Post by
mrmomo on Sep 21, 2020 12:28pm
My God...people just don't know the potential here!!!
This will be a long reading so......be ready.
It seems very evident to me that the majority of people on this forum are not familiar with the inner workings or assets of this company and aren't cognisant of the potential here. A really once in a lifetime opportunity type investment right infront of their face. Been gone just a few days from this board and all i see when i come back this morning are just day/swing traders upset they didn't make their 5 cent flip or really amateur investors who didn't know what they were buying into. All crying that some insiders sold stock and/or the stock took a dump after a 300%!!! run. Yep.......99.9% of you guys DON'T KNOW ANYTHING about this company, its future or the huge potential here. If anyone bothered to do a bit of background research or due diligence, you all would have realized not only the risks BUT also what's at stake here. Unfortunately, most don't know squat and just want a quick, overnight return on their blind stock purchases not wanting to be burdened with the minutia of actual investing.Fools.....i tell you.
So to enlighten you all, let me address just a few points here. First, on the volatility being experienced within the last month or so. For those that don't know the history of this company, you should be aware that Giga's stock price has been more or less trading under .50/share for the last seven years or so. There were very valid reasons for this, the most important being that commodity prices collapsed and were too low for almost ANY nickel mining operation to be profitable let alone ANY upstart project like Giga's mine to become feasible. So what did you expect was gonna happen when stock price ran up 800% in under 2 months? Really? Aside from the fact that there's a lot of excitment surrouding the stock. Just on the pure fact that this went up 8X what it was trading in the last seven years should be enough for anyone to undertand not only the situation but the risks inlvolved. Now you add to that ALL the hype & attention this company has been getting from around the whole world for its "supposed" links to someone like Tesla....and voila you get this $hitstorm in the stock price. So until you guys either understand this investment or until more concrete information is known through a company update, investors should use patience & caution for the best outcome.
On the second issue, this being insiders dumping stock. Right off the bat, i'll tell you that this IS NOT the first time employees or insiders have sold stock in the company. Like i mentioned above, what did you expect was going happen when the stock has been stagnant for almost 10 years and trading under .50 cents for the greater part of that time? And folks are actually upset & complain about this? Really people, what would yo do if YOU were in their shoes? In addition, as most peeps are usually not aware and think this was mainly done out of greed and a lack of transparency, i beg to differ and believe this was tactical, concerted effort on the part of managment for other motives. If anyone actually knows who's behind the wheel of this bus, you would understand. To be brief, i'll just tell you that for many years the company was strapped for cash, so in essence they didn't have the money neccessary to move the projsect along in ANY direction. With company mgmt/insiders exercsising their options, the company NOW HAS ~$4M in its coffers to continue drilling another round of infill holes to delineate the property further. All this was done WITHOUT excessive dilution and without having to do a disadvantageous private placement, which would have put additional pressures & constraints on the stock over the long term. So imo, this was a well thoughtout plan by managment which people should be made aware of.
Thirdly, the Tesla link. So what hasn't been said here? On both sides? The only think i'm certain about this is the company has neither confirmed or DENIED!!! any possible tie ins to Tesla. Though there's much hype & speculations around this link, nobody and i mean nobody but the big guy knows anything. So until the man solidly confirms certain assertions, EVERYTHING should be completely off the table BUT certain "possibilities" SHOULD BE seriously considered & carefully calculated into this equation. What do i mean by this? In other words, even though NOTHING has been comfirmed by anyone, investors should use commom sense, pragmatic thoght and factual knowledge of both the company & industry to reasonably assess any future implications. I will explain this a little further in the paragraph below. As for the Tesla-Giga link and on what has been said or reported, if there has been ANY FALSE statments made by ANYONE OUTSIDE both companies, then they should be dealth with quickly and persued ferociously by their repective regulatory bodies as to prevent any further damage to either company including investors. As far as i'm aware neither Telsa OR Giga has made ANY statements which would be considered as false or misleading but maybe not the same could be said for certain media outlets outside the control or supervision of both companies. Mark my words though, if any foul play is at hand here, the hammer WILL come down on those responible and there will be hell to pay for anyone involved.
