Opportunity on the Rebound
Opportunity on the Rebound
– Momentum Public Relations –
It is tempting to spin a number of mining clichés when referring to the somewhat surprising rise in the TSX-Venture exchange. Are savvy investors in these stocks “sitting on a gold mine”? Could the truth behind the recent strength of the embattled junior exchange be “buried somewhere”? Enough with the clichés.
At this point many investors are, at the very least, sitting up and taking notice. It would be easy to dismiss the recent rebound of the Venture exchange if it could be explained by a general rise in worldwide markets or a discernible spike in commodity pricing. However the upward trend in the Venture index is occurring at a time when the Dow and the TSX have not shown sustained gains and when overall commodity pricing is volatile at best.
The upward momentum at the Venture exchange is a relatively recent phenomenon. In the past few years the index, weighted to some degree by under-performing mining and resource companies, has declined precipitously moving from around 2200 down to lows that breached the 480 mark. The index has risen from the 490 range up to levels of 530 and higher in the last 30 days. This would appear to defy conventional wisdom.
Throughout 2015, there were a number of market observers predicting everything from further steep declines to a complete collapse of the exchange.
http://business.financialpost.com/news/energy/tsx-venture-index-sinks-below-500-as-long-march-downwards-shows-no-signs-of-letting-up?__lsa=4d9c-332c
The recent strength of the Venture exchange could be dismissed as a mild correction; undervalued markets frequently adjust to respond to a perceived over-correction. There is no doubt that this resource-heavy exchange has suffered from investor fatigue. It has always been a place to take risks. However, the appetite of high-risk investors became much less robust post-2008.
Overall, most experts are cautiously optimistic about the Venture’s future because everyone recognizes that the resource sector always bounces back. The recent shift in fortune may signal that the appetite for risk is returning and that investors are prepared to own some small-cap stocks again. Meanwhile, this may be the right time to seek out undervalued stocks that have solid assets and reasonable growth prospects.
Investors may want to examine a number of individual smaller gold mining prospects that have begun to exploit reserves. Observers are starting to identify gold plays that, at current bullion prices, provide plenty of reason for optimism. Gold mining operations with solid resources and low cost of extraction can generate solid profit and create shareholder value when the commodity is trading in the area of USD$1200 to $1300 per ounce.
http://www.midasletter.com/2016/02/sptsx-venture-composite-index-gold-is-the-breath-of-life/
When it comes to investing, averages can be moderately helpful. Averages are a widely-used metric that provide general information and illuminate big-picture trends. However, averages can mask a number of important realities. In any investment portfolio that, “on average”, is in decline there are almost always stocks that are gaining.
The current rebound of the Venture exchange offers an opportunity to do two things simultaneously. First, it may be possible to ride the general wave of upward movement. Second, by scrutiny, it may be possible to find stocks that will rise more rapidly than the averages.
An experienced miner knows that it is often necessary to dig beneath the surface to find gold. Similarly, investors who make the effort to dig beneath the surface may discover hidden gems or uncover golden opportunities.
Sirona Biochem (SBM.V) Initiates Research and Development on New Therapies
Sirona Biochem Initiates Research and Development on New Therapies for Keloid Scars and Acne Vulgar
– Momentum Public Relations – April 18, 2016
Sirona Biochem Corp. (TSX VENTURE: SBM) (FRANKFURT: ZSB) (XETRA: ZSB) (the “Company“) announces that its CEO, Dr. Howard Verrico, has approved two new therapeutic projects within the skin care portfolio addressing markets with unmet needs. Research and development will proceed for a novel compound for keloid scars and an acne treatment, each with a potentially favourable efficacy/side-effect-profile. Studies have begun for the keloid scar project with initial results expected in Q4 2016. The development program is being established for the acne program and will commence this quarter. The Company will look to partner the therapeutics after In-Vitro studies.
