• "Spreading the ideas of freedom loving people on matters regarding metals, finance, politics, government and many other topics"

Fortuna/Roxgold

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,890
Reaction score
50,817
as some know now with dpong bringing it onboard,

Fortuna bought out Roxgold (African gold producer)

If you look at Rox financials here, you will see not too bad,
in production and showing gains, with another project up to bat


Roxgold is a Canadian-based gold mining company with assets located in West Africa. The Company owns and operates the high-grade Yaramoko Mine Complex located on the Houndé greenstone belt in western Burkina Faso and is also advancing the development and exploration of the Séguéla Gold Project located in Côte d'Ivoire.

The Yaramoko gold mine consists of two high-grade underground gold mines: the 55 Zone and Bagassi South. Annual gold production in 2020 is expected to be between 120,000 and 130,000 ounces.

The Séguéla Gold Project is an advanced stage development project that is rapidly advancing towards a construction decision early next year. Roxgold acquired the high-potential Séguéla Gold Project in April 2019 and has rapidly brought it up the value chain - growing the resource and releasing a Preliminary Economic Assessment on the project in April 2020.

Roxgold trades on the TSX under the symbol ROXG and as ROGFF on OTCQX.
 

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,890
Reaction score
50,817
now we all know Africa has gold, just dependent on poli environment

word is all is hunky dory in this little berg of Burkina Faso,

but, here is the wiki on it, and it is far from stable or consistent:


Burkina Faso (UK: /bɜːrˌkiːnə ˈfæsoʊ/, US: /- ˈfɑːsoʊ/ ( About this sound listen);[9] French: [buʁkina faso]) is a landlocked country in West Africa that covers an area of around 274,200 square kilometres (105,900 sq mi) and is bordered by Mali to the northwest, Niger to the northeast, Benin to the southeast, Togo and Ghana to the south, and the Ivory Coast to the southwest. The July 2019 population estimate by the United Nations was 20,321,378.[10] Previously called Republic of Upper Volta (1958–1984), it was renamed "Burkina Faso" on 4 August 1984 by President Thomas Sankara. Its citizens are known as Burkinabé or Burkinabè (/bɜːrˈkiːnəbeɪ/ bur-KEE-nə-bay), and its capital is Ouagadougou. Due to French colonialism, the country's official language of government and business is French. However, only 15% of the population actually speaks French on a regular basis. [11] There are 59 native languages spoken in Burkina, with the most common language, Moore, spoken by roughly 50% of Burkinabé.[12][13]

The Republic of Upper Volta was established on 11 December 1958 as a self-governing colony within the French Community and on 5 August 1960 it gained full independence with Maurice Yaméogo as President. After protests by students and labour union members, Yaméogo was deposed in the 1966 coup d'état, led by Sangoulé Lamizana, who became president. His rule coincided with the Sahel drought and famine, and facing problems from the country's trade unions he was deposed in the 1980 coup d'état, led by Saye Zerbo. Encountering resistance from trade unions again, Zerbo's government was overthrown in the 1982 coup d'état, led by Jean-Baptiste Ouédraogo.

The leader of the leftist faction of Ouédraogo's government, Thomas Sankara, was made Prime Minister but was later imprisoned. Efforts to free him led to the 1983 coup d'état, in which he became president.[14][15] Sankara renamed the country Burkina Faso and launched an ambitious socioeconomic programme which included a nationwide literacy campaign, land redistribution to peasants, railway and road construction and the outlawing of female genital mutilation, forced marriages and polygamy.[15][16] Sankara was overthrown and killed in the 1987 coup d'état led by Blaise Compaoré – deteriorating relations with former coloniser France and its ally the Ivory Coast were the reason given for the coup.

In 1987, Blaise Compaoré became president and, after an alleged 1989 coup attempt, was later elected in 1991 and 1998, elections which were boycotted by the opposition and received a considerably low turnout, as well as in 2005. He remained head of state until he was ousted from power by the popular youth upheaval of 31 October 2014,[17][18] after which he was exiled to the Ivory Coast. Michel Kafando subsequently became the transitional president of the country. On 16 September 2015, a military coup d'état against the Kafando government was carried out by the Regiment of Presidential Security, the former presidential guard of Compaoré.[19] On 24 September 2015, after pressure from the African Union, ECOWAS and the armed forces, the military junta agreed to step down and Michel Kafando was reinstated as acting president.[20] In the general election held on 29 November 2015, Roch Marc Christian Kaboré won in the first round with 53.5% of the vote[21] and was sworn in as president on 29 December 2015.[22]

