PINL:VLTAF - Post by User
Post by
ndancer1on Jun 24, 2013 3:19pm
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Post# 21569741
Copper vs Gold
Copper vs GoldI don't know if this is a crazy idea but why not shift gears and develop the copper deposit and sell an interest in Kiaka to help fund that start up. Maybe you need to learn how to walk before you can run ... evolving from an exploration company into a production company.
If you buy into the premise that the world economies are going to recover first, than copper prices should recover first, followed by inflation which should then fuel gold prices at a later time (2016?). With QE tapering likely to take place, bond yields are rising which will temporarily drive up the USD ... removing the currency play to moving gold prices up as well.
When gold comes back up over 1400, which may take several years, the company may be in a position to develop in partnership with that investor (Randgold?). I wondered at the time that the claim swap occured that this was the end game for Kiaka eventually ... Randgold would be back in the picture.
A bankable PFS would have to be prepared for Gaoua... If gold does stay depressed for the balance of the year and into 2014 (Goldman ... $1050) I would think a Kiaka PFS based on 1400 would not be sellable other than as a sales tool for a future partnership.
Some one posted just recently a response from Ken that stated that the $10M of cash will only last a year at the current burn rate ... maybe that cash should be directed to Gaoua.to move the resource from Inferred to Indicated.
If an alternative is not explored than the management is only going to be left with the one thing "to look for" as stated in their latest presentation, and that is the "conservation and preservation of cash".