A keloid scar is an overgrown scar that can spread outside the original area of skin damage. Keloid scars are raised above the surrounding skin, and can feel hard and rubbery. Keloids affect around 10-15{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of all wounds. Current treatments for Keloids have very limited results leaving a large unmet need. According to a report recently published by Persistence Market Research (PMR), the global scar treatment market is poised to rise at a CAGR of 10.3{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} from US$ 16.0 Billion in 2015 to over US$ 31.9 Billion by 2022. Some of the key players in the keloid treatment market are Novartis, GlaxoSmithKline, Galena Biopharma, Bristol-Myers Squibb and Valeant Pharmaceuticals International.
Recent testing of compounds created by Sirona’s wholly-owned French subsidiary, TFChem, has shown properties suggesting potential application in the treatment of Keloids. Further testing is underway and a detailed project plan is being developed.
Acne vulgar is a long lasting skin disease that occurs when dead skin cells and oil from the skin become clogged with hair follicles or skin pores. Severe acne is inflammatory, but acne can also manifest in non-inflammatory forms. Acne affects the majority of the world’s population and there is an unmet need with current therapies. The global acne market is estimated to reach US$ 4.4 Billion by 2020 (Technavio, 2016). Some of the key players in the acne vulgaris treatment market include Galderma, Allergan, Bayer, Cipher, Johnson & Johnson and Valeant Pharmaceutical International.
“In anticipation of a near-term upfront payment as part of a licensing agreement for our novel skin lightening compound, we are increasing our research activities substantially,” reports Dr. Howard Verrico, Chairman and CEO of Sirona Biochem.
“Dr. Geraldine Deliencourt-Godefroy, our Chief Scientific Officer, has identified promising compounds using our innovative carbohydrate fluorination technology. Although at an early stage in development, our scientific team has an excellent track record of predicting how the fluorination process improves carbohydrate cosmetic and therapeutic agents,” he added.
About Sirona Biochem
Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary technology platform developed at its laboratory facility in France. The Company specializes in the stabilization of carbohydrate molecules, with the goal of improving compounds’ efficacy and safety. Sirona Biochem’s compounds are patented as new chemical entities for maximum commercial protection and revenue potential. Newly developed compounds are licensed to leading companies around the world in return for licensing and milestone fees and ongoing royalty payments. TFChem, Sirona Biochem’s wholly-owned French laboratory, is a recipient of multiple French national scientific awards and a European Union and French government grant.
For more information, please visit www.sironabiochem.com.
- Published in Blog, Life Sciences, News Home, Sirona Biochem
International Wastewater Systems (IWS:CSE)(IWI:FSE) Featured by CNNMoney
IWS Featured by CNN
– Momentum Public Relations – April 15th, 2016
International Wastewater Systems Inc. (“IWS” or the “Company”) (CSE:IWS)(FRANKFURT:IWI) is pleased to announce that CEO Lynn Mueller was featured by CNN in an interview with reporter Jacqueline Wattles from CNNMoney.
The audio interview with CNN includes an in depth discussion of IWS’s wastewater heat exchange technology that provides up to 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} of a building’s heating and hot water requirements, using an inexhaustible renewable energy source: wastewater.
The interview will be available on CNNMoney during April 2016 and IWS will provide an update once the interview is accessible on the CNN website.
ON BEHALF OF THE BOARD
Lynn Mueller, Chairman and Chief Executive Officer
About International Wastewater Systems Inc.
International Wastewater Systems Inc. (CSE:IWS)(FRANKFURT:IWI) is a world leader in wastewater heat recovery. IWS systems recycle thermal energy from wastewater, generating the most energy efficient and economical systems for heating, cooling & hot water for commercial, residential and industrial buildings.
- Published in Blog, Green Technology, International Wastewater Systems, News Home
Tips From the World’s Best Investors
Investing Tips from the World’s Leading Business Men
Momentum Public Relations – Stephanie Boucher
Reading the financial section in the paper, you’ll often find that investors don’t agree on very much, with the exception of one thing: there are certain strategies to becoming a successful investor.
