Core Gold DMMIF

RE: Erosion of Credibility

[OriginalFred]

I tend to agree that the company has lost credibility, and this stock is probably dead money until they report decent production numbers.  The company should have been much more straightforward about the fact that they will not ramp up mining until they have an exploitation contract.  Their only goal right now is to mine enough gold to break even.  They should have come right out and said that.  It seems that they did not want to admit to investors that this is a waiting game for now.

On the positive side, break even is good enough to avoid dilution while we wait.  The profit potential with this mine is excellent, and there is also good growth potential.  I have not found a mining stock that offers more value than Dynasty assuming they eventually get the contract and get production ramped up.

My guess is that we will have an exploitation contract by June, and the production ramp up will be obvious by September.  I also think gold will resume its rally in July after the market realizes that quantitative easing is not going to end.  The government is generating so much debt  that only the Fed can buy it all.  The Democrats will make sure there are no significant spending cuts, and the Republicans will not allow taxes to increase.  The money printing will not end until there is a crises.  The markets can only allow this charade to continue for so long.  Inflation will eventually take hold, especially in imported goods.  Foreigners have given the U.S. a free ride by sending products in exchange for paper.  I expect that free ride is coming to an end.