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This Explorer Is Finding Lots of Gold in the ‘Shadow of Its Headframe’

Source: Streetwise Reports   07/29/2020

Troilus Gold triples its gold resource to 8.25 million ounces in two years, and exploration continues.

Troilus Gold

Troilus Gold Corp. (TLG:TSX; CHXMF:OTCQB) has taken to heart the old adage that the best place to find a mine is beside an existing mine. The Troilus Gold Mine, located in Quebec’s Frôtet-Evans Greenstone Belt and operated by Inmet Mining from 1996 until 2010, produced 2 million ounces of gold and 70,000 tonnes of copper. InMet’s corporate strategy shifted to focus on copper and in a declining gold price environment, it closed the mine in 2010. In 2013, First Quantum acquired Inmet, and subsequently Troilus Gold acquired the asset in 2017.

At the time of acquisition, the Troilus mine had a resource estimate of 2.05 million ounces of gold equivalent Indicated and 0.7 million ounces gold equivalent Inferred. Since then, the company has drilled more than 80,500 meters and just announced the Indicated mineral resource estimate had grown 142% to 4.96 million ounces gold equivalent and the Inferred mineral resource estimate had grown 350% to 3.15 million ounces gold equivalent.

“Troilus is well positioned to benefit from a rising gold price and the asset offers one of the best potential replacement vehicles for gold torque since KL’s acquisition of Detour Gold.” – Stifel GMP

This year, Troilus has continued to explore and has discovered an entirely new mineralized zone, the Southwest Zone, which contributed 583,000 ounces gold equivalent to the newest Inferred reserves. The company recently raised CA$25 million in a bought-deal financing, and all eight securities firms that follow the company have rated it a Buy.

Streetwise Reports sat down with CEO Justin Reid to learn more about the company. Reid explained the genesis of the Troilus gold project: “In the 1980s, gold companies traded on a real multiple, 2.5 times net asset value, 20 times forward cash flow, but a lot of the base metal companies traded at far reduced multiples. Inmet management wanted to get this higher multiple, so they went out and did a North America wide exploration campaign, and in 1986-87, they found Troilus. It was a low-grade bulk tonnage open pit deposit, and in three years they drilled off 5 million ounces in reserves. After that initial definition drilling, they handed the keys to the construction team to put it into production.

“From the moment that they did that, in the early 1990s, Inmet never drilled another exploration hole at Troilus,” Reid said. “They didn’t drill along the belt. They didn’t drill underneath the reserve shell; they never extended the strike of the deposit. Gold was $250. They put the mine into production, and their corporate objectives were elsewhere. But they got the multiple, and that was key. The mine produced for 14 years on a shoestring budget, made money every single year, and produced over 2 million ounces of gold, which was exceptional.”

The Troilus mine was shut down in 2010. “Inmet had found Cobre Panama, which is now the third or fourth largest copper mine in the world, and it was operating Las Cruces in Spain, which, despite some start-up issues, turned into an unbelievable asset,” Reid explained. “Troilus was the absolute nonpriority for Inmet. So Troilus was left with its reserve exhausted, no money to spend on new exploration in a terrible gold market with a strong Canadian dollar and certainly Canadian gold was not in vogue at the time.”

Reid, a geologist by training, also has worked in capital markets, as a senior mining analyst with Sprott/Cormark Securities and then managing director global mining sales at National Bank Financial. “I covered Inmet as an analyst, and had visited the mine a number of times, and our team was very intimate with the mine,” Reid said. “We thought there was a huge opportunity there because there were 2 million ounces below the main pit of low grade bulk tonnage. But other than that, there really wasn’t anything else.

“We signed a three year option agreement where we agreed we would spend a million dollars privately to put a framework of value around that underground and what we found during that time was that there’s just so much low hanging fruit, we had more questions than answers, and we had more zones that had never even had a drill in them. We thought this had to be an unbelievable opportunity, so we took it to market,” Reid said.

The company started trading in January 2018. “What has happened in those two and a half years has been pretty remarkable,” Reid stated. “The first year we drilled 32,000 meters, and we added over 2.5 million ounces. We had a 99% hit rate. What that showed was the underground continues to depth, but, as well, there’s all this open pit potential.”

In 2019, Troilus drilled another 35,000 meters. “All of a sudden we had 6.4 million ounces Indicated and Inferred, of which about 85% is Indicated. And then in the last six months, we’ve drilled another 8,500 meters and we’ve made a major discovery to the Southwest in an area just 3.5 kilometers away from the main pits that was never explored when the mine was in operation,” Reid said.

“Today we are at 8.01 million ounces Indicated and Inferred, and we’re going to put our first engineering out within a few months,” Reid said. “We’ve put the first geologic model around the Troilus deposit and we’re now applying these new models to the rest of the belt.”