Many money managers and investors have made a fortune using their own philosophies, and have helped others do the same. Here, we’ve rounded up tips and tricks from a few of world’s most successful investors, suitable for the novice investor as well as for the professionals looking for new strategies.
- “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett
Warren Buffet, 79, is often considered the world’s most successful investor of all time. He has made an enormous fortune through his company Berkshire Hathaway, of which he is the largest shareholder and CEO. Buffet’s estimated worth is over $46 billion.
Warren Buffet has had the ear of many businessmen like Bill Gates and his opinions can influence the world markets. His advice to investors is when evaluating a company, pay attention to the quality of the company over the price. The company’s quality is of utmost importance, and one should expect to pay a fair price for it. Furthermore, a company of lower quality should not be bought because of its low price tag.
- “The person that turns over the most rocks wins the game. And that’s always been my philosophy.” – Peter Lynch
Peter Lynch, 71, made his fortune as the manager of the Magellan Fund early in his career. During this time, he averaged a 29.2{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} return, making it the best performing mutual fund in the world. Lynch is worth over $350 million.
His advice is to do the most research as possible before investing. The more you understand, the better your chance of success. Investing isn’t like playing roulette. Behind every stock is a company, and understanding that company’s business is crucial to your investment strategy. You should always have a better reason for buying stock than “It was going up!”
- “I create offbeat advice; I don’t follow it, I rarely take third-party advice on my investments.” – Mark Cuban
Mark Cuban, 57, is an investor, businessman, author and television personality. He is well known in the business world as the owner of Dallas Mavericks, and for his role as an investor on the popular TV series Shark Tank. Cuban is worth approximately $3 billion.
His strategy concerns advice coming from outside parties. According to the business mogul, he thinks it’s best to save money and invest in vehicles you know well. While advice from finance professionals can be beneficial at times, be sure to understand where your money is going and be sure that it serves your best interests. You can never do enough research.
- “My investment philosophy, generally, with exceptions, is to buy something when no one wants it.” – Carl Icahn
Carl Icahn, 79, is widely regarded as one the of world’s most famous investors. He is known for investing in companies with poor management, for which he eventually coined the phrase “Icahn lift.” The catchphrase is known on Wall Street because it describes the upward bounce in a company’s stock price after Carl Icahn has bought it.
Icahn’s philosophy is to target a company he deems to be poorly managed and whose stock price is well below market value. He accumulates enough stock to merit a position on the board of directors to have a strong say in the management of the company moving forward.
- “Do you really like a particular stock? Put 10{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} or so of your portfolio on it. Make the idea count. Good investment ideas should not be diversified away into meaningless oblivion.” – Bill Gross
Bill Gross is an American financial manager and founder of PIMCO (Pacific Investment Management Company). Gross ran PIMCO’s $270.0 billion Total Return Fund, but recently left to join Janus in January 2014. Gross’ worth is estimated at over $2.3 billion.
Gross’ philosophy here speaks to diversification. While a certain amount of portfolio diversification is strongly encouraged, it also diminishes your returns when one of your picks makes a big gain. Big returns are all about taking chances, based on in depth research. Don’t be afraid to invest a little more when your research points to a winning stock or company.
IWS to Present at El Paso Conference
IWS to Present at El Paso Conference
– Momentum Public Relations – April 11, 2016
International Wastewater Systems Inc. (“IWS” or the “Company”) (CSE:IWS)(FRANKFURT:IWI) is pleased to advise that Mr. Lynn Mueller, CEO of IWS will present today at the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) technical conference in El Paso, Texas.
Conference attendees include the City of El Paso Office of Resiliency and Sustainability, representatives from Fort Bliss (the largest army base in the US) and facilities managers from local universities and public infrastructure. Mr. Mueller will lead a technical discussion on the SHARC wastewater heat recovery system and its applications for commercial, industrial and residential buildings.
Founded in 1894, ASHRAE (www.ashrae.org) is a global society advancing sustainable technology for the built environment. The Society and its more than 50,000 members worldwide focus on building systems, energy efficiency, indoor air quality, refrigeration and sustainability.
