RE:RE:RE:RE:RE:RE:RE:RE:Dundee keeping the stock down
canon12345 wrote:
Anyone who invests in a junior with the risk they have is in as you call it lala land.
I tried to explain to one investor/trader that junior mining stocks die more often than not, and that some, particularly gold plays, are sort of doomed from the beginning. He went on and on about all the goodies Woulfe had, etc, but what attracted me to the stock was the metal being mined at Sangdong. Sure most junior miners die horrible deaths, going broke before they find anything of value, but in this case I think Woulfe made a good buy. Japanese Imperial records are scarce but I've been trying to find (and read) them, but without lluck . . . however Sangdong produced no small amount of the Tungsten used by the Japanese during WWII.
We're about to enter the period of the largest military buildup since World War II in almost every nation EXCEPT the United States, and ever we're building 3 new supercarriers of a new class for 21st century combart, and retrofitting many other ships, planes, and AFV's. All this argues for an increased demand for alloyed steels AND more importantly, among the non-nuclear nations, more tungsten for anti-tank rounds. Then there are of course the additional tooling metals needs, and other long term consumers of tungsten. Incandescent light bulbs are back since they got rid of that stupid goal to get rid of them all. Apparently someone actually did the math and figured out they were more energy effecient that CF bulbs IF you count the cost of making them, and are MUCH less harmful for the enviornment, so that market is coming back.
Tungsten is an almost unique metal. It has uses that simply can't be replaced with any other element or alloy of elements, and there's not enough of it for this century. Frankly I don't see this mine NOT being opened, and it was a good choice by Woulfe for "first mine to exploit".
All it is now is a matter of waiting, as long as their people are willing to take shares for contracts, we may see this pay off without going into reorganization a couple times. (more). However, given the value of the mine, and the contracts, I somehow doubt IMC will let them to into bankruptcy just because IMC wouldn't necccessarily be the high bidder on Sangdong. If I was the PRC I'd be sure to bid high in any such sale just to add to my own stocks while denying the prodution to the west. Naturally Korea does NOT want to see that happen, hence, most probably they will support this project and hope to get it into production soon. They, like us, in cooperation with us actually, are designing a new main battle tank to replace the M1A/K2 series MBT's. Hopefully they'll recalibrate the main gun to a longer case and increase the muzzle velocity to match. That'll mean reengineering both ammo types, our DU rounds, and the Tungsten rounds the Koreans use.
Either way, the more tungsten used, the more the price goes up, the more profitable this mine will be. The only thing we have to do at this point is wait, keep up with dilution, and hope IMC signs the contract at the soonest moment, WITHOUT expecting it to be "any day now".