A few more days before Ramadan is overAfter that things should start moving along in Indonesia. Hopefully, in the next few weeks the administrative issues with regards to the last IUP will be a thing of the past. It's always a guess when it comes to how slow things will be forthcoming on that end of the spectrum. As usual, the best strategy is to estimate a date and add a few months. That seems to work pretty well here lately.
Nothing much management can do about those issues, but in the background there is a lot happening, I am sure of it.
As soon as the IUP for Selodong is in hand, I hear from Indonesian contacts that there may be several drills on the ground ready for action. The Pelangan results should be able to move this up and create a little interest as well as any JV that we are expecting to see.
JP does not seem worried by the funding issues, so this may be an indication of a lot more going on behind the scenes.
The fact that he got so many options in the last offering is somewhat telling, because I am pretty sure those are not going to be used for his personal enjoymernt.
At this point, I also look at the lack of interest for the stock and realize that it is no longer the retail market that will move this play along. I fully expect larger players to get involved now that the story is coming to a point where it can be told to people who have a strong base in this market sector. Our job may be done with as it may now be time to get those entities involved who have the base for rapid participation. My current thinking is that if we do indeed have a JV happening and perhaps other events going on in the background that would make for SA getting an audience among those people who are fundamental in this sector, then retail shareholders will simply not be required to move this at all.
If a JV is announced, I am pretty sure that the people who are connected to whatever partner may be announced will show a certain level of interest in this play, and it goes without saying that they may then be looking for some participation that is not a few thousand shares at a time like the retail market looks for. Any major has a bunch of people looking into what they are doing, and these people may get involved with SA going forward. The credibility that SA could gain would bring about more interest without delay, and positions that would be taken will be sure to move this as we all know that this is now being held rather tightly.
I know of at least a minimum of 20M shares that won't be sold anytime soon. The float will be somewhat limited as those of us who have been waiting for this to come together will certainly not be selling until at least a feeling that our opportunity costs have been met. This means that anyone wanting to build a substantial position will have to ride it up. Sure, in the beginning there will be a bit of selling from those who just still don't believe it will happen for SA and they just want to get out without a loss, but that won't last long. In the last few years, a lot of share have moved to strong hands so that selling will be limited.
If JP is able to get interest from the very large participants in this market then there is no telling where it will go if we can back up the story with some further drilling. We can't forget that we already have resources. It is not like we are starting from scratch. There is already value in the ground, unlike some other juniors that are trading much higher than we are, who have yet to find anything of economical value.
As we move closer to the end of the year, I fully expect that there will be some major milestones for this company. So many years of working towards a very precise goal has to be rewarded at some point. Too many things are in place and one can feel a there is a sense of purpose from management to be able to reward those people who have hung in there for so many years. They have the goods and they will soon the administrative issues will be behind us, and then we'll see progress with regards to the interest and the share price.
If you take the time to look back at the properties and the drilling was has been done already and apply that to whatever other juniors are doing, then you'll notice that there is no doubt that we do have economical ore that some majors will be looking for down the road. The number of properties that are interesting is a plus for SA, and Indonesia is changing with regards to attracting more investment recently. It is getting a lot more interest nowadays and has now pretty well shed that evil past that took the mining sector down some years ago.
Management cannot afford to make any mistakes from this point on. A good bit of competititon has arisen in the last few years and interest and funding available to this junior market is not as easy to obtain as it was 5 years ago. You need a compelling story and I think we'll have one soon.
We are now in the last phase..........and after nearly 5 years ofwaiting, I am certainly looking forward to the next few months withgreat anticipation.
cheers,
VWIG