Author Topic: GUY.TO - Guyana Goldfield  (Read 2511 times)

tallpop

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GUY.TO - Guyana Goldfield
« on: August 23, 2013, 11:38:55 PM »
This stock has been down for a while.  Happily the CEO exited, Patrick Sheridan Jr.  His father was a snake in the mining industry in Canada for many years. Don't know about him, but...
Anyway, apparently Klarman bought in for about $3 per share in a private deal for funding.  This is one of several of his gold flings.  I think he got rid of some of them. 

The gold stock will not start producing until 2015, I believe.  But permits are in place.   

I think this is a double about 3 years out.  But you have to hope that gold remains around $1300 in the meantime.  Not a sure thing, but likely given QE infinity. 

I know- Buffett hates gold because it doesn't produce anything.  But this one appears to be great.

Another question- I can't see this on the 13Fs from Klarman.  Since it was a private deal it does not have to be on the 13F?  Anyone know why it is not there?

Summary of info here:
http://seekingalpha.com/article/1606462-guyana-goldfields-is-highly-undervalued

Victor.
I hold this in my portfolio (about 10%) and have done well so far. 
« Last Edit: August 23, 2013, 11:56:18 PM by Parsad »


ItsAValueTrap

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Re: GUY.TO - Guyana Goldfield
« Reply #1 on: August 24, 2013, 11:25:36 AM »
The last time I checked out this company, it looked like it had a bad feasibility study on its flagship project.  Because most/all technical reports are inflated, I just assumed that its project was uneconomic.

The only reason why I looked into it was because Northfield Capital used to own it.  Northfield's CEO also used to be the CEO of Guyana.  (The whole part-time CEO thing.)  Northfield's CEO left Guyana and sold all of his shares.

2- There is a huge amount of value destruction that goes on in the mining industry.  So this is why physical gold often outperforms gold miners and junior explorers.  You need to tread really carefully in the sector because it is full of charlatans and liars.  Most technical reports are bogus.

I wouldn't ride Baupost's coattails on this one.  The best investors in the sector are probably Altius Minerals and maybe RCF at #2 (Resource Capital Fund).

*Long Altius, Northfield Capital.
« Last Edit: August 24, 2013, 09:29:53 PM by ItsAValueTrap »
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valueinvestor82

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Re: GUY.TO - Guyana Goldfield
« Reply #2 on: August 25, 2013, 03:18:49 PM »
13Fs aren't required to list foreign holdings. Vivendi and Chargeurs were 2 notable (yet small in the case of Chargeurs)foreign stocks that you wouldn't have seen on Bauposts 13F along with others over the last 12-18months.

tallpop

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Re: GUY.TO - Guyana Goldfield
« Reply #3 on: August 25, 2013, 04:05:12 PM »
ValueInvestor82,
 :)
Thanks so much for the info as to why the stocks don't show up on the 13F.
V

Stuart D

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Re: GUY.TO - Guyana Goldfield
« Reply #4 on: October 10, 2019, 12:30:16 AM »
At $0.93/share Guyana Goldfields is trading at close to a multi-year low.
They have paid off all debt and are trading for < 50% of book value.

Why so cheap? They had previously overestimated gold reserves. The CEO in charge at the time was fired.

In terms of insider ownership, they have targets for the CEO & Director's to own 3x their salary in equity. As of December 2018 the CEO owned 3.3x salary and directors owned 3.8x - 27.2x their annual fees. This all seems pretty good.

My main hang up is their cash flow statement. It is ok but not great and gold is now trading at a multi-year high.

Is anyone looking at gold miners at the moment?

Stuart D

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Re: GUY.TO - Guyana Goldfield
« Reply #5 on: October 10, 2019, 12:38:33 AM »
They looked cheap assuming their financials were in CAD.
I just realized their financials are in USD...

There must be some huge red flag I'm not seeing.
« Last Edit: October 10, 2019, 12:57:31 AM by Stuart D »

DTEJD1997

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Re: GUY.TO - Guyana Goldfield
« Reply #6 on: October 10, 2019, 07:06:14 AM »
I spent two minutes looking at the financials.

Something does not look right.  Their cost of product is low enough that they should be making $.  They posted a loss on the latest quarter.

Cash flow looks strong though.

How long will their reserves last?

Gold miners, especially those who have operations in Africa, are cheap, Cheap, CHEAP.  Obviously they have risk.

I personally think CMCL is the best managed one by far.

It would be interesting to build a portfolio of CMCL, Gran Colombia Gold, perhaps this one and several other "cheap" miners.