CMC Metals Ltd. - Bought shares because of rising gold price

This is a discussion on CMC Metals Ltd. - Bought shares because of rising gold price within the Stocks forums, part of the Markets category; This is my first post in this forum so hello to all. I have recently bought shares in CMC Metals ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Aug 26, 2017, 7:29pm   #1
 
7 Posts
Joined Aug 2017
CMC Metals Ltd. - Bought shares because of rising gold price

This is my first post in this forum so hello to all. I have recently bought shares in CMC Metals (CMB.V). With a rising gold price this company might have some upside potential imo. The current market cap of below 4 million Candollar seems rather low to me.

Here are some information based on older reports https://docs.google.com/viewerng/vie...42ec1b690f.pdf

- “CMC and PBI plan to produce ~20,000 oz gold per year and thus generating sales of ~$24 million per year (with gold at $1,200/oz). Production costs for the initial 84,000 oz gold are estimated at $700-$800/oz.” With todays gold price of around $1300 and costs of $800/oz that would result for the 50% share of CMC $5 million annual profit.

- “plus the milling costs of around $150/t processed by the Bishop Mill (at 2,000 t/month = $300,000/month or $3.6 million/year).”

- “The replacement value of the mill facilities is estimated at $6 million.”

- Silver Hart (drilling results expected soon): “Extrapolating the numbers a bit from what CMB already has blocked out, and you could easily be staring at a 55-million oz. deposit.” www.preciousmetalsreview.com/PMRcmbbond.pdf
That would equal around $900 million with todays price of silver. The already blocked out initial 9 million ounces of silver equal $150 million.

- The major insider also continues to buy shares.
https://www.canadianinsider.com/comp...20CMC%20Metals

Past week I received the following update from the company.
- The Mill can be operational in a few weeks after posting the Bond
- Approached the government on terms of bond and waiting for their review.
- CMC is essentially in small scale production now, the next bulk sample will be for 1500 tons.
- Silver Hart drill results expected in 3 weeks
- We are working on an IR program to launch in the next week or so

Please note that the company has a track record of delays. Therefore timing is everything. However, I like my chances below 10 cents in particular if gold moves above $1.300.

Any thoughts?
dirkdigger is offline   Reply With Quote
Old Aug 27, 2017, 11:43pm   #2
 
Kaeso's Avatar
Joined Oct 2015
Quote:
Originally Posted by dirkdigger View Post
This is my first post in this forum so hello to all. I have recently bought shares in CMC Metals...
hi mate

i just wondered what is your trading experience/background?

ive never traded penny stocks with fundamental analysis so i can only think of what is your time horizon? is this a buy-n-hold or will you sell if it goes down X amount?

Last edited by Kaeso; Aug 28, 2017 at 7:59am.
Kaeso is offline   Reply With Quote
Old Aug 28, 2017, 10:25am   #3
 
7 Posts
Joined Aug 2017
dirkdigger started this thread Hi Kaeso,

I have been investing in stock markets since 15-20 years. Only occasionally I invested in pennystocks. CMC is the fifth one I believe, only with a small amount and free/house money.

I searched for an undervalued - at least in my opinion - junior mining company. If gold continues to rise as expressed before I think this one might have some potential.

Timeframe for me is 3-6 months with this one. If it goes down again I will probably consider buying more. My aim is 20-30 cents in the coming months.

Greetz
dirkdigger is offline   Reply With Quote
Old Aug 28, 2017, 5:05pm   #4
 
Kaeso's Avatar
Joined Oct 2015
Quote:
Originally Posted by dirkdigger View Post
Hi Kaeso,

I have been investing in stock markets since 15-20 years. Only occasionally I invested in pennystocks. CMC is the fifth one I believe, only with a small amount and free/house money.

I searched for an undervalued - at least in my opinion - junior mining company. If gold continues to rise as expressed before I think this one might have some potential.

Timeframe for me is 3-6 months with this one. If it goes down again I will probably consider buying more. My aim is 20-30 cents in the coming months.

Greetz

oh i see! a lot of experience then, it will be interesting to see if cmc does well
Kaeso is offline   Reply With Quote
Old Aug 29, 2017, 1:07am   #5
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by dirkdigger View Post
Hi Kaeso,

I have been investing in stock markets since 15-20 years. Only occasionally I invested in pennystocks. CMC is the fifth one I believe, only with a small amount and free/house money.

I searched for an undervalued - at least in my opinion - junior mining company. If gold continues to rise as expressed before I think this one might have some potential.

Timeframe for me is 3-6 months with this one. If it goes down again I will probably consider buying more. My aim is 20-30 cents in the coming months.

Greetz
Let's see, I am a bit cynical and just hope this is not a part of pump and dump scheme...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Old Aug 29, 2017, 1:17am   #6
Global Moderators are volunteer members with senior administrative powers to moderate all forums.
 
counter_violent's Avatar
Joined Aug 2004
Quote:
Originally Posted by Quantt View Post
Let's see, I am a bit cynical and just hope this is not a part of pump and dump scheme...
The historic charts do not bode well.
__________________
Spreading the madness across this suite of forums.

Those are my principles and if you don't like them, well..... I have others.

Kin Dissers Everywhere
counter_violent is offline   Reply With Quote
Old Sep 2, 2017, 7:16pm   #7
 
7 Posts
Joined Aug 2017
dirkdigger started this thread As mentioned before the market cap seems rather low to me. Guess time will tell. Here is an excerpt from the recent MD&A which was published on 29 August.

Share Capital
As of August 29, 2017, the Company had 40,745,139 common shares issued and outstanding.
In addition, as at June 30, 2017 the Company had 9,690,622 outstanding Warrants, convertible into 9,690,622 common shares of the Company, and 3,464,000 outstanding stock options.

http://sedar.com/DisplayCompanyDocum...uerNo=00004056
dirkdigger is offline   Reply With Quote
Old Sep 2, 2017, 9:09pm   #8
 
Kaeso's Avatar
Joined Oct 2015
Quote:
Originally Posted by dirkdigger View Post
As mentioned before the market cap seems rather low to me. Guess time will tell. Here is an excerpt from the recent MD&A which was published on 29 August.

Share Capital
As of August 29, 2017, the Company had 40,745,139 common shares issued and outstanding.
In addition, as at June 30, 2017 the Company had 9,690,622 outstanding Warrants, convertible into 9,690,622 common shares of the Company, and 3,464,000 outstanding stock options.

http://sedar.com/DisplayCompanyDocum...uerNo=00004056
i leave all this type of analysis to the fund managers running my long term investment funds...so i can't comment. hope it goes well mate
Kaeso is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
My stop loss has been hit, but the price is still rising forefit First Steps 1 Mar 12, 2011 6:15pm
Rand Gold (gold) and Novartis (NVS) price dynamics for the rest of the week of 10-13 Nostradamus359 Stocks 4 Nov 14, 2009 5:37pm
Price on CMC not real market price? lionfly Spread Betting & CFDs 12 Feb 2, 2009 2:45am
gold=6year high shares of gold producer= down ...why ? techcherry First Steps 0 Jan 28, 2003 11:49am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)