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Tucows awaits Shareholder Report

    On May8 Tucows released it's first quarter report.There were few surprises in the report-especially to this blog.Although adjusted EBITDA was up 34%, revenues were only ahead by 6% and net income by 1%.So e.p.s.went from $.26 per share to $.27.Tucows is in a mature market with competition and needs to find alternative revenue producers.This blog has been saying this for many quarters now.But there has been no changes made.See blog on www.site123.com on 05/11/2020.
    Tucows tells shareholders that about 35% of revenues come from access networks and 35% from value added services and about 25% from domain services.And as most shareholders know access and domaine names require little management.In fact, Tucows (under pressure) sold some of it's domaine name portfolio in 2020.But it also made an acquisition of a domain name wholesaler called Ascio in March  2019.It also made a small acquisition called Cedar Holdings that appears to be a mobile internet provider to increase the footprint of it's long held mobile internet provider called Ting.
    Moving Lawn Chairs on the Titanic
    These changes are tantamount to moving around a few lawn chairs.There needs to be a change in structure that will promote new growth.And that is why many shareholders are awaiting the proposed report to major shareholders on or around May 31.It will be presented to major shareholders by Laurel Hill and one or two consultants.There may be a concrete proposal about new directions to take as well as a proposal to remove several board members that are paid too much for guarding domaine names.Either way this report should improve Tucow's bottom line almost immediately.And that should send the share price into the $90 level before Q2.               https://www.zacks.com/

Detour Gold has a big Impact on Kirkland Lake Gold's First Quarter

On April 8 Kirkland Lake Gold released it's first quarter results and it's production was very impressive.These results included production from recently acquired Detour Gold.In fact, without the Detour Gold production there would have only been a 3% increase in total production.And the increase  in total production was due to the 25% increase in production from the rich Fosterville mine in Australia.However this was offset by lower production at the Holt and Macassa mines.This website has had several blogs on the size of the Fosterville ore body but little on the richness of the grade.For example, in this quarter there was an almost 50% improvement in the average grade of ore to 43 grams per tonne.The Fosterville mine now accounts for 40% of Kirkland Lake Gold's total production.
        Detour Gold is Wrapped up now
      This blog Workathon in 16/09/2019 predicted that Kirkland Lake would need to issue 90 million shares to acquire Detour Gold.The calculation was that the cost of the acquisition was $4.9 billion and the reserve size was 14.5 million ounces.In their latest press release Kirkland Lake  states that it  only issued 77  million new shares.However it also paid in cash $100 million to repay Detour debt and $30 million to close out Detour's gold hedge positions.In addition, KL doubled it's dividend in 2019.      

     The Fosterville mine Revisited

    In several earlier blogs on Workathon it was calculated that the  size of the Fosterville mine in Australia had been underestimated.Now in this quarter, KL management tells shareholders that Fosterville production is up 25% from Q1 2019.Although no new estimate is given on the size of the ore body.They do say that they are looking at a new mine entrance in the north in the Robin's Hill sector.Presumably the new entrance is to increase production in 2020 or 2021.My blog on Workathon dated 16/09/2019 estimated that the size of the gold deposit here was possibly greater than 8 million ounces.KL later made the statement that the Fosterville ore body was at least 6.5 million ounces.And now KL says that there was a 24% increase in Fosterville production in Q1. Furthermore,only now does Kirkland Lake Gold tell shareholders that they are experiencing dramatic improvement in the average grade of ore (up to 49 grams per tonne).Most of this gold is in the Phoenix fault.But Newmarket Gold,the previous owner, found grades of 80 to 100 grams per tonne in the last two faults,that is, the Lower Phoenix and Eagle faults.If this is consistent throughout the fault the size of the Fosterville deposit may be quite a bit bigger than 8 million ounces.
                                              

  

Summary for 2020

There is no doubt that the acquisition of Detour Gold has had a big impact on Kirkland Lake production for Q1 and will have for the rest of 2020.This blog in the Workathon blog dated 16/09/2019 predicted that KL would have to pay 90 million shares to pay for Detour Gold which had a valuation of $4.9 billion.in this report they tell shareholders that they issued 77 million shares and paid out $130 million in debt.That was largely because at the time of that blog gold was trading at $1460-$1500 per ounce and now it trades at $1700.Kirkland Lake told shareholders in their last report they might sell off some non-core assets including the Maud Creek and Cosmo mines.This will enrichen their on hand cash balance.Also production from Detour might increase in Q3 or Q4 as KLmanagement intends to invest another $25-$30 million into upgrading the Detour Gold mine.             

                                                   https://www.vaneck.com/row/

Oceanagold Prepares for Phillipines decision on new Start Up Date

On May 6 Oceanagold released it's first quarter operational report.It contained some information that Oceanagold shareholders have been waiting for but the final report will be out on May14.The Phillipine government has not  yet allowed production to continue  on the Didipio mine but negotiations seem slightly more friendly than in 2019. There has been a hiatus of about 7 months now.And OGC is still waiting to see if any  conditions will be required in order to begin production at their Didipio mine.In the meantime the Phillipine government has granted some minor concessions while the President of the Phillipines studies the timing for the new startup of the Didipio mine.

This website predicted in my blog dated Workathon 01/08/2020 that the Didipio mine would likely be operating by the start of Q2.But that will be in 3 weeks and that would make the shutdown almost 8 months.This blog would like to see the Didipio mine in operation sometime during Q2. 

Q1 Highlights

Consolidated gold production was 80,707 ounces plus 54,134 ounces of silver.Both were well above production in Q1 2019.In addition,there were increases in unproven reserves of 1.5 million ounces of which 800,000 was measured and indicated (M&I).The high production was chiefly because of the resumed operations at the Macraes mine.Furthermore they have enhanced development of the Martha Underground project at their Waihi mine.These developments have caused OGC to maintain their annual guidance and expect stronger second half performance.

Actual gold sold was up in Q1- to 91,400 ounces from 37,800 ounces in 2019.This includes the sale of 6,450 ounces from the Didipio mine that had been put in storage in gold bars form for several months.The Phillipine government allowed them to be exported and sold.

           

Summary

This is a preliminary report; the final Q1 treport will be out on May14.This report tells us that 54,134 ounces of silver were produced but it does not tell if this was an increase over Q1 2019.Doubtless the revenues were higher in this quarter because of the increase in the price of silver.It is important to notice that even with a 5 week lockdown (for health reasons) Oceanagold will maintain it's original guidance.And this is partly because the average price of gold  has increased by 25% in Q1 2020. Perhaps it will now invest more into it's partly owned subsidiary called New Pacific Minerals.All of that aside, soon investors will be demanding more concrete action towards the startup of the Didipio mine.