RE: RE: RE: RE: To be..or not to be.... Haven't posted on this board before, but I have been picking up shares of GCU on the dips the past half a year, after watching this company since 2010. That probably gives me a different perspective than the long term holders. It seems to me that the company was attracting a premium before (when, by the way, the junior market was in much better shape) for the prospect of having a high grade resource. With the most recent resource estimate, the exuberance over high grade has faded. This in tax selling season of a very nasty jr. market where lower grade projects are completely unloved (known all too well by me). Nothing strikes me as fishy about the recent price action of GCU...it appears to me to mirror the jr. market in general.
So, the question now is should I take advantage of this 'gift'? Personally, I am. Although the recent RE may appear to put springpole among lower grade projects, it still shows ~3M Oz @ 1.7-1.8 g/t. The shape of the deposit along with the near surface high grade kicker also looks economically beneficial. Once these aspects become apparent in the IRR, some of the 'low grade discount' should evaporate. (The CEO must feel similarly, hence the recent 100K purchase). Once the jr. market for quality projects improves, I think GCU can do quite well from these levels. That said, I'm not all in yet...this is currently a brutal jr. market, and prices that appear unbeliveable are possible. It happened in 2008 and to some extent it is occuring now as well.
All I can add is if you are going to play in this market, you need to man up and lean on the strong fundamentals that made you buy in the first place...imagine what Springpole will be worth at $3,000 Oz!
Mo