DD questions and commentsI've started DD on this company.
Some good people with credentials and experience on the board.
1- Looks like the Perama project is the company's only asset. It'll require a lot of capex to get a large open pit operation going and the strip ratio, depending on energy costs, may prove to push up the per oz cost considerably. Nevertheless, with a rising POG the sp should appreciate by a factor of 5 or more over 2-3 years. I say this with the caveat that dilution could have a neg effect but a producer of 170k ozs in 2008 should have 800-1billion market cap.
2- 169 million shares out. Sloppy share structure and more funding will be needed for a big mine.
3- are there any other real assets? the U project in S America looks to be the only one but U projects are mostly a scam. The best U projects are in Australia, IMHO, and I bought my first U shares in 2004.
4- too early to tell if the NEV drill program will lead to anything.
Thus, near-term producers are the place to be over the next 2-4 years but is there any blue sky after Perama? anything tangible or intangible a potential investor should be aware of? when the sp spiked to its all-time high what drove it there?
Thanks for any enlightening comments. My portfolio is all near-term or jr producers... just looking for more as the bull continues. This one looks good but at first blush the 169million shares is a red flag for me.
hc