RE: RE: UPDATED PRESENTATION "Or in other words, why should these shares appreciate much in the next 6 months?"
Sooner or later, the PM sector will turn around. When that happens, CRJ and many other PM related equities will rise. Hence, the better question is why CRJ as opposed to another PM related equity?
My short answer:
Mining expansion that should grow overall Seabee production and exploration efforts as rooted in Santoy Gap, L62 and Madsen. To a lessor extent, buyout potential but most likely not until more is known about Madsen.
In the short to near term, I think it realistic not to expect much out of CRJ except an oversold rebound. Earnings will be anything but stellar given the costs associated with expanding mining operations, exploration drilling and resupplying Seabee. Come the second half of 2012, however, gold is apt to be trading higher, mine expansion will be completed and greater ore (and hopefully better grades) will be in line to be processed (ie: L62 could be in production as early as mid-2012). Another catalyst is Amisk where I think CRJ will be close to a production decision by year end.
To close, CRJ is undervalued to the extent that appreciation is a given. The big question investors must ask themselves is how long does one want to wait for the "PM market" to turn around? There are values across the board and albeit a higher cost producer, one thing to denote about CRJ is that it is in production and with positive cash flow comes less risk of highly dilutive equity financings. Private Placements that most underfunded PM concerns need to survive are finding it harder and harder to obtain given current weakness in the mining sector. CRJ has $35M in the bank and last raised money at $2.70.