Contra Guys: This is one gold stock we’re (very patiently) watching closely – by Benj Gallander and Ben Stadelmann (Globe and Mail – February 25, 2020)

It is almost time for PDAC, one of the world’s largest mining shows held annually in Toronto. March 1-4 are the dates, and for investors scouting out resource investments, this is a great place to venture as companies large and small are in attendance and want to make you aware of their wares.

At least one of us has attended almost every annum for more than 30 years, during fat times and lean for gold and commodity prices. When valuations are up, the place is rocking; when down, as one attendee said, “You could shoot a cannon down the aisle and not hit anyone.” With the gold price being reasonably sweet and getting sweeter, 25,000 plus should be in attendance this year.

While we wrote about our success with better than a triple on Alacer Gold in August, Orvana Minerals has proven more problematic for Benj. Purchased just over five years ago at $0.28, it currently trades at $0.22.

The initial sell target was set at $1.24 and that price seems as close to reality as fool’s gold being the real thing, with the $0.41 reached in July being the high-water mark since being acquired. The question then becomes, when is it time to cut and run?

Orvana operates in Bolivia and Spain. Revenues for the past eight years have always been north of US$120-million, except in 2016 when they slipped to US$94-million. One hitch though is that only in 2012 and 2013 did the company turn a profit.

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