RE:Perry & JDWell said, John. Thank you.
"It's all about revenue, right from the get go." Strongly agree. Rare juniors that seem to understand this.
Shoutout friend Dan Cook from BMR. We had discussion of $LUX recently that was riffing on this theme in Nicaragua. See a quote from that discussion here,
#NewtonInterviews $LUX Thanks for the conversation, Daniel!
Daniel Cook: When I look at a stock, I normally start by just looking at the chart. Researching a new company, for me the chart tells a story. The chart on $LUX NEWLOX is a little interesting. Along what you mentioned, about the five million market cap.
Daniel Cook: Rather than being the three or four year down turn to where now they're at five million or lower, it's basically just been one of the "dot dot dot" stocks. Doesn't trade very actively and the chart is idle. For three four years, it's basically between five and ten cents. They've raised money to build the plant, they've raised money to do all the technical studies. And there is the cost of being public.
Daniel Cook: Whenever I see just a stock that's moving sideways, somebody is willing to port support a certain valuation, rather than this freefall.
Peter Bell: As well as the distinction between the primary and the secondary market, right? We look at a stock chart, but that's all secondary market trading. These juniors have no revenue. The primary market is where they get their funding. That's almost more important because it's like, "How much were you able to get?" There are a a lot of good ideas out there that withered on the vine from a lack of capital. The mining industry is capital intensive. But it can be highly rewarding, even at small scale.
Daniel Cook: Part of me telling this story into the future may be that I'm just a sucker for cash flow potential that also has some exploration potential.
Daniel Cook: Yes, mining is capital intensive but this business model is not. It was two million dollars to build the 80 tonne per day plant. We think that can be replicated and the payback on that using a 9 gram a ton cutoff at least in Costa Rica is less than a year. Relative to every other gold development companies, the capital intensity is much lower.
Peter Bell: And there are a bunch of investors that won't even care about that, right? Because it's too small -- it's outside of their investment universe. You're out there digging through the trash in the same way that the miners are digging through the tailings, trying to find that stuff that'll pay. The one in a hundred that'll go from a five million dollar market cap to be a real company.
Peter Bell: There's a classic quote from Ian Cassel on Twitter -- he says something like "I love it when I call a company and they say 'oh, you're the first person to call in a long time'." I don't know if that's the situation here, but it's a good one. Good work digging this up, Daniel! Keep pounding the drum on it, it does like a great one.
--
Best regards to all.