Updated August 24th. The stock price ticked down, and the gold price ticked up, creating increased leverage to the gold price, and a better buying opportunity today.
https://www.guyanagoldstrike.com/
https://www.guyanagoldstrike.com/investors/share-structure
58.4 million shares issued
Symbol at Yahoo! Finance: GYA.V / GYNAF (U.S.)
$.12/share CDN x .76 CDN/USD
=$5.3 million Market Cap
Guyana Goldstrike, profiles favorably:
- There is an open Private Placement at $.20 CDN/share for the stock with warrants at $.30.
- There is tremendous leverage at 98/1 comparing the value of the 345,300 oz. gold in the ground, (x $1500)(=$518 million) compared to the market cap of $5.3 million.
- The resource is high grade! $82 gold/tonne, (1.7g/t gold) while $10/tonne is usually the cost.
- They have a historic resource up to 960,000 oz. gold. If we assume they prove that up, the leverage is 272 to 1!
- A very wealthy investor (Zijin Mining) owns 24% of the stock. Zijin Mining has a market cap of $12 billion USD.
- When the 43-101 Resource of 345,300 oz. gold was announced back in Jan., 2018, the stock price was at $.23 CDN/share, and did not move up, so investors have not missed out on anything yet. The big share price move up in Sept. 2016 was when the company announced their plans to acquire the Marudi gold property.
Corporate Presentation Link: https://www.guyanagoldstrike.com/images/presentation/2019/Guyana_Goldstrike_-_Marudi_Gold_Project_-_Jan_24_2019.pdf
“Highlight! “Mazoa Hill zone 43-101 Mineral Resource Estimate –
259,100 Indicated gold ounces within 4,428,000 tonnes grading 1.8 g/t, and
86,200 Inferred gold ounces within 1,653,000 tonnes grading 1.6 g/t”
My analysis: What do the grades mean? My math: 1.7 g/t / 31.1g/oz. x $1500/oz = $82/tonne rock ore.
This rock is about $80+ per tonne. And open pit mining can be profitable above $10/tonne. Source: https://www.mining.com/web/making-the-grade-understanding-exploration-results/
That means we have a winner!
Total indicated and inferred ounces = 345,300 oz. gold x $1500/oz. gold = $518 million.
Private Placement info below:
Private Placements are when the company sells stock directly to investors. The minimum is usually a $50,000 to $100,000 purchase, and an investor usually needs over $1 million net worth to qualify. And there is usually a hold time on the stock of 4 months.
If investors do not qualify, then the way to buy stock is to open an account with a broker, and buy stock on the open market.
If you want to buy stock in the Private Placement, please tell Nick that I, Jason Hommel, sent you: Nick Nicolaas of https://www.mininginteractive.com is coordinating Guyana Goldstrike’s Private Placement: They have raised $1-2 million, https://www.guyanagoldstrike.com/news/2019-news-release/251- and want to raise another $2 million. They have an agreement from another investor which may be an investment of $500,000 to $1 million, depending on how full the PP gets. Details here:
Private Placement info:
You can contact Nick via E-mail: nick@mininginteractive.com or by Phone: (604) 657- 4058.
Sincerely, Jason Hommel
Hi Jason,
Tell us how much gold is ‘measured’. I know what the terms ‘indicated’ & ‘inferred’ mean but the important one is ‘measured’.
God Bless.
john
Great question. I believe they don’t have any in the measured category yet. In the usa, they/we use the terms proven and probable. The Canadian mining industry allows for the more preliminary, less quantified categories. The us regulations, while aiming for more certainty, have virtually destroyed the possibility of investing in exploration stocks. About 1/3 of exploration stocks don’t even have inferred and indicated categories at all, just a hope, grab samples, attractive geology, potential targets to be drilled, or one to two drill hole intercepts. At the company website, they have a 3d model of the drill intercepts so far, you can visualize the potential deposit. It’s quite impressive.
There is an odd commentary on the company here: https://finance.yahoo.com/news/guyana-goldstrikes-cve-gya-271-104820223.html The writer compares the gain in the stock price to company revenue. This is a bad way to evaluate exploration stocks. No exploration stock ever has any revenue. His method of analyis, if valid, would suggest nobody should ever invest in any kind of exploration. That’s ridiculous, and humanity itself would fail without exploration. Everything you see, was either grown, or mined. Ever hear of 20 questions? “Animal, vegetable, or mineral”, just about any physical thing on earth can be fit into those three categories, or two, if you ask “grown or mined”?
He says they have no proven product. The product of an exploration company is “drill results”. The next product is putting those drill results into a 3D model. So, of course there is a product. And yes, people are willing to pay for that product when the drill results are good.
A better method of valuation, as I did, is to compare the Market Cap, to the quality of the drill results.
Here is a second source talking about gold mine grades: Source: https://www.kitco.com/commentaries/2018-12-24/How-to-profit-from-low-grade-gold-mines-Part-1.html “Generally speaking, one gram per tonne works for open-pit mines”
The grades here run from 1.7 to 1.9 g/t., well above what works.
Hi Jason!
I’m a newbie when it comes to private placements. What is the advantage to paying $.20/share in a private placement vs. paying $.13/share on the open market?
Thanks…glad to see the return of your emails to my box!
–Rich
If you buy on the open market, your buying, if you try to buy too much, may well push the stock price up over $.20. Anyone considering the private placement should get stock on the open market first. Also, if you buy in the PP, there are warrants, like options, at .30. That way, if the stock goes up to .35 to .50 or something, you can earn more from the warrants.
What are your thoughts on Silver Grail Resources SVG.V which insiders own nearly 40% and you own 9%? Thanks!
I no longer own Silver Grail.
A Leverage $483 million / $5.84 million Market Cap = 83/1. ….. that’s incredible !
https://www.guyanagoldstrike.com/news/2019-news-release
Guyana Goldstrike Closes $1 Million Initial Tranche of Private Placement https://www.guyanagoldstrike.com/news/2019-news-release/251-
good to see and hear you back in the metals market commentary for lack of a better word maybe analysis commentator any way your use of math to evaluate the market is what i appreciate the most but alas it does not produce results in the real world because all precious metals are still being suppressed by the money managers i.e the federal reserve and wall street
Yes, gold prices are still suppressed, but the suppression is still failing in spectacular fashion, as gold has moved up from $250/oz back in 1999-2001.
Hi Jason,
Looks interesting.
When I tried to go to the links, none of my 3 browsers would let me go there, security certificate or something.
“The website tried to negotiate an inadequate level of security.”
Any ideas?
Thanks,
Rick.
Interesting. I’m able to follow all of the links, no problem. Could be a browser setting you are using? Not sure.
Jason
So glad your back. I’ve learned so much from you over the years! Thank you!!!
May the living God bless you.
You talk of bargains in private placements. Are you not aware these are just for initial capital. Once the company has more to report, the value goes up, and so does the issued shares to dilute your value. Thisa dilution goes on and on. Look now at Pan American Silver. They doubled issued shares, and priced dropped from $24. to $16. I am a big looser now. All Junior mines do this. Its a losing proposition. Issued shs always increasing. Thats exactly why Futures are so much better investment. Dilution does not happen.
I addressed this concern back in 2003. https://revealingfraud.com/2003/01/silver-gold/the-moral-failures-of-the-paper-longs/
One way to play the gold space right now is with Russian gold mining stocks. Says Frank Holmes
CFTN has news – Clifton Mining Company Announces Leaching Begins Again. Jason can you break it down by the numbers?