Franco-Nevada, Sandstorm <b>Gold</b> to <b>Invest</b> $120M in Karma - August <b>...</b> | How to invest in gold |
| Franco-Nevada, Sandstorm <b>Gold</b> to <b>Invest</b> $120M in Karma - August <b>...</b> Posted: 13 Aug 2014 03:20 PM PDT Franco-Nevada Corporation (FNV - Snapshot Report) together with Sandstorm Gold Ltd. (SAND - Snapshot Report) has inked an agreement with True Gold Mining Inc. to finance the construction of the Karma project. Per the deal, the companies will invest $120 million in the project located in Burkina Faso, West Africa. True Gold expects first gold pour at Karma by the end of 2015. Franco-Nevada's shares rose as much as 3.9% in the trading session following the announcement. Franco-Nevada and Sandstorm will offer a start-up funding of $100 million in 75% and 25% sharing, respectively. From Mar 31, 2016, True Gold will deliver 20,000 ounces of gold annually to the Syndicate for the next five years amounting to a total of 100,000 ounces. After five years, True Gold will have to provide the Syndicate refined gold equal to 6.5% of equivalent amount of gold produced from the Karma mine for ongoing payments. The Syndicate, in turn, will pay 20% of the spot price of gold to True Gold for each ounce delivered. The agreement is inclusive of all concessions applicable within the 856 square kilometers of the Karma project along with a specified area of interest of 5 kilometers surrounding the project. Moreover, True Gold can opt for an additional funding of up to $20 million from the Syndicate during the next 18 months. This additional amount has to be repaid in eight quarterly deliveries of up to 30,000 ounce of gold based on the proportional portion of the amount drawn. Franco-Nevada (Barbados) Corporation (FNB) – a fully owned subsidiary of Franco-Nevada – will be providing financing to a fully-owned subsidiary of True Gold. The shares and assets of the company operating the Karma project will secure the obligations of the agreement. According to Mark O'Dea, Executive Chairman of True Gold, the funding assistance by Franco-Sandstorm was the best solution in terms of cost of capital, operational flexibility, business interest and long-term partnership, which can benefit shareholders. Franco-Nevada operates as a gold-focused royalty and stream company with additional interests in platinum group metals, oil and gas and other resource properties. The company continues to benefit from its expansions and exploration discoveries made by operators or developers. Franco-Nevada currently holds a Zacks Rank #3 (Hold). Better-ranked companies in the gold-mining space worth considering include Harmony Gold Mining Company Ltd. (HMY - Analyst Report) and NovaGold Resources Inc. (NG - Snapshot Report) with both holding a Zacks Rank #2 (Buy).  |
| <b>Invest</b> 8% <b>Gold</b> "Whatever the Price" | <b>Gold</b> News - BullionVault Posted: 06 Feb 2014 11:32 AM PST Financial planning pro says to allocate 8% of your portfolio to gold "as insurance"... JOHN GRAVES, a financial planner for 26 years, is a big believer in the role of gold in a diversified portfolio, writes Miguel Perez-Santalla at BullionVault. Appearing on our New York Markets Live show, Graves explains how he believes gold should comprise 5-8% of a typical portfolio. Because "nobody can predict the future...and if there is a catastrophic event and the stock market dives gold will go through the roof. "Gold is the ultimate portfolio insurance tool. I don't know if things will be wonderful or horrible. If things go horrible I know that gold will increase significantly in value." Current Business Podcasts at Blog Talk Radio with New York Markets Live on BlogTalkRadio John Graves is the founder of The Renaissance Group, independent financial planners and registered investment advisors in Ventura, CA. He is also the author of The 7% Solution: You Can Afford a Comfortable Retirement. Graves' 3 step rule to plan for a comfortable retirement is simple:
John Graves also talks about the screen he uses to identify stocks to buy. He looks for low debt-to-equity (70%), a consistent dividend yield of 5% or more, price-to-book of 1.5, average trading volume of more than 50,000 for liquidity. He places a 10% stop loss on stock trades. Asked by an investor in California about buying gold regularly, starting with a small sum of $500 and then Dollar cost averaging monthly to build the account, we also explain how low trading fees and the benefits of physical bullion can work in a retirement account. |
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