Gold Stocks Set to Rise
Indaba is as big as mining conferences get, and while you would think numbers will have to be down because of the global financial crisis, there is an expectation that the surge in demand for gold equities in response to the GFC means that the place will at least be crawling with gold miners and dealmakers.
The Canadians in particular are expected to be out in force. A host of Canadian miners have capitalised on gold’s spurt to raise big licks of cash in recent times. Now they have to find something to spend it on and the back rooms of Indaba could just serve up the right sort of opportunity.
That’s why we have seen the run-up in ASX-listed gold stocks that have Africa as their focus. Garimpeiro has mentioned previously that a stock like Perth-based Perseus is set to become the subject of interest to the growth hungry and now cashed-up Canadians.
Melbourne-based Mineral Deposits Ltd (ASX:MDL) is another case in point. It is only a month or so away from pouring first gold at its Sabodala gold project in the far west of Senegal.
Canada’s Red Back Mining (it was originally floated in Australia), which moved on to MDL’s share register last year with a 13 per cent stake, has recently raised $US123 million ($A194 million) and confessed that it liked Sabodala a lot.
No bid has emerged, but MDL closed on Friday at 70 cents a share, which is more than double its 28 cents a share low back in November.
In a recent research note, Wilson HTM analyst Keith Williams had a buy recommendation on the stock, which he valued at $1.70 a share but with a heavily discounted (60 per cent) price target of 92 cents a share.
In my opinion, these next few days at Indaba are going to tell us a lot about where the future of this stock is going. There is no doubt in my mind that that have the latest resource calc updates in hand and if the numbers from Kerekounda and Masato are as good as everyone expects them to be, tomorrow will be the day in with they announce the updated numbers as they will have the opportunity to have the spotlight on them in front of all the majors in the gold sector.
If the numbers are not too good, they will probably wait until after the show and bury them in to a late night press release. Although I am down well over $1 million in this stock, I am betting they release at the show and we start seeing some decent volume and increase in share price. My prediction is that one of the bigger players not only picks up OLE, but also MDL for there mining facility.
I hope we all wake up to some good news from Africa. They are 8 hours ahead of us so I hope it is announced shortly…
Good luck…
G1
G1….. good points. Yes, I cant believe that Chet would go all the way to this show, at all the expense w/o the #”s in hand. I hope we get some descent News…. but,,,,,,,, look for that late nite PR next wk.
G!…. good points. Cant believe would take all the guys over there at all the expense… w/o the #’s in Hand. Hope for the best , but….. I look for that late nite pr.
BTW…..Where did all the talk about a Big # update come from? We are all just setting us up for another HUGE dissappointment. If people were able to read the GEO reports,,, and said it shows a Big # ( near 1 mil oz),,, then OK…… but I just feel another zinger from the Company.
If we get 500 thou oz… then it’s going to take a long GD time. For God’s sake…. how long has it been already. Some here for 7 yrs. 4 for me. We’ve all lost nearly 75%.
Just all hope for a good report !!!!!!!!!!!!
Maya on Stock watch informed me about the # of Drill holes for the 1.4 mil. Using that same math…. and we got the 1 mil oz. 555 drill holes then, and now a 335 drill hole #. Assuming same grade. Thanks. Hope for the best.!
seeing as most of the holes were done at masato i would assume you are correct. the grades have even increased at masato as have the widths .. so i would add a bit to your estimate but it depends on how far they have extended the deposit i think its 2.7 kilometers long!!. and kerekounda .. i think it will add more than a bit to the total. 🙂
It is still hard to believe they have not announced at Indaba… Even Dave Scott flew
over there… He is worthless, but I figured if he was going they would have
something to talk about.
So far, another disappointment from Oromin, not the first, probably won’t be the last!
G1
Why miss out on a good piss up…..I should stop being so synical…..have a look at the list of who is there, everyone Oromin could ever hope to do a deal with….I think there is a lot of you show me yours and i’ll show you mine going on under the table first…..