 

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,890
Reaction score
50,817
currently showing about 1.5M oz of gold laying around underground, + other projects,

claiming low cost of production

claiming 120,000 oz of gold production in '20

but they have 390,000 diluted shares, like good grief man

rx 1.jpg


rx 2.jpg
 

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,890
Reaction score
50,817

Roxgold Produces 35,308 Ounces at Yaramoko in First Quarter​

April 08, 2021
DOWNLOAD THIS PRESS RELEASEPDF FORMAT (OPENS IN NEW WINDOW)
TORONTO--(BUSINESS WIRE)-- Roxgold Inc. (“Roxgold” or the “Company”) (TSX: ROXG) (OTCQX: ROGFF) is pleased to announce its preliminary production results for the first quarter of 2021 (“Q1 2021”) from the Company’s Yaramoko Mine Complex located in Burkina Faso (“Yaramoko”). All amounts are in U.S. dollars unless otherwise indicated.
Quarterly Highlights:
  • Produced 35,308 ounces of gold at an average head grade of 8.0 grams per tonne gold (“g/t Au”) in Q1 2021.
  • Reported quarterly plant throughput of 1,419 tonnes per day (“tpd”) for a total of 127,667 tonnes.
  • Mined a record 153,256 tonnes from underground in the quarter as operations have adjusted to COVID protocols
  • Continued management and mitigation of COVID-19 to minimize impacts on operations with reduced personnel due to travel restrictions and protection protocols.
  • Partnered with Franco-Nevada Corporation for the sale of the re-acquired 1.2% NSR on Séguéla with the inclusion of a 3 year buy-back clause for the repurchase of up to 50% of the royalty at a pro rata rate of the AUM$20 million sale price. The sale was cash neutral to Roxgold, while maintaining maximum interest in the project, as Roxgold exercised its right to pre-empt a proposed acquisition of the legacy royalty by an international royalty company.
  • Delivered into last gold hedging contract from the original Yaramoko project finance facility – Company is now completely hedge free
  • Announced the discovery of the Sunbird prospect at Séguéla, with the first phase of 17 holes returning consistent near surface mineralization with high grade cores characteristic of the developing north-south structure that is host to the high-grade deposits Koula and Ancien.
  • Extended Koula mineralized envelope underground drilling a further 120m down-plunge from the previous deepest drilling. Roxgold has now delineated high grade mineralization extending approximately 300m down plunge from the base of the PEA pit shell, with results including 26.5 g/t Au over 16m in hole SGRD1084 and 18.5 g/t Au over 15m in hole SGRD1088.
  • Tested additional mineralization corridors at Boussoura, in southern Burkina Faso, announcing the new VC2 prospect, located less than 500m to the west of Fofora Main, with results including 14m at 3.6g/t Au from 44m in BSR-20-RC-FFR-134, 5m at 17.0 g/t Au from 59m in BSR-20-RC-FFR142 and 23m at 2.0g/t Au from 41m in BSR-20-RC-FFR-14.
“Roxgold has continued its long track record of operating excellence with a strong operating quarter at our Yaramoko Mine Complex, whilst our development and exploration teams have continued to have remarkable success advancing and growing our Séguéla Gold Project in Côte d’Ivoire towards a construction decision later this year,” commented John Dorward, President and CEO. “Yaramoko achieved quarterly production of 35,308 ounces, placing the company well on track towards achieving our annual production guidance target of 120,000 to 130,000 ounces. The processing plant continues to outperform, averaging throughput of 1,419 tonnes per day, while underground mining operations reported a record of 153,256 tonnes of ore mined as our teams on the ground have managed to manage and mitigate the operational challenges related to the ongoing COVID-19 pandemic while ensuring a safe and secure working environment for our employees, contractors and local communities.”

 

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,890
Reaction score
50,817

Fortuna Silver And Roxgold: This Merger Doesn't Add Much Value​

Apr. 27, 2021 4:11 AM ETFortuna Silver Mines Inc. (FSM)EDVMF, ORZCF, PMNXF...5 Comments4 Likes

Gold Mining Bull profile picture.
Gold Mining Bull
MarketplaceBio
Follow
Long Only, Gold & Precious Metals, Oil & Gas, Contrarian
Contributor Since 2014
Private investor with 10+ years experience investing in commodities and hard assets, mainly gold & silver miners, royalty and streaming companies, pure exploration companies, as well as oil and gas producers and MLPs.

