Violet, the market has no idea of the details of this new acquisition. We're all waiting to get more information. News releases are let, when management feels shareholders need to be informed of a significant change in the company's prospects. I eagerly await more details.
You know, gold mining operations can extract 1 gram of gold from one ton of rock profitably. One gram of gold is worth about US$11 in PURE form (as when purchased in a 0.999 fine Canadian Maple Leaf coin.) It usually costs the gold mining company over half of this amount just to recover the gold, so now their profits are down to $4 to $5 a ton at best. Now, Violet, If you have several 100 million tons gravel that you can sell for the same price, just by scooping it out of the ground, washing the sand off of it, crushing and grading it, and get C$4.50 per ton in a ready market, I'd say you've got something better than a gold mine. I failed to mention you can then sell the sand, and ultimately the land itself for suburbanites to build homes.
No, it's not glamorous, and it isn't taking place in an exotic far away place, but it will bring money to the bottom line. By the way there are no cyanide leach beds to guard against overflow or leakage.
So, what's wrong with gravel? It's just boring, that's all. I guess investors would prefer the excitement of a Busang.
Don |
