Frank:
That is just the point. The market is telling us which direction
this is going. Believe me, Placer's abandoning the LC and leaving
Venezuela is no fluke: notice the performance of Crystallex since!
The male shorts must feel like they have vises on their private
parts at this time, and anyone shorting at these prices needs
some private counseling, at $150/hr.
By the way, Placer has published a resource of 15 million ounces for
the LC and has reported a 22 million ounce resource in the
environmental impact study to the Venezuelan Government! The published
figures for the reserve is 11.8 million ounces.
Even at the current reduced gold price, it is fair to value the
reserves at U.S. $50/ounce, the resource at $20/ounce, and we
get to a market cap of U.S.$700-$850 million, without counting
in the Albino, which will be a 60,000 ounce/year producer.
We haven't even considered the other properties, Carobobo
and Santa Elena, which have been barely explored. Amazingly,
the previous president of Crystallex believed that the Santa
Elena was the best property of the three!
Hang in there longs, and let the shorts fall where they may,
and (you can fill in your own conclusion).
Regards
Dan
P.S. By the way, I wonder how many "covered" shorts there
are up in Canada. As I understand it, the "covered" shorts
don't have to be reported. |
