Thor,
I must say that I am seeing some positive things today. Palladium at almost $250/oz. Gold picked up a little also.
Coeur up almost 10 percent today. This may not be the bottom, but perhaps close. When I hear "gold is dead", my ears pick up. That was said abouts stocks in 82. I am not advocating a wholesale advance into precious metals here, but I think that the time is ripe for "sniffing the air" for a few bargains and poking them into the "hold for a while" category. I do not think that gold has reached its bottom, but one could watch for the turn. I also have interest in extremely depressed asian stocks of high quality, but I will wait a while there. I am watching some good funds over there.
One of the things that I appreciate about the internet is that I can get the beach and cabin report from Odi and the views of gold traders/dieters who are "Wall Street Insiders", but buying gold stocks selectively, and let me not leave out "turnip truck drivers". We have also gourmands par excellance. Chucka might make light of the frog legs, but they were damn good. Particularly when one sopped up the garlic butter with good french bread. There is nothing better in life for me than good food, good friends, good wine and good conversation.
Good food, I can cook, good wine, I have, but sometimes, I must reach to electronic means for good conversation. Perhaps I even find some friends there. Not that I have by any means contracted into the electronic media, it is simply an extension of my experience, and I find very real people at the end of the wire.
Now, let us get to the current situation with our favorite stock!
They have great properties, good potential for extraction of those, good progress, and a depressed stock price. Frankly, I view the stock as a screaming bargain at these levels and below. Has it reached the ultimate low, NO!
Here are the issues as I see them
1. Assume that what we have been told about the reserves is true.
2. We are told that the company has resolved the major concentration issues and has been paid for its concentrated ores.
3. More than one refiner can and will refine those concentrates.
The issues that remain are:
1. What economic values are contained in the copper dore?
2. At what level of production will the company achieve a profitable position?
In summary, I am pleased with present progress, given the technical problems which have been overcome, but much remains to be known.
I have sincere faith that the following will happen:
1. Production and refining will be gradually increased.
2. The investment community will gradually realize the validity of the effort.
3. Larger interests will intervene.
Will that be buyout, or what, I do not know.
There could be a scenario of partnership with larger interests, but I cannot project that.
Truly, Truly, verbose, possibly stupid, Jack!! |
