Jayant Bhandari

Significant value in the Venture exchange from apathy and tax-loss selling

Last month I wrote about a scam to expropriate gold that Indian government is running. I thought that the scam would fail, but still expected some gullible people to participate. The irony is that only 400 grams have been deposited so far. This is less than what any self-respecting Indian middle class family owns, a clear sign that there is not one bureaucrat or politician in India who is prepared to bet on this scam, not even the “esteemed” Finance Minister. Or perhaps his wife cannot trust him.

The incompetency of the Indian Government is hard to understand unless you interact with the government. Were it only crookedness, it would have been a mere cost of doing business. On occasions when dealing with them, I pinch myself to make sure I am actually dealing with someone expected to have brains. But then the real problem is the underlying Indian culture, which is showing no signs of changing.

In the following two events, I will be speaking on why it is grossly erroneous to expect that India to be the next China: Mines & Money, Hong Kong and Mining Investment Asia 2016, Singapore.

But let’s talk about making money and huge opportunities that I see existing in the venture exchange (some names I like, in no particular order):

→ Oban Mining (OBM; $1.12) is still trading for hardly much more

than the cash it has.

→ Minaurum Gold (MGG; $0.045): They recently did financing at

$0.05 and more importantly optioned a very important project in

Mexico for an outstanding good deal. The market failed to

appreciate the value created here.

→ Northern Gold Mining (NGM; $0.01) is an arbitrage opportunity,

offering about 40% upside in terms of current market value of

Oban Mining (see above). You then position to make more from

OBM.

→ Helio Resource (HRC; $0.02) is a short distance from the

operating mine of Shanta Gold (an AIM-listed company). At some

time in the future, I see an acquisition of HRC happening at a

multiple of today’s share price.

→ Sunridge Gold (SGC; $0.25) is being acquired by a Chinese entity, for

cash. The cash will be distributed to the shareholders. In my view the

cash will be about $0.35 per share. This is perhaps the safest way to

make most money, although I own none of SGC, for I see a possible

weakness, as there might be a possible problem with warrant holders.

Any more weakness and I would buy.

→ Goldrush Resources (GOD; $0.02) offers 25% arbitrage upside in terms

of the value being offered by First Mining Finance (FF). I of course

see a nice upside in continuing to own FF.

→ Novo Resources (NVO; $0.55) is another company that I want to add to

on any weakness. It is run by Dr Quinton Hennigh, for who I have a lot

of respect. I worked with him when we were on the board of Gold

Canyon Resources. He is not only a great geologist but he also has

great business acumen—this combination is very rare in the junior

mining industry. His project might be in production next year.

→ CB Gold (CBJ; mostly $0.04 except for a recent market order): CBJ will

at some point be delisted and you can expect to get $0.06 in cash or

equivalent. This could be a 50% upside.

→ Starcore International (SAM; $0.28): Their share price has weakened

because of the recent rollback. Moreover, their latest financials look

good to me. Their smelter is apparently ready to go into production.

Were SAM not terrible in investor relations, I would be more aggressive

in buying it. However, I see a very good upside at the current price.

→ Batero Gold (BAT; $0.055) has cash value of about $0.105. While I do

not really understand their strategy, BAT is currently suffering from tax-

loss selling, offering an opportunity for short-term profit.

→ Energold Drilling (EGD; $0.38) and Impact Silver (IPT; $0.125) both

associated companies are also suffering from tax-loss selling, offering

near-term profit and investment opportunity.

I will be speaking at Anarchapulco, Mexico in February 2016 on why continual degeneration of the West is inevitable. Also, I will be speaking at PDAC, Toronto in March 2016 on reasoning behind why Indians buy gold.

Wish you all a very happy new year.

Warm regards,

Jayant Bhandari

www.jayantbhandari.com

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