OTCPK:HCGI - Post by User
Comment by
JRaffleson Mar 19, 2017 6:30am
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Post# 25998819
RE:I do know they likely piled into both Pretium and Wesdome...
RE:I do know they likely piled into both Pretium and Wesdome... Wesdome is clearly a market favourite at the present time, as a result of its highly positive drilling at its mothballed Kiena mine.
Last month I was undecided about making a first investment in Wesdome or increasing my KL holding. I decided to increase my KL holding for the following reasons:-
- Wesdome's high grade drillings at Kiena require a startup in production an huge new capital in order to generate income. In contrast, KL's superb drill returns from Fosterville in January are near shovel ready for exploitation.
- Wesdome's market cap is C$573m for a company producing 47k ounces of gold. In contrast, KL's market cap is C$1,87b for a company already producing 500k ounces of higrade ore. If KL were to be valued on the same cap per production ounces as WDO, then KL would be valued at 10 time the WDO cap = C$5.73b.
It seems that the market can be irrational in the short term