RE: gold at 700.20I am pretty patient with the juniors since most are not directly leveraged to the price of gold anyway, and because the money flow is still out of the sector. I know a lot of people who have confided they either sold some (or all) of their PM holdings recently, or rolled money out of PM mutual funds. We can question the timing of that kind of move all we want, but it is happening. So the smaller juniors tend to selloff even though the fundamentals may be strong.
Now I expected the early explorers to get hit, especially the ones that have limited cash in the treasury, but I did think that the emerging producers would have more resiliance because they will get a nice tailwind from higher gold and silver prices, and also because they are self-financing on the back of the cash flow generated from operations. So companies like EXM and IPT should not have gone through such an intense selloff. But it is what it is...
Now looking forward, I would think that once we start to get some news flow on the progress at Moris, then EXM will catch a bid. I believe that EXM is not allowed to issue news on the project without getting approval from Hothschild, and that is sometimes slow in coming, which can be frustrating for them because it limits their ability to respond during a correction. I think our ace in the hole is the fact that Hothschild is a high quality partner that is going to keep the trains running on time, and the learning curve may be less of an issue as a result. Once the company discloses that operations are running well, and perhaps even announces the first pour of dore, I expect that EXM will get more of a premium as a producer in the market.
As a final note, I think we can all feel pretty good about the way the company has accomplished their objective to get Moris up to speed. It was only about a year ago that the deal was announced regarding the acquisition and the JV. How good is the timing to get production underway exactly at the time that gold is breaking out again? I personaly believe that Moris is just the first in what will be several operating mines that EXM has a piece of in the years ahead. Karl and Craig are going to make it happen and I am comfortable hanging in with them while things move along.
cheers!
COACH247