With Troilus having been an operational mine, the company benefits from significant existing infrastructure, which it has been upgrading. “We’ve inherited and significantly upgraded over $400 million in infrastructure; that’s going to have a massive impact on the value of the asset, the return to the shareholder, as we move to production,” Reid explained.

There are 40 kilometers of production road off of the main highway that Troilus has spent about $1.5 million upgrading over the last two and a half years to make it production ready. “That road would cost $1.5 million a kilometer to build from scratch. That 40 kilometer road, coupled with the 85 kilometers of power lines to our site, which would cost US$750,000 a kilometer to build, is our market cap,” Reid said.

“Our 50 megawatt substation, which we have completely upgraded with ABB, capable of running up to a 50,000-tonne-a-day mill, is production ready. We have the 60-man camp in place, we have all power, water, septic and all of the infrastructure required to run the mine. And probably most importantly, we have a 6.5 square kilometer tailings facility that’s fully permitted. At 20,000 tonnes a day, we would have six years of capacity without having to do a thing. All of that, if you were to build it in a grassroots development, would be US$400 million of infrastructure. But more than just capital costs, it’s two to three years of permitting that we’re not going to have to do. We are on an active mining lease; we will have to amend that lease to go back into production. But we’re not starting this from the starting line. We’re halfway around the racetrack,” Reid stated. The original mill on site was dismantled, so a mill will need to be built.

Troilus is the largest land holder, with more than 1,000 square kilometers, in Quebec’s Frôtet-Evans Greenstone Belt. The company recently acquired 68,000 hectares through staking and a claim purchase from O3 Mining Inc., and on July 21 announced the acquisition of another 422 claims, expanding its property by 23,000 hectares.

Figure 1

Reid stressed that the project offers flexibility. ‘We have an open pit production from J4 and J5, from Z87 and from Z87 South. We’ve extended the Z87 South ore body by 600 meters, from surface off the edge of the pit. At J4, we know that the underground ore body continues there, and part of our future exploration will be defining that as well.”

Looking ahead, Reid notes Troilus plans to release a preliminary resource estimate (PEA) in the fall. “The PEA will be the first framework of valuation that we’re going to put around Troilus. We expect it to be a low capex, long life, big volume producer, and we are excited to get that to the market in the coming months,” Reid said.

The company has 114 million shares issued and outstanding, and around 26 million warrants outstanding. “We’re incredibly proud of our ownership structure,” Reid said. “We have over 50 institutions on our register, comprising 80% ownership, and they don’t trade a lot but when we need capital, they’ve invested and they’ve been there over and over again. Some of our largest funds include Sprott Asset Management, Maple Leaf Funds, Ruffer, Gold 2000, Mackenzie, Goodman, Sun Valley and Delbrook. We’re also incredibly proud of our Quebec ownership, representing the major institutional Quebecois funds. Troilus insiders own another 10%; we bought all of our shares in the market.”

In June, Troilus closed an upsized, oversubscribed CA$25 million bought-deal financing that was led by Cormark Securities, Laurentian Bank Securities and Stifel GMP, and included Haywood Securities, Canaccord Genuity and Red Cloud Securities.

All of the eight brokerage firms cover Troilus have buy ratings on the company and target prices range from CA$1.80 to CA$4.50 per share. On July 7, Stifel GMP named Troilus as one of a handful of gold companies that offer “exceptional torque to a rising gold price,” and compared the company to Detour Gold, stating, “Troilus is well positioned to benefit from a rising gold price and the asset offers one of the best potential replacement vehicles for gold torque since KL’s acquisition of Detour Gold.”

Analyst Pierre Vaillancourt of Haywood Securities wrote, “Troilus Gold Corp. is well positioned among exploration peers with a strong balance sheet, a growing resource and pending economic studies. We look for the company to develop the Southwest zone into an open-pittable target that could complement the existing resource or possibly become a starter pit.”

Jacob Willoughby of Red Cloud Securities wrote on July 29, “We expect the shares of Troilus to materially re-rate over the next 6–12 months as the company releases a PEA and demonstrates organic resource expansion potential along strike from the J Zone, Z87 and the new Southwest Zone areas.”

Cormark analyst Richard Gray wrote on July 29, “Troilus shares trade at just 0.31x NAV and an EV/oz of total resource $12/oz, valuations that leave the stock among the most undervalued in our developer coverage universe. While the shares are up 120% this year versus a 46% increase in the GDXJ and a 29% increase in the gold price, they remain attractively priced, especially when considering the project has the size and scope to be an attractive acquisition target for senior and mid-tier producers looking for large and undervalued resources in what is one of the safest jurisdictions in the world.”