Summary​

  • Fortuna Silver Mines and Roxgold have agreed to combine.
  • Fortuna has operations in Mexico and Argentina, while Roxgold operates in West Africa.
  • There appear to be no synergies, and I'm having a hard time understanding the move.
  • This may be a wasted opportunity for both companies, as I argue below.
  • I do much more than just articles at The Gold Bull Portfolio: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

Business network concept. Customer support. Shaking hands.
Photo by metamorworks/iStock via Getty Images

One of the biggest M&A moves in the gold and silver sector this year was announced on Monday as Fortuna Silver Mines (FSM) and Roxgold (OTCQX:ROGFF) will combine forces to create a "low-cost global precious metals producer" in what I view as a head-scratching move.
Roxgold shareholders will get .283 shares of Fortuna and C$.001 for each Roxgold common share held. And, upon closing, existing Fortuna and Roxgold shareholders will own 64.3% and 35.7% of the company, respectively. The deal comes with a 42.1% premium for Roxgold stockholders.

Fortuna says that the combined company will produce 450,000 ounces of gold per year at $950/oz all-in sustaining costs, with pro forma average annual EBITDA of $500+ million from 2021 to 2023. Fortuna's CEO commented that the combined company will be in a stronger position to accelerate development of Roxgold's Séguéla gold project, and ramp-up exploration in West Africa and Latin America.
But I believe the deal carries no synergies, meaning the combined company is no greater than the sum of their individual parts (in fact, the word "synergy" was not found in the release.) It's simply a merger of two miners located in completely different parts of the world, and I struggle to see how this merger adds value, other than creating a larger company which will have greater access to capital and higher trading liquidity.
This is a much better deal for Roxgold shareholders, who at least get an immediate share price boost on the 42% premium (Fortuna's stock was down nearly 13% on the news.) I think shareholders can use this move to lock-in profits.

Fortuna Travels 5,000 Miles to Diversify​

(Fortuna has built a portfolio of mines in the Americas. Source: Fortuna Silver Mines corporate presentation)
Fortuna is a leading precious metals miner in the Americas, operating the San Jose mine in Mexico, the Caylloma mine in Peru, and the Lindero mine in Argentina, producing both gold and silver, as well as zinc and lead - so why not continue to build assets in this part of the world, such as Peru, Brazil, the United States or Canada?
Instead, Fortuna has decided to diversify jurisdictions into Burkina Faso and Cote d'Ivoire, located in West Africa, approximately 8,000 kilometers (5,000 miles away).
Fortuna adds up to 130,000ozAu of gold production from the Yaramoko mine, as well as a strong development project called Séguéla in Cote D'Ivoire, capable of producing 130,000ozAu for the first 6 years starting in 2023/24.

Roxgold is successful in West Africa, but these are considered second-tier jurisdictions and rank below Mexico and Peru in several categories on the 2020 Fraser Institute Annual Survey of Mining Companies.
If I owned Fortuna shares, I would have preferred the miner diversify into North America instead, in countries where it is already successful or into a new country such as Canada. Instead, Fortuna appears to be overpaying for Roxgold.

Roxgold Cashing In?​

(Roxgold owns one producing mine and a promising development project. Credit: Roxgold corporate presentation)

Fortuna Silver: Lindero Guidance Maintained Despite Tough Q1



Fortuna Silver: A Disappointing Reserve Update



Fortuna Silver: Industry-Leading Earnings Growth In FY2021


Roxgold is a profitable miner, but trades at a rich valuation with an EV/EBITDA of 7.52X and a P/E ratio of 30.71X. The miner has guided for gold production of up to 130,000oz in 2021, which is low for a company with a US$687 million market cap, and especially when compared to Orezone Gold (OTCQX:ORZCF), which has a US$251 million market cap and will produce 133,800ozAu per year starting in H2 2022.
Roxgold is getting a nice premium in the merger, and that is good news for this expensive junior, but shareholders holding out for larger, long-term gains might not be pleased with this news.
I believe Roxgold could have found a better suitor, perhaps a junior gold miner with experience in West Africa, or perhaps in a different part of the continent. Combining with such a junior might have created some synergies between the two and accelerated growth.
One such example of positive M&A was Endeavour Mining's (OTCQX:EDVMF) takeover of Teranga Gold, a great move which came with big synergies (for one, Teranga's Golden Hill project in Burkina Faso is situated within trucking distance of Endeavour's Houndé mine.)
But instead of doubling down on West Africa and seeking cost savings, or at least diversifying into a top tier mining jurisdiction, the company has merged with Fortuna. It diversifies into South America, but it doesn't improve its jurisdiction risk by much, with Argentina ranked as one of the least attractive jurisdictions in the world.

