RE: Due Diligence Hey Muffin
Let me start off by telling you that I used to own this company and sold it when it seemed like dead money. I like it and it seems like a well run company. My problem is that I felt another company called cline mining was a great company a few years ago. An excellent resource, great NPV, other properties and sufficient funding on hand. By the way, our friends at jennings put ratings all the way up to $6.50 on cline. Cline is now 1.60 and jennings most recent rating is 3.25 and others are lower. What happened - delays, delays, need more money, delays, etc. And the interim the price of met coal fell quite a bit.
My point here is there is a great deal of risk in these mining startups - financing risks, political risks, market risks, etc. As first I was surprised on how little people relying on these analyst reports - well most people are smart to put little weight in them - they rarely meet their price targets and every 6 months keep changing the target. Remember they follow companies who they know need underwriting and write nice reports so they participate in the underwriting.
Also, 11.5M and 10M ain't enough to get this thing running - I think cline is upto 200M and counting.