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Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Troilus Gold. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Additional disclosures:

Disclosures from Stifel GMP, Precious Metals, July 7, 2020

Important Disclosures and Certifications
Each research analyst and associate research analyst who authored this document and whose name appears herein certifies that: (1) the recommendations and opinions expressed in the research report accurately reflect their personal views about any and all of the securities or issuers discussed herein that are within their coverage universe; and (2) no part of their compensation was, is or will be, directly or indirectly, related to the provision of specific recommendations or views expressed herein.

Company-Specific Disclosures:
1. Stifel Canada or an affiliate has, within the previous 12 months, provided paid investment banking services to the issuer.
2. Stifel or an affiliate act as corporate broker and/or adviser to the Company.
11. Stifel Canada or an affiliate managed or co-managed a public offering of securities for the subject company in the past 12
months.

Disclosures from Haywood Securities, Troilus Gold Corp, July 29, 2020

Haywood Securities, or certain of its affiliated companies, may from time to time receive a portion of commissions or other fees derived from the trading or financings conducted by other affiliated companies in the covered security. Haywood analysts are salaried employees who may receive a performance bonus that may be derived, in part, from corporate finance income.

Haywood Securities, Inc., and Haywood Securities (USA) Inc. do have officers in common however, none of those common officers affect or control the ratings given a specific issuer or which issuer will be the subject of Research coverage. In addition, the firm does maintain and enforce written policies and procedures reasonably designed to prevent influence on the activities of affiliated analysts.

Analyst Certification: I, Pierre Vaillancourt, hereby certify that the views expressed in this report (which includes the rating assigned to the issuer’s shares as well as the analytical substance and tone of the report) accurately reflect my/our personal views about the subject securities and the issuer. No part of my/our compensation was, is, or will be directly or indirectly related to the specific recommendations.

Important Disclosures

Of the companies included in the report, the following Important Disclosures:
▪The Analyst(s) preparing this report (or a member of the Analysts’ households) have a financial interest in Troilus Gold.

▪ Haywood Securities, Inc. has reviewed lead projects of this company and a portion of the expenses for this travel have been reimbursed by the issuer.

▪ Haywood Securities Inc. or an Affiliate has managed or co-managed or participated as selling group in a public offering of securities for Troilus Gold (TLG-T) in the past 12 months.

Disclosures from Red Cloud Securities, Troilus Gold Corp., Exploration Update, July 29, 2020

Part of Red Cloud Securities Inc.’s business is to connect mining companies with suitable investors. Red Cloud Securities Inc., its affiliates and their respective officers, directors, representatives, researchers and members of their families may hold positions in the companies mentioned in this document and may buy and/or sell their securities. Additionally, Red Cloud Securities Inc. may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services.

Company Specific Disclosure Details

3. In the last 12 months preceding the date of issuance of the research report or recommendation, Red Cloud Securities Inc. has performed investment banking services and has been retained under a service or advisory agreement by the issuer.
4. In the last 12 months, a partner, director or officer of Red Cloud Securities Inc., or the analyst involved in the preparation of the research report has received compensation for investment banking services from the issuer.

 

Analyst Certification
The Red Cloud Securities Inc. Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report; or any companies mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Disclosures from Cormark Securities, Troilus Gold Corp., Morning Meeting Notes, July 29, 2020

Analyst Certification: We, Richard Gray and Brandon Smith, hereby certify that the views expressed in this research report accurately reflect our personal views about the subject company(ies) and its (their) securities. We also certify that we have not been, and will not be receiving direct or indirect compensation in exchange for expressing the specific recommendation(s) in this report.

The Disclosure Statement Chart for Troilus Gold can be found on the website.

 

Top Software Picks for Day Trading

Day trading’s popularity has surged in the past couple of decades. High-speed internet connections and access to personal computers made day trading an attainable possibility. Today, the potential to earn money and work full-time executing trades is an exciting possibility.

However, as any skilled day trader will tell you, day trading isn’t for everyone. It’s often aggressive, fast-paced, and requires an enormous amount of skill and strategy. Additionally, to be successful, you must have a comprehensive, intuitive, and powerful software.

Many new day traders mistakenly think they aren’t good at day trading when the problem isn’t their ability – it’s their software’s shortcomings causing them to fall short.

So, what are the top software picks for day traders? Let’s get into it.

Choosing the Right Software

When you first start learning how to day trade, you might not have your strategy figured out yet. Not knowing what you need can make finding the right software even more challenging.

