December 3, 2017
December 3, 2017


Just wondering Energold direct competitors.. Major drilling has some portable rigs .. apart from that I couldn’t find any other public listed ones..

Please phrase this in terms of a question. I think this is what you are asking about.

There are plenty of companies that offer man portable drills. I don’t see Major Drilling as a real competitor. Anyone can buy/build the equipment, but it takes a real committment to the product for you to be a competitor. Just having the drills won’t do it. I think that the man portables at the other large drillers actually cause more harm than good for that driller. It’s the reason that companies have tried it and given up multiple times. It really is just a different business model/different infrastructure/different everything. There are a few small private companies that I am more worried about than Majors as far as competition–at least they’re committed to the product–however their drills are similar to the 1st generation EGD rigs in terms of specs, so they’re 5+ years behind the technology curve. It’s something to watch, but really all drills compete with each other. Energold’s man portables are just more equal than the others….

Kuppy. Curious about your thoughts on GROW, it seems to get weaker everyday and sitting on a few trendlines not encouraging. Would love to know your thoughts and it and if its longer term theme or targets thanks

My thoughts isn’t a question. I’ll try my best, but please ask specific questions.

I’m not sure what you mean by it getting weaker every day. The stock is up over 10% from where it was when I first wrote about it. I have no idea about trendlines. I’m not a chart guy. I’m sure the chart looks pretty ugly to some. I’m trying to buy bargains and those usually have ugly charts. If it goes below my cost basis, I’ll probably buy more.

I feel that fair value for this company is somewhere around 8-10 a share based on the current fundamentals and it would be there if not for getting booted from the Russell index. If it gets back up there I will have to reevaluate. I rarely buy shares just to make 50-100%, but this is the sort of situation where there could be a whole lot more upside if the Assets Under Management (AUM) start to increase. That could happen either from inflows, or appreciation in their portfolios. At the same time, there shouldn’t be much long term risk because of their fortress balance sheet. I always like situations with minimal downside and sizable potential upside. There isn’t much else to say on the company.

your evaluation of the stock [osk] osisko and do you have an interest in the stock. thank you

This seems like yet another story of something big and low grade. These projects always tend to be fully valued and not very exciting as an investor. If I were running a large pension fund or mining company, this may be an attractive way to invest huge sums of capital, but I don’t think it has the upside that I would want–yet you take on all the risk of mining. I have no interest in it currently.