RE:RE:If Hatter Graben IS INDEED the reason they bought HollisterWhen I talked with John (IR) the other day, he said Hatter Graben WAS the reason KLDX wanted the mine.
Here's "my take" on other questions recently voiced here:
1.) Why the reaction ? - My take was that some fund mgrs/analysts saw the numbers as being less robust than "old" numbers/views pitched by GBG execs years ago. If they are selling prematurely because they think those numbers are what we are going to end up with at Hollister, they are making a BIG mistake.
Look, we all know KLDX mgmt believes in underpromising and overdelivering, so it doesn't surprise me that they are not willing to put any kind of color or estimate on the Hatter Graben and Glory zones without drill results. That's just being consistent with how they run KLDX. But, . . I am sure everyone's views of the Hollister resources will grow as more drilling takes place. I am fine with this and believe the initial comments on the Glory zone speak for itself. (ie Potential !)
2.) So why even release the initial estimate at this time then, versus releasing them at the same time as Hatter Graben's drill numbers, etc.. ? (which is a question I asked) - Answer: In a prior update, KLDX said they would release an "initial" estimate in the 2nd Qtr, so . . they did. (As John said: If we give dates and targets, we intend to meet them.) I can't argue with that.
3.) What is the bottom line? - If you read the quarterly updates, like I do, you know that the 2nd qtr numbers are going to be stellar. Everything seems to suggest that KLDX has processed the rest of the 1st qtr ore in addition to ther plans for the 2nd qtr, which max-ed out the Midas mill. The combination of high volume and the efficiencies of full capacity should be generating a sizeable jump to our cash balance and some insight on the financial implications of full capacity. My "guess" is $50 Million will be added. I also would not be surprised to hear in their 2nd qtr update that they are upgrading their production guidance for the year. I don't think there's any debate on whether the 2nd qtr will be good or not. The discussion is more focused on "how good" and are we an inviting take-over target at this price. Either way, I think it's a great investment in my mind, as my screen name suggests.
Question : Hey Cash, did you used to be on the Claude Resources board ? (Yahoo)