I'm definitely not implying that MIQ is another Diamond Fields, but if the reputation of management affects what is really in the ground, many would tell you Voisey's Bay is a landfill.
Let's face it, the management of mining juniors are full of frauds, fakes and fools, this is why junior mining stocks, as a whole, have the awful reputation they do. That is in no way to imply that this is necessarily true for MIQ or any particular junior. At it's most basic though, they all look for the best properties to promote (Freidland was looking for diamonds for God's sake!) Every now and again, they find something that looks good and that a major would like to have a part in. That is where we are now. More rare is the situation where a junior has laid claim to something really big, and in the case of MIQ, that remains to be seen.
Management is not the biggest issue at this point, IMHO. I do worry about how they will dilute the stock to take a bigger reward for themselves, if it comes to that. The issue is what does Kinross know that would have them tout this relationship in their annual report and tell their shareholders that it is worth spending $10,000,000 on. Kinross management knows full well that if they chase a pipedream, the shareholders will demand to know why their company was devalued on the basis of a couple of drill holes.
Dave Rowe |
