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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Amark$p who wrote (55616)	1/20/2008 10:43:34 PM
From: ogi	Respond to of 78419

Exploration upside I am sure but it is my experience/observation that producers exploration efforts are not rewarded as they are during the exploration phase. They are finding future reserves which supports the mine plan, giving longevity but no increase in current cash flows. Even with a pure explorer, they can reach a threshold where they have found such a significant amount of mineralization that finding more no longer drives the share price, more likely to just help valuation on a takeover. Of course this is a generalization but I believe it valid. EG: Bear Creek hit a high over 12 mos ago, continues to expand resources at Corani, thens adds lots of good tons at Santa Ana but the stock goes nowhere because it reached a stage where it was obviously a mine and transformed from an explorer to a company moving diligently toward production or a take over. At one time BCM was very responsive to drill results, no longer. They have added great value though and the additional exploration will force a higher take over price, or improve the bankable feasibility. Even Aurelian, politics aside, does not really respond to the latest expansion(s) of FDN, because at some point what's the big difference between 15 mil ozs and 17? :):) It does seem to wax and wane with the POG though, which is more of a producer reaction. Cheers,hoping for a better week! Ogi