RE: RE: RE: VolumeI thought I'd contribute a bit today and swapped some BHP for 30k more shares. I don't know if we'll skyrocket when the financing is announced but it is my belief that there are two things that prevent us from being properly valued (or at least, in line with peers... resource stocks are, in general, undervalued at present):
1) Financing. To those who haven't done their homework or the risk-averse who believe that financing might fall apart, right now Largo is the equivalent of: "We've got a great looking mine and we can build it... if only we had the money." Of course we all know the deal that was worked out in the previous financing and that it's likely to be done in 6 weeks or less but for companies that didn't get their financing all lined up before the Greek default heralded the end of civilization as we know it, as Largo did, getting financing in this climate is a significant hurdle. The word 'smart' money has been thrown around a lot on this board since Friday and my friends, I am honoured to be among you. Even after the pop today we are still at bargain basement prices and unless tomorrow gives us an even larger jump, you'll probably still be able to buy more Largo at prices less than the last round of financing was completed at. So set aside part of your next paycheque. (do your own due diligence, of course).
2) Cash flow. With CN fired up we should start to have some cash coming in but not until Maracas is pumping out Vanadium will we have proper earnings. As someone else posted, stability is key right now and being able to survive a possible 'double dip' is a must for many investors, which is why we have low volumes in the venture. This, again, is where CN is undervalued. That it will generate $12M / year may not be much by way of earnings, but it could pay the bills and keep the company going until financing could be arranged in the unlikely event that things went sour with Itau. Having some cash coming in to cover payments or just service the debt during construction is also a positive for anybody looking to lend money. This is an advantage that a lot of starting mining companies don't have. To me, this is management at its finest, well done Mark.
We are in great shape and though the market is almost always wrong, there are intervals where it gets things right in between two extremes of too high and too low. In the absence of unbridled optimism, making what we know available to the public to reach these inescapable conclusions is what will get us there. Darcie, are you listening?