2020-07-06 20:59 ET – In the News
The International Speculator, in its June 24, 2020, issue, downgrades Orea Mining Corp., the renamed Columbus Gold Corp. (recently 15.5 cents), to “hold” from “buy.” This is the newsletter’s second go-round with the French Guianese explorer. The Speculator said buy Columbus Gold on April 2, 2007, at $1.48 and again on Oct. 1, 2007, at $1.21. It then said sell on May 1, 2008, at 63 cents. Assuming an investment of $1,000 for each of the two buys, selling the $2,000 position at 63 cents yielded a loss of $1,073. The newsletter then said buy 14 more times between Feb. 7, 2011, and March 26, 2020, at prices ranging from 12 cents to 95 cents. Assuming 14 investments of $1,000 each, the $14,000 position is worth $6,504. Orea Mining will continue to have a 44.99-per-cent interest on the Paul Isnard project in French Guiana. The project has 4.8 million ounces of gold in total resources and a feasibility study outlining $370-million (U.S.) of rock, with 5-per-cent discounted net present value and 18.7-per-cent internal rate of return. The writer says that it is important to note that this valuation was calculated at a gold price of $1,250 per ounce, so with gold over $1,700, there is much more value in the project.
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