chart comparing their EV per resource ozs. Note that there is a bad typo in the presentation where it mixes up the name of one of its blocks, Obotan, with the biggest underground mine in west africa, Obuasi.

 

The two blocks PVM holds in Ghana both have been mined to some extent in the past but both are carrying JORCed up resources and the hope that there is much more underneath the shallow pits. One of the blocks is at the intersection of the trends that contain the 60m oz Obuasi mine and Perseus's almost ready 5m oz mine. If you want to boast about nearology, being next door to a 60m oz mine that has been operating for over a century is not a bad thing to boast about. Apparently they are conducting studies with the intention of moving to production on both blocks but obviously any production will be years rather than months away. With a fully diluted market cap of over $100m (albeit with $34m in cash to drop the ev some way) I'm not sure it compares all that well with say Noble (NMG) which should be in production this year.

 

The investors who signed up for the local float would likely be a tad unhappy as they paid 70 cents for each CDI (the shares are all on the TSX so CDI's are traded on the ASX) and today the last trade was at 55 cents on very low volume. I might be wrong but I reckon there are better ways to get exposure to the Ghana gold story...

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  • 2 weeks later...

Something to factor in

-------------------------------------------

 

Ivory CoastÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s financial system is grinding to a halt with banks closing and the stock market suspended, sparking a run on the lenders left open as the West African nationÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s political crisis drags on.

 

http://www.bloomberg.com/news/2011-02-17/i...hdraw-cash.html

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  • 1 month later...

PERTH (miningweekly.com) − Australia's largest gold producer Newcrest has once again suspended operations at its Bonikro mine, in CÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚´te d'Ivoire, as the security situation in the country deteriorated further

 

http://www.miningweekly.com/article/newcre...ates-2011-03-31

----------------------------------------------------------------------------------

 

 

CÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚´te d'Ivoire area of Africa may be best avoided for the time being.

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au contraire mon plaqueminier

 

It seems the Ivory Coast kerfuffle is almost past tense.

 

http://www.bbc.co.uk/news/world-africa-12929625

 

There has been lots of pressure, from the west african community, from the broader African organisation (the AU), from the UN, from France and the US applied to Mr Gbagbo: the short bloke from France even said that once he had done over Gaddafi he would think about doing the same in Ivory Coast. Mr Gbagbo was in part relying on his banks and the export sales of cocoa to be able to pay the public servants and the military but those funds have been dried up by international actions. Also early on Zimbabwe's Mugabe had loaned some thugs to Gbagbo and Col Gaddafi had given his "moral" support and most likely his financial and military support as well. So back then Mr Gbagbo may have thought that he could buy the loyality of the professional soldiers and the public servants.

 

As an aside, I have seen the argument that one of the reasons why Gaddafi has to go from Libya is oil. Not only did the Europeans and yanks want to retain their oil assets in Libya, and stop the Chinese from getting them, but also as long as Gaddafi has access to the billions being earnt from Libyan oil he will keep sponsoring and funding nutters like Gbagbo.

 

The fact that Ivory Coast's military forces do not appear to be agressively defending the main city suggests that they may not have been getting paid lately. It could be that Mr Gbagbo's militias may put up sterner resistance.

 

If this is brought to a quick end from here then both Newcrest and Perseus should benefit.

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If this is brought to a quick end from here then both Newcrest and Perseus should benefit

---------------------------------------------------------------------------------------------------

 

Agreed, however PRU doing very well on the Ghana soon to be producing mine, apparantly PRU have the biggest exploration budget of all African goldies, with 12 rigs operating, think they have temporarily suspended operations on their Tengerela project on the Ivory Coast pending settlement of the political upheavals.

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I've not seen much in the western media about there being instability in Burkina Faso but according to this report the Taiwanese government is now recommending its citizens not to go there. The latest unrest is to do with some soldiers being unhappy about a court decision inolving a few of their colleagues.

 

http://focustaiwan.tw/ShowNews/WebNews_Det...ID=201104020015

 

The Burkinabe ( ;) ) government is now saying everything has been sorted with the soldiers (with the release from prison of the soldiers at the core of the issue).

 

http://www.google.com/hostednews/afp/artic...6a783525b0d.ee1

 

But this show of discontent follows soon after a series of student protests which resulted in the deaths of about 6 people.

 

http://www.voanews.com/english/news/africa...-117943144.html

 

I can find no suggestion that this unrest in Burkina Faso is in any way linked to either the arab uprisings or to what is happening in neighbouring Ivory Coast.

 

But I do note that of the Burkinabe population of just over 16m, about 50% are muslim (another 40% follow indigenous religions and about 10% are christian), the median age at under 17 years of age is extremely low and like Ivory Coast it is another ex-French colony. It is also an extremely poor country. All in all not the best of ingredients for stability during these times I would think. Though I note that the current president has been in power since 1987 and at the last election he pulled a massive 80% of the vote (seems to be too high for there to have been a fair fight but I cannot find any claims of the election being rigged (?)).

 

https://www.cia.gov/library/publications/th...ok/geos/uv.html

 

By way of comparison Ivory Coast has a population of about 21m, a median age of about 20 years, and has a mix of 39% muslim and 33% christian. The chap who won the election with 54% of the vote is a northern muslim, and the sore-loser, Mr Gbagbo, is a christian from the south of the country. The town where there is claimed to have been a massacre is apparently a mix of long-term locals and newly arrived northerners, with the locals resenting the migration from the north (presumably from northern Ivory Coast but also from countries like Burkina Faso). I have not seen any reference to religion being a factor in the northern militia slaughtering hundreds of locals but the fact is the migrating and now invading northerners apparently are mainly muslim and the locals are mostly christian. There are tens of thousands of locals holed up in christian churches and missions seeking protection from the northern forces.

 

Unless the incoming president, Mr Ouattara, gets it right pretty quickly things in Ivory Coast could go pear shaped. :sadsmiley02:

 

I don't have a full list of local goldies operating in Burkina Faso but I think Gryphon (GRY), West African (WAF) and Ampella (AMX) have assets and operations there (?).

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