Hi, Douglas. During the last few days, I have taken the time to review
most of the messages on this thread from its beginning in 1996. I also reviewed the financial info from the company as well as their press releases.
It appears that at several moments in the past year and a half, the company was poised for take off. However, it never happened, despite Guido's report of an extremely large deposit and more than reasonable operating costs. What I do not understand is how the stock could go down as much as it did in the last year with that type of info. If the numbers are true, the fact that the company has no cash is almost irrelevant, since a at least a few majors would be interested in acquiring the property claims.
To me, it can only mean one thing: the market does not believe the numbers released so far.
Also, one thing to consider is that if reserves are, let us say, a third of what has been estimated so far, this could mean that the cost of extraction per ounce would be thrice as high, making the operation unprofitable.
I wish the market has been dead wrong so far, but I cannot be highly confident. What makes me want to bet on Golden Eagle is the very low price, because even a marginally profitable operation would translate into a substantial rate of return.
Hopefully, we will get more information soon on reserves estimates and
the coming operations.
Good luck!
Michel |
