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I've been doing last year's Capital Gains forms and came across CRG. Went and looked it up, and lo and behold it's down to 60 cents.
I even found a "bottom feeder" article on teh intarwebz about it. Says they have $13M market cap and $28M cash.
Interesting, eh? Is this one of those "companies trading for less than bank" that is supposed to signify the stupid part of the market bottom?
But wait! Apparently, $16M of that "cash" is actually shares in purveyors of moosepasture like RYG and SBB. Also, HRT and TML.
Seems CRG's collapse has pretty much mirrored the post-2010 collapse in these other miners (SBB's chart not shown, it's just as bad as the others, you've seen it here before).
So does that instead mean that CRG's discount to book actually indicates that SBB and RYG will, in the eyes of the market, continue to collapse in price? CRG has 37 cents in real "cash", y'know.
Seems to me if you're some looney newsletter writer who still believes Sabina is worth $10 a share, then you should load up on CRG shares for the leverage to SBB. No?
UPDATE: It gets curiouser and curiouser. 14 cents per share of CRG is their shares of RYG... now, RYG is basically Shawn Ryan, his wife, a log cabin, and a whole lot of Call of the Wild vistas. Oh... and $48M cash. (Hard to spend $48M when you're a guy in a log cabin with a spade and a bucket!) So you can actually value CRG's share of RYG at a further 12 cents per share in cash.
Plus, Sabina has $100M - though they're spending it this year - and that's another 5 cents per share for CRG.
We're now up to 54 cents, and it's trading at 60.
HRT and TML are cash-poor.
So... this company's share price is pretty much backed by 90% cash (just a lot of other people's cash that's going to be spent this year), plus a pile of shares in companies who you might think are worthless... but will Sabina, say, ever bounce back? And one of the other companies CRG has shares in has a property in Dryden, so I don't see a problem with building a mine there (so long as the grade is economical).
Seems like your post could've had something to do with the increased volume and slight gain on CRG today... unusual since CRG can go days at a time without any trades. Same volume and price "pop" happened with the bottomfeeder article.
ReplyDeleteThis is one of my many doggish gold stock holdings but it has actually held up much better than two of its 3 main holdings (SBB & RYG)... and I got it at a good price. It'd make more sense to buy CRG than one of its two constituents... at least the velocity of losses is slower here.
Anyway, since I own it, I read the March 14th management report on SEDAR. See below for what I thought were highlights...
OUTLOOK
"As at December 31, 2011, the Company had approximately $7.8 million in cash, long term investments with a market valuation of approximately $17.4 million, loans receivable valued at approximately $4.5 million (and as noted, subsequent to year end, African Minerals repaid the US$5 million Term Facility), and current liabilities of approximately $135,000. The Company’s total head office budget for 2012 is approximately $550,000. The Company has no current plans for any material capital expenditures in 2011. The Company has sufficient working capital to meet its present budget requirements."
PURCHASED SHARES OF ALDERON IRON ORE IN DECEMBER 2011
"In December, 2011, the Company purchased 216,667 flow-through common shares of Alderon Iron Ore Corp. (“Alderon”) at a price of $3.00 per share. Alderon is a development company with an iron ore project, Kami, located in Western Labrador, Canada."
-- I think these could be important dates for Corona Gold:
MAY 28, 2012
"To fully acquire Corona’s interest, Harte must pay the Company an additional $2,500,000 in cash on or before May 28, 2012 or, failing such payment, $3,000,000 in cash on or before May 28, 2013. Harte will pay Corona $90,000 in cash on or before each sixth month anniversary of the Comprehensive Agreement until payment of one of the amounts specified above."
JUNE 19, 2012
-- This is the Expiry date of 1,980,000 Options at an Exercise price of $0.50 (these are seemingly the only outstanding options). Looks like they might have another $1-M at that time to purchase more shares of Golden Moosepasture Corp.
Lastly, GoldMinerPulse has done a decent job of showing you what the value is of the various CRG holdings -- http://www.goldminerpulse.com/blogs/coronaGold.php
Nobody should be buying anything based on my say-so. Ever. Especially right now, if it's a junior or an exploreco or one of these "investment fund stocks".
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