Sense, listen to me, very few of those companies could locate gold even if it existed on their claims...
And, it doesn't matter at all, to me... EVEN IF that is TRUE... ?
It appears you simply don't understand what's happening here... and, that's too bad... for you.
It is always and only YOUR job... to pick which stocks YOU decide to put money into ? IF you do... ? And, it is YOUR JOB to determine WHEN to buy or sell shares in any given company... if you do ? You are free to sort them out... as you like... and decide for yourself what to do... as is true of everyone else ?
But, the BEST way to proceed in doing that... is to have a nice selection from which to enable making optimal comparisons... not just in "companies" but in the development of trends in the geology as they emerge... which is all the more important when change is afoot in a new camp... as is true in Newfoundland. That doesn't mean you rush out and buy all of them ? But, it does mean that all of them are worth watching... and all of them are worth watching MORE as a group than individually ? Often you can learn more about a property by following the neighbors... than the one you are following ?
And, I DON'T CARE... what you decide to do ? That's entirely up to you.
However... it also appears that YOU ARE OBVIOUSLY WRONG... as don't understand what's happening.
Because many of those companies have ALREADY found gold... and, in the region, they know how to do that... ? They have new tools as well as new rules... and it is not a mystery how they're doing it ? MANY have delivered VERY meaningful efforts, already, including in "first hole" drill results being winners ? There is no sense in you claiming "they can't find gold"... when they ALREADY HAVE ? They can't find it if it isn't there... but, if it is there... it is not a secret what they have to do to find it ?
Follow the list... and you'll probably learn some things...
Or, sit on the sidelines telling them they can't do what they are doing... if that's what you want to do ? I don't care...
So, IF that's all you care about... limit your picks to those that HAVE found gold... and eliminate the risk that they might not ? Or, wait until they have mines built and are in production ? Don't care.
Figure out what your criteria are... and do that. I know what mine are...
???
Claims are an asset and a liability, they have a limited lifespan of two years unless work is done to keep them in good standing.
Which is a very good reason to NOT waste your money leasing moose pasture that you don't have the ability to explore ? That's not ground breaking news ? But, two years ? And, what did Newfound Gold trade for two years ago... versus today ? Ah, well... they're not a year old yet... but last September they were at $1.40... a market cap of $229 million, and today just over $1 billion ? So, I think they "might" be able to keep the leases current ? Oh, wait... breaking news... they just raised another $65 million ?
Why would you assume anyone cares about what happens two years from now... when the play is developing right now ?
So, yes, that's true... that a million worthless acres under lease is worthless. But you clearly don't know that the acres they have ARE worthless... and it appears both that you have NOT done your homework on what's happening in Newfoundland... and that you're HOPING that it is true... that there's nothing there ?
Neophyte mistake...
The work required over two years is INSIGNIFICANT... relative to the ability of THESE companies to raise the miniscule amount of capital required to sustain their acreages. Most of them already have raised far more than the money they need just to do that... And, the strength of the play is PROVEN as more than enough that it warrants investors funding them ? This is not moose pasture... but highly prospective ground in a NEW and now PROVEN gold play... That's not a guarantee they all pan out ? But, it is a safe bet most will at least win the chance to have a LOOK... rather than fail to raise the money to look... ?
Some still depends on POG and the market, as always... but, a bull market ahead for the next 3 to 5 years, or longer, as seems likely... alters the tilt of the playing field, and least in coming up with the ante.
FWIW, I've done this more than a couple of times... not just in mining... with the discovery of a new gold camp here and there... but, also in oil and gas, with the discovery of new fields. I know how it works... it appears you do not ?
