GREY:NEVDQ - Post by User
Post by
rockhound3on Jan 21, 2023 1:09pm
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Post# 35237462
3 key aspects of investing in mining as it impacts NCU!!
3 key aspects of investing in mining as it impacts NCU!!As one who has been exposed to mining for almost 60 yrs ( yet not a miner) I have developed a simple way to view junior mining companies with 3 Key Components!
- The Property
- The People
- The Money
Unfortunately in the case of Nevada Copper while the Property has significant promise in the amount of CU & PM's, + location, etc., the other two components have been a disaster such that in my view Nevada Copper has NEGATIVE GOODWILL which results in the stock being valued at less than 4 cents( on a pre consolidated basis) down from approximately 70 cents when PALA took over, and will continue to be in this position until PALA is no longer running the show. I have summed up this situation with the question;
" WOULD YOU BUY A USED CAR FROM VLAD?"
I suspect for most the answer is NO!
However the hope of many investors is that VLAD will realize this reality- and sell his Controlling Interest to a competent manager which hopefully will remove the large amount of NEGATIVE GOODWILL which could/should result in a significant jump in the trading price which would benefit all shareholders including VLAD!
Whether this will happen is a big unknown, complicated by the war in Ukraine, Vlad's relationship with Putin, and the Russian psyche(sp)
The result is that many have sold, some hold, and newbies are scared off!
However Vlad is getting older, and the copper & PM's are not going anywhere!
Most important is the increasing price of copper!= such that the deposit is increasing in value
Stay safe
Rock