ON BEHALF OF THE BOARD
Lynn Mueller, Chairman and Chief Executive Officer
About International Wastewater Systems Inc.
International Wastewater Systems Inc. (CSE:IWS)(FRANKFURT:IWI) is a world leader in wastewater heat recovery. IWS systems recycle thermal energy from wastewater, generating the most energy efficient and economical systems for heating, cooling & hot water for commercial, residential and industrial buildings.
- Published in Blog, International Wastewater Systems, News Home
Sirona Biochem Begins Cell Preservation Research
Sirona Biochem (SBM:tsxv) Begins Cell Preservation Research Collaboration With Dr. Caigan Du, University of British Columbia
– Momentum Public Relations – April 11, 2016
Sirona Biochem Corp. (SBM:tsxv) (ZSB:Frankfurt) (ZSB: Xetra) (the “Company“) announces that it has entered into a research collaboration with Dr. Caigan Du of the University of British Columbia to study the effects of new compounds, produced by Sirona’s subsidiary TFChem, for use in the preservation of red blood cells (RBC) and other cell lines.
Studies will be performed to evaluate improvement in the quality of RBCs after hypothermic storage and cryopreservation. Further research is being planned which will involve tissue preservation for applications such as organ transplant. Initial testing will begin in May with results expected in Q4 2016.
“We are thrilled that a team led by Dr. Du will study our compounds in RBC preservation and that he has accepted a position on our Scientific Advisory Board. There is a global unmet need when it comes to storage/shelf life of these blood products,” said Dr. Howard Verrico, CEO.
“Extending the shelf life would greatly improve the ability to use donated blood. Current typical storage of donated blood is limited to 42 days. Extending this will have the potential to save lives at times of disaster, maintain supply of rare blood types and lessen overall blood inventory losses due to storage limitations. As a member of our Scientific Advisory Board, Dr. Du will be able to assist in research and development of multiple commercial indications for our new compounds,” he added.
About Dr. Du
Dr. Caigan Du is a scientist at the Vancouver Coastal Health Research Institute and an Associate Professor in the Department of Urologic Sciences at the University of British Columbia. He received a Ph.D. degree in Biochemistry in UK and postdoctoral training in Immunology in USA. He is interested in the pathogenesis of kidney ischemia-reperfusion injury and transplant rejection, and molecular control of urinary malignancies. He has been studying the impact of kidney donor-derived factors on renal allograft rejection, and the molecular pathways of kidney injury and regeneration in experimental models.
He is also interested in developing medical solution including drugs made from natural compounds for all kinds of health problems, including immune disorders, organ preservation, kidney failure and urinary cancer. He is the PI of many grant supports from the Kidney Foundation of Canada and the Canadian Institutes of Health Research.
About Sirona Biochem
Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary technology platform developed at its laboratory facility in France. The Company specializes in the stabilization of carbohydrate molecules, with the goal of improving compounds’ efficacy and safety. Sirona Biochem’s compounds are patented as new chemical entities for maximum commercial protection and revenue potential. Newly developed compounds are licensed to leading companies around the world in return for licensing and milestone fees and ongoing royalty payments. TFChem, Sirona Biochem’s wholly-owned French laboratory, is a recipient of multiple French national scientific awards and a European Union and French government grant.
For more information please visit www.sironabiochem.com.
- Published in Blog, Life Sciences, News Home, Sirona Biochem
Equitas Resources Corp. Oversubscribes Financing; Raises $1.5M
Equitas Resources Corp. Oversubscribes Financing; Raises $1.5M
– Momentum Public Relations – April 4th, 2016
Equitas Resources Corp. (TSXV: EQT) (US: EQTRF) (FSE: T6UN) (“Equitas” or the “Company”) is pleased to announce that it has closed the second and final tranche of the private placement that was announced on March 4, 2016. This closing included gross proceeds raised of $1,100,000.
The Company has issued 22,000,000 Units at $0.05 per Unit. Each Unit consists of one common share and one share purchase warrant. Every share purchase warrant entitles the holder to purchase one common share at a price of $0.10 for 24 months after the closing.