Well…by now the Indaba show should be all but over. No news, no spike in OLEPF, no nothing. Very dissapointing. To top it all off, I accidently bought shares in Mountain Province Diamonds Inc. instead of Mineral Deposits Limited. Not a good day my friends.
Hope better days are ahead…and I hope Mountain Province Diamonds Inc. doesn’t go belly up before I jump out of it.
Kind regards,
Bob (aka Show_Me_The_Money)
Hey Bob .. i hope you make a few $$ on your error. im sure it will be around for a day or two ..lol
yes Indaba is done.. im waiting for an update from the co to see how things went.
i will report as soon as i know..
caliche
Were we not originally expecting an update by the end of January? Now, INDABA has concluded with no announcement! I hope they kniow what they are doing because their poor communication and failure to meet deadlines is not instilling confidence. It’s vey frustrting as an investor.
caliche…….when you do contact the co re Indaba ,get their latest thoughts re timing of drilling in Santa Rosa…I am reluctant to believe their projections of Q1 ’09. Thx
Hey arlene.. i will enquire for sure, my thinking is early q2, the last i heard a week or so ago was they were sourcing drill pipe and wellheads ..
warmest regards
caliche
I have corresponded with Dave Scott over the past few days and all he mentioned was that there appeared to be alot of institutional interest in Oromin. I told him that was good since the retail interest is dead. He doesn’t think that they have communication issues nor that they miss deadlines. I gave him several instances of both and find it hard to believe he doesn’t see the issue. Do they all live in caves? I picked up most of my shares under $.50 recently and I knew what I was getting into when I bought those shares (ie; late deadlines, Friday afternoon press releases, etc) thinking they were materially undervalued. They still are at $.75 and will be at $1.50 but I hope to have my sanity when we get there.
stateside
WOW,
Gold up over $970….. Oromin, release the hounds!! let’s get up over 2.5 million OZ’s
Doublem2 – Mike
Caliche:
Let me know if you hear anything positive from Corp…
G1
Dave Scott also told me that they have always delivered…
The only thing they delivered is the information they promised and typicaly at least a month late…
It is hard not being frustrated with Oromin’s performance. They are late on every dealine they set. The stock price has gotten killed by the lack of management’s ability to keep investors interested and attract new institutional investors. Now with the stock price in the $.70 range and there cash position dwindling by $800-1 million
per month, they are going to have to go back to the private markets to raise more cash, which will dilute the stock price and put additional warrants out there.
The last resource calc was due at the end of January. It is hard to understand why Oromin would not due everything in there power to make sure the release was out before Indaba as that would have put them in the spotlight during one of the biggest gold shows of the year.
With gold heading towards $1,000./ounce, Oromin needs to get there act together as and start following through on there promises…
Just my thoughts…
G1
With Gold nearing $1,000 -… hard to believe Ole just sits. But out side us here,,, and a few of Chets Gold Fraternity buddies,,,, no one knows about Ole. How would they. They have a ” “stealth” marketing and communication plan. Stealth…. as it fly’s below the radar screen…. and no one can detect it. Just so GD frustrating.!
But @ only 1.4 mil oz… its probably correctly priced at 75 cents. I feel we need to get to 3 mil oz., to get some attention. Thats why these Updates are important. I’m no0t sure how they wiull come out… both at once… or one at a time. The supposedly large one w/ the 333 holes drilled,,, then the 2nd one , done after Christmas. Hopefully we get a total of 3 mil w/ both of these. 3 mil should get sofme attention,,,, and give Chet something to talk about for a B/O.
Like pulling teeth w/ these guys to tell us anything.
Redback out of MDL last night. 56 million shares in a cross after the close for AUD $0.66 each…..
Who bought ????
What is redback looking at buying ????
Interesting times indeed.
Just checked the old announcements. Redback bought the MDL stock with Debt….so its not cash for thyem to go shopping with….and based on the currency change, they have made a loss….
I was thinking they may have a sniff at OLE and get a toe hold there but maybe not now I have looked at it further.
it will be VERY interesting to see who bought that block .. keep us posted!
Thanks Muttley!!