Onward and upward....All in all nothing has really changed. Progress is still continuous in spite of what the detractors/traders/shorters (who wanted dollars/share overnight) say. Unrealistic expectations have warped the underlying, strong fundamentals. For some, the game is about trading…not investing. Profit must be driven by often detached motives….not reality. Even so, the stock is still undervalued here…as even the Murphy Analytics report based on minimal grades that will be surpassed, gives a conservative share value on expected income of 46 cents/share. Heck, hundreds of small explorers all over the world just starting their drill programs and bleeding money are trading much higher…with expectations and some with results of very low grades in comparison to SFMI. This explorer/producer....soon miner...has come a long way in a short period of time. It has money in the bank and an amazing storehouse of rich treasure...with all the details in the historic, credible geo reports. As others have attested to, there are a rare few JPMs (junior precious metals ) in the world in production with a ramp up continuing… that will improve recovery and tonnage per day...as each and every day passes. This is not something that can be turned on by the flick of a switch. Still, SFMI is years and $ ahead of the race and huge growing demand for their product…a product hard to come by and often extremely expensive to find and unearth…but not for SFMI.
The facts are that SFMI still has hundreds of thousands of tons above ground gold/silver ore with grades anywhere from 6 gm/ton to 1 oz/ton. Even at 6 gm/ton that is better by far than almost any open pit mines on the globe and better than most in-ground explorers are even discovering....especially in large quantity...and to think that it will cost only $50/ton is quite remarkable. The profitability is exceptional. The in-place infrastructure is a huge gift….allowing SFMI easy access to their rich in-ground ore….with some estimations of over 10 million ounces of high grade gold/silver. Very few seem to do the research that is readily available at the SFMI web site. Those who do see the opportunity to buy at these bargain levels and see a very handsome return…both in the short term and the long.
On the surface it would appear that our expectations were dashed because of the hoopla swirling around the shareholder’s meeting. Not sure why it was set up this way but I’m wondering if there is a need/desire to keep the stock at minimal levels as long as possible...maybe until the next Quarterly report in which we will have to be given the production and assay results that have been building momentum to the end of Sept. (The report is due no later than mid November). Smart investors will be buying and holding at these bargain prices. Not sure what the reasoning would be for such a plan except that there may be many who want in to the stock at low prices before the up listings on TSX and Brazil, the share buyback process (at low prices...which will benefit shareholders)…and perhaps many other reasons.
The Co. is certainly building a small horde of concentrate for sale as the prices of the metals take off…as the value is increasing exponentially for both the product and the total business assets. It almost seems to me that this meeting was a set up to keep the stock quiet. Hype expectations and then keep quiet to some degree. It is only my opinion but it could be speculated that there are those that do not want the stock to get away on them…keep the mushrooms in the dark.
There are hundreds of millions of dollar at stake here folks…and many do not realize it because they do not understand the fundamentals and the incredible, once -in-a-lifetime upside that is upon us due to two things: the real potential of … and incendiary, intrinsic value of SFMI’s resources and: the explosive, globally driven, insatiable demand for gold and silver…the new world currencies…that is now beginning to astound and shock the deniers and the manipulators. It is now overtaking them. It is “game on” and the way business has been done by the manipulative market boys is now biting them in the bottom. The biggest economic entities in the word are all buying…and the US Gov., Fed. And Wall St. (see JP Morgan) no longer calls the shots. They are in denial. They are in a panic crash spiral and desperate to keep the floundering spin going…because that is all that is left between their out-of-control shorts and bankruptcy is a void. The resulting consequences for the PMs/JPMs are both awesome and frightening all at the same time.
The fundamentals of supply demand for gold and silver are now annihilating those who have suppressed them for over 11 years …whose prices have risen in multiples in face of their failed efforts. It is a fact that gold has been the best year over year investment in the world for ten years and is just now entering the third parabolic stage of its multi-year bull run that will last for the next few years. Leveraged paper bets (derivatives) and out of control debt with a background of all world currencies in a race to the bottom vs. gold/silver, have assured the end game. Even Allan Greenspan has turned tail and this week admitted that gold is the real world currency. Absolute fortunes will be made on JPM stocks. It has already started. Watch the indicators such as the TSX, XAU, HUI, McEwen gold index, solid precious metals funds (Sprott, RBC etc.) and multiples more as the price of gold and especially silver run like rabbits into January … consolidate and then continue on into the spring.
So back to ground zero, SFMI. Those of us who understand what is driving the markets for the JPM stocks, also understand that SFMI is woefully undervalued right here and right now. Even with mediocre management, this resource and its momentous value can not be denied. It is the real deal….in spite I say, of management. Management cannot flush this huge resource down the toilet no matter what they do now. All they have to do is plug along and wait for the best offer…and it will be good whether it is enough or not. The shareholders will be happy no matter what. There are those who do not understand this and those who do but do not want you to understand it. There are also many experienced, resident longs here that are most astute and continue to hold large numbers of shares and accumulate on dips…it is they who have those Cheshire cat grins on their faces today…just like those who invest in the bullions and have already made millions…some billions.
There are a few entities that know what SFMI holds and they hovering over the prey. They want it before it gets too expensive, they don’t want to show their hand but they are now in a race with time and they are beginning to realize that the bluff game is getting perilously more risky by the day. He who hesitates in this brave new world is lost. Shock and awe are on deck. The takeovers are mounting. High-grade resources are almost nil on the earth (those with over 3 t o 5 million ounces). The stakes build by the day now. Who will jump first? Who can/will try to outwit SFMI’s management with the best deal? Kinross knows what value lies in War Eagle and in those ore piles. Do you think that others are also not well aware of that? In reality, Pierre Quilliam landed in a bed of roses by happenstance …and man does he ever have sh-t disturber value…and he knows it…and old Pierre is very savvy so do not underestimate him. So, do you really think he has to worry about what the shareholders think? No!. Because no matter what he does from here on in, we are all winners. He simply cannot f-ck it up. What a nice bird seat to be in. The stockholders will love Pierre in the weeks to come because they will be well rewarded. That’s all that matters. The small guy has to be positioned now in order not to get swept out by those who would lead you to believe otherwise. They prey on fear and ignorance.
Please save this post if you doubt the integrity of what I say…and post it in one week, one month or two months. Things are going to change that fast now as the subsurface fireworks ignite. Gold is going to $1500 by Jan. and all bets are off for silver….I’m thinking $30/oz. The whipsaw, upside, leverage effect on the junior precious metal stocks will be earthshaking. Imagine what that will do to the bottom line of an SFMI as speculative fever and such leverage to the upside enters stage right between now and Dec….tomorrow? Next week? Next month? If you aren’t positioned at the gate you will never catch the flight. It will reach dizzy heights and may well be the only salvation available to “the little guy”.