RE: Anyone go to the World Gold PGM andI went yesterday. Talked with Jasmin for a bit. She said geologists keep getting excited by the results but the markets yawn. Very puzzling. I have discussed this with her in the past and decided that the project is so big that most investors have lost interest in the recent results. They know the project is gigantic but are put off by the remoteness of the location and the time till production. She counters that they need to keep drilling to substantiate reserves capable of keeping the mine going for 25 years. That is the length of time necessary to convince a third party to build the power generation plant needed to make the mine possible.
Another key to improving the stock price would be the participation of a major as a minority partner. Jasmin said several big firms have done DD on Selwyn but nothing has transpired yet.
In the near term, she said she is traveling to Toronto and New York to meet with institutional investors and newsletter writers to increase coverage and knowledge about Selwyn.
In the long run, this stock will go much higher but it is obviously frustrating to everyone to see other zinc stocks move up while the biggest deposit in the world seems unappreciated. I have a relatively small position but intend to hold for the long run.
On a related subject, I asked her about the spinoff. She said the only connection between the two corporations is two common board members. It will probably take some time for the new mgmt team to assess the properties they inherited and decide whether they intend to pursue the existing portfolio or seek new projects. The mgmt has a good track record so the long run results should be positive.
The spinoff has dropped in price a bit but still represents additional value to SWN shareholders who received the spinoff without having to buy the shares and the share price for SWN hasn't dropped so net net, the shareholders gained the market value of SVT.v.
Bobwins