RE:RE:RE:RE:RE:RE:The Rhino and the CatRhino10 wrote: TX Read Buffets comments on gold - I think he has changed Cramers mind -has a sell on gold stocks including KL. I still love gold -like fondling it but if you read Hot Copper you will see noone shares your grand vision for NVO because there are practical reasons you dont seem to understand why it is impossible to implement your vision in a reasonable time frame notwithstanding it possibly will happen in 3-5 years. In contrast Artemis can be producing gold quickly now and going on the takeover trail with a huge war chest of cash if Lady Luck smiles on all the ground it controls. Then NVO will be the bridesmaid and ARV the bride.
I don't understand this logic at all. Value isn't created only when something is mined. Value is created with positive ROI efforts such as exploration too. Care to guess the ROI difference of $1M exploration expenditures in the hands of QH, John and Kas versus Mead? What great discoveries and value creation has ARV done in the last few months? I don't see them de-risking multiple prospects in the basin.
Even when discounting a possible production date difference between the two companies, that isn't a big deal when calculating the discounted NPV cash flows for a long term gold mining scenario.
And if I was a major gold company, I would be looking for gold resources and inferred potential, not buy a junior just because they have an old plant that could be up and running within a year.
A lot of things can change this year alone. Saying that the weather tomorrow will be the same as today isn't really an investment philosophy I adhere too in the case of Pilbara. We have no idea what is going on behind the scenes and what the time frames will be for different aspects.
Saying ARV is worth a lot just because they might have some gold production up within a year is IMHO missing the forest for the tree(s).
HH