I have spoken often of late about my expectations that Chinese companies are ram-ping up their acquisition mode in the mining and exploration industry worldwide. I felt that Continental Minerals (KMK-TSX-V $1.15) was an ideal target and had purchased a very large personal position.
This news of Zijin Mining is very bullish in my biased opinion. We now have two very large competitors with equal interests. It’s fair to say IMHO that Jinchuan, which currently owns a similar position as Zijin, will take full notice of this development. In the end, I believe the bottomline for these two companies is not a paper gain in their shares but eventual ownership of the projects. In Jinchuan’s case, a clock is now potentially ticking that they felt didn’t exist before the news. For Zijin, they now appear to have equal footing.
Let the games begin!
Because there’s no warrants and Zijin almost certainly has no shares to sell higher than $1.07, there’s no likely cap to the share price until the deal closes, which I believe is anticipated to be in short order. I maintain my aggressive speculative buy up to $1.20. There’s no reason to expect an immediate big boost, but I suspect as the perception one of the now two Chinese major shareholder mining companies is in this for more than a passive stock gain, the share price can work its way much higher over time.
Tags: Continental Minerals
ED – Bingo again!
There’s no way these two Chinese firms own 14% each just to profit on the share price over time. Risk here is 20 cents down and $2 up
Grandich works for several HD companies. Do you really think he was in the blind on this deal? He’s just another tout.
Ed, come speak to us again! I ditto Larry’s sentiment.
Peter, I stay away from negative comments or attacking anyone and have come to really appreciate so many of these great bloggers. However, you may want to check into the fact that someone seems to be using your name in an unauthorized manner. Some might think that a cease and desist letter might be in order?
Susan – KMK has two giant deposits with all sorts of upside potential right in China’s backyard. If you can appreciate this and their original deal with Jinchuan, you would know how big this new deal really is. Read up on that deal and understand what happens to it now that Zijin has entered the picture. Unless metals collapse, Grandich is right that it’s when, not if one of these guys take out all parties.
HD excels at this and the next piece of the puzzle will be a small pp to key institutions in order to pump up the share price. This will force one of these mining giants to make a move.
It won’t be overnight but I bet you see $2+ without ever again under $1. Great risk reward.
The Level 2’s show me there is a lot of selling on this news. 60000 shares at $1.20 pre-market. Hmm, I wonder where they came up with $1.20. I’d wait to pick any shares up at this point. I’m waiting until it goes to $1.07. If there’s a battle brewing between Zijin and Jinchuan it will play out over the next 12 months, not 12 days. Just ask Northern Dynasty, Rio Tinto, and Anglo American.
You have been bang on with KMK and CRC news ahead of the crowd. What’s your opinion on CRC?
its been several years since we read similar things about nak it may happen but nobody should expect it to happen soon .
Rich, good information…thanks! Ed just curious….do you own alot of KMK shares? (I’m just looking for someone to make me feel better)
Susan – Why do you need to feel better? If the stock was up a dime versus down the same would that do the trick? Sorry but you seem like a very nice lady but you show traits of most individuals who almost always lose in the long run. The key to success is to think like a business owner not a share owner. KMK has two very significant deposits with a Chinese partner who bought in a while back and has to foot much of the bill. I believe they dragged their feet hoping to get KMK to take a lower price (rumor has it they offered $1.35 and HD said start at $2). The new deal changes the whole game and definitely will accelerate the process. What you need to do is stop watching the share price and just focus on corporate developments. The risk is 20 cents down and a buck plus higher. That’s good enough for me.
Crescent is a steal here and look for more great news soon.
That’s it for me here as I’ll let the novices pound their chests.
Ed, thanks your right. I was trying to be a bit funny and it fell flat. I know about holding on…..as I am still holding on to NAK with high hopes. Appreciate your input.
Susan One more thing for the road. There are certainly smarter people than PG but they’re less honest and sincere. I find PG an incredible person in an industry full of misfits and losers. His record is among the best but when you factor in the extra mile he goes for people like you, I think he’s five stars. Do your self a favor and totally ignore the jealous and envious PG naysayers who pop up here in the safety of cyberspace. They can’t hold his jockstrap in real life.
Susan regarding your nak…notice that you peaked exactly at the same point as the last run….most likely this pattern will repeat and the next time it may take out that overhead res.with a much higher target.If it breaks below the 5.80 area a red flag would pop up to me as a warning and if it continued to falter it then lower prices are obvious maybe to 5….but eventually it will gather steam again…it;s trending in what looks to be a large sym. triangle in the making…eventually the outcome should be to the upside in the 13 area or much higher if momo kicks in or say a buyout offer…obv targets in between are 9, 10.59 and 12.50….so as long as it says in the confines of this tri. then all looks fine on nak…..the other day I ment. a watch on kmk….I felt we could see some downside to the .90 to .95 aea which I would personally add some….this as pointed out by Peter is a buyout candidate…..so it may not trade logically and your bet is a buyout so it must be held somewhat with blinders on knowing it’s got the goods someone else wants……
thanks Chris….been wondering where you were…..
Mpv …will be on bnn commodities in a few min….watch this
mpv is mountain province diamonds btw
it trades as mdm in the us
For those who didn’t see the interview
http://watch.bnn.ca/#clip219815
klaus re flu stuff…looks like we sold on time…now the neg. stuff comes out to drive the prices back to earth..lol
http://stocks.investopedia.com/stock-analysis/2009/Long-Term-Flu-Plays-BCRX-INO-NVAX-GSK-NVS-SNY-JNJ-ABT1002.aspx?partner=YahooSA
Chris – yeah, I got out of the flu stocks in good shape, but I’ve found it a lot more difficult to shake the flu itself – lol.
Well hope ya feel better…chicken soup…that’s what my wife feeds me…. especially straight broth if you have it……..good quick run on mpv…..but I’m of the minset not to sell any of my mpv…if he takes the co. to a joint venture the stock will be worth well north of 10…if not I expect buyout anywhere 5-10…so I’ll just keep adding on dips but it kills me not to sell these runs…but there is very little stock ever for sale especially from insiders.
Two weeks of chicken soup – just can’t look at it anymore!
Re: MPV – missed a quick trade because I turned on BNN halfway through the interview and the run up was already ripe. You know we’re in a speculative phase when you get this kind of action……
Gold chart
http://www.marketoracle.co.uk/Article13918.html
Chinese Lighting Firm Veers Into Gold Mining
ASIA Wall Street Journal
by JEFFREY NG
9/28/2009
HONG KONG — Lighting-equipment manufacturer Bright International Group Ltd. agreed to buy eight Chinese gold mines in two deals valued at a total of 7.41 billion Hong Kong dollars (US$956.1 million).
The company said it believes gold has high commercial value and that demand for the precious metal has remained stable despite the recent economic downturn.
No Continental Minerals mention. Just confirmation of a trend!
http://online.wsj.com/article/SB125416187226046893.html
For those who didn’t see the interview
http://watch.bnn.ca/#clip219815