GSS trading volume on Friday, Sept 28 was 7,227,700 shares. That is more than 3 times their 3-month average of 1,779,700. As you can see in the chart below, a huge block moved through at about 1:30pm (nearly 3 million shares) and another shortly after 3pm (over 2 million shares). At around $2.70 per share, that is a significant chunk of change that is suddenly interested in GSS. The price of GSS was lingering around $2.64 for most of the day, down about 2%.
Continue reading Golden Star Resources (GSS) – Volume Alert
Silver Wheaton is the only mining company with 100% of its revenue from the sale of silver. Let’s use the term “mining company” lightly. Silver Wheaton does not actually own or operate any mines. Instead, they sign deals with established mining companies where silver is produced as a by-product (of base metal or gold mining) and is not properly valued by the market. Where silver is not the core product of a miner, it is often valued at far less than it is worth. Silver Wheaton pays a lump sum for future production plus an on-going fixed amount per ounce and assumes none of the political or production risk. The supplying mine likes this arrangement because it provides up-front cash to be used for expanding production of its core metal. This business model creates strong upside potential with limited downside risk for Silver Wheaton shareholders. With only 5 employees, they are more aptly described as a royalty company than a mining company.
Silver Wheaton was the brainchild of Ian Telfer, who hurriedly spun the company off from Wheaton River Minerals when Coeur D’Alene Mines made a hostile bid. About 62% of the company’s outstanding shares are now owned by Goldcorp. Mr. Ian Telfer, President and Chief Executive Officer of Goldcorp, stepped down in his role as a director of Silver Wheaton in April and appointed long-time associate, Peter Barnes. Mr. Barnes brings more than 20 years of senior management experience to the role and, in his previous mandate as Executive Vice President and Chief Financial Officer of Goldcorp Inc. (and, formerly, Wheaton River Minerals Ltd.), helped build one of the best performing precious metal mining companies in the world. The relationship between Silver Wheaton and Goldcorp seems to benefit both companies, but I think Silver Wheaton will reap the greatest rewards. Jim Damberger labeled Silver Wheaton as Goldcorp’s in-house bank and goes into detail about how this arrangement benefits SLW in a 
YGC Resources has to be one of the most underestimated gold miners on the market. They fly under the radar of many goldbugs, due to a lack of effective public relations. But the management of YGC has a core competency in producing gold, not producing slick marketing campaigns. This is good news for anyone reading this article and getting in before the resource update shines a light on the value and potential of this little Canadian miner.
