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Capital Gold : CGLD in USA, CGC.T in Canada


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MarketCap : $41.81M at $0.32 // cash of perhaps $4mn (?)


Chart ... update


Update - A successful investment ! A March 13, 2009 Takeover Bid from Gammon Lake (GMS.T)



Gammon Lake (GRS) ... update



Capital Gold Corp. (CGLD) is a gold exploration company. CGLD owns the El Chanate gold property in Sonora, Mexico. Financing for the mine has been arranged, and a recent increase in reserves has been announced.


"As a result of higher gold prices, the El Chanate gold reserve ounces have been increased by 33 percent from 368,000 to 490,000 ounces. Similarly, the recoverable gold ounces have increased by 29 percent from 258,000 to 332,000 ounces. A gold price of US$450 (SEC three year average as of July 31, 2006) per ounce was used to re-estimate the reserves compared with a gold price of US$375 per ounce used in the previously reported reserve calculations."



• Capital Gold Announces Increase in Estimated Gold Reserves at El Chanate, Sonora, Mexico

PR Newswire (Thu, Sep 7)


• Capital Gold Secures US$12,500,000 Senior Project Finance Facility With Standard Bank Plc for the El Chanate Gold Project

PR Newswire (Wed, Aug 16)


= = = = =


CGLD website : http://www.CapitalGoldCorp.com

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  • 11 months later...

(note from IR, after News release):


today's important release detailing the 70% increase to 832,000 ounces of proven and probable reserves at Capital Gold's El Chanate mine in Sonorra Mexico.



Mine life has increased to 11 years.


Company believes pit remains open to the east and at depth.


At about $70 mil market cap, Capital Gold is trading at about 4 times cash flow, which should be some $18 million presuming expected ramp up to 60,000 oz production and $300 cash flow per ounce assuming a $630 gold price.


Capital Gold trades on the Toronto main board (ticker: CGC), though most of the volume takes place on the OTCBB (CGLD).


The company's website is quite detailed with the main page displaying a 5-minute video with relevant data:


website: http://www.capitalgoldcorp.com/



Investors include Van Eck, SC Fundamental, CDP and AGF of Canada, SGBP in Par

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  • 1 month later...

breakout out!

(good podcast, Frizzers?)


Last [Tick] 0.545[ + ] Change 0.0401

% Change 7.94%

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  • 4 months later...

Gold Sales and Net Income Up While Cash Costs of Production

Remain Well Below Industry Average


New York, March 14, 2008 - Capital Gold (TSX:CGC; OTC/BB:CGLD) reported today that gold

production, revenue and net income were up for the second fiscal quarter, ending January 31, 2008, as

compared to the first quarter.


 Through January 31, 2008, net sales were $8,043,000 based on 9,550 ounces of gold sold at an

average price of $843, as compared to sales of $6,526,000 based on 9,194 ounces sold at an

average price of $711 for the first quarter, a 23% increase. (The London Bullion Market

Association average gold PM fix was $835 for the second fiscal quarter, ended January 31, 2008).


 Net income was approximately $2,126,000 in the second quarter, which equates to a fully diluted

income per share of $0.01. Net income was $1,747,000 in the first quarter. Net income for the six

months ended January 31, 2008 was $0.02.


 Cash costs of just $246 were achieved for the six months ending January, 31, 2008 – well below

the gold industry average of approximately $371 per ounce.


John Brownlie, Capital Gold’s Chief Operating Officer, said: “The pad area available for leaching during

January and February was significantly less than the amount of new ore (558,000 tonnes) that was

stacked. This was due to a revised stacking plan (because of pad expansion) and upgrading of the solution

pumping system. As of mid March, we have the increased pumping capacity to the leach pad, and have

returned to the original stacking plan. During the third quarter, we will extract gold from this ore.

Concurrently, we have begun the expansion of the ADR plant”. As of January 31, there are approximately

24,000 recoverable ounces of gold contained in the leach pads that should be recovered during calendar

year 2008.


“Once these projects are complete they will eliminate the restrictions limiting our current gold production

to 50,000 ounces per year. We anticipate these upgrades will enable us to reach 70,000 ounces of gold

production in 2009. The leach pad expansion and other upgrades are being funded from cash flow

generated by our operation,” Brownlie added

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  • 2 months later...

