Martinas B.

Queenstake Resources (AMEX:QEE) A cheap goldmining stock Announces positive cash flow

by Martinas B. May 16, 2007
Queenstake Resources (American Stock Exchange QEE) announced results for the first quarter ended March 31st 2007. We thought the results looked pretty good, although there was not much movement in the stock either way. I guess it is not so impressive to have a profitable gold mine when the yellow metal is selling above $600. The stock closed at $0.15 flat for the day. And it is still just a hairline off of the 52 week low of $0.12.

Revenues increased 95% from the year ago period to 30.6 million USD. More than half of their gold production is coming from their Jerritt Canyon Properties where there average cost of recovery is $535 per ounce.

Queenstake-Drilling.jpg
Here is a look at one of their mining properties.

The deadline for voting on their merger agreement with Yukon Nevada is just 2 days off. We are not buyers of the stock here. But if you own it we do not recommend a sale. We think the stock is fairly valued at $0.15 and could have some upside if gold were to go to $700. We also think this merger looks OK, with gold on the move this is a good time for business combinations. Our vote would be a definite yes on the deal.


Comments 1

1. Guest
June 28, 2008, 09:26AM

Quotes You have as a broker with Nylife sucurities.Could you please take me off of this site as it is not approved with the company that i am assigned with.

thanks,

Conrad Slusarski

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