I've done the EXACT same thing here on SI once before, too... with another gold camp. Shining Tree in the Abitibi was very prospective... not because it was proven, as this play is... but because of the opposite... It was exciting as a gold camp for a while because vastly under-explored... which was true only because the Federal Government and the Crown couldn't agree on who should get the royalties ? So, it sat un-explored for like 80 years... and then they settled it... and a gold rush ensued ? I followed it start to finish here:
Shining Tree Gold Camp
It had some potential... but, mostly it didn't pan out. The Juby deposit probably the best of it... recently acquired... a couple of the companies involved were serious enough players... some are probably still around... and a couple of them were rank stock promotions that drilled two or three holes... or none at all. The most interesting were peripheral... I traded Trelawney that made a a nice find, and sold itself to IAMGOLD for a nice return. And I owned Probe from $0.05, that became Borden Lake, found a million ounces, partnered with Anglo Gold and found two... got bought by Anglo who found four... they're probably still mining it. Probe spun itself back out of the deal, I think, became Osisko... and is now Probe again... holds a big chunk of the big bend, seems its doing OK ? Most interesting was another peripheral player to the camp, a failure that I watched carefully but never bought... SGX. They thought they had a find, and leased up half of Canada... drilled a few holes, up to 25 grams, but in 0.3m intervals... did the work to get an NI43-101 compliant resource... of 93,000 ounces... and then went up in a puff of smoke.
I learned of those stocks I did buy... mostly because of the Camp ? But, I never bought into any of the Camp stocks... or SGX ?
Newfoundand... is NOT Shining Tree... ? Almost the exact opposite ?
But... IT'S A GOLD CAMP... it isn't risk free ? How sustainable those acreages they develop prove to be... depends on HOW SUCCESSFUL they are in looking... and on how successful their neighbors are in looking. And how the market for gold and mining shares does from here... If they lease a bazillion acres of moose pasture... that has nothing on it... they will not succeed. If they lease that acreage... and all of it... or even a tiny portion of it... has an ounce per ton on average... over wide enough intercepts to matter ??? If they find the same geology in the high grade orogenic transitional zones that New Found has found ?
Have you really never been through an event like this ? Not seen what happens when a major new find emerges from a new understanding and it rewrites the rules on "how to look" in an entire region. ?
Not my first rodeo... I owned the property that became Kirkland Lake... before Sprott did... ?
I also remember mining in Nevada... before "Carlin Style Deposits" existed... ??? How things do change. Back then less than one ounce was "not commercial"... until Carlin. Now, everyone is thinking "gold" means high grade is less than a gram... and New Found comes along and proves up Fosterville like geology producing 10 ounces per ton over 20m ? And, a few others may be better ?
Odds are VERY GOOD for quite a number of them... "moose pasture" is NOT what's happening here.
Many of these companies have made good success of efforts made in looking elsewhere, too... and you are simply wrong about them... because YOU have not done your homework... in spite of me making it easy for you to do it ?
That's also why you don't understand the play...
Some have rushed in to grab what they could... others have been deliberate in what they've grabbed...
Your job... to figure out whether what they have is a worthy potential or not... based on what YOU know of the geology... and etc. If you know nothing... that probably won't help you in making better picks ? But, you don't really need to do that... just to trade the charts ? Some will choose to do that... and do well at at.
And, your lack of understanding of HOW to do that,.. won't stop them from doing it amd succeeding?
But, you can't evaluate... what you don't know exists to be evaluated ?
And, if you don't understand the value others see... there's not a point in it... for you ? And I con't care.
Most prolific mines have a footprint of 20 acres,
I'll bet you can't show me a single "real" mine anywhere... standing all alone on a 20 acre lease...
That's just ridiculous.
who cares if some penny stock has 1,000,000 acres they can’t afford to maintain...
That companies where you are can't sustain their moose pasture... doesn't mean companies in Newfoundland in a proven new gold camp... with > 1 ounce per ton gold averages... won't be able to fund themselves well enough to properly explore their acreage ?
Maybe some will prove to be SGX like... and not find "enough" ? If you do make a bad pick... so what... it happens... just don't hold them until they die and wonder why you're broke ?
Who cares... is everyone ELSE who wants that 1,000,000 acres and can't have it... without paying for it,.
Those with the land now... are ALREADY spinning bits of it out to others... and converting those parts of it they don't want... into profits... while keeping the best looking parts for themselves ? Great.
And, meanwhile... trading stocks has very little to do with how good they are anyway ? It has more to do with the market... and its trends... and understanding and trading the trends.
I've already PROVEN to you... that Newfoundland gold stocks as a group... are outperforming mining stocks, as the GDXJ... are outperforming gold... and are outperforming the SPX... by a wide margin ???
If you don't know what to do with that information ? That's not my problem ? |
