Mark, do you consider good solid numbers on SRK assay as being a fundamental that will genuinly support prices over $20 or $30? And what about the numbers from the 5 BD holes? Could that also be a fundamental to support prices at $50 or higher?
It would seem the current run has little or nothing to do with last highs per se but more that the price is running up on volume and a core of non selling shareholders who are all anticipating good results. Naxos has started a whole new chapter in its trading history which is clearly distinguished from the Canadian highs.
It is in the U.S. exclusively for the first time.
It has chain of custody sample results on the way. (any minute?)
It has come a LONG LONG way on solving the assay and recovery challenges of this ore body.
It has turned the corner with opinions of mining industry people in that the concept of recovering microfine gold is becoming more believeable each day.
Naxos has had virtually no hitches in getting all permits to move ahead with drilling, etc. (This is very significant)
Naxos has managed to fill a very large private placement in the midst of very poor opinions of junior mining stocks in general (Bre-X and Delgracia fiascos)
Naxos has had NO trouble getting to and exceeding the $3 trading price even after a very long road of twists and turns with the ASE, to smooth the path to Small Cap or Nasdaq trading
David Cohen is on board!!!!!!!!!!! (That alone is making me buy more)
So those who are using the old highs as a benchmark, I just can't see that as being relevant.
The more honest and more basic investment "fundamental" in my mind is based on something very very straightforward.
Assuming all the requirements of company stability, ability to keep operations moving etc., the value of the stock is based on what is in the ground and can they recover it. No one has, to my recollection, challenged the estimated size of the ore body. So let's say that most reasonable people believe that at least 2 billion tons of material are there (probably quite a bit more) and if assay results are good and more importantly, consistant, then more investors will do the simple math and start to calculate the "fundamental" of how much in the way of PM's Naxos could have. Therefore, the estimated value of the deposit and therefore the company is so out of balance with the current stock price that human nature kicks in and says "we could make a killing on this if Naxos can prove recovery". So if you know that the stock can go through the roof IF recovery can be proven AND the price is cheap at almost any price as compared to that potential price, some investment folks will want to have, will HAVE to have SOME Naxos just as to not miss out on the potential profits. Even if a fund has a mix of high risk, high reward stocks, Naxos will very shortly become a must for that category. And again that is on the "fundamentals" of just how big the Franklin Lake deposit is if recoverable.
So those who are talking $100, $200 and even thousands, are not figuring that out any different that the most sophisticated analyst.
How big is it? Can they recover it? The rest is somewhat academic.
Any thoughts on this Mark?
Regards,
Tom F. |
