Post by
jonggua on Jan 10, 2012 7:41pm
ruby gold bank?
Rob and Toby actually did talk about hoarding the gold and getting bank loans against it for current ops due to everyone believing in a long term rising gold price future. Dunno if this is their current plan or not, this was in a Chi mtg and much has changed since then. However, Eric Sprott has urged silver companies to do the same, with 1/4 of produx I believe. So it may possibly catch on among mining companies. Myself, I expect us to be rolling in riches which can't be profitably reinvested in the business as early as next year. No debt, and with water being a limiting factor (at least in my mind) to reinvestment in mining equipment, the board is gonna have to decide on dividends, hoarding (cash or gold) expanding in TZ, or diversifying mine wise globally. I wonder if there are other alluvial projects of size and we could specialize in being the world's largest alluvial gold miner (we'll be that already in a year I'm sure) with multiple projects? Bob Moriarty says he's got alluvial holdings around the world. I know in the Junior mining space a one hit wonder is still not ideal due to locale and gov't risk. Multiple projects in multiple locales is what the market likes. Sure would like to be in on board discussions of what to do with an embarrassment of riches!
Comment by
sittingbullish on Jan 10, 2012 8:58pm
I vote Ruby pays dividends to shareholders in actual physical gold bullion. Then I can buid my own bank with the rising price of gold !
Comment by
mermoo on Jan 11, 2012 11:03am
If they can get the gold out of the ground in high enough quantities I like the idea of a gold bank. The profits are still available simply by selling the gold. If production decreases due to some limiting factor gold from the reserves can be sold to keep shareholder value and potential dividends. I am looking forward to the next couple of months.