RE:Been almost a monthLast I heard, it will be 4-6 months from the end of May for the PEA to be completed, so sometime between September and November.
This week is option expiration week so the tech funds are all counting on the routine smash in gold. You can see them preparing for the takedown by selling down the gold stocks in anticipation. So far, the monthly smashdown hasn't happened. There are a lot of forces going against them at this point, too many to describe. If we get through this week with gold staying above $1300, it should be confirmation that gold has turned the corner.
I'm treating EGX as one of those stocks that is at an artificial low because of its circumstances and the historically lousy sentiment in the sector. This is the most difficult time to hold a stock like EGX as the company has more or less announced there will be no real news until the PEA. However, a lot of external events could cause the price to climb significantly before that day:
- A rising gold price (which could easily happen next week)
- A deal for Fruta del Norte (expecially if something worked out with Kinross)
- Major sentiment change, which could come in July if gold continues climbing. At that point, new investors who are looking for undervalued explorers could enter
Meanwhile, anyone who has a few hundred thousand shares and lacks the patience to wait a few more months can more or less sit on the price. I plan on buying whenever the stock goes below $.08 throughout the summer, although lately that's been difficult as most of the big trades seem to be crosses or block trades.