10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Advancing to Production, Super Cheap Metal Stocks Held by Billionaires

October 23, 2013 | About:
Sally Jones

Sally Jones

49 followers
This week the metals and mining sector has fallen to eighth position of the top ten U.S. sectors with the most companies on a 52-week-low. The metals and mining sector currently has 21 companies out of 173 on a 52-week low.

Here’s a review of four companies with precious metals and mineral projects advancing into production. Companies were also screened for their low share prices along with billionaire stakeholders.

U.S. Industry Sector: Metals & Mining

Highlight: Pretivm Resources Inc. (PVG)

The current PVG share price is $3.34, or 76.9% off the 52-week high of $14.46.

Down 75% over 12 months, Pretivm Resources Inc. has a market cap of $350.8 million, and trades at a P/B of 0.50. The company does not pay a dividend.

Pretivm Resources Inc. engages in the acquisition and exploration of precious metal projects and gold resources.

The company reports that its Brucejack Project is advancing to production. Pretivm’s 100%-owned Brucejack Project is part of an area of over 254,518 acres located in northwestern British Columbia. The focus of the project is the "Valley of the Kings," comprised of high-grade visible gold stringers within a lower grade gold quartz stockwork system, according to a company report. The company estimates the valley hosts probable mineral reserves of 6.6 million ounces of gold (15.1 million tonnes grading 13.6 grams per tonne gold).

Guru Owners: As of the second quarter of 2013, Chuck Royce is the top guru owner with 9,057,200 shares, representing 8.86% of shares outstanding.

His trading history shows losses in all six quarters. Overall, he averaged a loss of 79% on 10,841,100 shares bought at an average price of $15.96 per share. He also lost 62% on 1,783,900 shares sold at an average price of $8.77 per share.

Check out the other guru stakeholders and active insider trading.

Historical share price, revenue and net income tracking:

1382479416025.png

Highlight: MAG Silver Corporation (MVG)

The current MAG share price is $5.33, or 60.3% off the 52-week high of $13.42.

Down 54% over 12 months, MAG Silver Corp. has a market cap of $323 million, and trades at a P/B of 2.70. The company does not pay a dividend.

Originally incorporated in 1999, MAG Silver Corp. is in the mineral acquisition, exploration and development business. The company is in the exploration stage and there is no assurance that a commercially viable mineral deposit exists on any of its properties.

The company is advancing two projects located in the Mexican Siliver Belt. MAG is in pre-development on the high grade Valdecañas silver vein and delineating two more discoveries in Zacatecas state, both joint venture activities between MAG Silver and Fresnillo PLC. The company is also engaged in Chihuahua state, with two new discoveries presenting growth opportunities in silver, lead and zinc.

Guru Owners: After Mario Gabelli sold out in the second quarter of 2013, the sole guru stakeholder is currently Chuck Royce with 74,750. His shares represent 0.12% of shares outstanding.

His trading history shows losses in two quarters of holding. Royce has averaged a loss of 23% on 74,750 shares bought at an average price of $6.93 per share.

There are currently no other guru stakeholders or insiders trading MVG.

Historical share price, revenue and net income tracking:

1382480472801.png

Highlight: Augusta Resource Corporation (AZC)

The current AZC share price is $1.90, or 36.0% off the 52-week high of $2.97.

Down 30% over 12 months, Augusta Resource Corporation has a market cap of $269.8 million, and trades at a P/B of 1.30. The company does not pay a dividend.

Augusta Resource Corporation is a development stage enterprise engaged in the exploration and development of mineral properties in North America.

The company's main asset is the Rosemont copper project near Tucson, Arizona. Rosemont contains a large copper/molybdenum reserve of 5.9 billion pounds of copper and 194 million pounds of molybdenum. The company reports that production will begin in 2016.

Guru Owners: As of the second quarter of 2013, the sole guru owner is Columbia Wanger with 900,000 shares or 0.62% of shares outstanding.

The trading history shows double-digit losses in all seven quarters of holding. Overall, the firm averaged a loss of 51% on 1,183,000 shares bought at an average price of $3.87 per share. Selling, the firm also lost 25% on 283,000 shares sold at an average price of $2.54 per share.

There is very active insider trading.

Historical share price, revenue and net income tracking:

1382481162786.png

Highlight: Richmont Mines Inc. (RIC)

The current RIC share price is $1.33, or 68.1% off the 52-week high of $4.17.

Down 66% over 12 months, Richmont Mines Inc. has a market cap of $53.1million, and trades at a P/B of 0.40. The company does not pay a dividend.

Incorporated in 1981, Richmont Mines Inc. began its exploration activities in northwestern Quebec in 1984. The company is engaged in the acquisition, exploration, operation, financing, and development of mineral properties.

Last week the company announced that its W Zone Gold Project has successfully completed the pre-production phase and that commercial production was declared on Oct. 1, 2013. The project is expected to produce around 3,000 ounces of commercial gold production during the fourth quarter of 2013, according to a company press release. The company estimates 12,000 ounces of commercial gold production in 2014.

Richmont also reported that it has entered into an agreement with Argonaut Gold Inc. that will enable Richmont Mines to extend the western boundary of its Island Gold Deep Project and secure underground mining rights on several claims. In exchange, Argonaut will receive exploration and mining rights on certain Richmont claims that border its Magino Gold Project, according to a company press release.

Guru Owners: The top guru stakeholder out of three is Jim Simons with 2,135,100 shares as of the second quarter in 2013. His shares represent 5.39% of shares outstanding.

His trading history shows five years of losses. Overall, he averaged a loss of 78% on 2,769,700 shares bought at an average price of $6.17 per share. He also lost 65% on 634,600 shares sold at an average price of $3.79 per share.

Check out the other guru stakeholders and insider trades.

Historical share price, revenue and net income tracking:

1382482153567.png

If you are not yet a Premium Member, try a 7-day Free Trial.

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

[b][/b]

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (7 votes)

Comments

kfh227
Kfh227 premium member - 1 year ago


Some intersting ideas. I love seeing stocks tank like this. Might give these a look.
Sally Jones
Sally Jones - 1 year ago
Thanks very much.

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK