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

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Old Aug 26, 2017, 7:29pm   #1
 
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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?
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Old Aug 27, 2017, 11:43pm   #2
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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.
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Old Aug 28, 2017, 10:25am   #3
 
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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
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Old Aug 28, 2017, 5:05pm   #4
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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
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Old Aug 29, 2017, 1:07am   #5
 
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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...
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Old Aug 29, 2017, 1:17am   #6
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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.
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Old Sep 2, 2017, 7:16pm   #7
 
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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
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Old Sep 2, 2017, 9:09pm   #8
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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
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Old Sep 7, 2017, 6:25pm   #9
 
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dirkdigger started this thread Today I received the following information.

- Silver Hart results soon
- Radcliff update/plans in two weeks

Lets see if this will be accurate. Hopefully the days below 10 cents will then be a thing of the past...
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Old Sep 14, 2017, 9:51pm   #10
 
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dirkdigger started this thread Silver Hart results expected next week. Not many shares available under 10 cents. Still got a good feeling about this one, hope I am right...
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Old Oct 11, 2017, 9:09pm   #11
 
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dirkdigger started this thread CMC Announces Drill Results From Silver Hart Summer Drill Program
October 11, 2017
http://cmcmetals.ca/cmc-announces-dr...drill-program/
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Old Oct 16, 2017, 10:31am   #12
 
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dirkdigger started this thread CMC Acquires Golden Point Gold Project in British Columbia's Golden Triangle Bordering Teck Resources

Vancouver, British Columbia--(Newsfile Corp. - October 16, 2017) - CMC Metals Ltd. - ("the Company") (TSX-V: CMB) — is pleased to announce that it has acquired a 100 percent interest in the Golden Point gold prospect strategically located in British Columbia's Golden Triangle bordering Teck Resources. The Golden Point Project comprises 87 claims totalling 1,518 hectares in the Skeena Natural Resource Region (Liard Mining Division).

Michael Scholz, Director of CMC stated, "We are thrilled to have been able to acquire this new gold project in the heart of the Golden Triangle, which is one of the most thriving gold districts in the world. The renewed focus that the Golden Triangle has seen recently is encouraging to us as evidenced by the recent news from Garibaldi Resources and GT Gold. We are pleased to be able to add this property bordering Teck Resources to our portfolio and are eager to get to work on this project as soon as possible."

The Golden Point project is located some 15km west of Schaft Creek, and 25km NNE of Teck Resources Galore Creek project and is underlain by Upper Triassic volcanic rocks of the Stuhini Group. The Volcanics are locally intruded by tonalities of the Mid-Jurassic Three Sisters Plutonic Suite, Triassic quartz diorites. The Golden Point property features some historic work (recorded in the BC Minfile System) that has consisted of large scale mapping and some rock and soil sampling, including work by Gold Fields Canadian Mining Ltd. (1991) that returned 8,8g per tonne ("gpt) Ag, 4.5gpt Au and 0.43% Cu over a 30cm shear zone ('Scud showing') and earlier sampling by International Corona Corp. (1988, 89) which produced gold values up to 24gpt Au in grab samples from a small area of an exposed quartz vein stockwork ('Otis showing') rich in arsenopyrite. This new project was acquired by staking via MTOnline.

About CMC Metals.
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