SMC

[David Randolph]

Yesterday night I was studying some penny stocks that appeared on my technical filter (that good old technical filter - thanks for the advice on ADAM's thread Terlisa, I'll think about it), and I was looking at CRCUF.OB which has a great bullish chart and found this:

Canarc Resource Corp.: Bellavista Gold Mine Reaches Commercial Production

There's this highlight: «Bellavista is expected to produce 60,000 oz gold per year, at a cash operating cost of US$257 per oz, for a minimum 7 year mine-life.» You do the math, if gold stays at $550, operating profit per oz would be $293. 60,000 oz per year you get $17.58M in operating profits. CRCUF.OB has a market cap of just $42.15M, so you get the point.

The problem is the following: «Glencairn Gold Corporation is the owner/operator of the mine. Canarc holds a royalty interest amounting to 5.6% of net profits during the 1st payback period, rising to 10.4% during the 2nd payback period and 20.2% of net profits thereafter.»

(not thereafter: «The Company has a net profit interest in Bellavista in which the Company is entitled to 5.67% of the net profits during the first payback period, as defined, then increasing to 10.40% during the second payback period and then to 20.24% of net profits thereafter, once commercial production commences.  Thirty-five percent of this net profit interest will reduce the net profit interest to be received from Glencairn until $317,741 in advance royalty payments are repaid.»)

They don't own the mine. The company that owns the mine is Glencairn Gold Corp (GLE).

GLE is quite an interesting gold mining company trading on the AMEX. The stock fell 30% over the last two weeks because of this: Glencairn Suspends Mining At Limon Due To Illegal Blockade

This is just a labor dispute, nothing that can disrupt production for a long time, I believe.

We have this as guidance:

«Glencairn Gold Corporation is a gold producer with two mines in Central America. The Company's recently constructed Bellavista Mine is expected to more than double the Company's annual gold output in 2006 to approximately 102,000 ounces and reduce overall cash operating costs. The Limon Mine has been in continuous production since 1941.»

102,000 oz* $550 = $56.1M.

Considering just the new Bellavista Mine, we have 60,000 oz per year, at an operating cost of $257 per oz. The company hasn't much debt and probably it won't pay taxes for some time, since it had losses in the past 4 years. So operating profit will probably be close to net profit. 60,000*($550-$257) = $17.58M.

The current market cap is $78.77M, so the forward earnings multiple is $78.77/$17.58 = 4.48, say, 6 or 7.

This is very cheap for a gold producer with two mines operating at this moment.

This is enough reason for me to buy about $1,250 in GLE today for the Pennies on Fire Portfolio. Watch out because average volume is low, that's why I can't buy it for the Stocks on Fire Portfolio, although it is an AMEX stock.

[David Randolph]

GLE isn't a liquid stock but it is one of the cheapest gold mining companies you can find on the entire market. Sooner or later the market will realize this and push GLE up.

I'll continue holding the stock, as it is being supported by the 50 day moving average.

[David Randolph]

Just 36,600 shares traded yesterday, so this company continues to be undiscovered by the market. An AMEX traded gold company with an earnings multiple of 6.5 or so.

Gold is approaching its highs again and soon people will turn to this and make it fly like a rocket, I have little doubts about it.

I'll continue holding GLE on the Pennies on Fire Portfolio.

[eliteG]

update GLE

We've got to get aggressive on our worst performing penny.  Really quiet volume.  Need a tight stop.

We will sell GLE if it closes below 0.42.

[422fwhp]

Nice volume, tight ADX, at support, bottom bollinger.  Looking good, yes?

Need some movement here...I'm getting wrestless.

[422fwhp]

Glencairn Gold Reports 2005 Year-End Results

TORONTO--(BUSINESS WIRE)--March 29, 2006--Glencairn Gold Corporation (TSX:GGG - News; TSX:GGG.WT - News; AMEX:GLE - News) is pleased to report its financial results for the year ended December 31, 2005 (currency figures in U.S. dollars). The consolidated financial statements along with management's discussion and analysis are available for viewing on the Glencairn website at www.glencairngold.com. The documents have been filed with SEDAR (www.sedar.com) and will be mailed to shareholders in the Company's Annual Report.