Nice bit of news from CGLD this week




Net income was approximately $2,740,000 in the third quarter. The

Company had a 29% increase in net income compared to $2,126,000 in the

second quarter. Earnings per share for third quarter were $0.02 and

$0.04 for the nine months ended April 30, 2008.

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Yes. I meant to buy some more at 60.

They are in London this week


Notice that the latest GIP at 60 is double the previous GIP at 30 (see post #1)


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What do people reckon will happen with the Anglogold buy in option set to expire on July 28th? Are they likely to exercise their right?


Now the Jeff Pritchard and John Brownlie have joined Tara Gold there has been some speculation that these two companies may merge. The theory being that Tara have the properties and Capital the cash and know how to bring them into production.

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  • 3 months later...



Some decent news out of Capital Gold. Lost in all the noise but bodes well for the future I think.


Capital Gold (TSX: CGC | Quote | Chart | News | PowerRating) (OTCBB: CGLD), a gold production and exploration company, reported on 13 October the production of 4,350 ounces of gold in September 2008 at its El Chanate mine in Sonora, Mexico.The combined production of gold for August and September is now a record 9,100 ounces, which is over 1,000 ounces more than any previous two months.


The company stated the cash costs for its first fiscal year (excluding royalties) were USD224 an ounce, which is below the industry average of over USD400, significantly contributing to the company's bottom line. According to chief operating officer John Brownlie, Capital Gold's production has risen to an annual rate of 55,000 ounces per year. In addition, the company has proposed a reverse split to obtain a listing on a major national exchange such as the American Stock Exchange (AMEX). Since the stock price is at a 52 week low, the management reserves the right to delay enacting the split if it deems the resulting share price will fall short of the USD2 required by the AMEX.

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  • 1 month later...

Stock price rocketed by 57.1% :o then dropped like a stone. Guess investors bugged out and sold pretty damn quick to buy in again sub-$0.30 . . . Still, they're performing . . . ;)




Capital Gold Continues To Set Record Gold Production Totals


NEW YORK, Nov. 17 /PRNewswire-FirstCall/ -- Capital Gold (TSX: CGC; OTC Bulletin Board: CGLD) announced today that the Company has produced 11,888 ounces of gold in the first fiscal quarter of 2009 (ended October 31, 2008) at its El Chanate mine in Sonora, Mexico. Gross proceeds from the quarter were just over $9.1 million, with an average sale price of $801 per ounce. John Brownlie, Capital Gold’s Chief Operating Officer, said, "We are exceeding each previous quarter’s production totals on a consistent basis now. The new ADR plant is almost completely operational and we should continue to see production growth."


At a Special Meeting of Stockholders on October 31, Capital Gold’s stockholders, by an overwhelming majority authorized its Board of Directors to effect a reverse split of its Common Stock at a ratio in the range of 1-for-4 to 1-for-6. The split was proposed to meet the $2 minimum stock price requirement for listing of the Company’s Common Stock on the NYSE Alternext US (formerly the American Stock Exchange). Jeff Pritchard, Capital Gold’s Executive Vice President, said, "Despite the approval, the Company has decided not to effect the split unless and until market conditions stabilize. We need to see the trading in our shares, other junior mining shares as well as the markets in general, recover to more comfortable levels before the Board of Directors decides to proceed with the split."


The market downturn has created other prospects for the Company, and there have been informal talks with other junior miners in the region. Brownlie added: "Our financial position is strong and we are ideally placed to explore the unique opportunities being created by the current market conditions. So while continuing to explore at El Chanate, we will be focusing on the acquisition of other projects and properties in Mexico."


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  • 2 months later...

4+ Million CGC Shares sold in Toronto today... something is definitely stirring with this company.



I bought in on Frizzers advice in Moneyweek in March 2008 and rode the stock all the way down from 75cents to 31 cents.

Now back at 65cents im almost breaking even once the drop in the £ is taken into consideration lol

Looks like they are coming back to life now though so just as well i hung on in there :)

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I bought some as a recommended stock on the DrB Diary thread


I own loads, and will lighten up a little soon. But what to replace it??

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Capital Gold Announces Record Gold Production Totals for December 2008

1/6/2009 8:56 AM - PR Newswire


NEW YORK, Jan 06, 2009 /PRNewswire-FirstCall via COMTEX News Network/ --

Capital Gold (TSX: CGC; OTC Bulletin Board: CGLD) announced today that it produced 5,375 ounces of gold in December at its El Chanate mine in Sonora, Mexico. This represents the Company's best monthly production to date, and surpasses the previous best monthly total of 4,750 ounces by 13%.


