RE: Debt Explosion Today! >>>if you think the price of gold is going to stagnate, being invested in claude and many other precious metal mining companies is not a good idea.<<<
Well that is one way to look at it.
.
Look there are two reasons one might invest in Mining Companies:
- Because they think the shares will rise with a rising Price of Gold - or the stock is a good "proxy" for POG, or.
- Because the Mining Company has plans to grow and even at a stagnant POG the shares will gain in value as the company prints cash.
.
So you must be buying Claude because you think it will track a rising price of gold, because the growth projected here is some of the lowest. There are plenty of companies with proven management that have much higher growth plans..
.
Claude plans to grow at 10% a year for 5 years. Whoop-de-do! Take a look at B2Gold - they are going from 155K opy in 2012 to 750,000 in 2016/7 or a 300% growth rate. That kind of growth kinda puts Claude's little 10% per year to shame. Oh, and running B2Gold is a management team that built Bema gold from 5 million market cap to a $3Billion market cap in less time than McMillian has been f@ rting around with CRJ.
.
So give your head a shake. You think CRJ is going to out perform the POG and has better growth than BTO? I guess some guys don't care what the long-term returns are on their PF?Huh? How much cash do you think BTO will be printing at cash cost of 700 and 2200 POG and 350,000 opy?
.
Good luck!