Agree there are cycles here, much like seasonsI share the red ink on many positions. I find explorers like NUG hard to exit/enter because major news comes without warning. But that is part of the reason I/we invested. Newmont and Barrick have fewer big surprises. Electric Utilities have less, and companies that produce soap and toilet paper have very few surprises. All of those have less upside potential.
Newmont & Barrick have intentionally outsourced risk to explorers like NUG. Then they come in and buy up only the winners. Barrick's strict discipline was just demonstrated as they passed on the private placement. For that matter, Newmont could have participated. It isn't their business model.
I am relieved knowing that NUG top management, board members, and some geo-technical staff all found value:
1. recently,
2. at nearby higher levels, and
3. put their own cash into NUG.
4. Further, many of them receive incentive options at no cost, and
5. They can't sell witout a lot of scrutiny, whereas I/we can.
I doubt at the time they bought more, they'd seen any assays the rest of us have not seen. Although those in the field have seen drilling, raw cores, geology, and geo magnetic type tests like those announced at VIO. It wouldn't surprise me if they examine or spot check cores. They clearly have more expertise.
Three other points. First, I am a encouraged that the price declines in gold have accelerated. The pain will be over sooner, and it may be becoming a compressed spring.
Second.I doubt I can list all the pending news. But here's some:
- Phase 1 Summer drill results, around 7 holes (?)
- Phase 2, Summer drill plans, based on phase 1 results.
- VIO drill plans and/or Fall drill plans if they differ.
- Results from each of those, Phase 2, VIO, Fall.
- At some point, we may learn the identity of the Europe Fund that bought near 1 %, and even who took the remaining 3/4th of a million in the private placement. I am consoled that both did.
- We may also learn which insiders placed fresh bets on NUG, & how big.
- We should all take comfort knowing that some have bigger bets on NUG's success than ourselves.
Third, all of this news will potentially be released into an environment where:
1. Waterton isn't dumping shares daily for two years.
2. Gold isn't trading sideways like it has for two years.
3. Gold isn't plunging like it has recently.
4. Instead, gold is working its way higher.
5. News with that background could be pretty sweet.
It isn't hard to imagine some new institutional investment coming in, in this type of environment.
The fuse is lit. Albert, should you ever want to repeat that, feel free.
Cheers,