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Some Jr. Gold Share Takeover Targets to WatchDr. Quinton Hennigh drops some hints
Crescat Gets Active # 154 provided some tips on what to look for if you are interested in owning junior gold mining stocks when they are being hunted by major gold miners. Drawing on his years of experience as a geologist with Newmont and other major miners, Dr. Quinton Hennigh advised viewers about the kind of gold deposits major mining companies must acquire from junior mining firms to replace those deposits that are running out of ore if they want to stay in business. Since the major companies are not very adept at making new discoveries, they often rely on the nimbler junior mining companies like those covered in J Taylor's Gold, Energy & Tech Stocks Quinton broke some of the household name gold miners into three categories, each of which have Quinton household named gold miners into three categories, each of which have acquisition needs related to their size. Click here to watch Crescat Gets Active #154 J Taylor's Gold Energy & Tech Stocks is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Tier One Gold Producers: Newmont Corporation: prior to Newcrest acquisition produced ~5.3 million ounces anually with a 2023 all in sustaining cost (AISC) of $1,426/oz. Barrick Gold Corporation: Produces ~4.1 million ounces annually with a 2023 AISC of $1,255/ oz. These larger companies need to acquire gold deposits that can produce ~500,000 ounces of gold per year with a minimum 10-year mine live with costs lower than their AISC and ideally in the lowest cost quartile. J Taylor’s Gold, Energy & Tech Stocks covers at least one and possibly three junior miners with deposits that may meet the needs of these largest producers. Mid Tier Producers Agnico Eagle: Produces ~3.4 million ounces of annually with an AISC of $1,210/oz. Kinross Gold: Produces ~2.3 million ounces of gold annually with an AISC of $1,296/oz. Anglo Gold Ashanti: Produces ~2.7 million ounces of gold per year an AISC of $1,587/oz. Gold Fields: Produces ~2.2 million ounces of gold per year with an AISC of ~ $1,381/oz These mid tier companies need to acquire gold deposits that can produce between 250,000 oz. to 350,000 oz. per year over a 20- year. mine life with AISC below their current aggregate costs and ideally with costs in the lowest quartile. Smaller Producers B2 Gold: produces 1 million ounces per year with an AISC of $1,272. For a company this size a project that produces 100,000 with lower costs could move the needle in terms of its valuation. There are other producers with similar production profiles but B2 Gold is a relatively new producer that has been successful in operating in some fairly difficult environments. Interestingly, B2 Gold has taken a significant equity interest in one of greatest new discoveries covered in my newsletter, namely SnowlineGold, which Quinton believes is a “must have” for the likes of Newmont and Barrick. The companies that Quinton mentioned are possible near term or longer term takeover targets that he listed in his February 2, Crescat Gets Active video are show in the slide below. With gold on the verge of its next major bull market, one that Michael Oliver believes will be equal to or greater than those of the 1970s and from 2002 to 2011, you might want to know more about these companies. All of the above except Hercules Silver Corp are covered in J Taylor’s Gold, Energy & Tech Stocks. Every week I pass along the news of companies covered in my letter and montly I provide some basic financial information that can be helpful in identifying the risk/reward profile of various companies that fit your comfort level. Junior exploration stocks bring with them varying levels of risk depending on how well financed they are and the quality and stage of advancement their projects are. But in a strong bull market the shares can be expected to outperform gold bullion for even the most speculative junior explorers. I hope you will join me on the exciting journey through the end of 2024 and beyond as the Fed and other central banks will have little choice but to debase their currencies to ensure sufficient liquidity exists in the system to enable interest payments on government debt to be paid. Ultimately even hard core Keynesians will discover what J.P. Morgan said decades ago. “Gold is money. Everything else is credit.” And the markets will finally realize the true value of companies discovering and producing gold. Best wishes, Jay Taylor J Taylor's Gold Energy & Tech Stocks is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. You're currently a free subscriber to J Taylor's Gold Energy & Tech Stocks. For the full experience, upgrade your subscription.
© 2024 Jay Taylor |
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