CC:
Re. Mundoro...
The metallurgy results are "very good indeed". The only thing holding MUN back a bit IMO is the perceived country risk (China). However, I think that investors (institutions?) are being a bit short-sighted here, given the fact that China is already an economic powerhouse and will be increasingly so over the next decade. With the Chinese people now being allowed to own gold, the Chinese government diversifying away from the US dollar, and (I suspect) continued major economic growth and "political/economic stability" at least until the 2008 Olympics, I don't think MUN's operations are in any danger at this point.
Country risk is both a problem and an opportunity. It's a great opportunity to accumulate undervalued stocks (ANO, EPM, even CSL!). And as others have pointed out here, there is significant risk in holding stocks in supposed "mining friendly" first world countries -- permitting risks, currency risk, high costs in the far north, etc., etc. And all these juniors are speculative anyway and not investments for the long term. They're there not just to be accumulated, but to be sold when the value is recognised and there's a rapid move up in price. JMHO.
Best regards,
Howy |