The last and most relevent facts in all this, the company itself & its asset. While many here just focus on the Tesla possibilties, they don't fully realize the sheer scope of the asset outside of that thightly constained box. Simpleton thinking here of just focusing on a voltaile paper investment instead of the hard asset itself. I'm 100% certain that the majority of people don't understand the resource factor here or how it correlates with metal pricing going forward and i'm abosultely sure that a great many investor dont even know what they actually mine, if they even know this is miner. If you bought the company soley based on the Tesla rumours and nothing else without doing some proper research, fine, it's your prerogative to do so as well as assuming the risks that come along with such a tactic. So let me fill you in & enlighten some folks again and i'll be very blunt from the start. This is a HUGE nickel/cobalt resource folks......immense by ANY industry standard or measure. To fully comprehend the size of Giga Metal's asset, the Turnagain deposit/mine you must first understand what this asset contains on a global scale. For those that DON'T KNOW, as i'm sure most probably bought on the Tesla rumour, this deposit contains aproximately ~5B (yes BILLION!!!) pounds of Nickel & ~350M lbs of Cobalt. If you don't know what that means or entails, then you probably should not be in this company in the first place and if you are & worried then rest assured, i'll lay those worries to rest.
To make you understand in layman's terms, i'll just show you a quick comparison as this is the simplest & easiest way for novice peeps to grasp magnitude of this project. One of thee biggest nickel find in North America was the Voisey Bay deposit up in Northern Canada. This project in currently in the hands of Vale Canada (if you don't know who this is then another reason why you shouldnt have been here) but was purchased from a junior miner (please not this carefully) over 20 years ago. Not only purchased from BUT in fact that small miner was completely BOUGHTOUT outright at extremely rich premiums. Just to give you an idea, the Voisey Bay deposit/mine has an MI&I resource of ~140MT @1.5% nickel & @0.08% cobalt or about ~5B lbs of Nickel and ~30M lbs Cobalt. In contrast, Giga's deposit has at least 1.5B (yes BILLION!!! mark that in your head) @0.20% nickel & @0.1 cobalt or about 7B!! lbs of Nickel & ~350M lbs of Cobalt. When you compare both, which are both sulphides (which is impotant to note for other reasons) deposits btw, even though Voisey Bay has higher grade nickel deposit
just the sheer size of Turnagain far surpasses it, by a longshot. When you add to the fact that Voisey Bay was boughtout at ~$4b over 20 years ago at when the price of nickel was trading at half the price it is today, you'll start to get it. Do any of you people angry & upset where Giga's stock price is trading now really believe that a major or two doesn't have its eyes completely focused on this company and its asset?
I could probably continue to talk all day on this subject and tell you all the reasons why this investment is probably one of the few rare, once in a lifetime opportunities, but if you haven't grasped it by now you most likely never will. To say that the company is only worth something IF Mr. Musk & Telsa are willing to deal with them and/or give them some sort of contract, is SEVERLY underestimating the potential here aside from the fact you do great disservice to the company, its mgmt team, the s/h and above all investors looking for value in an investment. The gist of it here is this, if you believe that nickel will be in great demand in the next two decades or so and if you also undertand that there is a supply/demand problem now and most likely will be a shortage in the not to distant future then i don't know what is not to like here. To me, the Telsa angle is ONLY a bonus or the sweet cherry ontop if you will, the BIGGER story is the one i just explained above. If you like the Tesla bit and that's about the only thing you're concerned with here, then you really should not have bought the stock. But just to appease people's interest or fears, i'll let you on a little secret, NOT all nickel product is created equal AND folks like Tesla need really pure specific & stuff for them to build those wonderfull batteries for those excellent EVs. Just a little heads up and ill give you one guess as to who can supply such a product, who's not only close by but can actually mine, extract & produce in a sustainably, evironmentally sound way. Just one guess 8).
In the end, i would very surprised here that if nickel prices continue to rise, even if slowly, that a major like Vale or Glencore will make at least an attempt to secure this huge deposit for themselves. A buyin in the form od a significant interest from either of those two behemoths would be not only solid confirmation of the viability of the deposit but would allow the company to commnece the neccessary procedures to fullfill their ultimate goal of bringing the deposit to prodcution. Just the fact of having a 40 year mine life with guranteed offtake in a safe, rule of law district like Canada should be reason enough for almost anyone, even the most hardened sceptic. No worries about dictators, no worries about upheavals, revolutions or constant turmoil that may risk or even sieze the assets. None of that. So i suggest some you think about what i've said today when focusing on the daily noise. Remeber.........Rome wasn't built in a day and neither will this story be......patience is only a virtue in the right hands.
Good luck to all