A few thoughtsThe news told us three parties are interested in Mkuvia with one already signed, a second about to sign and the third in negotiations. We also know that Ruby Creek has been meeting its financial obligations and hence Douglas now has more cash on hand. It is nice to see there are no more financial obligations to Mkuvia Maita and hence no foundation for breach of contract rumors.
A few people have wondered why the stock hasn't moved much after a decent round of news. I think there are several reasons. For one, the PM sector has been hammered lately creating an environment for investors to look for reasons to sell than to buy. The past year's stock performance by Douglas is essentially unchanged though there have been several price spikes higher to the 50 cent area. People who bought those spikes now have a way to tax loss sell to offset gains. Tax loss selling season is now in high gear and should be that way for about three more weeks. We also have had the BCSC investigation early in the year and the stock being slapped with an E. Both events and the dearth of news have significantly inhibited buy side enthusiasm, IMO. We could see more buy momentum with a successful conclusion of the Chinese Mining deal and an announcement of a group(s) taking the last third of Mkuvia. What I will be looking for is to see what terms the last 125 sq km deal brings. It will be quite positive if it is $3 million cash over three years like Ruby.