Combining both tranches, the Company issued a total of 30,000,000 Units for combined gross proceeds of $1,500,000. Of the 30,000,000 Units purchased, over 10,400,000 were purchased by Insiders of the Company.
All securities hereunder are subject to a four month and a day hold from the closing date. Finders fees paid in conjunction with this closing were $31,600.00 cash and the issuance of 632,000 share purchase warrants exercisable for 24 months from closing at $0.10 per share.
The proceeds received from the Units will be used by the Company for corporate development, general and administrative costs and towards the acquisition of a 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} interest in Alta Floresta Gold Ltd., subject to Exchange approval; (see news release dated March 7, 2016).
About Alta Floresta Gold Ltd.
Alta Floresta Gold Ltd. is a private company which holds a 60{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} equity interest in Alta Floresta Gold Mineracao S.A.. (“Alta Floresta Mineracao”), with the right to earn-in to a 70{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} equity interest. Alta Floresta Mineracao holds six gold properties, and four production licences, over 184,410 hectares of land in the Mato Grosso and Para states of Brazil. Alta Floresta Mineracao is initially focused on production activities and defining additional gold resources at the Cajueiro Project.
- Published in Blog, Equitas Resources, Mining, News Home
Equitas Resources: Good Timing
Time is Gold-en, Cash is King
– Momentum Public Relations –
In the exploration and development process for precious minerals, time is often a more valuable commodity than gold, nickel, copper or platinum. Time can present a challenge to junior mining plays. Particularly, when a company runs out of time and capital. Equitas Resources Corp (EQT–TSXV) has demonstrated that they have a solid grasp on this reality.
Equitas recently announced its intention to merge with a private company, Alta Floresta Gold. On March 7, 2016, formal due diligence was successfully completed. Alta Floresta has a 60 percent interest in Alta Floresta Gold Mineracão Ltd, a company that holds six gold properties, and four production licenses. The operation spans more than 184,000 hectares of land in the Mato Grosso, Brazil. Of these properties, the Cajueiro Project is already in production.
The goal of the merger is to provide the company with liquidity to fund ongoing activities while, at the same time, creating value for shareholders. Specifically, the transaction will put EQT in a stronger position to support the rigorous exploration and development of its 100{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} owned highly prospective Garland venture in the Voisey’s Bay area of Labrador.
Investor fatigue was beginning to set in for Equitas as its shares declined to C$0.05 in recent weeks after trading in the range of C$0.12 to C$0.19 in the fourth quarter of 2015. Shares in Equitas are poised to trade at higher levels given the stability that the recent transaction will provide.
Of equal long-term importance, the cash that will come from a lower cost gold operation, like the Cajueiro Project, will enable EQT to withstand a resource sector bear market in the future. However, it appears that the five-year bear market for gold and precious metals is ending as bullion has increased from the recent lows and is sustaining price levels around USD$1250 per ounce. Trending upwards after a number of years of declining prices and trading in the USD$1050 to USD$1100 range.
The lengthy process of exploration, geologic assessment, review of resource potential, financing and commercial ramp up can be challenging. If less than ideal circumstances prevail, or if the market for gold or other metals is soft at a critical time, a company can find itself in a situation with sunk costs and no path forward. Many potentially lucrative mining ventures can run out of cash before they fully conclude on the viability of a resource discovery or are able to move from minerals in the ground to full operational viability.
Equitas Resources has resourcefully given themselves an advantage many ventures don’t have. Upon regulatory approval of the acquisition, Equitas plans to construct a gravity plant to expand the current production activities at Cajueiro gold which should produce almost immediate positive cash flow.
The combination of a skilled senior management team at Alta Floresta Gold with the considerable technical and management expertise at Equitas should serve to boost efforts to discover and commercialize their nickel deposit in Labrador. Ultimately, the transaction stands to make Equitas a stronger company with quality gold and nickel assets as well as recurring cash flow.
