RE:RE:11 days left of trading in maySolidsnake10 wrote: Any reason why the PEA could be negative? not trying to bash but i want to know th cons of tihs play and why its so undervalued.
Well the PEA might show that it is not cost effective to develop into a mine. Which I doubt. Given their resources, cheap labour and a government that wants to expand resource investments, I think the PEA will show all of these factors and demonstrate just how profitable the property is!
Many of the big boys won't buy on speculation. They want proof of what the potential mine is worth before they decide to invest (sometimes you need power, roads and other infastructure that pushes the project past the tipping point of profitability). I expect the PEA will show that while they may not have the highest concentrations of gold, their ability to extract it for a fraction of the cost will make it even more profitable than other properties with higher concentrations.
Of course, only the PEA will tell us this for sure. I expect it will be a great PEA with buyout interest in the near future.