similar comments on delays...drafted this 3 weeks ago and
am now reading up and see is time to post --
While it has been touched upon by a few posters (ie 3 weeks ago ):
( and I just read MarBob's post on K etc )
imo readers are missing that the major factor is:
The idea that the Chinese are very likely having hard quiet negotiations with
the mining dept and feds of Ecudaor
The CTQ project(s) involves $3 bil of development and the Chinese
want rock! solid known taxation rules for the project
( as we know each project gets negotiated within the mining act guidelines
and taxation )
Can they be trying for changes in NSR also?
So K is watching also but are much further from spending on development
( to production ) and likely somewhat less than the CTQ spending )
DMM stays subtle and waits for clarification as/and the CTQ deal proceeding
Also keeping head low as is not discussing the J site or any exploration drilling ( results? )
Did they not say they are in slow mode on J ( ie due to no formal agreement)
I say regulation problems are minor it is the final agreement re gov't share
I would not say CTQ is dragging
I expect they are waiting for an outcome of the Chinese and the govt
A good sign that CTQ received a recent water permit and this project is in the area
where the militant protect-the-environment faction were an influence.
Then the Chinese can determine a valuation based on cash flow numbers
and make a tight offer for CTQ
- CTQ could base here/now , indicating if ( govt) negotiations are near completion
I would say this is the likely present scenerio with DMM ( cat and mouse)
as DMM has been atrociously slow in getting production geared up imo.
The mill is m m - What 10-13? drives and some instrumentation and grinding/floatation to set up
in 5 months
And lastly they said it takes time to get to higher grade ore.
I don't think they want to ramp production and show efficency etc until the agreement is signed
A pulp/paper mill with 1000 drives can be started ( and tuned) in 3-5 months
( from the time all motors are being connected )
And R W likely expects results( rules/agreement) by Sept since he managed
to extend the gold royalty buyout time , just to Sept
( I expect he pays a touch more to IMG )
I hope/expect they have powered ore ready to place OR
in the processing tanks by now
So lets hope CTQ gets agreement with slow latins by late Aug
( not vacation time as is winter )
Late July is the seasonal low ( buy) time for golds
- And gold has turned up since I drafted this
( except this year there is a proposal in India for a consumption/processing tax
on gold to the processers/artisans )
Also own a few other jr golds but less than in DMM
DMM chart forming a good base and is right at support
And one should watch the CTQ chart for a possible base
And before posting , I just read CTW thread Aug 4 and see djstone is in the very same mindset
and glad to see his comment on upcoming gov't sitting coming
-Haven't taken an initial position in CTQ as a trade or added any DMM ( am overweight in DMM )
could be all of Aug before a turn
And now I see ( post) HSBC broker jumping on
So I see they think K more important than CTQ
but i think Chinese more impatient on CYQ ruling than K with FDN
And Eggy addresses same concepts and frustrations also
But interesting as players sense action?
and posts seem to be maturing.
Good investing
Upmarkets