Friday, May 27, 2011

I've been living in a box... in a cardboard box.

Awful song, but a great set up for this gold explorer.

This miner is in the great state of Alaska, located very close to Faribanks. They are sitting on 10.6 Million ounces of gold in the M&I category and another 2.7 Million in the Inferred category.  If put into production, according to the most recent Prelim Assessment, it would have a mine life of approximately 13 years and a production of 833K ounces per year.  Hmm, at current prices around $1500 or so, that's around 1.25 billion a year.  Not too shabby. 

Fully diluted the company has about 91 million shares (good tight structure), and at $1,500 gold has an IRR of 54.4% and a NPV of of 4.9 billion dollars. 

The company has been drilling on the property since 2006, and is currently operating a 55,000 drill program for 2011.  The deposit remains open to expansion, thus the agressive drill program for 2011.  If you find more gold, the economics just get better.

Here's the chart:























The company is International Tower Hill Mines LTD, and has a good chart.

Stock has been in this range since November of last year.  It seems to trade between 7.80 and 10.50.  From here, you could squeeze out a nice 27% gain from here if it makes it back to the top.  Looking at the candlesticks you can see an excellent hammer this last thursday.  That's when I added this stock to my portfolio.  I've traded in and out of this stock for the last couple of years.

Here's the link to the website where you can access the latest presentation and fact sheet:

http://www.ithmines.com/investors/corporate_marketing/

As always, do your own due dilligence.

FD: I am long this stock and haven't been paid by anyone to promote it. 

Until the next time...

Fiat Doubter

Monday, May 23, 2011

Where the hell have I been?

Buried under the burdens of the working man, that's where.

Short post as I need to get the creative juices flowing again, and purge myself of the latest silver market crash. 

How have I done?  The reason I am sharing this is that one of my main purposes of writing this blog was to share, or force myself to write about my investing shortcomings, or share my experiences.

Short answer, I've done OK. 

Longer answer, I did it through lightening up on my PM portfolio and buying put options on SLV and SIL during the Mad Hatter's crazy ride down to 37 or so.  I subsequently have entered into many PM positions in the last week or so as I believe this market is oversold, and the belief that we are still in a long-term bull market in gold and silver.

Did I lose money, sure.  But a lot less that I would have if I had just bent over and took it up the you know where.  These big banks know how to move silver fast, and an asset always loses money faster than you gain it. 

My suspicion is that the dollar rolls over in the next couple of days, and we will get another shot at 1575 to 1600 for gold, before we have the D wave correction which takes us back to the 1200 level or so.

So, my plan is to get about 80% invested again for this mini-jump back to test new highs, and then liquidate back to 40%, and hedge with some put options again.  I think once August gets here, we'll be headed back up with the official, or unofficial announcement or discovery of QEIII.  Seriously, who is going to buy our debt, when the US must issue about $3 trillion (or more) in the next year.  Remember, you have new debt, and the rollover of maturing debt to deal with.

I'll do some charts another night, but I will say this:  If you have cash, now would be a good time to start nibbling on quality gold and silver stocks.  The next week should be somewhat forthcoming in determining if we are to see a new rally in the PM market for the next 2-4 weeks.

Until the next time...

Fiat Doubter