Revisiting this stock Some good points made here gentlemen.
I was in this when it was Gammon and as many did not enjoy some of the not so straight shooting that was going on at the time. I left with about a 30% gain but had to hold for 2 years to get that as it yo-yo'd in and out of profiablility for me (high stress stock). That aside the company has tried to distance itself from its past by renaming and entering into the new Canadian venture.
The main points here are as follows:
1 soon to be on production +
2 Mine death -
3 Uncertain resource recoveries at O -
I have seen unfortunate accidents before in mining and it generally takes 2-3+ years for a settlement even when negilgence is sighted, therefore the impact will be negligable for the short term. The lack of reporting is somewhat dubious but not illegal as far as I know. Since Q1 will not be available for another 3 months we must rely on the Year End Financial Results and Analyst Day Webcast on March 28. One could garner from Q4 information an estimate of 3/2 Q1 impact as well.
Gold stocks almost universally go up at mine start up (barring failures) and the financing is being done with flow through cash (another positive). I am looking at this as a short term (3 months) trade with possible future upside depending on March 28 downside results.
Thanks for listening. Anyone else have an opinion they would like to share?