| | | Had just recently commented on it here...
I see it had quite the day today... along with quite a few others.
From other comments I've posted recently... picked up by others today... a clear trend exists... in which the most beaten down might tend to become the most overlooked...
That's not about juniors and low grade... It applies... or did until today... to CVX... as it did before to OXY... and still does to GTE... as the value there is CHANGES... in those, with the price of oil they have... with miners, with the POG or POS... [that abbreviation alone perhaps explaining why silver always lags gold ?]
In oil, oil prices are up... and oil stocks are up... but stocks haven't been up AS MUCH as the price / value of the oil they own. Some of that is rational conservatism... as prices are volatile... you don't let the stocks get out in front of the short term high price cart... But, sustain that over time... as we have... and you might back into stocks being undervalued... as the price continues not only to move higher but accelerate...
Biden, today... ensured that oil will go ballistic... or, more ballistic... and, soon. He's put a 45 day timer ticking on ending Russian imports... while NOT allowing more domestic E&P. And, while at it... he's very deliberately working at ensuring that Americans pay MORE than anyone else.
The same math and logic, if not the same politics, apply in gold and silver and the miners...
After years of "practice"... we're all used to having miners being beaten down... as many were again today...
But, particularly in silver... there's a MASSIVE disconnect between the value and the price...
And, the price sensitivity analysis of low grade... is not that different than the issues in silver...
I haven't seen anyone addressing that, yet, this cycle... where the price points for gold and silver are that make x% difference in the value of miners, generally... or how a change we've seen makes this old worn out deposit suddenly viable again now, when it wasn't last month...
I did do a deep dive on Hycroft once upon a time... but long enough back that I don't remember it... and, a search here doesn't pop up any post other than the one linked... so, must have been long ago posting on another site ?
I didn't see anything in their recent news to lead me to expect the move today...
And, I see in after hours that its down to $0.88... which I also don't take to mean much...
FWIW. I tend to be skeptical of low grade intercepts... even long holes... if they're not neatly packed into a formation suggesting there's continuity enough to make mining them viable... So, don't really have an opinion on it now... other than... a good day if you owned it...
But, I'm also skeptical of high grade intercepts... with only a meter or less in width... until there's a similar pile of data showing that the continuity exists to justify actually mining the stuff...
What I didn't see in the recent news from them... was anything that put the numbers in that context... without which you can't really ascribe them value beyond "interest"... requiring more work to figure out what they're not telling you...
Others may have a better bead on the situation at Hycroft than I have... that allows them to value it differently that those who have less awareness of such critical things as... continuity in an ore body making it a viable (feasible) candidate for mining...
Maybe I'll remember more about my prior look at it as time clears the cobwebs away with a refreshed look.. but it might be worth searching a couple other sites to see if others have been riding herd on it recently... the usual suspects... IHub... Stock House... maybe even Yahoo comments section might shed light... |
|
