(IBTimes) -
Catalytic Events Moving Gold Stocks: Jocelyn
August
Source: George S. Mack of
The Gold Report
(5/2/12)
http://www.theaureport.com/pub/na/13246
Sagient Research Systems is known for its investor research in
the drug and medical device field, but the firm has also tailored
its scientific approach to market-moving catalysts in the
precious metals industry. In this exclusive interview with
The Gold Report
,
Senior Analyst Jocelyn August discusses looming events in a
select group of natural resource stocks that are expected to move
as information flows out.
The Gold Report:
Jocelyn, you are following catalysts that affect resource stocks.
Tell me about that.
Jocelyn August:
We have started looking at catalysts in the natural resource
sector. Originally, our
CatalystTracker
was designed to look at just medical devices and diagnostics as
well as drugs and the catalysts involved in their development.
But we did another impact study for the natural resource sector
and identified some large-impact events in the minerals sector.
Similar to drug and device development, you can follow a timeline
for the development of a natural resource from the planning
stages to exploration, and you can see similar catalysts in terms
of the testing of the natural resources and results that might be
announced. We think those types of events have large impacts for
these companies.
TGR:
And you publish on these events, right?
JA:
We recently completed a
Q212 Outlook Report
for natural resources, and we discussed four upcoming gold
catalysts for the second quarter.
TGR:
Speaking generally for a moment to the differences between drug
and resource development, I'm thinking that you have much shorter
development times with mines than you do with drugs. Don't
you?
JA:
It depends. I think there definitely are companies that have been
developing a mine for a long time and have run into a lot of
regulatory and permitting hurdles.
TGR:
Can we talk about some of the impending events and companies?
JA:
One that we highlighted in our report for gold was the
General Metals Corp. (GNMT:OTCBB; GMQ:FSE)
. This is a very small company with a $5.8 million (
M
) market cap. It is working on the Independence mine project in
Nevada. We expect it is going to announce a preliminary economic
assessment (PEA), which is an important step in moving the mine
toward production. It's going to tell us if this mine is going to
be economically viable in terms of development. So it's a
necessary step for moving on in the feasibility stage. It will be
an important event for the company considering that that market
cap is so small.
TGR:
How important will this PEA be as a catalyst for General
Metals?
JA:
The company has announced that it does not have the additional
funds to proceed with the plan of operation. So if the PEA is
negative, then it's going to be hard for it to come up with
additional development funds. Because this is its only project in
development right now, it might be forced to cut back or even
cease operations if the PEA is negative. On the other hand, if it
is a positive announcement, then this could be a major step for
the company with pretty significant upside for that specific
event. We think that that's going to be happening in Q212 as
well.
TGR:
What else have you written about in your
Q2 Outlook Report
?
JA:
We are looking at several different gold companies that have some
updated resource estimates. There is a project in the Marban
block in Quebec for
Aurizon Mines Ltd. (ARZ:TSX; AZK:NYSE.A)
. It has an option agreement with NioGold Mining Corp.
(NOX:TSX.V; NOXGF:OTCPK) for this project. NioGold is currently
the 100% operator of the project, but through its option
agreement Aurizon can earn an additional 50% and then potentially
up to 65% if it completes certain developmental milestones. So
this updated mineral resource estimate for Marban would mean
further fulfillment of the requirement for the option. It would
mean that Aurizon would be at least a 50% operator here. That
should work for both of them. That is also supposed to occur in
Q212.
We also have an updated resource estimate projected for
mid-2012 for
Coeur d'Alene Mines Corp. (CDM:TSX; CDE:NYSE)
for the Joaquin project, which is the gold and silver project in
Argentina. It has already released some information on the
estimate, and it is expecting to announce another update. That
should give us a better indication of how much is actually
present in that resource.
TGR:
Coeur has a market cap of about $1.9 billion (
B
). How much can these catalysts mean?
JA:
Coeur is a larger company with some other projects, but it should
help give investors a better idea of where the company is going,
how it's continuing to develop its resources and continuing to
make money. Obviously, all mines have a certain lifespan, and all
these mining companies have to continue to find new areas to
develop so they can make up for other mines' production going
down. It's like a pipeline in drug development.
TGR:
Is there one more you might mention?
JA:
The only other one we have is
North American Palladium Ltd. (PDL:TSX;
PAL:NYSE)
. It's a palladium company, obviously, but it is developing the
Vezza mine, a gold mine in the Abitibi region of Quebec. The gold
project is functioning as a diversification vehicle for the
company, and we think that's appealing. It is expecting to
announce the start of commercial production in Q212.
TGR:
Thank you very much.
JA:
Thank you.
Jocelyn August
is currently the senior analyst and product manager for
CatalystTracker, a proprietary research product focused on
identifying and analyzing the future events that will materially
impact publicly traded companies. In her five years at Sagient,
she has developed expertise in the highly event-driven medical
device and diagnostic sector. In addition, she spearheaded the
development of a new Natural Resource Industry product within the
CatalystTracker product line with the publication of the
Catalyst Impact Study: Natural Resources Sector.
Outside of Sagient, August was named the director of
communications for the San Diego Professional Chapter of MBA
Women International. August received a Master of Business
Administration from the Rady School of Management at the
University of California, San Diego and graduated cum laude from
the University of California, San Diego with a Bachelor of Arts
degree in sociology.
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DISCLOSURE:
1) George S. Mack of
The Gold Report
conducted this interview. He personally and/or his family own
shares of the following companies mentioned in this interview:
None.
2) The following companies mentioned in the interview are
sponsors of
The Gold Report:
Aurizon Mines Ltd. Streetwise Reports does not accept stock in
exchange for services.
3) Jocelyn August: I personally and/or my family own shares of
the following companies mentioned in this interview: None. I
personally and/or my family am paid by the following companies
mentioned in this interview: None. I was not paid by Streetwise
Reports for participating in this story.
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