Claude Res Inc CLGRF

RE: RE: RE: RE: RE: Something is up?

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Not all junior producers are similarly leveraged to the price of gold.  Far from it, unless you think any upswing in the gold price will only last a few short years.  Each company's leverage is directly proportional to the amount of gold that can be very profitably mined  (and not taxed/appropriated) at whatever future price gold settles out at.  The more such gold resource exists or is reasonably expected to exist (e.g. Madsen, Amisk low-grade, etc.), the higher the market cap of the junior producer will be.  And companies operating in the safer jurisdictions will be valued much higher than those in less safe jurisdictions, because in the financial turmoil that will accompany high gold prices, governments will rush to greatly increase their take of mining proceeds.  That will be less true in the safer jurisdictions.

Claude has one of the higher leverages among the juniors that is in production.  The low share price is the perpetual option on gold, that is, lots of gold per share, and Seabee  production is the floor protecting that share price from further significant loss.  The share price losses of the past couple of months have priced in the worst case scenario for Seabee without giving value to the option on future gold production.  This presents a great low-risk opportunity for substatntial gain if you believe that gold is going much higher.