It's a small position, tiny, i just find it interesting and worthy in its own way of support, good people involved with it, and partly because it's so cheap, a nickel is where seed investors got in two years ago ... highly speculative, yes absolutely, but isn't everything
You pay a big premium for a demonstrably successful producer, this makes quite a height from which the share falls if anything goes wrong, plus it reduces upside potential ... a new producer, well they're somewhat cheaper until they prove themselves, sometimes a lot cheaper, but sometimes they don't prove themselves very well, or very quickly, sometimes not at all, they go down and some other outfit rises from their ashes, such is life ... some of the new and soon-to-be producers tanked real hard last summer and fall, wasn't an immune category
Developers are a lot cheaper, don't have sunk capex megabucks in plant to worry about, no operating difficulties or commodity price risk really, maybe they can't get financed so easily in rough times but then the smart ones don't need much cash to get them through until markets turn up
I know what you mean, and to an extent am doing the same thing, had a new copper/moly producer ml.to running the last few days, did me well ... holding several new gold producers, others in silver/base metals, the majority of metals side of p.f. is producers actually, but also aware that this sort of thinking is what holds back the shareprice of developers and even more so the explorers and early-stage developers, making them extremely cheap ... so, keeping a hand in on that side as well, bought a good little chunk of Metalline near its low, added Kootenay in the last few days, been buying back Terrane after taking profit on its last little run ... as for that little jcp, it's not out of the question that they end up producing gold, this being a lead aspiration of management as expressed some time ago ... as for timing, deals could be easier, everybody being in the same tight-money boat ... i dunno, just like the odds, market cap of half a million loonies, cash in kitty half a million loonies, fresh clean structure, waiting patiently for that fine morning when it's halted |
