BENEFITS - As one can see...
There are many benefits to such a plan.
If private
If shares are backed by metal in situ value
It could attract a larger miner in terms of, cracking a forward deal.
What if a nearby miner flipped the drilling costs knowing they'd have dibs on the 70% metal ?
As we can see in the current markets -
Car manufacturers and battery manufacturers are teaming with - explorers and those who have the goods in metals... In other words, times are changing as to where a junior or one who has
a prodcut another needs - jv's or deals are being inked.
Second scenerio -
Once the shares are backed by in situ metal value -
eliminates - tampering with the stock. ( no shorting, no games )
If a larger player was interested, the second option would be to acquire the face value of the share if and upon another wanted to sell - or - dig in with the next drill campaign to secure shares prior to the stock rising.
If a junior - struck out on drilling.
The stock doesn't get affected.
It owuld stil lhave it's former drilling with in situ value to back it.
Allowing it to perform more drilling - this model encourages success.
The vantage for the holder of shares ?
Formula 73 - a floor is created based on - resource calculated tied to - spot metal values.
Fluctuates by spot metal values.
If the juniors next drill campaign is successful, and more metal ounces or pounds are added to the resources - the stock goes up accordingly... Which in a way, can force a major to make a move on the junior sooner - it's the exact opposite to what happens in the markets - ( in some cases ) where the junior can be held down for years... while another feeds and gorges on the cheap shares which ultimately exhausts the junior and shareholders - in addition - creating dilution.
This model... which i call - Formula 73 ( metal backed ) 70/30
treats all parties with respect.
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Some may have a few giggles -
But when it comes down to brass tax....
It's no laughing matter when a common shareholder loses money year after year,- or sits in a stock year after year - even as much as experinecing a stock held down over greed, or, 10:1 consolidation occurs.
Present.... markets don't match the effort and costs along with metal value in the ground based on - in situ. It's then, the odds for a small trader become all the more - stressful.
This same formula ( 73 ) ( 70% - .30% ) encourages the junior to work all the harder - knowing that every ounce or pound of metal will reflect in the share price - and encourages insiders to buy thier own shares -
Current situations - in some cases - some juniors treat their job as a lifestyle.... become complacement - simply collect the pay check - without much effort put forth - which facilitates stagnation and performance.
Imagine seeing a private junior's share price actually rise based on successful drill campaign whereas they utilize a 3rd party to tally the added - ouces or pounds of metal - and resources keep growing along with the share price - It's a modle that should've been implemented - long ago.
What do we have now ?
A system eating itself into oblivion.
Self imploding - to the point of... .stocks are beyond bottomed out, going no-where due to juniors can't raise funds, and if a shareholder sells they lose their shirt. A system that allows those with the monies to buy on the cheap - and take all. And the irony is... metal prices are still high - yet, stocks at all time lows - it's then.. .one knows something is way... off.
How about - If the junior rolls to keep the lights on and company moving forward, but the cause and effect literally wipes the investors savings out by a factor of 10x or evenmore... ones whove sat in the stock for years and years... And,,, if they bought in higher than the current price , this present model - rolling - literally strips the investors of their wealth.
So... what does one do ?
Keep using the present system or...
Make those important changes to correct the matter ?
Model - 73 - protects the investor or shareholder - backing the share price to metal found.
One could take it further and categorize each private junior
Bssing their unique depoists with a scale - barometer tied to value of in situ metal.
- near surface
- permitted
- grades
- location ( closology to power vs remote )
Or, leave it at the invesotrs discretion.
Some may think my valuation of, 30% / 70% and the 30% is too high ?
Is it really ?
Or... is it merely..... allocating the - true profits - to the investor accordingly with all the less hands in the pot ?
Something to think about -
I know if i was a large investor - who sunk considerable funds into a project...
I'd be coming up with a different system so my spent funds are never lost but accounted for
based on metal ounces and pounds.
Lastly from a junior stance -
If a larger investor assisted the junior for severa lyears...
A roll is like a kick in the - -
While the model - 73 - would attract the same large investor to keep on funding the drilling if their monies were tied directly to the ounces and pounds.
Pulling forth the - in situ - metal values should've been practiced long ago.
It would've - safe guarded the - stocks, juniors, investors.
And most importantly - retained a respectful valuation which is directly tied to a market which
affects the exchange and a country's rating. A high valued exchange with stock that are priced appropriately - insures the rating of a country backed by its wealth in metals.
This is my pitch - to counter the roll.
Junior should chat it up with their colleagues...and major funder.
Would be nice to see - one - step out of the bramble bush - pioneer a new path.
Just the idea of waking and knowing one only needs to contend with, spot values minus all the shorting, or bashing, and the games that go along. It would bring - clarity - to a project. Allowing one to focus more on the project, with less worry.
73 metal backed,
places the control back into the investors control...
It would reviatalize investing - whereas, many have pulled out, tired of the games or stresses of negative returns - turning the tides in favor of investors, while taming the power of, majors with more control. Investors have considerable funds... ywet, many are out of the markets...
Forcing juniors to only deal with majors or banks... thus, increasing the neglect of, shareholders.
My hunch says...
investors would strongly support this -- 73 Metal Backed - format.
It's a formula that can take a stock with over 200k and... still mkae it work.
That's all i'll say.
Cheers....