Generation Mining just closed the $240 million streaming agreement with Wheaton Precious Metals. This is a critical milestone, and means that Wheaton, the most sophisticated mine financing company in the business, has begun funding the buildout of this mine, with an initial tranche of $20 million Canadian dollars, and subsequent tranches to be paid as the construction proceeds. What does this mean? Well, the entire company is currently valued at 193,600,000 shares x the current price of $.77 US dollars, or $149,000,000 US. Yet Wheaton has committed $240 million Canadian, or approximately $192 million US dollars, but only receives less than 5% of the mines production, a percentage which reduces once payback is made. The fact that Wheaton is putting real...
As anyone who reads my Twitter feed or these blog posts knows I have a significant investment in Generation Mining. On the surface, development mines are a highly risky game. There are many thousands of proverbial "gold rush" hustlers, out "panning" in rivers and streams, with big dreams of wealth and riches. How many of these outdoor scavengers (I say that with respect) actually come up with gold that they can monetize? Not many, unless, of course you are a John Sutter, whose sawmill was the launching pad for the California Gold Rush that began with the discovery of a nugget on January 24, 1848! If you happen to be ole John's buddy, cousin, handyman, or neighbor, chances are you...
Yes, I am always humble in the face of the market. But I want to know where the market is traveling on Generation Mining? Indeed, what is the market smokin!? Are Cheech and Chong the market makers? While this post is a bit cheek in tongue - yea pricing is so out of order "tongue in cheek" - is too rational, take a glimpse at this stock. The April 2021 presentation deck at GenMining.Com is an excellent recap. Let's start with a bit of history. In 2012, Stillwater sold a 25% stake in this Marathon project to Mitsubishi for $81 million. At the time, palladium was trading far below today's levels, and the opportunity was viewed as a copper mine...
Every stock investment has an associated risk and reward. On the risk side, the question becomes an analysis of the probability and magnitude of the possible downside. I often buy stocks where I perceive the longterm exposure to be modest in comparison to the potential upside. I have frequently written on my Twitter stream, and here, on Generation Mining, a palladium and copper development mine with a tremendous resource, an "abundance of infrastructure," (to quote a positive BMO report) and an excellent executive team. I think Generation Mining is the new green, given its metal portfolio, its ESG sensitivity, and suggestively, the amount of money this project will make its investors. I am not going to repeat the logic of this investment,...
Well, I love my mom, and I also love Pfizer and Cisco at today's prices. Pfizer, one of the largest drug companies in the world, with Roche and Johnson and Johnson, is an essential part of the world's fabric with an unassailable balance sheet, and a dividend today of 4.6%, at $33.99. That is just to cheap. Total market cap for this massive, modern enterprise is only $193 billion. Just doesn't sound like much. True, enterprise value is $244 billion, but that is modest for the significance of this company. Cisco fits into a similar pattern. Market cap is similar to Pfizer, at $192 billion for a supremely well managed and diversified business, that is repositioning, however disappointing its strategic...