The newly merged combination of Equitas and Alta Floresta Gold represents an excellent opportunity for investors to hold a smaller scale, low cost, gold production operation while maintaining the large potential payoff that the Voisey’s Bay Garland project holds. To note the obvious, gold producers generate cash, meaning future expansion can be managed in non-dilutive manners.
A transaction like this one is a practical application of the principle that time is money. A producing gold mine generates cash. Cash buys time and time is needed to prove resource and increase shareholder value.
- Published in Blog, Equitas Resources, Mining
Turn Out the Lights on Vancouver’s Real Estate Party
Turn Out the Lights – The Party is Ending
– Momentum Public Relations –
Willie Nelson wrote the lyrics to the famous song; “turn out the lights, the party’s over. They say that all good things must end. Call it tonight; the party’s over and tomorrow starts the same old thing again.”
Many of us have had the experience of being in bar or nightclub at closing time. Typically, to encourage a quick and orderly exit of patrons, the staff will turn down the music and turn on the lights. With the absence of music and the presence of lights, the environment of the bar or club is much less compelling. Any imperfections are noticeable in the glare of florescent lights. The place and the people look far less attractive. The message is clear; it is time to move on.
An over-heated real estate market is a bit like a bar at closing time. As the lights come up, and the music fades, reality begins to seep into the collective consciousness. Things that seemed shiny and attractive quickly lose their luster. The fundamentals didn’t change at all. Better illumination just makes the facts clear.
In examining the current state of Vancouver real estate, it is hard to avoid drawing a “party’s over parallel”. Sure, when the lights are low, and the music is pounding it is easy to be caught up in the dance. Reality can be suspended for a period of time in a blur of lights and music and libations. Real estate values are equally subject to distortion, however, in the long term, they are not immune from the fundamental principles of business. To suggest otherwise is to ignore the lessons of history.
HOW DID THE MARKET GET TO THIS POINT?
Most of the factors that have contributed to the current real estate bubble in Vancouver have been well documented. Three of the most notable contributors include:
• An influx of offshore investors, most frequently associated with Asian money in search of asset diversification in a lower risk environment
• A “scarcity mentality”; investors rushing to purchase assets due to the profound belief that they will be unable to afford them later due to price escalation
• Inexpensive borrowing costs and low capital requirements
Vancouver’s attractive location, relatively moderate climate and natural beauty compounded by a limited supply of land and housing have caused the convergence of supply and demand over the past ten years to be less than optimal.
WHAT WILL HAPPEN NEXT?
We are already seeing the leading edge of some significant indicators that tell us that the party is over. The lights may not have come on yet, but the music has been turned down. The factors that were responsible for the run up in prices are precisely the same factors that are likely to carry prices in the opposite direction. Here are the new realities that we see emerging in 2016:
• There is a reduction in the number of offshore investors: Much of the new wealth in Asia has been diminished by reversals in the Chinese economy, and many wealthy individuals have considerably less equity and cash. Additionally, with the run up in values in Vancouver, a shrewd investor will be seeking out undervalued assets. When the advertised selling price of a home is more than 15 percent higher than a comparable home on the same street it begs the question; why? Likewise, when real estate values in any city are significantly elevated compared with similar properties in nearby cities investors tend to migrate to opportunities that offer a better value. Vancouver’s real estate market is priced at a premium compared to places like Seattle and San Francisco. Investors who may prefer Canadian assets are waiting to see if the top of the market has been reached, and the inevitable bursting of the bubble will bring pricing back into line.
• The “scarcity mentality” has reached its apex: The conventional wisdom that Vancouver real estate prices would continue to rise without a pause has given way to the expectation that 2016 will be a year of price softness. It isn’t a question of “if” – it is a question of “when” and “how much”. Consequently, buyers are beginning to migrate to the sidelines which will create a market imbalance with sellers outnumbering buyers. Demographics are also playing a role in the equation. An increasing number of baby boomers are looking to monetize the investment in their homes, but there is a shortage of Gen X and millennials who can purchase properties in Greater Vancouver if it means carrying mortgages of over a million dollars.