Companies that may have been a better M&A fit include West African Resources (OTCPK:WFRSF), Perseus Mining (OTCPK:pMNXF), and Orezone.

Final thoughts​

I am all for M&A when it creates value for shareholders, and I think it can really benefit the gold and silver mining sector, which has a history of being a value-destroying sector. But this type of synergy-less move by Fortuna and Roxgold is not the type of transaction I'd like to see, as I don't think it will create much value for shareholders. Instead, it seems like a move to get bigger for the sake of being bigger.
If you want more gold mining stock analysis, subscribe now to The Gold Bull Portfolio, my marketplace service. I help my subscribers find the best money-making opportunities in the gold & silver sector, from gold explorers, to junior miners, senior miners and the royalty & streaming companies.
Receive frequent updates on gold mining stocks, access to all of my top gold and silver stock picks and my real-life gold portfolio. I offer a 37% discount on annual subscriptions vs. the monthly plan, with a 30-day money back guarantee!

 

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,890
Reaction score
50,817
just a month ago for Fortuna:


Fortuna Silver: A Disappointing Reserve Update​

Mar. 29, 2021 2:42 AM ETFortuna Silver Mines Inc. (FSM)SLV11 Comments22 Likes

Taylor Dart profile picture.
Taylor Dart
21.07K Followers
Bio
Follow
http://www.twitter.com/taylordart01
Long/Short Equity, Gold, Gold & Precious Metals, Value
Contributor Since 2016
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."


- John Hammerslough









- Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.




Summary​

  • Fortuna Silver released its FY2020 mineral reserve update on Friday, and it was quite underwhelming.
  • Despite higher mineral reserve price assumptions than most of its peers, Fortuna's reserves are down to less than five years at San Jose, and less than six years at Caylloma.
  • Fortunately, the company's Lindero mine has a 10-year mine life, but adding reserves at its Mexican silver mines is imperative to maintain the current production profile.
  • Based on Fortuna's higher reserve price assumptions and relatively short reserve life at San Jose, I believe there are much better ways to play the sector.

Mine Machine
Photo by Juan Jose Napuri/iStock via Getty Images

The Q4 Earnings Season for the Silver Miners Index (SIL) is nearly complete, which means several miners are busy reporting their year-end Mineral Reserve & Resource estimates. One of the most recent names to release its report is Fortuna Silver (FSM), a predominantly Mexican silver miner that has transformed into a gold miner thanks to its Lindero Mine in Argentina. Unfortunately, Fortuna's FY2020 reserve update was underwhelming, with relatively low reserves at its flagship San Jose Mine and much higher reserve price assumptions. This suggests that Fortuna is much higher risk than peers, so I would be looking elsewhere to gain leverage to the price of silver (SLV).

(Source: Company Presentation)
Fortuna Silver released its FY2020 mineral reserve update last week and reported total silver reserves of 28.8 million ounces and gold reserves of 170,000 ounces at its two silver mines. This translated to a 23% drop from the year-ago period and a 37% drop from the 2018 reserve report, suggesting minimal reserve replacement the past two years. While the company has budgeted for much higher exploration expenditures this year to focus on building reserves, the sub-6-year mine life across its legacy assets is not ideal, explaining much of the discount in Fortuna's valuation vs. peers. Let's take a closer look below:
(Source: Company Filings, Author's Chart)
If we look at the chart above, we can see how mineral reserves have progressed over the past few years, and it's clear that they've been in a massive downtrend. The mine with the sharpest decrease in reserves is San Jose (pink bars), where reserves have slid from 39 million ounces of silver as of the FY2018 reserve report to just 23 million ounces of silver, translating to a more than 40% drop in two years.
Worse, the grades on the resource are much lower than FY2018 levels, with a silver grade of 171 grams per tonne and a gold grade of 1.01 grams per tonne. This compares unfavorably to the FY2018 report when the silver grade was sitting at 235 grams per tonne, with a gold grade of 1.55 grams per tonne.

