RE: RE: Gold is up a little -- NPV calculationSimmers is a possible culprit, but it looks to me that the banksters (RBC mainly?) are trying to achieve a takeover before the mine becomes profitable. Correct me if I'm incorrect, but Simmers gave the mines to FIU in exchange for equity. If they had sold the mines to FIU after FIU raised a lot of capital to buy the mines, then drove the price of FIU down, we could see evidence that they had acquired a lot of shares, then I would agree.
Instead, it appears to me that the thinking was the first few rounds of fund raising would be enough, Simmers was unprepared for the share price drop and further fund raising, and are too financially weak to respond without further weakening their position. I do blame Simmers for drop to
.70 and the huge volume as the shares rose up to $1.30 a few months ago, but I can see that they needed cash in order to prepare themselves for this current fund raising from a position of having cash. My feeling is that this is likely the last fund raising while the shares are in this range, and once the funds are raised, the shares will take a few dips down and within the year will be comfortably above $2.
It's been a brilliant plan. Keep this one in mind for the future if you're ever a shareholder of a company and the parent company/major shareholder is financially weak when the company needs to raise cash. The only thing that has saved them is the skyrocketing price of gold and now uranium. The mines are so valuable that the fire sale of the mines would be multiples higher than the market cap.
But, I wouldn't disagree that management/Simmers are intertwined enough that the management mistakes shouldn't be seen as some kind of Simmers plan. However, it the big picture points to the bankers.
Besides, aren't the major banks around the world trying very hard to maintain the fiat currency system? In the midst of a financial crisis that calls into question the system, how important would it be for a major bank to own a huge amount of gold in the ground? The value of 30M oz Au (approximately 1000 tonnes) in the ground is not small to any country. I am surprised I even have an opportunity to buy into this.
Just my opinion.