The following is a summary of financial results and operating highlights for 2005:

- Bellavista Mine in Costa Rica commissioned; attained commercial production in December 2005

- Bellavista water management system proves more than adequate during record rainfall

- Santa Pancha mine development on schedule at Limon

- Revenue declined slightly to $19.4 million compared to $19.7 million in 2004

- Net loss for 2005 was $4.1 million or $0.03 per share, an improvement from the $8.6 million loss or $0.06 per share in the prior year

- Earnings from mining operations increased to $1.4 million compared to $1.1 million in 2004

- Ounces of gold sold in 2005 declined to 43,228 ounces compared to 47,983 in 2004

- Average realized prices for gold sales increased by 9% to $448 per ounce

The highlight of 2005 was the opening of Glencairn's second gold operation, the Bellavista open pit mine in Costa Rica. Construction began late in 2003 while leach pad loading began in April, 2005. Commercial production was declared in December 2005. Bellavista is designed to produce an average of 60,000 ounces of gold per year. As a result, Glencairn forecasts combined production from Bellavista and its Limon operation in Nicaragua of approximately 99,000 ounces of gold in 2006 at an estimated cash operating cost of $312 per ounce of gold produced.

At the Limon Mine, the number of ounces sold in 2005 decreased to 39,478 ounces from 47,983 ounces in 2004. This was primarily due to a decline in average mine grade and a two-day suspension in mining operations due to a small group of current and former employees who, in November 2005, temporarily blocked the road between the mine and mill. Another three-week shutdown occurred subsequent to year-end. Glencairn continues to seek a permanent resolution to the problem. The mine is currently operating.

The average realized price per ounce of gold increased for the second consecutive year, rising to $448 versus $410 in 2004.

Selected Financial Information
                                            2005       2004     2003

Gold sales (ounces)                       43,228     47,983   45,927
Average spot gold price ($/ounce)           $445       $410     $363
Average realized gold price ($/ounce)       $448       $410     $332
Cash operating costs ($/ounce)              $369       $308     $248
Total cash costs ($/ounce)                  $393       $331     $267

(in thousands, except per share amounts)
Sales                                    $19,383    $19,669  $16,182
Cost of sales                            $15,931    $14,770  $11,395
Net loss                                $ (4,077)   ($8,594) ($1,249)
Loss per share - basic and diluted       $ (0.03)    ($0.06)  ($0.02)

Cash                                      $6,799    $13,728  $14,903
Working capital                           $6,144    $18,693  $20,165
Total assets                             $70,239    $60,973  $38,723


Net loss for the year declined to $4.1 million compared to $8.6 million in 2004, or a $0.03 per share loss in 2005 and $0.06 per share loss in 2004. This decline came as a result of a $444,000 decrease in general and administrative expenses and a $3.2 million reduction in year-over-year exploration expenditures. In 2004, Glencairn had embarked on a major exploration drive following its acquisition of the Limon Mine, which resulted in a significant increase in reserves.

During the year, the Company spent $1.2 million on the development of the Santa Pancha deposit. Santa Pancha will become the main source of production at Limon by 2007.

Working capital at December 31, 2005, was $6.1 million, including $6.8 million cash, compared with $18.7 million at the end of 2004, of which $13.7 million was cash. For 2006, Glencairn has budgeted $1.5 million for a grinding mill at Bellavista and another $500,000 to start Phase Two of the leach pads. Limon will require capital expenditures of $2.8 million, mostly for the Santa Pancha development.

Cautionary Note Regarding Forward-Looking Statements: This press release contains "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the future price of gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital, operating and exploration expenditures, costs and timing of the development of new deposits, costs and timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, limitations of insurance coverage and the timing and possible outcome of pending litigation and regulatory matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; actual results of reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold; possible variations of ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; political instability, insurrection or war; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "General Development of the Business - Risks of the Business" in the Company's Form 40-F on file with the Securities and Exchange Commission in Washington, D.C. and the Company's annual information form for the year ended December 31, 2004 on file with the securities regulatory authorities in Canada. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

[Ramsburg]

Good reaction after results:
- Glencairn Gold Reports 2005 Year-End Results

GLE had a nice price move today, with volume increasing considerably and pushing GLE out of its recent trading range. This could be just the start of an interesting movement, so we'll let this trade develop for a while.