(Source: Management Discussion & Analysis)
This significant decrease in reserves is partially due to mining above the average grade during 2019, with San Jose's feed grade coming in at 252 grams per tonne silver in FY2019 vs. a reserve grade of 235 grams per tonne silver in the FY2018 report. This helped the company report exceptional FY2019 results with more than ~7.8 million silver ounces produced at San Jose.
However, with adjustments to updated mining costs from $33.24/tonne in 2019 to $34.92/tonne in 2020, and higher distribution, management, community support, and general service costs up over $2.00/tonne to $17.44/tonne, the break-even cut-off grade has increased significantly to $69.47/tonne in the 2020 report. So, despite a massive boost in reserve price assumptions, which we'll look at later, the reserve base still fell on a year-over-year basis.
(Source: Company News Release)
The company's much smaller Caylloma Mine's reserves have also slid, but not as badly, down from 6.5 million ounces in 2018 to 5.8 million ounces. Fortunately, grades have increased in the period from 77 grams per tonne silver and 0.18 grams per tonne gold to 108 grams per tonne silver and 0.28 grams per tonne gold, a silver lining. However, even though Caylloma's reserves have held up better than San Jose on a percentage basis, this still translates to only 5.5 years of mine life based on the FY2021 guidance of ~1.05 million ounces of silver production.

(Source: Company News Release)
Currently, San Jose has a 4.68-year mine life based on its FY2021 guidance mid-point of 6.15 million ounces of silver, and Caylloma has a 5.5-year mine life, which is very low by industry standards. While it is likely we will see some reserve replacement in the FY2021 year-end report given the aggressive drill program, the other problem is the mineral reserve price assumptions. As shown below, the reserves at both mines have decreased materially since the 2018 year-end report even though the metal prices used have surged.
(Source: Company Filings, Author's Chart)
If we look at the chart above, we can see that the silver price used to calculate reserves has increased from $18.25/oz in 2018 to $21.00/oz, while the gold price used to calculate reserves has soared from $1,320/oz to $1,600/oz. These price assumptions leave very little wiggle room vs. current spot prices of $25.00/oz and $1,725/oz, respectively, and are relatively high price assumptions compared to peers.
This is because the average gold miner uses a $1,275/oz gold price to calculate reserves, and silver miners like Hecla (HL) are using a $16.00/oz silver price to calculate reserves. This is in line with where reserves should be calculated, as it is below the 3-year average and a conservative assumption. Meanwhile, Fortuna's $21.00/oz assumption is above the 2-year moving average for silver prices.

(Source: Company Filings, Author's Chart)
While mineral reserves are getting quite low at Fortuna's two silver mines, the company has brought its new Lindero mine online and has more than nine years of mine life at the asset. As shown above, mineral reserves at Lindero are sitting at ~1.65 million ounces, with FY2021 production guidance of ~150,000 ounces at the mid-point. Assuming production remains at these levels, this would translate to 11 years of mine life, which is a respectable figure relative to industry standards.
(Source: Company Filings, Author's Chart)
However, the problem is that this 11-year mine life is based on a reserve price assumption that's less than 10% below the current gold price. Therefore, if we see even moderate weakness in the gold price, this reserve base could decrease because changes will need to be made to the mineral reserve price assumption. As noted earlier, most gold miners are using reserve price assumptions of below $1,300/oz.
In summary, I'm not overly impressed with the mine life here when factoring in the mineral reserve assumption, given that industry averages for mine life would increase to closer to 15 years if other companies were also using a $1,500/oz plus gold price, which does not bake in much of a margin of safety.

So, how does the valuation look?
(Source: YCharts.com, Author's Chart)
As shown above, Fortuna has one of the best-looking earnings trends in the sector, with the company set for a massive earnings breakout year in FY2021. Earnings breakout years occur when annual earnings per share trades in a range for several years and then breaks out to a new multi-year high, a bullish development.
The catalyst for this breakout is the company's Lindero mine finally reaching commercial production, which is set to triple annual gold production, with FY2021 annual EPS estimates sitting at $0.89, forecasting ~420% growth from FY2020 levels ($0.17). At $6.80 per share, this leaves Fortuna trading at just 7.6x earnings, which looks very cheap at first glance.
Unfortunately, Fortuna operates out of Tier-2 jurisdictions in Mexico, Peru, and Argentina. Also, it is not clear whether San Jose or Caylloma will still be in production past 2028 at similar production levels, so there isn't a ton of visibility into the company's future earnings. This is because we could see one of three things happen:
  • higher exploration spend to replace reserves, which would weigh on profitability
  • lower production if one asset has to head offline or begin producing at a lower rate
  • M&A to replace reserves if an asset goes offline or is producing at much lower levels, which would likely lead to an increase in the share count, diluting annual earnings per share
This means that it's best to use a conservative multiple to value the company, which I believe to be 8x earnings. If we apply this earnings multiple to the stock, we come up with a conservative fair value of $7.12, suggesting there isn't a ton of upside from current levels.
One can use whatever earnings multiple they believe is fair and assign a fair earnings multiple of 12, translating to a fair value above $10.00 if they want to be extremely generous in what they deem fair value. However, I prefer to err on the side of caution when a company operates out of inferior jurisdictions and has a relatively low mine life vs. its peers, even based on high metal price assumptions.

