Perhaps your barber knows more than you give him credit for. Fortune is about to release a study by Strathcona, which has resulted in many improvements to projected operating costs for the Nico deposit.
In an environment of declining metal prices Fortune has been re-engineering to reflect current prices for its contained metals. The cobalt price is now one third of what it was when the stock hit $45 (pre-split). The facts are, however, that both cobalt and bismuth are increasing in use, even with a declining economy. But this is no different than the status of a lot of metals. Incidantly, zinc just hit a 20 year low ($.35), copper is currently trading at $.65 instead of an average of $0.90-1.00 and gold is trading near historical lows in real dollar terms. I wonder, how other industries would cope with a 20% decline in their respective product's sale price, little alone a 40-60% decline. Metal prices are historically cyclical and the key to making it in the mining business is to have a large long-life deposit, preferably with several products, in order to ride out the cycle. Fortune has both in the Nico deposit.
I'm comfortable that Fortune will weather this environment and produce a positive economic analysis, even at low metal prices. It has cash, proven management, and an experienced board.
As a long-term shareholder, I'll stick with my Fortune. You can continue to promote your Ontex, which I notice just hit another 52 week low. I havn't seen Farm Boy whining about his brother on that one yet. |
