RE: AAA moving from Phase 5 to Phase 6 Thank you RedSkull for reposting this very telling summary...and historic mining company pattern."In 30 years of identifying 10 companies that have qualified, all but one have equaled or exceeded their discovery highs by more than 100%!."..90% success ratio!!! So, we can expect $2.40 per share as Allana moves from stage 5 to stage 6 and by the end of 2012 we should be well into stage 6. BFS completed within 7 - 9 months time...Revised resource estimate within 3 months time...and likely some form on "financing" in place as stated in the new years...we have already been told that no share dilution as we are well financed for 1.5-2.0 years...and no off take agreements until the "initial financing" is confirmed and allows Farhad maximum latitude during current negotiations...they might want "an off take agreement" as part of the financing...if not, then expect offtake(s) soon after the financing...3 trips to Asia during 2011..and no news on those trips yet..?
New years resolution for Allana is to move from stage 5 and well into stage 6 by this time next year..., we are in the right place at the right time..."financed by knowledgeable long-term investors and operated by qualified management"
Happy New Years and looks like it is going to be very "prosperous"...time will tell all
Karma
Model of Classic Mining Stock Company Share Price Cycle
Figure 1
The bona fide discoveries identify themselves (those discoveries that will ultimately be ‘made’ into mines) by continuing to spend money on their property when metal prices are cyclically weak, (Fig 1, Item 6, Development /construction period) and when funds are not as readily available from a now less enthusiastic public, but rather largely from management and longer term investors.
Buying discoveries can be fun and profitable, but is ultimately speculative. Buying qualified ‘mine making’ can yield significant returns on mining stocks with a favorable risk/reward ratio. Investing in a ‘single’ orebody mining stock when it is being readied to go into production (Fig 1, Item 6) provides some of the lowest risk/highest reward mining industry investment opportunities. And results are even better if this period of pre-production/construction coincides with the trough in a market cycle for the mining stocks of the particular metal.
This is precisely when a good ore body, financed by knowledgeable long-term investors and operated by qualified management, can be bought in anticipation of substantial gains during the pre-production and production period, compounded when metal prices recover from their cyclical weakness.
The Big Payoff on Mining Stocks
In 30 years of identifying 10 companies that have qualified, all but one have equaled or exceeded their discovery highs by more than 100%! The price rises from their confirmation/disinterest lows to their production/cash flow highs have produced 300-1000% gains.