If you’re just getting started, there are a few specific things you want your software to have:

  • Responsive and Up-To-Date Research
  • An Affordable Minimum Balance
  • Low Fees and Commissions
  • Mobile-Friendly
  • Comprehensive Analytics
  • Fast Execution Time
  • Market Scanning Capabilities
  • Portfolio Tracking
  • User-Friendly Charting Software

If your software has all of the above features, you’ve likely found a winner. However, your needs might be more complicated. If you plan to utilize complex algorithms, you might find that you need a localized computer-based software. You might also really benefit from additional features like backtesting, news coverage, and more.

Start with the must-have features, and then look for software solutions that also include your unique needs. The perfect software for you exists, you just have to find it.

Now, what are some of the software solutions on the market that fit the bill? Let’s dive into some of the top choices.

Five Top Day Trading Software

  1. LightSpeed – LightSpeed offers a free demo account for users. This allows you to learn how to trade with zero risks. Pair that with their low latency and fast execution speeds, and it’s clear why they’re a top pick. They also have incredibly low commissions, which is essential for active day traders. Once you get your feet wet, customization is a breeze.
  2. TradeStation – TradeStation has been in the game since 1982. They’re true innovators in the trading software world. They offer commission-free stock trades, one-click trading, comprehensive research, and completely customizable software. They’re also praised for their top-tier customer service.
  3. Interactive Brokers – Interactive Brokers is the trading software developed specifically for day trading. Because of this, it’s incredibly intuitive to the needs of day traders. They can be costly, though. Most experts say that Interactive Brokers is the best software for day traders, but only if you know exactly what you’re doing. If you’re brand new to day trading, you’d likely fare better learning the ropes with different software and then switching to this one later on.
  4. TD Ameritrade (ThinkorSwim) – Unlike Interactive Brokers, ThinkorSwim is a terrific software to learn the ropes. It offers research and tools, educational resources, mobile trading, and hotkeys. Additionally, it has nearly every single feature you could ever need. Some say that there are almost too many features, which can make it overwhelming to a new trader. However, with their tools and easy-to-use interface, it’s a fantastic place to develop your strategy and style.
  5. TradeSpoon – TradeSpoon’s beginner option is free, so it’s an ideal place to start without having to pay a fortune. The interface and usability are intuitive and dynamic. They offer a wide range of interesting tools, like their sock forecast toolbox. However, what really sets TradeSpoon apart is their one-on-one mentoring options. If you like learning via a teacher or mentor, TradeSpoon has mentors available to help you learn the ropes, which can make the transition into day trading much smoother.

Selecting Your Software

Ultimately, your perfect software will depend a lot on your unique needs. However, if you look for software that includes the must-have features, you’ll be ahead of the curve. Always read the fine print on fees, check out reviews, and do additional research before committing to any software.

Finally, know that no matter what software you choose to go with, you’ll have a bit of learning to do. Learning how to successfully day trade takes a lot of work, and fantastic software is just one piece of the puzzle.

About the Author:

Skylar Hammond is a writer for the True Trader group who specializes in topics such as stock trading, personal finance, and forex. He focuses on helping beginners and experts alike learn more about the market and improve their trading skills.

Eurodollar Speculators reduced their bullish bets for 3rd week

By CountingPips.comReceive our weekly COT Reports by Email

Eurodollar Non-Commercial Speculator Positions:

Large bond speculators reduced their bullish net positions in the Eurodollar futures markets again last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Eurodollar futures, traded by large speculators and hedge funds, totaled a net position of 1,827,324 contracts in the data reported through Tuesday September 24th. This was a weekly decrease of -63,525 net contracts from the previous week which had a total of 1,890,849 net contracts.

The week’s net position was the result of the gross bullish position (longs) sliding by -120,923 contracts (to a weekly total of 2,524,537 contracts) while the gross bearish position (shorts) fell by a lesser amount of -57,398 contracts for the week (to a total of 697,213 contracts).

Eurodollar speculators cut back on their bullish bets for a third straight week and by a total of -504,105 contracts in the last three weeks. The net position is back under the +2,000,000 contract level for a second straight week. The eurodollar speculative level has been in positive territory for twenty-three straight weeks (positions went from bearish to bullish on April 23rd) and after having spent the previous one hundred and forty-six weeks in a net bearish position.

Eurodollar Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -1,685,061 contracts on the week. This was a weekly uptick of 33,986 contracts from the total net of -1,719,047 contracts reported the previous week.

ED Futures:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Eurodollar Futures closed at approximately $98.49 which was an uptick of $0.11 from the previous close of $98.38, according to unofficial market data.

*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) as well as the commercial traders (hedgers & traders for business purposes) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).

Find CFTC criteria here: (http://www.cftc.gov/MarketReports/CommitmentsofTraders/ExplanatoryNotes/index.htm).

Article By CountingPips.comReceive our weekly COT Reports by Email