Hold GLE with a stop if it closes below $0.42

[eliteG]

update GLE:

This update is being made to update our stop higher.

We will hold GLE unless it hits our stop @ .49.

[eliteG]

It is time to close down the penny portfolio with this final trade.  Since we have pennies in both the 3SOF and 3SOV portfolios you will not miss out on any of the action.  Our last 3 pennis have been amazing!  NMKT, GSHF and CHID!!

We will sell GLE tomorrow.

[422fwhp]

Nice breakout with volume too.

[calven]

Glencairn Gold Corporation (Glencairn) is a gold mining company that is also engaged in the exploration, development, extraction, processing and reclamation. The Company's business also includes acquisition of gold properties in operation or in the development stage. The Company owns the Limon Mine in Nicaragua and the Bellavista Mine in Costa Rica. The Bellavista Mine achieved commercial production in December 2005. The Company also owns the Keystone Mine, a depleted property in Canada, which is under reclamation. On March 31, 2005, the Company sold the Vogel Project to Lake Shore Gold Corp. On December 31, 2005, the Company sold certain mining leases and claims at the Keystone Mine to AMPX Corporation.

GLE just announced there earnings for Q1 with outstanding record results.

Financial highlights:

- Net earnings totalled $1.8 million, or $0.01 per share in the latest
period, compared to a loss of $226,000, or $0.00 per share in Q1, 2005

- Earnings from mining operations increased 135% to $2.0 million from
$848,000 in the corresponding period of 2005

- Revenues from gold sales increased 121% to $11.5 million in the latest
period compared to $5.2 million in Q1, 2005

- Average realized prices for gold sales were $555 per ounce and cash
operating costs per ounce of gold sold were $352

Operating highlights:

- Gold sales increased 70% to 20,746 oz in Q1 2006 compared to 12,235 oz
in the comparable 2005 quarter

- Glencairn's flagship Bellavista Mine performed to or exceeded
feasibility specifications in terms of production, recoveries and gold
sales

- Santa Pancha mine development is on schedule at Limon

Ceo Statement

Quote
"This past quarter marks a milestone for Glencairn," said Company
President and CEO Kerry Knoll. "We achieved profitability, and gold sales
increased by 70% over the corresponding period in 2005 following the
inaugural quarter of production from our flagship Bellavista operation.
We expect continued strong quarterly performances as Glencairn benefits
from the twin effects of a remarkably powerful gold market and a more
than doubling of production to nearly 100,000 ounces this year. The
Company's gold production remains unhedged."

With many of the more common names already making runs GLE may somewhat looked over being a sub dollar stock. Higher recent volume indicates that GLE may be starting to get noticed by the street. With heavy volume recently propelling the stock higher we expect GLE to move over $1.00 per share in the next 3 months provided Gold stays near current levels.

(This pick provided by "FOUSC")

Disclosure: I own GLE shares at the time this was written.

[REALDEALS21]

By the charts, this should run till @ least $1, what you think Calven ?

[calven]

This was taken from Ragingbull.com message boards and I believe it to be mostly correct...

"Earnings are 1.8 million dollars or .01 per share. The average realized price they received for the over 20,000 ounces they sold was $555. This company is not hedged so add another $150 an ounce to account for the present POG and the next quarters earnings should triple to $.03 per share. Multiply that by 4 to get forward earnings estimate and you get $.12 annually. Give the shares a conservative PE of 20 and you get a fair value of $2.40 per share. An even higher POG makes the scenario even sweeter."

I personally suspect 1.00 per share for a fair value  Anyones guess though (resistance at .95 then again at 1.05)

Time will tell...

[setravis]

Changed Ticker Symbol
'GLE' is no longer valid. It has changed to SMC

[setravis]

updated chart look...