Newstrike Named top 5 on TSX Venture!!!
Newstrike Named in 2012 TSX Venture 50
February 15, 2012
Vancouver, B.C., February 15, 2012 – Newstrike Capital Inc. (TSXV: NES) (“Newstrike” or the “Company”) is pleased to announce that it has been named one of the 2012 TSX Venture 50® companies, an annual ranking of strong performers listed on the TSX Venture Exchange.
“We are delighted to be named to the 2012 TSX Venture 50®. Inclusion in the mining category is a milestone for Newstrike and, more importantly, for our shareholders,” said Richard Whittall, President and CEO.
The 2012 TSX Venture 50® is a yearly ranking comprised of the top ten companies in each of five major industry sectors that have been identified as leaders in providing shareholder value on Canada’s junior stock exchange. The 2012 TSX Venture 50® companies were chosen based on the following criteria: share price appreciation, trading volume, market capitalization growth and analyst coverage. Newstrike was ranked 5th among those companies selected in the Mining classification.
About Newstrike (TSXV: NES)
Newstrike Capital Inc. is a gold-silver focused explorer, targeting known and historic mining districts in Mexico. Current management and directors co-discovered Goldcorp’s and Teck’s significant discoveries in Guerrero Gold Belt in Guerrero State, currently in advanced stages of exploration and production.
Newstrike holds a 100% interest in certain exploration properties in Mexico located within two established mining districts; the gold-bearing oxidized iron skarn-porphyry camp of the Guerrero Gold Belt, and the polymetallic Ag-Au-Cu rich epithermal camp of the mining districts of Oaxaca State.
For further information, please contact:
Newstrike Capital Inc.
Richard Whittall
Director, President & CEO
Phone: 604-605-4654
website: www.newstrikecapital.com
blog: www.newstrikecapital.com/blog
Caliche in your web site you compare NES with TXG all the time. Great call on NES by the way. If you compare TXG and OLE as far as ounces only and do not include management, you also get a wide valuation gap. TXG is valued at about $825 million with a probable 5 million ounces coming soon. The Oromin Joint Venture Property which has about 5.5 million ounces is trading at $.87 and is valued at just under $300 million. If you put the same $160 gold in the ground price TXG is trading for compared to OLE’s 5.5 million ounces you get a $2.56 per share value for OLE. Three times more than what it is trading for. I know you cannot compare management, transparency and location etc…But gold is gold and it is still very cheap compared to TXG. I also agree that NES is cheap compared to TXG but I just wanted to share my view on OLE. I personally do not think they will raise again and believe there will be a deal this spring. I would like to get your lets say big picture, nonfrustrated view (if it is possible at this point) on OLE and its curent valuation. Thanks for your website and your always informative posts. I would appreciate a response being that you are someone who understands exploration companies and valuations better than most of us.
Hi Tony
thank you for your kind words..and i hope you got some NES .. it has indeed done very well for us..results are due soon and i think they will be great
the reason it is so very easy to compare txg and nes is that the deposits are in very similar terrain, the NES deposit is a bit easier IMHO but geography and political risks can be netted very easily..management of both TXG and NES are both top notch. They are both transparent and helpful, but again IMHO NES is way ahead of the curve with thinking 5 steps ahead..
the short answer is that if you take out management and political risks from OLE then i would agree that OLE is indeed undervalued. Of the 2 deposits i would tip my hat to TXG on grade and the fact that it is in one area and ole is a bunch of satellite deposits, but that is not a big deal..i think what is hurting ole is the PEA numbers i think they rushed the report and if i remember they had a negative or very low IRR or ROI or something that they have been fighting against ever since.. in the end if it isnt economic the gold may as well not be there..
the model i just ran with ojvg having 5 million ounces with ole at 43% using $65 gold in ground gives a price just over a dollar..coincidently torex bought their deposit for 68/oz so if you give 30% for blue sky premium you are still looking about 1.35 for a buyout price
IMHO ole will sell for between 1.30 and 1.50..which is a 65% premium from todays price..to be clear i am in no way advocating buying oromin at these prices or any other. we are holding our current position which is minimal to see how this plays out
imho (possible frustration expressed) ole management are fair geologists i would not say great because even an amateur like me thought they should have drilled kerekounda high grade FIRST..locals mined 1 ounce/ton from there to the tune of about 30,000 ounces..they however are poor business people and it shows..market savy?.. they should be but it sure doesnt look like it
the markets punish uncertainty and by looking at the ole price the future is indeed uncertain, is there even a credible offer on the table? no one knows.. do they need money.. i think so but no one knows.. in the begininng bendon was supposed to finance a production decision.. is that happening… who knows
imho the ownership issues have never been formally addressed the responsibilities of the parties is not clear.. timelines are never brought forward.. are they facing another deadline with the government.. no one knows..all that coupled with election fears is really hurting the share price and where is management ..
sorry that doesnt sound un frustrated at all..but they are valid concerns and with management unwilling to release any info unless required by law uncertainty abounds..