RE: Valuation for Lead in the GroundYou’re absolutely right War Eagle looks extremely cheap if you’re looking at the potential high grade resources at Tres Marias. The problem here is that the company has been terribly mismanaged. After the mine report was finished back in 2006 has the company completed several thousand channel samples with several miles of high grade Zn and Ge results, they have also drilled more than 5000 meters, with several hundred meters with extremely high Zn and Ge grades. They have promised resource estimations and a 3D model of the ore body, but haven’t published anything yet. We still don’t know anything about all wonderful drill and channel sample results since they never publish any information about the position for the drill results and drill angles. They haven’t published a single picture of the results, making it easier for investors to understand the deposit structure.
The fundamentals for germanium are still there, several reports indicate that germanium is among the 5 most attractive minerals for a future supply crunch.
The problem here is that management can’t create shareholder value, and the majority owner. FGS with J Passin is sitting on his thumbs. I just don’t know if we should suspect total incompetence or Fraud here. All I know is that the stock price would be several hundred percent higher if the company was more responsibly managed.