(Source: Company Presentation)
To bake in enough of a margin of safety to invest in Fortuna, I prefer at least 25% upside to fair value, which would require a share price of $5.70 or lower. Obviously, there's no guarantee that Fortuna heads this low, but this is where we would see enough of a margin of safety to see a low-risk buy point. So, with Fortuna trading 20% above this level, I don't see any reason to rush in to buy here. For this reason, I believe there are much better opportunities elsewhere in the sector.

 

solarion

Midas Member
Midas Member
Midas Supporter
Joined
Nov 25, 2013
Messages
8,979
Reaction score
15,294
Likely they intend to divest themselves of Caylloma in Peru and San Jose in Mexico at their earliest convenience to focus on Lindero and Séguéla. Agree the company seems very spread out and with very little in the way of obvious synergy motivating shareholders to embrace this merger. You'd like to have seen them reduce their jurisdictional risk, but apparently management has other ideas.
 

Goldhedge

Moderator
Site Mgr
Midas Supporter
GIM Hall Of Fame
Joined
Mar 28, 2010
Messages
59,602
Reaction score
120,929
Location
Rocky Mountains

nickndfl

Midas Member
Midas Member
Sr Midas Supporter +++
Joined
Jan 7, 2011
Messages
15,617
Reaction score
16,162
Location
Florida
The problems with African gold mines is they are located in Africa and full of Africans.
 

ZZZZZ

Midas Member
Midas Member
Sr Site Supporter
Joined
Dec 23, 2017
Messages
7,472
Reaction score
16,732
Location
Northern Arizona
Great read!

What is a diluted share?
Fully-diluted is the technical term. It means the total number of shares assuming all outstanding options, warrants, convertible bonds ,etc are exercised and issued.
 

ZZZZZ

Midas Member
Midas Member
Sr Site Supporter
Joined
Dec 23, 2017
Messages
7,472
Reaction score
16,732
Location
Northern Arizona
One gold guy I follow on Twitter, Larry "The Leopard" Lepard is mad as hell over the deal. He's a big holder of ROX, and he thinks they sold out way too low.

Lawrence Lepard, "fix the money, fix the world"
@LawrenceLepard
ROX-VC. A 41% premium over Friday close becomes a 15% premium due to FSM stock slide. $40 million break fee and Rox management has $14mm change of control provision in 2020. Probably more now. Rox is my biggest position, I am not voting for this deal. FSM is robbing us.

Lawrence Lepard, "fix the money, fix the world"
@LawrenceLepard
Mgmt. looks out for themselves and not the shareholders. If Canadian miners wonder why they trade like shit and at discounts to fair it is bad deals like this that are Exhibit A. Investors get it right (quality asset) and management sells an easy 3 bagger for 16% premium. WTF.
 
Last edited:

Scorpio

Hunter of Chin Li's Boo Hoo Flu
Founding Member
Board Elder
Site Mgr
Midas Supporter ++
Joined
Mar 25, 2010
Messages
33,890
Reaction score
50,817
sorry GH, that was 390,000,000 shares

as it was in 'thousands'
I meant to type 390 M shares

which is a massive amount,
yet these days we are seeing it far too often,
crazy levels of shareholder dilution, that if they ever do make it up to the bar, won't be but a pittance per bag holder

-

solarion

seems they have a problem, like a fracked oil well, they are burning thru what bit of reserves they have rather rapidly, and within 5-6 yrs wouldn't have squat, so Fortuna has to do something

they chose this, as well as Argentina

from one standpoint it makes a lot of sense, as it is in production, and good to go for quite some time as well as future prospects,

but as some speak to, underground gold mining in africa is a heckuva lot different than playing with silvah in mehico
 

dpong

Gold Member
Gold Chaser
Site Supporter
Joined
Jan 11, 2012
Messages
3,152
Reaction score
3,712
Nice thread!

As I'm always using a trend following mindset, my stop loss is my stop loss which is there to keep me from going broke by knowing "how right I am."

My stop loss is 40% off the high which is currently $5.91. Price is currently $5.94. Close one day below 5.91 and I'm out.

For my methods, price is everything.

WgxUe0KF.png