• Lenders are more cautious: Governments and banks have taken steps to tighten up regulations and the supply of money for higher priced real estate. The capital requirements have been increased for homes over a million dollars, and lending evaluations have become more rigorous to discourage speculation. Most first-line lenders are looking very carefully at affordability. If a prospective purchaser will be spending greater than 35 percent of their disposable income on principal, interest and taxes they can expect a rough ride from lenders. With personal debt levels for Canadian households now close to $1.64 per $1.00 of disposable income, applicants for larger mortgages can expect very close scrutiny of their borrowing ratio.
Vancouver’s real estate bubble is likely to burst in 2016. When the bubble bursts, how big will the mess be? Obviously, nobody knows the answer to that question. However, the attraction of the city, its accessibility and the limited supply of real estate will ensure that a downturn will be temporary. Once the inevitable correction has taken hold, the music will start to play, and the real estate party in Vancouver will begin again.
Are Investors Returning to Gold?
Optimism Ahead for Junior Gold
– Momentum Public Relations –
Optimism in the Mining Industry
It is common knowledge that the mining industry has suffered and has even been near disastrous at times in the past few years. However, speculators and investors are starting to see light at the end of the tunnel. In fact, after years of economic turmoil, we have seen recent rebounds in the Venture, which has many investors taking notice.
Impact on the Junior Mining Sector
Investors are examining a number of individual smaller gold mining prospects like Corex Gold (CGE:tsxv), that are nearing or have already begun to exploit reserves. At the current price of gold, these investors have every reason to be optimistic. Gold mining operations with solid resources and low cost of extraction can generate solid profit and create shareholder value when the commodity is trading in the area of USD $1200 to $1300 per ounce. Industry analysts expect the price to continue to rise within the next 12 months. Market observers also believe that the perception of safety of gold as an investment has for the most part returned.
With optimism in the mining industry on the rise, there is also good reason to believe that the current price of gold will positively affect the junior mining sector.
While there is cause for optimism in the junior mining sector, it is important to remember that standard business fundamentals still apply. Wise and experienced investors will lay low and avoid being caught up in “pricing euphoria” and will continue to look at key metrics, management experience and historical data to determine the worthiness of an investment.
When evaluating a company’s ability to produce resource and provide value to shareholders, it’s always important to ‘dig down’ and see who you’re working with. In the case of the aforementioned Corex Gold (CGE), apart from the ongoing joint venture partnership with GoldCorp. (G:TSX – GG:NYSE), one name stands out above the rest;
Chester F. Millar.
Born in British Columbia in 1927, Chester Millar began his career in the Canadian mining industry when he discovered copper gold deposits, after which he founded Afton Mines Ltd. in Kamloops, British Columbia. The company was acquired by the Teck Corporation, which operated the Afton Mine until its closure in 1997.
Later on, in the 1970’s, Millar pioneered the use of heap leaching to process low-grade gold ores in the western part of the United States. He also successfully introduced the process of heap leaching in Latin America by writing a book about the technical process in Spanish that received overwhelmingly positive responses from engineers and other interested parties in the community.
One of the mining industry’s most successful entrepreneurs, Millar was inducted in to the Canadian Mining Hall of Fame in 2008, having helped many junior exploration companies such as Gamis Gold and Eldorado Gold transform into substantial gold producers with global operations. Millar also contributed to the early growth of Alamos Gold and Castle Gold, two companies based in Mexico, with the belief that mining explorations should provide long-term benefits to the local people.
With few equals as a builder of junior mining exploration companies and extensive experience in Mexico, Chester Millar sits on the operations team at Corex Gold. The Corex Gold Company is considered one of the premier exploration companies in Mexico, which has a mission to create shareholder wealth through the discovery of new gold deposits in the area. As an emerging company, Corex investors participate in quality exploration projects and the potential to take part in possible major gold discoveries.
For more on CGE visit www.corexgold.com
- Published in Blog, Corex Gold, Mining