RE:RE:RE:RE:Today's TradingNo Glenn was not at the PDAC. I spent a lot of time with his friends who had a booth where he was expected to be, but for some reason he didn’t show. I found out about the upcoming news release from Cathy who was also there. We spent quite a bit of time talking as well, and I wasn’t sure whether the news, she had received from Glenn (about the NR) was told to me in confidence so I didn’t say where I got it from. I was hoping the NR would be an update, but it was about another financing.
What I’ve learned from speaking with her is that Deller is more or less calling the shots and he doesn’t appear to have any interest in promoting this story to North American investors. He is well connected in Ecuador with the government and the Chinese. From my years with Corriente, trying to interest Bay St. in their Ecuadorian property, I understand this. I know it would be nice to see more promotional noise and I know Glenn is a well-known promotor, so I can only assume it is Deller who doesn’t want to spend money on marketing at this point.
Deller knows more about what’s going on with EGX than anyone and he is willing to keep putting money into the project. I doubt that there is any secret plan for him to dilute the heck out of the company. I think what has happened is they needed more info than the PEA provided so they need to do more work to satisfy their potential buyers. This would explain why there is no news.
I know Corriente would have been very happy to have a deep pocketed, well-connected local investor like Deller. This is what attracted me to this company in the first place. He's our insurance policy.
We have two choices here. We can sell because we can’t stand the anxiety or we sit back and wait. The deposit is huge and may end up being one of the largest discovered in the past few decades, so as long as Deller is willing to do what is necessary to keep the lights on and eventually sell the thing, we don’t need to worry about losing all our money. Of course there is risk, but I personally like the odds.
Ecuador is really hurting right now because of the oil price. It is one of the poorest and smallest OPEC members. This is one reason they are putting such a push on mining, which was apparent at the PDAC this year.
I know this sucks, but until the gold market changes, which could happen any time as it is long overdue, these stocks are simply going to sit there at these ridiculously low valuations.. As I said, earlier, I expect EGX to be one of the first gold deposits to sell, but we may not get a premium price as we would have in 2011, however, we will get a lot more than the current price.