RE:RE:RE:RE:News - Positive PEAWell here is my opinion....
You might not like to hear this, but Erdene has yet to find the motherlode. You talk to people close to the company, or in the company, and they know it is there. It has to be. They just haven't found it yet. This is a massive land package in an area that had never been explored. There have found high-grade pockets, but not the motherlode.
So there are two ways a company can go about finding the motherlode. 1) You can drill, drill, drill and dilute shareholders to pay for this. 2) You can build a small starter mine to get cash flow to fund future exploration.
Erdene has chosen the latter, which makes me happy as an investor. Will they sell or will they build, that is a question I haven't wrapped my head around yet. I am inclined to say build because they are starting to transition leadership into mining, not just geology/exploration.
The way I am looking at it is this company is valued at 50c per share ($US). So as I have more cash, I will continue to buy.