Gold Production is the KeyFrom Jim Sinclair ... A sequel to "
The Shift Between Gold Share Companies."
Posted: Oct 21 2009 By: Jim Sinclair Post Edited: October 21, 2009 at 5:41 pm
Filed under: General Editorial
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"So in giving you the matrix of gold share categories, you can begin to place the issues you own in the position that the market presently perceives them to be or to which they have been manipulated to be.
You can watch their on ground progress to determine, if they are moving up and down the scale and therefore be able to predict the direction of price with accuracy. If you can get some help to understand the fuller meanings of the reports you can actually get a degree of directional move in terms of the present market climate.
For instance, 100,000 ounces of mineable on surface gravel is worth (net cash flow terms) as much as 1,000,000 ounces of deep gold mineralization. Borrowing funds to build a new mine that requires an OTC derivative short of gold in place is a faster way to production than earning your way to it, but carries much greater financial risks.
A category three situation wishing to move into upper category two, regardless of being a royalty company or a pure exploration company, must see some property in production with respectable net cash flow ramifications."
https://jsmineset.com/2009/10/21/evaluation-of-precious-metal-shares-in-today-marketplace/