Investment Q&A

Q: Hi 5i Team - Could you summarize the recent deal between Alamos Gold and Argonaut Gold. I hold shares in Argonaut Gold. Do you think it is worth holding them to gain shares in Alamos as well as shares in the spin-out of Algonquin - or just sell now. When is the anticipated date of the transaction. Thanks

Q: Hi 5i Team - The share price of Argonaut Gold had a recent major one day drop and has shown little recovery since. Could you explain the one day drop in price and also your opinion on whether it is worth holding based on fundamentals and exploration as well as earnings potential. Also do you think the sell-off is overdone.
Thanks.

Q: Hi 5i Team - Argonaut Gold has announced that it has just completed a Follow-on-Equity Offering of CAD $80 million. Is this a positive for the company or is the further dilution a reason to sell and move on to something else. There are already over a billion shares, and I am assuming this is before the recent offering. Do you think the market has already priced in this further dilution. Also what does 'Follow-on-Equity' mean.
Thanks.

Q: You recently answered a question on Argonaut Gold. You mentioned that there would be more information to share after its results on Nov 14th. The price has been falling sharply. Are there new reasons for concern? Buy, hold or sell? Thanks.

Q: Hi 5i Team - Could you provide an update on Argonaut Gold including cash on hand, debt, production potential, exploration potential. Also insider holdings and recent trading. Its latest press releases seem to be at least a little upbeat but the stock continues to go lower. Maybe I am misreading them. Thanks.

Q: I currently hold both AR and BTO as gold stocks. Down on both. Can you please give me your thoughts to whether I should hold or dump one. Down on both. Thank you in advance.

Q: Hello. Can I get your thoughts on these companies including reserve estimates, valuation, growth prospects (in terms of reserves)? How would you rank them a with some comments to justify the ranking order please? Thanks!!

Q: What do you think of Argonaut Gold’s prospects given the news that sent the share price tumbling today? Do you have any confidence that they will eventually make Magino a success?

Q: I have several small cap stocks which are significantly down in 2022. I need to harvest some tax losses. Can you rank these in on a scale of 1 to 10.....#1 being "Sell for sure", and #10 = "speculative hold for possible recovery".

Q: Good morning team,
What are your thoughts on the financing for the completion of the Magino project? Will the issue of 400 million shares @ .45 dilute the overall share count? Will the company value increase once the first gold is poured and how would you rate this investment over the long haul?
Many thanks as usual,
Jean

Q: Good morning team,
Not a good morning for Argonaut's shareholders such as myself and with the disappointing news release last night about the cost of the Magino mine estimated to be up another 15% and the shares tumbling 30% today,is this a oversold situation.What are your thoughts?
Many thanks as usual,
Jean

Q: I hold both NGD (about 1.7% position) and AR (currently about 0.8% position, but initiated at about 1.5%) among my positions in precious metals. AR corrected significantly over the last few months, but the share price seems to be rebounding since lows were established shortly after the New Year. Both NGD and AR have been outmatched by KRR (just about 3% position) , which has performed spectacularly over the last several months. I feel like I am decently positioned with KRR, and was wondering your thoughts on consolidating positions around either NGD or AR. Would this be worthwhile, or is staying put the more prudent approach for this issue? Alternatively, would you suggest selling both and initiating a position elsewhere, or further increasing my position in KRR?

As always, I look forward to your comments, and appreciate your insights.

Q: Decided to wait on any company financing moves before buying for my TFSA, and now that has happened. Can you throw some light on how this financing reflects on the company’s balance sheet , and what effect this will have on the stock price Also can you explain Canadian Development Expense and Canadian Exploration Expense flow through shares are and how they impact on the share price. Thanks. Derek

Q: I am a recent retiree with a portfolio concentrated in financials, oil & gas (currently, anyway) and telecomms. Would a combination of the dividend-producing DRD, BTG/BTO:CA, and AR:CA make for a sufficiently diversified entree into gold stock? After yesterday's jump is gold looking more attractive as a diversifier and portfolio "insurance" provider?
Thanks!

Q: Trying to figure out the dynamics of this stock as considering buying for my TFSA as an admittedly risky ( speculative ) venture.
It has a high institutional holding and would they not see share dilution as the worst of possibilities to raise capital ? A takeover ( at a reasonable) would seem to be a better alternative for them. Do you know how much the individual directors own ? Their Board does seem experienced and while they did let costs get ahead of them, they did take decisive action by firing the President and founder of the company. What is your assessment of them getting the Magino mine up and running at expected costs ? I am considering buying , so ask you do I wait until we know the financing or take a chance with a 3 - 6 % position buying now or gradually ? Thanks Derek

Q: Hi team and all the best in 2022.
Ar is still 42% held by institutions, av.price target by analysts is at $3.45,the Magino project funding shortfall is perhaps 300million.I realize that there could be a stock issue to fund the shortfall,BUT with the Magino project with it's proven reserves and low cost of 600$ an ounce to exploit,do you see this company being undervalued and the selling exaggerated due to the uncertainties? A wise purchase for the long term at this price?
Many thanks,
Jean

Q: AR's drop in share price has been precipitous to say the least. The last news item involved two things: the Magino construction costs and Pete Dougherty resigning.

I have two questions.

1. Which of those two news items would be more likely to have caused such a violent drop?

2. Is this an opportunity to establish a position given the strong fundamentals of the company? (for instance TMX Money says p/e is 6.4 while the p/b is .60) Didn't Ben Graham say that the way to make money is to buy a dollar worth of a company for less than a dollar?

Q: is it to late to sell argonaut gold now or keep it for next 2 years

Q: Is Argonaut Gold still a decent gold company to invest in , it seems to be struggling , but id like to buy more for when it breaks out.

Q: TSK: This company has done little over several years, is it worth holding on to? Which small to mid cap gold company would have better prospects?
Thanks
Dick