Capital Gold's Chief Operating Officer, John Brownlie, said, "This increased production is the result of careful planning and implementation of our production enhancement program that we initiated in mid-2008. The program will culminate with the installation of an additional crusher module, scheduled for late March. This will allow for further production increases." All of the financing for the program's upgrades and additions have been provided through operational cash flow.





+ 5,375 ounces of gold (in Dec)

+ Market Cap (Mil) : c$117.81mn Shares Out (mil) 193.13


adjust: (C$ 117.8mn x .802): US$94.5 mn / (5.375 x 12= 64.5 K oz.) = $1,465 per oz. production


Revenue est.: 64,500 oz x $830 = $53.5 million (or only HALF its Mkt.Cap)!

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(comments from Stockhouse):



Capital Gold is currently valued at $107 per reserve oz. Even with a triple in the share price it would still be well under the valuation of most of the majors such as Goldcorp which is valued at $514 per reserve oz. And this is without even taking into consideration bringing any of their 1.1 million resource oz into the reserve category. Looks like a great deal at anything under $1.50 PPS

My opinion only. Best of luck to all.



Two 2 mil trades crossed in quick succession at C$0.56 and C$0.57 respectively.

These two transactions essentially created the early volume. Unfortunately, these wo transactions appear to be an individual who sold to him/herself. For what ever reason these two transactions were executed I do not think they can be considered to be representative of an significant news of significant new interest in the stock. The other 500K shares or so that have been crossed are likely to be the result of day traders who's screens popped off when the 4 mil volume occurred and they are buying into what they thinks are technicals. And therefore the shrs being sold are likely to be based on electronic trade triggers that were set a long time ago by existing shr holder.


That is my take on it right or wrong. Good luck. I am a holder of a small position in this one.



Camaroni, I think your explanation is right on the money. On November 13 we had the same type of internal cross create a volume spike of 5M+ shares and a violent move from $.43 (the close on November 12) all the way down to $.35. As luck would have it, no stop-loss orders were triggered so there was little in the form of follow-through from other market participants.


Today’s game though, seems to have sucked in a few people with automated buys. They will be mighty disappointed tomorrow when the US market opens and the price goes back down.


Really nothing to get excited about!


/see: http://www.stockhouse.com/Bullboards/Messa...mp;pd=2&r=0


== ==


I dont buy this explanation.

In a volatile market like this, why would people leave such "automatic" orders on the books?

Maybe these two ater talking it down, to buy more?

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  • 1 month later...



I have a small holding so am keen to see how this works out. I guess there is more news to come but without the promised 43-101 us share holders dont even know what we are being advised to sell. Summed up nicely in the following post from stockhouse board:


"My first impression is that this deal reeks. Remember, we were promised an updated 43-101 in January, which, of course, is nowhere to be seen. I wonder why. Now, two months later, the CGLD board is recommending that we sell out to Gammon. I say, WHOA!!!! Without the updated reserve numbers, the fact is we don't even know what the f*** we're being advised to sell! We're supposed to accept the company's word that this is a good deal when they refuse to tell us first what the company, according to a revised 43-101, is now worth? At the very least, let's demand some answers before we kow-tow on this was. The whole scheme strikes me as suspicious -- if not downright shady."
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The drill results and resource estimates will be out next week before the vote on whether to accept the deal.


If the resource estimate is bonanza then it's a crap deal. If the resource turns out to be rubbish then perhaps it's not such a bad deal after all.

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I'm not so unhappy about this merger. The terms look okay to me.


If you are holder of CGLD stock, you want to see a swap into GMS when the Gap is big.

And it is big now (However, I am comparing a US$ CGLD price with GAM.t in C$) ... update



Looking at it another way, here's the ratio, as calculated by using Stockcharts (and the US$ symbol/ GRS)




The more GRS shares per CGLD share, the better.


The trick here will be whether or not investors will really pay more for Gammon as a somewhat larger and more

diversified entity. I think there is a good chance the "economies of scale" and "synnergies" will work.


But I need to look more at Gammons projects before being a more confident "long term holder" of the stock.

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