Steve,
Thanks for the post. I have been loading up as previously indicated, because of my (speculative) belief that:
1. There is some intrinsic value in this play. And again, based on pure speculation, I read into the last couple of press releases that the role of the consultant is "academic".
2. Sounds like (Hub & Canuc) had their minds made up to go back into production in the same locations as before, except using "modern" techniques.
3. They must have promised jobs to the locals.
4. Generating Cash Flow to pay for the remaining properties would reduce the further dilution of the stock if they had to issue more shares to pay for it.
5. The principals of Canuc are getting on in years and should like to see an operating mine before they move on "to other pursuits".
6. Some of the initial press releases had alluded to the fact that Canuc wanted to pursue this course of action anyway. And I think that the "separation/extension agreement" with Placer Dome gave Canuc the opportunity to return to this tact.
7. Problems with Crystallex. Again, this is pure speculation on my part, but, there appears to be a parallel with the happenings in Venezuela and Canuc. Assuming that Placer Dome has to manitain/sustain its gold production way below the world price, it has to continue to work with the JV juniors to do this. And my speculation is that since there is still problems in Venezuela, that Placer still has to look at alternate (contingency) sources of supply.
8. Again, I always look at pre consolidation equivalents; 13c is the equivalent of ~$0.025, which is the zone I loaded up for the 1996 rally. So even if it does not happen this time, there is proven reserves there and they will be produced eventually. So one can sell into short term rallys to recover initial investments and hold the rest for long term "rewards".
In summary, if you trust Hub, (the very fact that he is in Ecuador with geologists from PDG suggests that the odds of good news in a couple of weeks is better than they were before your post). My guess is that you will ultimately be rewarded for purchases at these levels; if you don't then stay clear.
Cheers Winzer |
